Berlin-style rental rate freeze could save tenants thousands

June 19, 2019

Last week the German finance minister Olaf Scholz voiced his support of a controversial five-year rent freeze to tackle the rising cost of living in Berlin so that the city doesn’t ‘end up like London’. While shares in German property groups have since plummeted, leading UK room share platform, ideal flatmate, has looked at what a similar initiative could mean for UK tenants.

In the last five years, London rents have increased from an average of £1,530 a month to £1,679 – an increase of 2.44% annually. Should this growth trend persist for a further five years, it would push the average rent in the capital to £1,894 a month.

However, the implementation of a five-year rental rate freeze would see London tenants save a total of £7,620 in rental costs.

Tenants in Newham stand to save the most, with rents increasing by 6.95% on average in the borough over the last five years, an increase of £329 in the monthly rent. If this continues, the average rental price could hit £1,977 a month in five years, but a freeze would see tenants save a notable £19,413 as a result.

A five-year rental rate freeze would also see a five-figure saving for tenants in Barking and Dagenham, Hackney, Waltham Forest, Tower Hamlets, Redbridge, Kensington and Chelsea, the City of London, Havering, Lewisham, Southwark, Enfield and Ealing.

While the capital is home to the highest rental costs in the UK and would remain the least affordable over the next five years, higher rental growth rates in other major regional cities mean that tenants outside of the capital could also stand to save big due to a rental rate freeze.

Oxford tenants would benefit with a rental freeze saving totalling £17,746 over the next five-years. The average rent in Oxford over the last five years has increased at an average of 7.3% a month, second only to Manchester at 8%, which could see Oxford’s rental costs hit £1,741 a month.

Bristol has also seen a sharp increase in rental prices, up 6.75% annually over the last five years. A similar growth trend would see the average monthly rent hit £1,489 however, a five-year rental freeze would save tenants a total of £14,294. Tenants in Manchester, Oxford, and Newcastle would also enjoy a five-figure saving.

Co-founder of ideal flatmate, Tom Gatzen, commented:

“The figures suggest that should such a rental rate freeze be introduced in London and the wider country, the saving for tenants could be considerable. This saving could go some way towards a mortgage deposit and a foot on the ladder, while at the same time helping to alleviate some of the pressure on the rental sector.

Any pro-tenant initiative can, of course, be viewed as a positive, but the mere suggestion of a rental rate freeze in Berlin seems to have sent the property market into meltdown. There is every chance that the same could happen here as a recent string of government changes to the buy-to-let sector have already diminished landlord confidence levels.

This further dent on profitability could see more opt to invest elsewhere, however, the meteoric rise of the build-to-rent sector is providing a viable alternative to traditional stock supply and could therefore be the answer, stomaching a static rate of rental growth far better without any detriment to the tenant.”

Example of how total rental saving was calculated using England data.
English rental growth and predicted saving of a rent freeze
 
Year
Average Rental Cost
 Annual Change
Annual Saving**
 
2014
£742
2015
£788
6.20%
2016
£839
6.47%
2017
£831
-0.95%
2018
£844
1.56%
2019*
£872
3.32%
Average Annual Increase (2014-18)
£336
2020*
£901
3.32%
£684
2021*
£931
3.32%
£1,043
2022*
£962
3.32%
£1,414
2023*
£994
3.32%
£1,797
Total Saving
£5,274
 
* shows predicted rental growth based on previous average annual increase and the saving as a result of a rental rate freeze.
** annual saving is the saving between the average monthly rent in each year and the average monthly rent in 2018, multiplied by 12.
 
Rental rate freeze saving by region
 
Area
2014
2018
Average annual increase
2023 Average
Total Saving
ENGLAND
£742
£844
3.32%
£994
£5,274
EAST
£705
£859
5.10%
£1,101
£8,438
LONDON
£1,530
£1,679
2.44%
£1,894
£7,620
SOUTH EAST
£873
£984
3.08%
£1,145
£5,693
SOUTH WEST
£695
£796
3.45%
£943
£5,181
EAST MIDLANDS
£542
£616
3.25%
£723
£3,767
WEST MIDLANDS
£577
£643
2.75%
£736
£3,301
NORTH WEST
£541
£605
2.84%
£696
£3,210
NORTH EAST
£490
£539
2.43%
£608
£2,437
YORKSHIRE AND THE HUMBER
£553
£587
1.52%
£633
£1,634
Rental rate freeze saving by London borough
 
Area
2014
2018
Average annual increase
2023 Average
Total Saving
Newham
£1,084
£1,413
6.95%
£1,977
£19,413
Barking and Dagenham
£895
£1,193
7.57%
£1,719
£18,000
Hackney
£1,545
£1,856
4.86%
£2,353
£17,326
Waltham Forest
£1,036
£1,303
6.06%
£1,749
£15,422
Tower Hamlets
£1,482
£1,762
4.53%
£2,199
£15,269
Redbridge
£1,003
£1,267
6.15%
£1,708
£15,234
Kensington and Chelsea
£3,030
£3,173
2.35%
£3,564
£13,861
City of London
£1,971
£2,189
3.27%
£2,572
£13,478
Havering
£913
£1,135
5.64%
£1,493
£12,423
Lewisham
£1,065
£1,280
4.83%
£1,620
£11,868
Southwark
£1,496
£1,705
3.46%
£2,021
£11,122
Enfield
£1,150
£1,357
4.30%
£1,675
£11,112
Ealing
£1,338
£1,532
3.48%
£1,818
£10,056
Wandsworth
£1,670
£1,855
2.81%
£2,131
£9,739
Croydon
£974
£1,133
3.92%
£1,373
£8,428
Harrow
£1,203
£1,359
3.22%
£1,593
£8,229
Greenwich
£1,235
£1,392
3.11%
£1,622
£8,119
Lambeth
£1,519
£1,670
2.44%
£1,884
£7,573
Richmond upon Thames
£1,917
£2,000
1.96%
£2,204
£7,249
Hillingdon
£1,117
£1,245
2.92%
£1,438
£6,804
Brent
£1,448
£1,582
2.31%
£1,773
£6,779
Haringey
£1,385
£1,520
2.38%
£1,710
£6,716
Islington
£1,774
£1,904
1.90%
£2,091
£6,661
Bexley
£902
£1,026
3.43%
£1,214
£6,622
Sutton
£1,003
£1,114
2.78%
£1,278
£5,788
Hammersmith and Fulham
£1,892
£2,005
1.56%
£2,167
£5,764
Westminster
£2,651
£2,709
1.02%
£2,850
£5,031
Camden
£2,046
£2,117
1.27%
£2,255
£4,910
Merton
£1,487
£1,576
1.67%
£1,712
£4,833
Bromley
£1,160
£1,250
1.89%
£1,373
£4,368
Barnet
£1,461
£1,535
1.55%
£1,657
£4,364
Kingston upon Thames
£1,337
£1,355
0.49%
£1,388
£1,199
Hounslow
£1,381
£1,296
-1.16%
£1,222
-£2,670
Rental rate freeze saving by city
 
Area
2014
2018
Average annual increase
2023 Average
Total Saving
Cambridge
£934
£1,224
7.30%
£1,741
£17,746
Bristol
£828
£1,074
6.75%
£1,489
£14,294
Manchester
£609
£824
8.00%
£1,211
£13,206
Oxford
£1,177
£1,402
4.64%
£1,759
£12,458
Newcastle upon Tyne
£549
£713
7.31%
£1,014
£10,342
Nottingham
£520
£670
6.74%
£928
£8,901
Bournemouth
£712
£862
5.02%
£1,101
£8,339
London
£1,530
£1,679
2.44%
£1,894
£7,620
Portsmouth
£684
£784
3.56%
£934
£5,270
Leicester
£489
£585
4.61%
£733
£5,162
Birmingham
£623
£710
3.34%
£837
£4,457
Liverpool
£426
£499
4.21%
£613
£3,997
Sheffield
£537
£613
3.41%
£725
£3,936
Southampton
£741
£788
1.57%
£852
£2,274
Plymouth
£586
£578
-0.34%
£568
-£353
Leeds
£928
£762
-3.93%
£624
-£5,110

 

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Breaking News

Fewer than 3% of London rental homes available

The latest research from Benham and Reeves has found that fewer than 3% of London’s private rental homes are currently available to tenants, highlighting the severe lack of supply across the capital at a time when further legislative changes could place additional strain on supply within the sector. Benham and Reeves analysed current rental market…
Read More →
Adding second coat of varnish floor boards
Home and Living

Cottagecore Design

The term “cottagecore design” has risen by 100% since November 2025, with the term “cottagecore” itself now getting nearly 10,000 searches (9,900), according to Traditional Beams. Cottagecore refers to an aesthetic that romanticises simple, rural and sustainable living, popularised on platforms such as Instagram and Tiktok, and embraces a cosy and pastoral lifestyle. However, while…
Read More →
Estate Agent Talk

Property specialist predicts spike in traditional interiors after Bridgerton hit

With Bridgerton Season 4 debuting with an impressive 39.7 million views in its first week on Netflix, property specialist predicts that traditional interiors will be the biggest renovation trend of 2026. Mitchell Martyn, Property Finance Specialist at Pure Property Finance, predicts that the appetite for traditional, heritage-inspired interiors is set to surge once again. As…
Read More →
Breaking News

Reduced supply of homes to landlords selling up

2025 saw Westminster enact one of the biggest changes to England’s private rental sector in decades via the Renters’ Rights Act, and it has already triggered a mixed response from those working in the property industry alongside landlords. One of the biggest changes includes the retirement of section 21 ‘no-fault’ evictions. This is a move…
Read More →
Estate Agents should not all look the same
Letting Agent Talk

The Art of the Add-On: 5 Simple Ways Letting Agents Can Upsell in 2026

Letting agents are brilliant at delivering value, but not always brilliant at charging for it, according to Sally Lawson… Here are her five simple steps for charging for what you’re worth (and more) this year. “Far too many agents bundle services together, do the extra work, solve problems, take calls, fix issues. And they never…
Read More →
Rightmove logo
Breaking News

Rightmove reaction to the Bank of England Base Rate decision

Matt Smith, Mortgage Expert at Rightmove, said: “Today’s decision to hold the Bank Rate was widely expected, and for most homeowners and home‑buyers, there’s no immediate change to worry about. For those looking to secure a new mortgage rate or coming up to remortgage, even small rises in rates can have a real impact on…
Read More →