Rachel Reeves eyes landlords as soft target with plans to introduce rent controls
The Guardian is reporting that the Chancellor Rachel Reeves is considering imposing a year-long rent freeze on landlords as a special measure to alleviate the cost of living crisis caused by the closure of the Strait of Hormuz.
This will be debated by the government as a package of measures to reduce inflationary pressures on household budgets. The Treasury responded by saying it would not comment on ‘speculation’.
It would be far easier and cheaper for the government to legislate on landlords than tackle the rising cost of fuel, food and mortgage rates.
Ben Beadle, Chief Executive of the National Residential Landlords Association, said: “Introducing a rent freeze would be a disaster for landlord and investor confidence and consequently the supply of homes in England. Any hope of growing the market, or even retaining the homes that millions of families rely on, would be lost.
“There is no evidence to suggest that it would make rents more affordable. In fact, the impact on supply would inevitably drive new rents still higher. Such a move would run completely counter to good economic sense and the Government’s own prior decision to rule out such measures.
“At a time when demand for rental housing continues to significantly outweigh supply, we agree with the Housing Minister’s view that any form of rent controls would make life more difficult for renters.
“Even if these reports prove to be speculation, it is reckless for this kind of uncertainty to be created in the same week that major reforms already causing concern among landlords come into force. For many, it may be enough to conclude that this is the moment to exit the private rented sector for good.”
Cynically, one could see how this coincides with the imminent local elections in a desperate effort to buy votes.
As previously reported on Property118, the government has claimed it has no plans to introduce rent controls and, last month, said it opposed rent controls because they would “push landlords out of the market”.
Timothy Douglas, Head of Policy and Campaigns at Propertymark comments: “With the UK Government introducing huge regulatory change through the Renters’ Rights Act, which will ultimately mean less flexibility and higher costs for landlords and tenants, it is alarming to hear reports that the Chancellor is considering additional rent control measures – particularly when Housing Ministers have recently publicly denounced their role.
“Evidence from across the UK, particularly in Scotland, shows rent controls restrict supply, deter investment, and reduce choice for tenants. Singling out landlords to solve the cost of living is not the answer.
“Rent controls risk distorting the market and undermining investment at a time when demand already far outstrips supply.
“If the UK Government is serious about improving affordability, it must focus on increasing housing supply and supporting long-term investment in the private rented sector, rather than introducing measures that will ultimately make it harder for renters to find a home.”
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Member Since November 2020 - Comments: 138
7:34 PM, 28th April 2026, About 1 day ago
Isn’t there a rent freeze of sorts coming anyway on 1st May since rents cannot be increased for 12 months under the RRA?
Member Since November 2020 - Comments: 138
7:54 PM, 28th April 2026, About 1 day ago
Reply to the comment left by LaLo at 10:38
There has never been a VAT rate of 2.5%. Maybe you were thinking of 12.5%, which became the new Higher Rate in 1976?
When VAT was introduced by Heath’s government on 1st April 1973, the Standard Rate was 10%, not 2.5%. Essential goods—such as food, fuel and housing—were exempted, but all other goods and services were charged at a single rate of 10%.
Labour reduced the Standard Rate of VAT to 8% when they came back into office in 1974 but then, in the same year, introduced a Higher Rate of 25% for petrol which subsequently morphed into a ‘luxury’ rate.
Thatcher (i.e. Geoffrey Howe) abolished the Higher Rate and virtually doubled the Standard Rate to 15% in 1979.
Incidentally, VAT was a requirement of becoming a member of the EEC, which is why it was brought into being. But now that we are no longer in the EEC, how about we completely abolish VAT for something less draining on the UK public?
Member Since January 2015 - Comments: 1454 - Articles: 1
8:58 PM, 28th April 2026, About 1 day ago
Reeves still needs prosecuting for her s95 Housing Act strict liability offence.
Member Since October 2024 - Comments: 1
9:53 PM, 28th April 2026, About 1 day ago
Reply to the comment left by David at 28/04/2026 – 11:35
Reeves should freeze selective licences and other licences so that the cost not passed to tenants and council should freeze council tax.
Member Since April 2018 - Comments: 377
12:17 AM, 29th April 2026, About 1 day ago
Reply to the comment left by Judith Wordsworth at 28/04/2026 – 20:58
This will never happen and she is not the only one. They seem to have a government inquiry every week which drags on , wasting tax payer’s money with no result, such as a conviction and recommendations are quickly forgotten.Will the government be using the extra tax from BPs massive profits to assist tenants or the public.I doubt it.
Member Since May 2024 - Comments: 207
12:27 AM, 29th April 2026, About 1 day ago
But a 10% increase in council tax is OK? It’s just landlords that can’t increase rents to cover costs?
Member Since November 2022 - Comments: 7
6:19 AM, 29th April 2026, About 19 hours ago
Does anyone ever deal with reality on this site?
There aren’t any rent controls. Why howl at the moon.
Member Since March 2023 - Comments: 1507
7:13 AM, 29th April 2026, About 18 hours ago
In anticipation of rent controls being a possibility, I have just issued my tenants with a Form 13 rent increase to start on 1st March 2027 .. although you have to give tenants a 2 month advance warning up to 12 months (possibly more) is also acceptable.
This assumes any already issued Form 13 rent increases are not also frozen.
Personally, I can’t see there being a rent freeze … but better safe than sorry.
Member Since April 2026 - Comments: 1
9:57 AM, 29th April 2026, About 15 hours ago
Is this really going to help as a temporary thing? after a year they will come up with something that’s not in our advantage. So in the end it doesn’t really help
Member Since December 2024 - Comments: 63
12:10 PM, 29th April 2026, About 13 hours ago
Reply to the comment left by Jan Hall at 28/04/2026 – 10:02
Agreed. Landlords were in cahoots with Trump and the ayatollahs to block the Strait of Hormuz.