What immediate action could tackle ‘out of control’ rent prices?

Published

1 year ago

March 21, 2024

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There was more bad news for renters this week as the Office for National Statistics (ONS) released their latest figures on price rises.

Private rent has rocketed again, with the average increase to monthly payments hitting 9% across the UK – despite inflation sitting at 3.4%.

And while average rents went up to £723 a month in Wales – a 9% rise – and £944 in Scotland – a 10.9% rise – the average each month in England reached £1,276 – up 8.8%.

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This is far from a new problem, as according to the ONS; the percentage increase on monthly rents has been gradually rising since May 2021 – following a drop during the pandemic.

There is an ongoing call for more houses to be built – and social housing in particular – but what could be done now to help those seeing their wages increasingly eaten up by putting a roof over their heads?

Generation Rent: ‘Out of control’

Generation Rent, a campaign group representing renters, says the market is “completely out of control”.

Speaking to Sky News, its policy and public affairs manager Connor O’Shea says: “Why are rent rises bigger than inflation? Because they can be.

“Landlords are being told and encouraged to put the rent up by whatever they want as there are so many people desperate for a home.”

Mr O’Shea says renters are being forced to view properties at the same time as other people to pile pressure on to make an offer, told to pay 12 months’ rent in advance to secure a property, and increasingly placed into bidding wars.

The campaigner is also warning of an increasing phenomena of what Generation Rent calls “economic evictions”, where landlords raise rents so astronomically, people are forced to move home.

Cap rents at local wage growth or inflation

The group has a number of policy proposals to help “slam the breaks” on the hikes, including introducing a mechanism where rent increases are capped by either the local wage growth figure or local inflation in specific areas.

They also want to see rent control powers devolved to regional mayors who could bring in measures in hot spots.

“There is an emergency in a lot of these places,” says Mr O’Shea. “The prices are unaffordable across the board, but in the inner cities there are real issues stemming off the back of these rent increases, driving people out of their homes.

“So… we don’t think rent controls should happen across the country, but perhaps in the worst hit areas of London, of Manchester, of Newcastle, wherever it may be, that local authority mayor could step in.”

NRLA: Use tax to boost rental sector

But the chief executive of the National Residential Landlords Association (NRLA), Ben Beadle, says the government needs to “play with the tax levers” and encourage more people into renting out homes to prevent further rises.

Speaking to Sky News, he says there has been “white hot demand” in the sector as landlords were “exiting in droves”, but their homes were not going back into the private rental market.

“According to Zoopla, landlords are getting 15 inquiries per property – double what is was before the pandemic,” he says. “So it is like surge pricing for an Uber. If more people are looking, the prices are going to surge.

“And the reason why landlords are exiting at such rates is the growing costs of mortgage rates.”

After the mini-budget of Liz Truss’ premiership, rates rocketed, hitting a high of 6.86% in July last year – compared to 2.34% in December 2021.

And while the rates have begun to subside, an average two-year fixed mortgage is still 5.79%.

The NRLA chief also points to a government move in 2015 to phase out the amount of tax relief landlords could get on their by-to-let mortgages, as well as the 3% stamp duty introduced on the purchase of long-term homes to rent.

Mr Beadle thinks taking immediate action on revising those tax changes would have an immediate impact on the price of rent.

Joseph Rowntree Foundation: The long awaited Renter’s Reform Bill

Senior economist for the Joseph Rowntree Foundation (JRF), Rachelle Earwaker, accepts there has been “some uncertainty” for landlords, and their costs have increased.

But she believes there is one measure that would “cost the government nothing” and totally change the market.

“Bring in the Renter’s Reform Bill,” she says, speaking to Sky News.

The Conservatives’ proposed legislation makes a number of promises around strengthening renters’ rights and includes a long-awaited ban on “no-fault” evictions, which allow landlords to claim back properties and remove tenants without giving a reason.

But despite first being proposed in 2019, it has still failed to make its way through parliament, and it is unclear when the legislation is set to return

Shelter: Limited in-tenancy rises

Shelter also wants to see the government make private renting “more secure and affordable”.

Similar to Generation Rent, the homelessness charity’s chief executive, Polly Neate, is calling for ministers to “limit in-tenancy rent increases to protect tenants from being forced out of their homes by a sudden and unexpected rent hike”.

But the Shelter CEO is joining JRF’s call for the Renter’s Reform Bill to be enacted, telling Sky News the government has to keep its promise to pass a “water tight bill”.

She says: “Private renting has reached boiling point. Decades of failure to build genuinely affordable social homes has made private renting the only option for many, and as a result, competition for overpriced and often shoddy rentals is fierce.

“Landlords can hike up the rent, safe in the knowledge that if their tenants can’t pay, they can issue a no-fault eviction with just two months’ notice and get a new tenant at a higher rent.”

She adds: “Getting rid of Section 21 no fault evictions will mean renters can challenge unfair rent increases without worrying about being slapped with a retaliatory eviction by their landlord.”

Generation Rent’s Mr O’Shea calls the bill the “elephant in the room” on how to fix rising costs, adding: “It is impossible to ignore this problem now. It is actually damaging to the economy as a whole, because if someone is paying 40% of their income on rent alone then they are not spending in other places.”

A Department for Levelling Up, Housing and Communities spokesperson said: “We recognise the cost-of-living pressures on tenants are facing, and our landmark Renters Reform Bill offers a new, fairer deal for tenants and landlords.”

Politics

Nasdaq files to list 21Shares Dogecoin ETF

Published

1 hour ago

April 29, 2025

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Nasdaq files to list 21Shares Dogecoin ETF

The United States exchange Nasdaq has asked regulators for permission to list a 21Shares exchange-traded fund (ETF) holding the popular memcoin Dogecoin, regulatory filings show.

The move follows 21Shares’ April 10 filing of its initial proposal to launch its Dogecoin ETF, shortly after similar applications from rivals Bitwise and Grayscale. The asset manager has also sought regulators’ permission to list ETFs holding other cryptocurrencies, including Solana (SOL), XRP (XRP), and Polkadot (DOT).

Nasdaq must gain approval from the Securities and Exchange Commission (SEC) before it can list and trade the fund. The request amounts to a regulatory review process that could determine whether Dogecoin becomes accessible to a broader range of investors through an ETF structure.

Onslaught of altcoin ETFs

Fund issuers requested to list dozens of altcoin ETFs after US President Donald Trump instructed the SEC to take a friendlier stance toward cryptocurrencies after his second term began in January.

As of April 21, more than 70 crypto ETFs were awaiting the SEC’s review. The list includes alternative layer-1 (L1) native tokens, such as SOL and Sui (SUI), as well as memecoins such as Bonk (BONK) and Official Trump (TRUMP).

While exchanges such as Nasdaq seek to list more crypto ETFs, they are also pushing for firmer US regulatory oversight of digital assets. In an April 25 comment letter, Nasdaq urged the SEC to hold digital assets to the same regulatory standards as securities if they constitute “stocks by any other name.”

Dogecoin utility

Dogecoin (DOGE) is a popular memecoin with a market capitalization of nearly $26 billion as of April 29, according to CoinGecko.

It is distinct from most other memecoins because DOGE is the native token of the Dogecoin network.

The proof-of-work blockchain network is designed as a faster, cheaper alternative to Bitcoin (BTC) for peer-to-peer payments.

It processed more than 40,000 transactions in the past 24 hours, according to data from Bitinfocharts.com.

In September 2024, blockchain developers QED Protocol and Nexus tipped plans to launch a layer-2 (L2) scaling solution designed to bring smart contracts to Dogecoin.

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Politics

UK gov’t proposes crypto rules in response to scams

Published

4 hours ago

April 29, 2025

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<div>UK gov't proposes crypto rules in response to scams</div>

The United Kingdom’s Treasury and Chancellor of the Exchequer, Rachel Reeves, have proposed new crypto rules aimed at “support[ing] innovation while cracking down on fraudsters.”

In an April 29 notice, the UK government announced draft rules for cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), that would bring “crypto exchanges, dealers and agents” in line with regulations, as many residents were “exposed to risky firms and scams.” It cited discussions with US government officials, including a proposed US-UK cross-border sandbox from the Securities and Exchange Commission’s Hester Peirce.

“Today’s announcement sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability,” said the notice. “The government will bring forward final cryptoasset legislation at the earliest opportunity, following engagement on the draft provisions with industry.”

Treasury and Reeves said the UK was committed to making the country a “global hub for digital asset technologies,” referencing the goals of the previous government under the Conservative Party. A 2023 consultation paper from Treasury proposed “bringing a wide range of cryptoasset activities” — including trading and issuing stablecoins — in line with UK regulations.

Praise from industry

In a statement shared with Cointelegraph, Ian Silvera, the associate director for the self-regulatory trade association CryptoUK, called the government announcement a “very much welcomed and a big victory” for crypto firms. However, he added that the industry could also benefit from regulatory clarity on liquid staking and DeFi.

“Though there has been good regulatory progress from the [Financial Conduct Authority], which published its crypto roadmap late last year, the UK government first committed to becoming a global crypto hub in 2022,” said Silvera. “Progress has been slow since then, but as the Chancellor has recognised herself the mainstreaming of the industry has continued, with now 12% of all UK adults owning some sort of crypto, up from 4% in 2021.”

The FCA plans to publish final rules on crypto sometime in 2026, setting the groundwork for the UK regulatory regime to go live. The roadmap to greater regulatory clarity in the UK could follow the European Union, which started to implement its Markets in Crypto-Assets (MiCA) framework in December.

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Politics

$649B stablecoin transfers linked to illicit activity in 2024: Report

Published

4 hours ago

April 29, 2025

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9B stablecoin transfers linked to illicit activity in 2024: Report

Cryptocurrency compliance firm Bitrace found that $649 billion worth of stablecoins flowed through addresses classified as high-risk in 2024, according to an April 29 report.

Bitrace defines high-risk blockchain addresses as those used by illegal entities to receive, transfer or store stablecoins.

Crypto compliance firms typically score crypto wallet addresses based on their likelihood of involvement in illicit activities. The higher the risk, the higher the likelihood of foul play, and the less likely compliant crypto businesses are to accept the assets.

Per the report, the amount accounted for roughly 5.14% of all stablecoin transaction volume in 2024. This is down 0.8% from 5.94% the previous year, but significantly higher than the 2.8% reported in 2022 and 1.63% in 2021.

$649B stablecoin transfers linked to illicit activity in 2024: Report — *Proportion of high-risk stablecoin transactions. Source:* *Bitrace*

Tron USDT tops high-risk transactions

Tron-based USDt (USDT) dominates high-risk stablecoin transactions, with Bitrace data indicating that well over 70% of the volume moved on the network. The remaining high-risk stablecoin transactions are mostly Ethereum-based USDt and a small amount of USDC (USDC).

A likely explanation for the prevalence of USDT is likely due to its larger market capitalization and adoption compared with other stablecoins. At the time of writing, CoinMarketCap shows that USDt has a market cap of over $148 billion, while USDC stands at over $62 billion.

Tron’s prevalence is not as easy to explain. Ethereum remains the more popular choice for most stablecoin users, with DefiLlama showing nearly $124.3 billion worth of stablecoins circulating on the network. Tron ranks second, with about $71 billion — almost 43% less than Ethereum.

When comparing USDT balances alone, Tron holds slightly more than Ethereum: 47.4% of USDT supply, versus Ethereum’s 45.44%.

Crypto gambling continues its rise

Bitrace also reported that in 2024, online gambling platforms processed $217.8 billion worth of stablecoins — a 17.5% increase over the previous year.

Once again, USDT also dominated this type of activity. Still, USDC’s market share is rapidly rising, clocking in at 13.36% in 2024.

The data follows recent reports that crypto casinos generated more than $81 billion in revenue in 2024, even as regulators in key jurisdictions continued to block access to the platforms, according to a new report.

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