Housing Secretary Steve Reed has steadfastly ruled out introducing rent controls in the private rented sector, setting off speculation the Government is preparing measures to curb rising housing costs for tenants.
Reid said she was absolutely clear that ministers were not planning to impose any kind of rent freeze, which directly contradicts recent interpretations of comments made by Chancellor Rachel Reeves, who ruled out intervention in the rental market earlier this week.
His comments prompted reports that a temporary, one-year rent freeze was under consideration as part of broader cost-of-living support, with some suggesting the debate was linked to economic pressures arising from the Iran war.
Addressing the issue on Times Radio, Reid rejected both claims of policy consideration and political calculations behind the government’s messaging. When asked if Reeves’ comments were intended to blunt support for Zac Polanski’s Green Party ahead of the May elections, he replied: “No. I think I’ve been absolutely clear, we’re not doing that.”
The intervention underlines growing internal scrutiny over Labour’s housing policy direction, with ministers now seeking to fend off speculation that more interventionist rent measures could be on the table.
Reeves said on Tuesday: “This government has already taken action to reduce the cost of living and reduce inflation with changes to energy prices, fuel charges, prescription charges and rail fares.
“I will do everything in my power and every effort to reduce the cost of living, including for people in the private rented sector.
“That is why we have already introduced the Tenant Rights Act.
“While those who have a mortgage have seen their mortgage rates cut since we came into office, we will do everything we can to help people in the private rented sector, because we must ensure that our constituents do not become poorer as a result of this conflict in the Middle East.”
Asked about the Chancellor’s comments, Reid said: “You’d have to ask her about the particular language she might have used, but she was probably referring, I think, without going there, to the fact that we’re changing the law to give tenants additional rights.”
Propertymark has welcomed the news that the Housing Secretary has ruled out any possibility of introducing rent controls across England,
Timothy Douglas, head of policy and campaigns at Propertymark, commented: “Information from across the UK and particularly Scotland has consistently shown that rent control stifles investment, hinders supply and reduces choice for many tenants.
“In addition, broader issues are also impacting the domestic economy, placing additional pressure on landlords and risking pushing the sector to the brink of collapse.”
“The UK Government needs to be fully focused on encouraging investment in the private rented sector, to keep pace with current and future demand. It is vitally important that there is a joint approach and that Government departments are working together to deliver this.”