Angela Rayner rules out rent controls in England

Despite Prime Minister Andy Burnham saying rent controls were being considered for England’s landlords, the new Housing Secretary Angela Rayner says a rent freeze will not be brought in.

Speaking on BBC Breakfast, she said the idea was not being pursued amid concerns that the measures could damage the private rented sector.

She said: “I don’t think that rent freezes, rent controls, is a way forward at the moment.

“Three years ago, Andy called for that because there was a significant crisis in the rental market.”

RRA impacting market

Ms Rayner added: “We implemented between then the Renters’ Rights Act which is giving renters more power and control.”

The Act came into effect in May and introduced changes affecting around 11 million people living in privately rented homes.

Landlords may increase rents only once a year and these must reflect the property’s ‘open market rent’.

Ms Rayner said the legislation was ‘already having a significant impact on the market’.

On Twitter/X, Green Party leader Zack Polanski wrote: “By ruling out rent controls, this new Labour government are already demonstrating that they have no interests in supporting struggling people in this country – but will always back the interests of the powerful and wealthy.”

1.5 million new homes

Ms Rayner was also questioned about the government’s commitment to build 1.5 million homes by the end of the Parliament in 2029.

Speaking to BBC Radio 4’s Today programme, she said higher construction costs had made the target harder to achieve.

She added: “1.5 million homes is a difficult target.

“It was when I made the target, but I’m going to keep the target, and I’m not going to be defeated.”

Freeze on private rents

Mr Burnham called for a freeze on private sector rents in 2023, while serving as mayor of Greater Manchester, arguing that households needed protection until the cost-of-living crisis had passed.

Ms Rayner said measures introduced elsewhere in the UK had not ‘necessarily brought rents down’.

Temporary controls were imposed in Scotland in October 2022 but expired last year.

New legislation will allow Scottish ministers to designate rent control areas, with the system expected to begin by 2027.

Councils in those areas will be able to limit increases on some properties to a maximum of 6%.

Green Party leader Zack Polanski has called for controls covering all privately rented homes in England, while London mayor Sir Sadiq Khan has repeatedly urged ministers to introduce a cap.

Landlord organisations have opposed the policy, arguing that limiting increases could persuade more owners to leave the sector and reduce the number of homes available.

No rent freeze welcomed

Vanessa Hale, the chief executive of Real Estate:UK, said: “Confirmation from the Housing Secretary that the government will not introduce rent controls is excellent news for the housing sector.

“RE:UK has consistently made the case and will continue to make the case, against rent controls, and most recently to the incoming Prime Minister, Chancellor and Housing Secretary, and we welcome that fact that Ministers have heeded our warnings about the harm they could cause to new homes and the jobs and economic benefits they bring.

“Improving affordability must remain the priority, but the answer is increasing the supply of homes, not introducing measures that risk deterring the investment needed to deliver them.”