The UK government will not be implementing rent controls, House Secretary Angela Rayner announced, marking a shift from recent considerations by Prime Minister Andy Burnham.
"We won't be looking at rent controls... That is not something that we're looking to do because we've seen what's happened in areas like Scotland. It hasn't necessarily brought rents down," Rayner stated during broadcast interviews. She suggested that existing measures, such as the Renters' Rights Act which empowers tenants to challenge rent hikes and aims to prevent bidding wars, are more effective in stabilizing the rental market.
Earlier in the week, Prime Minister Burnham indicated that the government was "looking at" measures to help with the cost of living, including rent freezes, a policy he had previously advocated for. When questioned by journalists, Burnham stated, "We are looking at measures that could make a difference this year. So we are looking at all of those things... It's premature to say it will be any one of those particular things." He emphasized a desire to implement changes that would be felt by the public quickly.
Landlord groups have previously warned that rent controls could negatively impact the supply of private rental properties.
This apparent reversal on rent controls is the latest instance of policy discussion causing confusion in the early days of Burnham's government. Previously, the administration clarified that a 50p top rate of tax would not be introduced, citing the Labour manifesto. Similarly, a suggestion to increase the personal allowance tax threshold was initially met with a cool reception from Downing Street, though the Prime Minister later indicated it might be considered at the Budget. Compensation for WASPI women, a commitment made during Burnham's Makerfield by-election campaign, was also later dropped due to significant cost implications.
Burnham has also previously supported a "land tax" to replace council tax and stamp duty. However, this proposal has faced criticism, with warnings from figures like Lord Blunkett that it could lead to substantial tax increases for some households and negatively impact property prices.