Following the resignation of Prime Minister Keir Starmer, Andy Burnham, the likely successor, has reignited the debate on rent controls to help alleviate the cost of living crisis. This move comes as a surprise, as Housing Secretary Steve Reed previously dismissed the idea of introducing rent controls, citing the potential negative consequences.
Just over four months ago, speculation swirled that Chancellor Rachel Reeves might announce a rent freeze, but Downing Street quickly shot down the idea. Housing Secretary Steve Reed went further, stating that he didn't think anyone sensible would want to introduce controls on rent anywhere in the country.
However, Burnham, in his speech at the People's History Museum in Manchester last week, lamented that the government is forced to chase rents in the private-rented sector through the benefits system. He also expressed his belief that public intervention, where necessary, could kickstart the process of change.
Campaigners for rent controls, including the Renters' Reform Coalition, have welcomed Burnham's words and are calling for the government to introduce a cap on rents to give people security in their homes and support happier, more stable communities. Director Clara Collingwood emphasized that rising rental costs drain spending out of high streets and local businesses to sit in landlords' bank accounts.
A spokesperson for London Mayor Sadiq Khan pointed towards the 6,000 rent control homes for key workers planned for the capital. He added that the next step is for ministers to devolve the power to cap rents so that local mayors can tackle the capital's problems of both affordability and supply.
However, not everyone is keen on introducing rent controls. Chris Norris of the National Residential Landlords Association argued that the fastest way to cripple investment and deepen the UK's ongoing supply crisis would be to introduce rent controls in any form. He claimed that wherever these measures have been introduced, the consequences have been the same: reduced investment in rental properties, less choice, and worse outcomes for tenants.
Reed, in an interview from April, argued that rent controls introduced by the SNP and Greens in Scotland led to a massive increase in rents each time tenants moved out, as well as a reduction in available homes. Some campaigners are now calling for a cap on rent rises between tenancies, similar to the rule in the Renters' Rights Act preventing excessive hikes in rent for sitting tenants.
Burnham's plans for government include devolution, giving local leaders the tools they need to grow their economies, improve public services, and tackle the pressures facing their communities. A spokesperson for Andy Burnham stated that the detail of any new powers will be worked through, and he will not be setting out specific proposals at this stage.
