Chancellor Rachel Reeves (main picture, inset) is considering a one-year rent freeze for England’s private rented sector as ministers scramble to contain the cost-of-living impact of the Iran conflict.
The Guardian reports that under proposals being discussed within government, landlords would be temporarily barred from increasing rents as part of a wider support package expected in the coming weeks.
The move would mark a sharp shift from Labour’s current stance, with rent controls notably absent from the incoming Renters’ Rights reforms due this week.
Sources suggest growing concern over rising inflation, energy costs and mortgage pressures linked to the war has prompted ministers to explore more interventionist measures.
NEW-BUILD EXCLUSION
The policy is said to be at an early stage, though a full freeze for 12 months is understood to be Reeves’ preferred option.
Any cap is likely to exclude new-build homes in an effort to avoid deterring development, as Labour pushes towards its target of delivering 1.5 million homes this parliament.
The idea has split opinion. Supporters argue rent controls could provide immediate relief for tenants facing affordability pressures, while critics warn they risk stalling supply by discouraging investment in new housing.
Prime minister Keir Starmer has already signalled households may need to adjust spending as the conflict continues, amid forecasts of rising inflation and weaker growth.
The Treasury declined to comment, describing the plans as speculation.
ALARMING
Timothy Douglas, Head of Policy and Campaigns at Propertymark, says: “With the UK Government introducing huge regulatory change through the Renters’ Rights Act, which will ultimately mean less flexibility and higher costs for landlords and tenants, it is alarming to hear reports that the Chancellor is considering additional rent control measures – particularly when Housing Ministers have recently publicly denounced their role.
“Evidence from across the UK, particularly in Scotland, shows rent controls restrict supply, deter investment, and reduce choice for tenants. Singling out landlords to solve the cost of living is not the answer.
“Rent controls risk distorting the market and undermining investment at a time when demand already far outstrips supply.
“If the UK Government is serious about improving affordability, it must focus on increasing housing supply and supporting long-term investment in the private rented sector, rather than introducing measures that will ultimately make it harder for renters to find a home.”
