Agents have raised concerns over reports that Rachel Reeves is considering introducing rent controls, including a possible rent freeze in England, as part of efforts to ease pressure on household finances.

The proposals, first reported in The Guardian on Monday, are understood to be under discussion within government in response to the economic impact of conflict in the Middle East, with rising energy costs and inflation expected to feed through to rents and mortgage payments.

Industry figures said the prospect of intervention in the rental market has caused concern among agents, who warn that measures such as rent freezes could affect supply and investment in the private rented sector if implemented.

Timothy Douglas, head of policy and campaigns at Propertymark, commented: “With the UK government introducing huge regulatory change through the Renters’ Rights Act, which will ultimately mean less flexibility and higher costs for landlords and tenants, it is alarming to hear reports that the Chancellor is considering additional rent control measures – particularly when Housing Ministers have recently publicly denounced their role.

“Evidence from across the UK, particularly in Scotland, shows rent controls restrict supply, deter investment, and reduce choice for tenants. Singling out landlords to solve the cost of living is not the answer.

“Rent controls risk distorting the market and undermining investment at a time when demand already far outstrips supply.

“If the UK government is serious about improving affordability, it must focus on increasing housing supply and supporting long-term investment in the private rented sector, rather than introducing measures that will ultimately make it harder for renters to find a home.”