Housing Secretary Angela Rayner is reportedly facing increasing pressure to reverse her opposition to rent controls. A letter organised by Labour MP Chris Hinchliff, signed by 26 MPs, calls on ministers to introduce rent controls to address affordability issues in the private rented sector.
Last month, Ms Rayner ruled out the policy, stating that rent controls had not necessarily reduced rents in other areas and that the Renters’ Rights Act provided tenants with greater protection against excessive increases. The government has reiterated its position of having “no plans to introduce rent controls.”
New analysis from the Institute for Fiscal Studies (IFS) suggests that introducing rent controls in the UK could lead to a reduction in house prices and a decrease in the supply of available rental homes. IFS economists Matthew Oulton and Tom Wernham noted that international evidence indicates rent controls can reduce both the supply and quality of rental housing.
Kristine Ng, a partner at Morr & Co, highlighted that if returns become restricted for landlords, investment may shift elsewhere. She added that while rent controls might offer short-term protection for tenants, they risk discouraging investment in the private rented sector at a time when housing supply is already under pressure.