Key facts
- Housing Secretary Angela Rayner has ruled out rent controls in England.
- Rayner stated that the Renters' Rights Act, implemented in May, is already impacting the market significantly.
- She indicated that rent controls in other UK regions have not necessarily lowered rents.
- Former Greater Manchester Mayor Andy Burnham had previously advocated for rent freezes during the cost of living crisis.
- Scotland has new legislation allowing ministers to designate rent control areas with caps on rent increases up to 6% by 2027.
- The Renters' Rights Act banned fixed-term tenancies and made evictions harder, allowing rent increases only once a year.
Housing Secretary Angela Rayner has stated that the government is not considering rent controls for England, asserting that the recently implemented Renters' Rights Act is already addressing market needs. Rayner told BBC Breakfast that while rent freezes were previously called for by Prime Minister Andy Burnham during a rental market crisis, the new legislation provides renters with more power and security. She expressed skepticism about the effectiveness of rent controls, noting they have not necessarily led to lower rents in areas where they have been applied.
Scotland has introduced new legislation that will allow ministers to designate rent control areas, with rent increases capped at a maximum of 6% by 2027. This contrasts with England's approach, which Rayner defended by highlighting the Renters' Rights Act. This act, effective since May, banned fixed-term tenancies, made evictions more difficult, and permits rent increases only once annually based on open market rates. The legislation aims to provide greater stability for the 11 million people renting from private landlords.
Green Party leader Zack Polanski criticized Rayner's stance, describing it as 'continuity Starmer' and arguing that rent controls would be the most effective measure to help with the cost of living crisis. Sir Sadiq Khan, the mayor of London, has also long called for government-implemented rent caps. Landlord groups, however, suggest that rent controls could worsen the housing crisis by discouraging property owners from renting out their properties.
Rayner also addressed the government's target of building 1.5 million new homes by 2029, admitting it has become more challenging due to rising construction costs. She affirmed her commitment to the target despite the difficulties. Burnham, in his capacity as Prime Minister, has pledged to lead a 'cost of living government' and has already announced measures such as cutting VAT on household energy bills and restoring a £2 bus fare cap.