The government has definitively ruled out the introduction of rent controls in England, with Housing Secretary Angela Rayner stating that such measures are not currently considered a viable path forward. Her comments appear to contradict a position previously held by Prime Minister Andy Burnham, who, as Mayor of Greater Manchester in 2023, called for a freeze on private sector rents during the cost of living crisis.
Speaking to the BBC, Ms Rayner emphasised the government's commitment to the reforms already brought about by the Renters’ Rights Act, which came into force in May of this year. She asserted that the legislation was already having a "significant impact" on the private rented sector and questioned the overall effectiveness of rent control schemes, citing their performance elsewhere in the UK.
The Renters’ Rights Act introduced several key changes aimed at strengthening tenant protections. Notably, it stipulates that rents can only be increased once a year, and only to the property’s "open market rent". The government's stance suggests a continued reliance on these measures as the primary mechanism for regulating the private rental market, rather than implementing broader price caps.
Ms Rayner acknowledged the context of Prime Minister Burnham’s earlier call for a rent freeze, explaining that it was made three years ago during a period of acute crisis in the rental market. She contended that the subsequent implementation of the Renters’ Rights Act has since provided renters with "more power and control," mitigating the need for more stringent rent controls.
The decision has drawn criticism from some quarters. Jeremy Corbyn, the former Labour leader who advocated for rent controls in the 2019 general election, described Ms Rayner’s announcement as "extremely disappointing." He argued that without action against what he termed "extortionate private rents," there was "no hope of ending homelessness" and reiterated his call for immediate rent controls. While temporary rent controls were introduced in Scotland in October 2022, these expired last year, although new legislation there is expected to allow ministers to designate specific rent control areas by 2027.