The Treasury is considering proposals to freeze private rents in England for up to one year as part of measures to address cost of living pressures, according to reports.
The Guardian reported that Chancellor Rachel Reeves is exploring the plans amid concerns about the economic impact of the conflict in Iran on household finances, including rents and mortgage costs. The proposed freeze would temporarily prevent landlords from increasing rents, adding to planned changes to the private rented sector.
The Treasury declined to comment on what it described as “speculation”. Ministers are understood to be exploring short-term measures to ease financial pressure on households as economic uncertainty intensifies ahead of local elections.
Policy debate
George Bangham, head of social policy at the New Economics Foundation, noted that England operated rent controls from 1915 until 1989. “We have an affordability crisis in the private rented sector, which dates back to before the pandemic. Other countries in western Europe already do this,” he said.
Robert Colvile, head of the Centre for Policy Studies, opposed the measure, describing it as “a mind-boggling scale of intervention in the private market”. He argued that the government should “build an awful lot more houses” to bring rents down.
Market implications
The discussions come as the rental market faces ongoing affordability challenges, with potential implications for broader economic forecasts. New-build properties could be exempt from the freeze to avoid discouraging development, according to the reports.
Labour has committed to delivering 1.5 million homes during this parliament, though current output remains significantly below that target. The proposed freeze would be temporary, reflecting what ministers describe as exceptional economic conditions linked to rising inflation and disruption to global energy supplies.
The policy discussions occur as reforms to the rental sector continue to reshape the market landscape. A report commissioned by Labour in opposition, led by Stephen Cowan, proposed rent caps linked to inflation or wages, but the policy was not adopted and is not part of the renters’ rights reforms being introduced this week.
Political context
The measure is one of several options under consideration as the government responds to political challenges ahead of local elections, where Labour faces potential competition from the Green Party of England and Wales, which supports rent controls.
The National Residential Landlords Association has stated that rent controls would “backfire and prove a disaster for renters”, though the government has not confirmed whether it will proceed with the proposals.