following reports Rachel Reeves Considering withholding rent for a year National Residential Landlords Association (NRLA) has warned that this policy will prove unfavorable for tenants.
It is understood that the proposals, which are undergoing preliminary discussions within the government, would prevent landlords from raising rents for a period as part of wider efforts to ease cost-of-living pressures.
However, the NRLA argues that capping rents risks reducing supply in the private rented sector, as landlords may exit the market or reduce investment.
The organization said any short-term relief for tenants could be offset by long-term consequences, including fewer available homes and upward pressure on rents once controls are lifted. It said the policy should focus on increasing housing supply and improving affordability through targeted support.
If the intervention is carried out, it would mark a significant change in England’s approach to the rental market and would come alongside wider reforms to tenants’ rights currently being introduced.
Ben Beadle, chief executive of the NRLA, commented: “A freeze on rents would be a disaster for landlord and investor confidence and would result in the supply of homes in England. Any hope of growing the market – or even maintaining the homes on which millions of families depend – would be lost.
“There is no evidence to suggest that this would make rents more affordable. In fact, the impact on supply would inevitably push new rents higher. Such a move would completely make good economic sense and contrary to the Government’s own prior decision to reject such measures.
“At a time when demand for rental housing continues to significantly exceed supply, we share the Housing Minister’s view that any form of rent control will make life more difficult for tenants.
“Even if these reports prove to be speculation, it is reckless to create such uncertainty in the same week that major reforms that are already causing concern among landlords have come into force. For many, this may be enough to conclude that it is time to exit the private rented sector forever.”
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