Proposals for a one-year rent freeze are set to collide with landlord pricing strategies already being shaped by incoming regulation and rising costs.
Property Soup reported yesterday how Chancellor Rachel Reeves 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.
New data from Pegasus Insight shows 61% of landlords are planning to increase rents over the next 12 months, with three in four attributing this to the impact of the Renters’ Rights Act 2025.
The findings highlight growing tension between policy intervention and landlord business planning, as the sector prepares for significant regulatory change from May.
UNPRECEDENTED INTERVENTION
Landlords are already adjusting pricing to reflect higher compliance costs and reduced flexibility under the new framework, raising questions over how a rent freeze could be implemented without further disrupting supply.
Mark Long (main picture, inset), Founder and Managing Director at Pegasus Insight, says: “A rent freeze would represent unprecedented intervention in the private sector, thwart the business plans of the majority of landlords and potentially force some out of business.
“Landlords are not setting rents in a vacuum. Many are already factoring in the impact of the Renters’ Rights Bill, alongside higher costs, and that is feeding directly into pricing decisions.
“Introducing a rent freeze into that environment could be the straw that breaks the camel’s back for those already struggling to balance the books.”
