For a brief period at the end of April this year, speculation was bubbling that Chancellor Rachel Reeves might announce a rent freeze to help with the cost of living.
The suggestion was quickly and comprehensively hosed down by Downing Street, who said that is ‘not the approach we will be taking’.
Speaking to Metro at the time, Housing Secretary Steve Reed went further, suggesting he didn’t think ‘anyone sensible’ would want to see controls on rent introduced anywhere in the country.
‘I can see why it sounds attractive, but you’ve got to look at what happens in practice, and it did the opposite of what people thought it would do so that isn’t the right way to go,’ he said.
Just over four months later, the picture is looking very different.
Sir Keir Starmer has resigned as Prime Minister, and the man almost certain to replace him has made no secret of his interest in rent controls.
As Mayor of Greater Manchester, Andy Burnham called on the government to freeze private sector rents in a 2023 letter to then-Housing Secretary Michael Gove.
The move would ‘immediately relieve pressure on millions of people and halt an eviction crisis that would have a devastating social impact’, the letter – also signed by the mayors of Liverpool and London – argued.
And while not explicitly pledging to introduce controls, Burnham lamented that the government is ‘forced to chase rents in the private-rented sector through the benefits system’ in his speech at the People’s History Museum in Manchester last week.
He also said he believed ‘public intervention where necessary’ could ‘kickstart the process of change’.
Burnham’s words have energised campaigners for rent controls, including the Renters’ Reform Coalition which was at the forefront of the push for measures later passed in the Renters’ Rights Act.
Director Clara Collingwood said rising rental costs ‘drain spending out of our high streets and local businesses to sit in landlords’ bank accounts’.
She told Metro: ‘Any attempt to improve living standards that doesn’t tackle this head on is like trying to fill a leaking bucket.
‘The government must introduce a cap on rents to give people security in our homes and support happier, more stable communities.’
A spokesperson for London Mayor Sadiq Khan, also a long-term advocate for rent controls, pointed towards the 6,000 rent control homes for key workers that are planned for the capital.
He added: ‘The next step is for ministers to devolve the power to cap rents so we can tackle the capital’s problems of both affordability and supply.
‘And the evidence is clear – Londoners would overwhelmingly back new plans to put a cap on rent increases in the capital.’
Burnham, who could become PM as soon as July 20, has put devolution at the heart of his plans for government – meaning he may prefer to give local mayors the power to cap rents rather than impose it from No 10.
However, not everyone is keen for him to make the move.
Chris Norris of the National Residential Landlords Association said the ‘fastest way to cripple investment and deepen the UK’s ongoing supply crisis would be to introduce rent controls in any form’.
He added: ‘Wherever these measures have been introduced the consequences have been the same: reduced investment in rental properties, less choice, and worse outcomes for tenants.
‘The most effective way to address the chronic shortage of available rented accommodation is for the Treasury to put effective, impactful pro-growth policies in place which encourage landlords to stay in the market to let the rental properties so many tenants need.’
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In his interview with Metro from April, Reed argued that rent controls introduced by the SNP and Greens in Scotland led to a ‘massive increase in rents’ each time tenants moved out, as well as a reduction in available homes.
He said: ‘We’ve got a housing crisis, we’ve got a cost of living crisis – the last thing we want is rents going up and fewer homes becoming available for people to live in.’
Some campaigners call for a cap on rent rises between tenancies, similar to the rule in the Renters’ Rights Act preventing hikes in rent for sitting tenants, to avoid that scenario.
A spokesperson for Andy Burnham said: ‘Andy has been clear that Britain needs a fundamental shift of power out of Westminster and into its regions and nations, giving local leaders the tools they need to grow their economies, improve public services and tackle the pressures facing their communities.
‘He believes London should have a new devolution settlement, alongside stronger powers for every part of the country.
‘The detail of any new powers will be worked through and Andy will not be setting out specific proposals at this stage.’
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