Chancellor Rachel Reeves is reportedly considering a plan to force landlords to freeze rents for up to a year, as part of a broader cost of living package aimed at mitigating the impact of rising food and fuel prices on household budgets.
What the Proposal Entails
The proposed rent freeze would apply to existing tenancies in the private rented sector, with new-build properties exempt to avoid halting development. Supporters, such as the New Economics Foundation, argue that rent controls could address the sector's affordability crisis, which has been exacerbated by recent inflation spikes.
Supporters' View
Proponents claim that a temporary freeze would provide immediate relief to tenants struggling with higher living costs, particularly amid the economic fallout from US President Donald Trump's military actions in Iran. They point to similar measures in other countries as evidence that rent controls can stabilise housing markets.
Critics' Concerns
Opponents, including the National Residential Landlords Association, warn that a rent freeze would deter investment in rental properties, reduce housing supply, and ultimately drive new rents higher once the freeze ends. They argue that such policies could backfire, making the housing crisis worse in the long term.
Political Context
The Green Party has long advocated for rent freezes, while Labour previously rejected a similar proposal under previous leadership. Reeves's consideration marks a significant shift, reflecting the urgency of the cost of living crisis sparked by the Iran conflict. The chancellor is expected to unveil the full package in the coming weeks.
