The prospect of a rent freeze under Andy Burnham's administration has sent shockwaves through the property sector, sparking warnings that it could deter crucial investment needed to boost housing delivery. While no official confirmation has been made, media briefings this week have raised concerns among developers and investors about potential government intervention.
Lauder Teacher Associates, a leading property consultancy, has come out strongly against the idea of a rent freeze, branding it 'snake oil politics' that would worsen the problem of getting investors to finance new housing developments. According to Andrew Teacher, a founding partner at the firm, investment is critical for delivering new homes and driving economic growth.
Figures released by the government reveal a stark decline in housing delivery across England, with 208,000 homes completed during the 2024-25 financial year – a 16% drop on 2020 levels. Moreover, 'build to rent' starts plummeted by 80% last year. Lauder Teacher Associates estimates that new taxes have added an average of £76,000 to the cost of delivering each new property, further exacerbating challenges for developers.
Analysis of Ministry of Housing, Communities and Local Government data from May found that two-thirds of private tenants pay their rent as 'very or fairly easy', while a smaller proportion – 7% – reported finding it 'very difficult'. Additionally, Office for National Statistics data for the three months to May showed wages were rising faster than rents in England, with London recording the lowest rent inflation at 2.0%. Lauder Teacher Associates points out that previous rent restrictions in Scotland and Ireland discouraged investment rather than addressing affordability issues.
The consultancy cited a Scottish Government impact assessment published in March as evidence of this, which acknowledged that controlling rents had 'impacted on the attractiveness of Scotland as a place to invest in new homes'. The Green Party leader, Zack Polanski, and New York politician Zohran Mamdani have also advocated for rent freezes.