Prime Minister Andy Burnham is expected to abandon plans for rent controls as part of his cost of living package after concerns from government officials over their potential effects on the private rental market.
Rent Freeze No Longer Under Active Review
Burnham had suggested earlier this week that measures affecting rent, energy bills and transport costs were being considered as part of a wider effort to ease pressure on households.
The Prime Minister said he wanted policies that would provide quick support for people facing rising everyday expenses, while acknowledging that no single measure could resolve all financial pressures.
However, officials are no longer actively examining rent controls as part of the package, according to reports. The Government has already announced other measures, including a reduction in VAT on electricity bills and a new £2 cap on bus fares.
Housing Ministers Warn Against Rent Controls
The Ministry for Housing, Communities and Local Government has previously expressed reservations about rent controls, favouring reforms introduced through the Renters Reform Act instead.
Early figures following the introduction of the legislation showed that landlords were increasing rents at a slower pace, with letting agents reporting that rent rises were 23% lower compared with the previous year.
Housing Secretary Angela Rayner has also previously opposed rent controls. Her position is shared by housing minister Matthew Pennycook, who has warned that international evidence suggests such policies could create negative consequences for rental markets.
A recent report from the Housing, Communities and Local Government Select Committee, chaired by new housing minister Florence Eshalomi, also raised concerns about the possible effects on the supply of affordable rental properties.
Debate Over Effects on the Private Rental Market
Supporters of rent controls argue that they can provide immediate relief for tenants facing rising housing costs. Critics argue that long-term controls could discourage landlords from remaining in the market, reduce the number of available rental homes and affect investment in new properties.
Opponents also warn that restrictions on rents could create difficulties for landlords facing higher costs, including maintenance expenses and mortgage payments.
Policy Previously Considered by Labour
Rent controls were briefly examined earlier this year by former Chancellor Rachel Reeves, who said the Government should consider all possible measures to reduce living costs for private renters.
The idea was later rejected by former Prime Minister Sir Keir Starmer, while several Labour figures have expressed concerns about the policy. Lisa Nandy, now Culture Secretary, previously described rent freezes as a short-term solution that could create further problems in the housing market.
The National Residential Landlords Association has also criticised rent controls, arguing they could reduce rental supply and make it harder to meet housing needs. The decision to remove rent controls from consideration highlights the Government’s attempt to balance immediate cost-of-living support with concerns about the long-term stability of the private rental sector.
