Why rent controls are the wrong answer to a housing shortage
4 weeks ago | 17 comments
Labour MP urges government to consider rent controls amid rising rents
12:01 AM, 2nd July 2026, 5 days ago
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A Labour MP is calling on the government to introduce rent controls to curb welfare spending.
Margaret Mullane, MP for Dagenham and Rainham, writes in LabourList that rent controls are needed to tackle soaring rents.
However, industry experts warn that rent controls do more harm than good.
Driving councils to brink of collapse
Ms Mullane writes in LabourList: “As well as the financial impact high rent is having on families who are struggling, high private sector rents are also having a massive impact on the nation’s welfare budget and driving so many councils to the brink of collapse.
“The Housing Benefit bill has ballooned to well over £30 billion a year, with the majority of this going to private landlords. In addition to this sum, a further £3 billion is paid by local authorities on top of the HB payments.
“Given the focus that exists on curbing welfare spending as well as seeking ways to ease the cost of living, now is the time to look again at rent controls.”
Ms Mullane claims rent controls “are not a radical idea” and arguments against rent controls are short-term.
Arguments against rent controls are short-term
She adds: “Whilst I understand the arguments against rent controls, one being the theory that it would result in the mass sale of property, flooding the market and leading to a crash in house prices, I think this is short-termism.
“Many of our European neighbours have rent control systems. It isn’t a radical idea. France, Germany and Ireland have limitations on rent increases in areas experiencing a tight housing market. Ireland refers to these as ‘rent pressure zones’. I believe a similar model could be trialled in the UK at a local authority level in areas with significant social and economic pressures.
“However, as important as I think rent controls would be, to really get to grips with the chronic dysfunctional nature of housing demand and supply, a major increase in the stock of social rented homes must form the foundation of any strategy to tackle the housing and cost of living crises.”
Rent controls do more harm than good
However, as previously reported by Property118, rent controls do more harm than good.
According to the Institute of Economic Affairs (IEA), while rent controls may initially lower rents for existing tenants, they typically lead to higher rents in uncontrolled sectors and reduce housing supply and quality.
Even in Scotland, the rent cap has been blamed for soaring rents, which have increased by 11.6%.
Data by Hamptons reveals Scottish landlords are increasing rents at a faster pace than anywhere else in Great Britain because of rent controls reshaping the market.
Lead analyst at Hamptons, David Fell, said: “The evidence from Scotland suggests that rent controls rarely work as intended.
“At best, they delay rent increases; at worst, they set a new benchmark where landlords feel compelled to increase their rents every year by the maximum allowed.
“Faced with uncertainty over future rules, many landlords choose to raise rents little and often rather than risk falling far below market levels.”
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Member Since April 2018 - Comments: 489
10:23 AM, 2nd July 2026, About 5 days ago
LABOUR again. She is now blaming landlords for the collapse of councils, unbelievable. Nothing to do with the fact they can not run a business even after subsidy from government, high council taxes, parking fines etc. No mention that they have continued to sell off council houses at bargain basement prices, which is why so many rely on private landlords.Perhaps she should also consider who exactly is getting this housing benefit before blaming landlords.
Member Since June 2013 - Comments: 3277 - Articles: 81
10:51 AM, 2nd July 2026, About 5 days ago
Why don’t they come & buy off the Landlords that’s willing to sell their houses?
There is many of us out here that don’t want the houses any more, are only keeping for the tenants, but soon we are going to evict the more rules regs rent caps rent controls we hear.
Buying houses off us would be win win.
Council’s would be getting the rent back to theirselves.
Govt’s Benefits wouldn’t be going on Landlords as they don’t like that.
Tenants would be safe.
Council’s would be building their stock back up.
Money on rent from Councils & Govt would effectively be going back to theirselves if they worked it right.
They’d have appreciating assets.
And they don’t do it cause the Council & Govt & Benefits office & DWP have no joined up thinking.
If they do buy the odd one, they want the current tenant evicting, so they can house one of their homeless forgetting they got another one homeless now.
Yes would be long process to eventually get everyone housed, & this is where they can’t see beyond 5 years, it’s all short term to the next parliament to see what votes they can get.
Doing it as above gradually brings 100’s of 1000’s back into Council stock & the Council & Govt’s’ purses get richer surely. Am I missing some’at?
And they get rid of many of us landlords that they despise.
Many of us would give 10-20% discount, we’ve been worn down that much & we’d also reduce to keep the long term tenant safe.
Member Since September 2018 - Comments: 3652 - Articles: 5
11:18 AM, 2nd July 2026, About 5 days ago
all this means that the tenants that are now in accommodation wont be moving anywhere. Stalemate.
Member Since February 2020 - Comments: 378
11:18 AM, 2nd July 2026, About 5 days ago
“A Labour MP is calling on the government to introduce rent controls to curb welfare spending.”
We need MPs calling for controls to curb the amounts of legislation and taxes.
Member Since September 2018 - Comments: 3652 - Articles: 5
11:22 AM, 2nd July 2026, About 5 days ago
Reply to the comment left by Mick Roberts at 02/07/2026 – 10:51
Mick the reality is councils don’t actually want to be landlords. Where as business people look at business opportunities, councils are run by idiots that have zero business acumen. They can’t get there own houses in order as it is (literally), why would they want to increase their holding?
Taxpayer money is there to fund everything no matter what angle it comes from. Ergo, there is always someone else paying the bill so why sweat it?
Member Since May 2018 - Comments: 2188
2:23 PM, 2nd July 2026, About 4 days ago
Another labour MP missing the point entirely.
When George Osborne stopped landlords from being able to offset their finance costs against rents, initially this made little difference, but when interest rates started to rise, this drove rents up.
When the SNP introduced rent controls in Scotland this drove up rents for all new lets.
The provisions of the Labour Renters Rights Act will also drive up rents, particularly for new lets.
The point that Ms Millane is missing is that It is government that is driving up rents.
Member Since June 2013 - Comments: 3277 - Articles: 81
2:35 PM, 2nd July 2026, About 4 days ago
Reply to the comment left by Reluctant Landlord at 02/07/2026 – 11:22
That’s right in’t it the way u say it. The Council employee generally moves roles in a year or two so he she not bothered, not accountable.
Member Since May 2018 - Comments: 2188
2:43 PM, 2nd July 2026, About 4 days ago
Reply to the comment left by Mick Roberts at 02/07/2026 – 14:35
One of the things that I noticed about the Labour Renters Rights Act was that it banned payment of rent from being accepted up front, even if the tenant offered it; except that is for council housing and social housing providers. Council housing and social housing providers are allowed to offer rent in advance to house people who don’t have a home.
But if you accepted rent in advance from e.g. the council to house people who don’t have a home and then in 12 months time the council decided to stop paying you, or decided that the homeless people they’d housed were no longer eligible to be housed at Council expense, under the Labour Renters Rights Act, given the state of the courts, and in the real world, what would your chances now be of getting your property back promptly?
Member Since June 2013 - Comments: 3277 - Articles: 81
2:53 PM, 2nd July 2026, About 4 days ago
Reply to the comment left by Beaver at 02/07/2026 – 14:43
That’s a point, I’m totally lost with all the new rules, I don’t think I’m ever doing new tenant again, selling everything if when they come up. Only time will be if tenant wishes to move to better house I have coming up & I can sell theirs.
And then it will be Letting Agent doing the forms.
Member Since April 2018 - Comments: 489
3:54 PM, 2nd July 2026, About 4 days ago
Reply to the comment left by Beaver at 02/07/2026 – 14:43
You have always had to be carefully taken tenants from Councils. You need a cast iron contract or their promises mean nothing and after a few years they will say you are on your own.Once bitten.