Housing Minister rules out rent controls despite pressure from Sadiq Khan

Housing Minister Matthew Pennycook says introducing rent controls will make life more difficult for renters and landlords.

In response to a written question, Mr Pennycook says the government has no plans to introduce rent controls.

The news comes after London Mayor Sadiq Khan claimed the “power to cap rents” is top of his list under new devolution powers.

Government does not support rent controls

In response to a written question from Shadow Housing Secretary James Cleverly about whether the Ministry of Housing, Communities and Local Government had assessed the potential impact of rent controls on the housing market, Mr Pennycook said that the government does carry out research, but rent controls are not on the government agenda.

He said: “My Department regularly reviews external research and evidence related to various aspects of the private rented sector.

“The government has been clear it does not support the introduction of rent controls, including rent stabilisation measures.

“We believe they could make life more difficult for private renters, both in terms of incentivising landlords to increase rents routinely up to a cap where they might otherwise not have done, and in pushing many landlords out of the market, thereby making it even harder for renters to find a home they can afford.”

Sadiq Khan pushing for rent controls

As previously reported on Property118, under the proposed devolution bill, mayors can request powers from the government, including powers to cap rent increases.

Mr Khan campaigned for rent controls during his London Mayoral campaign and last month claimed he’s been lobbying to have rent controls.

However, Mr Khan admitted that, in his conversations with the Labour government, ministers had been “not keen” on rent controls but said he would keep trying.