While no formal policy has been announced, the prospect of intervention in the private rented sector has prompted immediate response from the sector. We have written directly to the Chancellor to raise concerns about the potential impact on the rental market and to request an urgent meeting to present evidence from across the UK and internationally.
Propertymark’s position
Rent controls distort the market and can lead to reduced investment, lower supply, and, in some cases, increased discrimination against prospective tenants. We have consistently campaigned against such measures, including during their introduction in Scotland.
Instead, Propertymark advocates for policies that address the underlying drivers of affordability by supporting housing supply, encouraging investment, and maintaining a stable and sustainable private rented sector.
The evidence from Scotland
Rent control measures were introduced under emergency cost-of-living legislation and are now being extended through longer-term reforms. These interventions have coincided with a reduction in the supply of rental homes, in some cases by around a quarter, particularly in rural areas.
This contraction in supply has increased competition among tenants and reduced choice, placing additional pressure on those seeking accommodation. Similar policies in England could replicate these effects, especially at a time when the sector is already facing significant cost pressures.
Fewer, lower quality homes
Property owners are currently contending with rising mortgage rates, increased taxation, regulatory changes, and higher compliance and maintenance costs. Limiting rental income through controls, while these costs continue to rise, undermines the financial viability of letting.
As a result, some landlords may choose to exit the market altogether, further reducing available housing.
Even a temporary rent freeze could have lasting consequences. Letting is typically a long-term investment, and sudden policy interventions can weaken confidence, accelerating decisions to sell properties and permanently remove them from the private rented sector.
In addition to supply concerns, there are potential unintended consequences for tenants. Reduced rental income may limit landlords’ ability to invest in property standards, while any flexibility between tenancies could lead to sharper rent increases once controls are lifted, offsetting short-term gains.
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.
