“At a time when demand for rental housing continues to significantly outweigh supply, we agree with the Housing Minister’s view that any form of rent controls would make life more difficult for renters.
“Even if these reports prove to be speculation, it is reckless for this kind of uncertainty to be created in the same week that major reforms already causing concern among landlords come into force. For many, it may be enough to conclude that this is the moment to exit the private rented sector for good.”
New-build homes are expected to be exempted from any freeze, in an effort to avoid deterring developers from continuing with housing schemes. Labour has pledged to deliver 1.5 million homes during this parliament, but current delivery levels are understood to be around a third below the rate needed to meet that target.
Ministers hope a package aimed at household costs could help stabilise Starmer’s position after next month’s local elections, where Labour is expected to lose seats. Some urban councils are expected to move to the Green party, increasing concern among Labour MPs about support shifting to the left.
The Greens have proposed rent controls in England and Wales. Other countries have also moved towards rent controls. In Scotland, MSPs have passed legislation allowing ministers to cap rents in certain areas. Spain has introduced a temporary measure that lets renters seek a rent freeze for up to two years.