In response to a question by Bell Ribeiro-Addy about the impacts of rental inflation on economic growth, Reynolds said: “Rental prices are ultimately determined by the total supply of housing, relative to demand.

“Affordability of housing has fallen drastically, particularly in major cities, as too few homes have been built.”

This admission has been seized upon by the National Residential Landlords Association (NRLA) which has long employed a stance that PRS supply needs to be improved.

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Here, the NRLA has highlighted government data that showed signs this issue will likely worsen with 31% of landlords recently confirming they were more likely to reduce the number of properties they let.

This was a higher proportion than the 22% and 16% recorded in 2021 and 2018, respectively.

“The minister is right - rents are going up because there are simply not enough properties to meet demand, and measures proposed by the government are going to worsen an already dire situation,” said Ben Beadle, CEO at the NRLA.

“The government needs to address the shortage of homes for private rent as the only viable route for improving affordability in the sector. Until it does so, it will be tenants that continue to suffer the consequences of the rental housing supply crisis.”