Rent Controls Ruled Out for England

Housing Secretary Angela Rayner has stated that the government has no plans to introduce rent controls in England. Speaking to BBC Breakfast, Rayner indicated that measures within the Renters' Rights Act, which came into effect in May, are already having a significant impact on the rental market. She suggested that previous temporary rent controls in other parts of the UK had not necessarily led to a reduction in rents.

Impact of Renters' Rights Act

Rayner highlighted the Renters' Rights Act as the current approach to providing renters with more power and control. This legislation, aimed at offering greater stability and security to the 11 million private renters in England, has banned fixed-term tenancies and made evictions more difficult for landlords. The Act also stipulates that rents can only be increased annually to the property's open market rate.

Criticism and Alternative Approaches

The decision not to implement rent controls has been met with disappointment from several figures. Green Party leader Zack Polanski described the stance as "continuity Starmer" and argued that rent controls would be the most effective measure to help with the cost of living crisis. Jeremy Corbyn, who previously pledged rent controls, called the announcement "extremely disappointing" and stated that action against high private rents is necessary to end homelessness. Sir Sadiq Khan, the Mayor of London, has also long advocated for a rent cap. Conversely, Gareth Bacon, the Conservative's shadow housing minister, warned that rent controls would be "disastrous" and worsen the housing crisis by deterring landlords.

Developments in Scotland and Housing Targets

In Scotland, temporary rent controls introduced in October 2022 expired last year. New legislation is expected to allow ministers to designate rent control areas by 2027, with councils potentially able to cap rent increases at 6% on certain properties. Rayner also addressed the government's target of building 1.5 million new homes by 2029, acknowledging it has become more challenging due to increased construction costs, but stated her commitment to meeting the goal.

The definition of rent controls encompasses various measures, from capping price rises to outright freezes. Landlord groups have expressed concerns that such controls could exacerbate the housing crisis by discouraging property owners from renting out their homes.