Private renting in England could be halted for up to a year under proposals being considered by the Chancellor Rachel ReevesAs the government is considering further intervention to address cost of living pressures.
according to GuardianThe plans are being discussed as part of a broader support package amid concerns about the potential economic impact of the conflict in Iran on household finances, including rents and mortgage costs.
The reported proposal would temporarily prevent landlords from raising rents, adding to a series of planned changes to the private rented sector.
Ministers are understood to be looking at short-term measures to ease financial pressure on households as macroeconomic uncertainty and political discussions intensify.
The Treasury has so far declined to comment on what it considers “speculation”. But that hasn’t stopped others from sharing their views.
George Bangham, head of social policy at the New Economics Foundation think tank, told the press: “We have an affordability crisis in the private rented sector that predates the pandemic. Other countries in Western Europe already do this, and England did this from 1915 to 1989.
“We know that if done carefully, rent controls can fix the affordability crisis, we just need to be prepared to enforce them.”
However, Robert Colville, head of the Center for Policy Studies, was not so supportive of the possible measures being considered.
He said: “This seems like a shocking scale of interference in the private market. If the government wants to bring down rents it should be building a lot more homes.”
Discussion is in initial stage Rachel Reeves It is understood that a number of measures are being considered to limit rental costs, including a one-year rental freeze as the preferred option.
New-built properties may be exempted to avoid discouraging development. group of workers It has committed to providing 1.5 million homes during this Parliament, although current production is well below that level.
A report commissioned by Labor in protest, led by Stephen CowanThe proposed rent cap is linked to inflation or wages, but the policy was not adopted and is not part of the tenants’ rights reforms being introduced this week.
The proposed moratorium would be extended further, even if temporarily, which ministers said reflects the extraordinary economic conditions associated with rising inflation and disruptions to global energy supplies.
The measure is one of several options under consideration as the government seeks to ease cost-of-living pressures and respond to political challenges ahead of upcoming local elections, where Labor faces a potential loss and increased competition. Green Party of England and WalesWhich supports fare control.