Andy Burnham reported to be considering a rent freeze

Landlords could face a rent freeze as Andy Burnham considers urgent measures designed to give households relief from the cost-of-living crisis.

The new Prime Minister confirmed that rent freezes were among several options being examined with the Treasury, alongside lower energy bills and caps on bus fares.

However, while speaking with reports after his Downing Street speech, he stopped short of confirming that the policy would go ahead.

Instead, Mr Burnham said colleagues are still finalising the details of a package intended to make a difference this year.

Measures to help families

According to the Daily Telegraph, he told reporters: “We are looking at measures that could make a difference this year.

“So, we are looking at all of those things, but we will make more announcements.”

Mr Burnham added: “It’s premature to say it will be any one of those particular things.

“We just want to do some things that people will feel and feel quite quickly.

“It won’t solve everything, it won’t take all of the pressure off, but it just shows the direction of travel and that we’re serious about helping them out.”

Landlord rent freeze fears

The comments came as Mr Burnham placed the cost of living at the centre of his first days in Downing Street, promising families ‘breathing space’ and measures that would ‘take the pressure off’.

The Times reports that the wider programme could include tax cuts for lower earners and free adult social care, while Mr Burnham has also pledged to remain within Labour’s existing fiscal rules.

For landlords, the suggestion of a rent freeze will revive concerns that ministers could intervene directly in the prices charged within the private rented sector.

A freeze would prevent affected landlords from increasing rents for a set period, regardless of changes to mortgage payments, insurance, maintenance costs or regulatory expenses.

Similar measures were introduced in Scotland in 2022, initially freezing most in-tenancy increases before moving to a system of caps.

Critics argue that the intervention discouraged investment and encouraged some landlords to leave.

Rent controls hit supply

Those concerns are emerging as the supply of homes to rent is already under pressure.

Fresh figures reported by the Telegraph suggest that the squeeze in London has deepened as landlords sell ahead of further reforms.

Also, The Spectator has warned that introducing rent controls could reduce supply further.

It argues that landlords would sell, tenants would become reluctant to move and asking rents on newly available homes could rise as owners attempted to recover their costs.

Its article also claims that buy to let mortgages could become more expensive if lenders judged the sector to be riskier following a landlord exodus.