The average renter works 125 days of the year just to pay their landlord, new analysis has revealed. It means that “cost of rent day” – the day when renters in England earn enough before tax to cover their annual rent bill – falls on May 6. The huge price illustrates the urgent need to provide more homes, according to think tank the Adam Smith Institute.

But it also highlights the dangers of measures to make life harder for landlords, which will simply drive them out of the market and push up rents even higher, the think tank says. James Lawson, Chairman of the Adam Smith Institute, said: “Renting in England has become eye-wateringly expensive. Our latest analysis exposes the severity of this crisis, particularly in our cities, London and the South East.

“This should not come as a surprise. Our housing market is by no means free – it’s shackled by regulations that empower NIMBYs at the expense of future homeowners.

“Many of the policies which are being widely touted as solutions, including rent controls, will only make things worse. Instead of engaging in more central planning and regulation, we must liberalise our planning system. A growing housing supply is the only sustainable way to cut renting costs.”

Construction of new homes in England has lagged behind population growth since the 1970s, causing a lack of supply of housing. The Adam Smith Institute is calling on the Government to make more use of “brownfield” land which may have previously been used by industry, but it also backs controversial measures including building housing on green belt land with local residents given a share of the profits and releasing all green belt land within a ten minute’s walk of a railway station for development.

Politicians warned that young people in particular were hit by the cost of housing. Jack Rankin, Conservative MP for Windsor, said: “Cost of Rent Day must serve as a wake-up call for politicians. If we’re serious about securing a better deal for renters and unlocking growth, then we must get Britain building.”

James McMurdock, Reform MP for South Basildon and East Thurrock, said: “This Cost of Rent Day highlights a growing crisis. For many hardworking young Brits, the dream of home ownership, or even starting a family, is drifting out of reach.

“We must act. That means building more homes, especially on brownfield land in our cities where demand is highest. Every young Brit should be able to aspire to what their parents and grandparents once took for granted: a decent home, a stable life, and a future worth investing in.”