Andy Burnham’s rent freeze hint is ‘snake oil politics’

Fresh uncertainty over a possible rent freeze could deter housing investment just as construction is falling, according to analysis of government figures.

The rent freeze proposal has not been officially confirmed, leaving landlords and investors to guess what may emerge.

Media briefings this week suggested that new Prime Minister Andy Burnham’s cost of living plans could include freezing rents.

Property communications consultancy Lauder Teacher Associates said repeated speculation about potential government intervention was damaging confidence among investors needed to finance new homes.

It also warns that the ‘constant yo-yo of uncertainty’ is now spooking investors.

Rent freeze claim is ‘snake oil politics’

One of the firm’s founding partners, Andrew Teacher, said: “A rent freeze pretends to solve an affordability problem the data says is easing by worsening the bigger problem we face: getting investors to the table.

“It is snake oil politics. If we want to deliver new homes and generate economic growth, investment is critical and this in itself will unlock more affordable homes as well as the rentals and first-time buyer pads we need.

“Rent caps sound great on a radio interview but the recent data shows the damage they create for no lasting political or economic gain.”

He added: “Whilst nothing has been ruled out, this constant yo-yo of uncertainty is itself damaging and enough to spook investors.

“We have seen over the past decade how kite-flying in the media rocks markets and this kind of schoolboy politics has no place in society.”

Paying rent is ‘easy’

The firm’s analysis of Ministry of Housing, Communities and Local Government data published in May found that two-thirds of private tenants described paying their rent as very or fairly easy.

A further 7% said meeting the cost was very difficult.

Figures from the Office for National Statistics covering the three months to May also showed wages rising faster than rents, according to the firm.

London recorded the lowest rent inflation in England at 2.0%.

Housing delivery falls

Mr Burnham’s intervention comes as housing delivery continues to decline.

England completed 208,000 homes during 2024-25, a fall of 16% compared with 2020.

Build to rent starts dropped by 80% during 2025, while new taxes are estimated by Lauder Teacher Associates to have added £76,000 to the cost of delivering each property.

The company also pointed to previous rent restrictions in Scotland and Ireland.

It said both had discouraged investment rather than solving affordability pressures.

A Scottish Government impact assessment published in March acknowledged that plans to control rents had ‘impacted on the attractiveness of Scotland as a place to invest in new homes’.

Rent freezes have also been promoted by Green Party leader Zack Polanski and Zohran Mamdani, who recently won an election in New York.