Following reports that Rachel Reeves is considering a one-year rent freeze, the National Residential Landlords Association (NRLA) has warned the policy would backfire for renters.
The proposals, which are understood to be under early discussion within government, would prevent landlords from increasing rents for a fixed period as part of wider efforts to ease cost of living pressures.
However, the NRLA argues that restricting rents risks reducing supply in the private rented sector, as landlords may exit the market or scale back investment.
The organisation said any short-term relief for tenants could be offset by longer-term consequences, including fewer available homes and upward pressure on rents once controls are lifted. It added that policy should instead focus on increasing housing supply and improving affordability through targeted support.
The intervention, if pursued, would mark a significant shift in England’s approach to the rental market and comes alongside broader reforms to tenants’ rights currently being introduced.
Ben Beadle, chief executive of the NRLA, commented: “Introducing a rent freeze would be a disaster for landlord and investor confidence and consequently the supply of homes in England. Any hope of growing the market– or even retaining the homes that millions of families rely on – would be lost.
“There is no evidence to suggest that it would make rents more affordable. In fact, the impact on supply would inevitably drive new rents still higher. Such a move would run completely counter to good economic sense and the government’s own prior decision to rule out such measures.
“At a time when demand for rental housing continues to significantly outweigh supply, we agree with the housing minister’s view that any form of rent controls would make life more difficult for renters.
“Even if these reports prove to be speculation, it is reckless for this kind of uncertainty to be created in the same week that major reforms already causing concern among landlords come into force. For many, it may be enough to conclude that this is the moment to exit the private rented sector for good.”
Reeves Reeves weighs ‘mind-boggling’ rent freeze to shield household budgets
