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Government Rules Out Rent Controls for England

In a decisive statement, Housing Minister Matthew Pennycook has ruled out the introduction of rent controls in England. This comes despite the adoption of such measures in Scotland and their potential consideration in Wales.

Pennycook’s remarks were made in a written response to a query from shadow housing secretary Kemi Badenoch, who asked if Labour had any plans to implement rent controls. The Minister firmly stated: “The Government does not support the introduction of rent controls. We have made clear that we intend to use the Renters’ Rights Bill to provide tenants with greater protections against unreasonable within-tenancy rent increases.”

His stance aligns with the views of Propertymark, a leading property industry body, which has been urging the sector to unite against rent controls. Propertymark has warned that rent control policies have had detrimental effects in Scotland, leading to a significant reduction in rental stock and some of the highest rental inflation rates in the UK.

As previously reported by The Neg, Scotland’s experience with rent controls has been marked by a landlord exodus and shrinking rental availability. Wales is currently exploring similar measures, having launched a Green Paper titled ‘A Call for Evidence on Securing a Path towards Adequate Housing Including Fair Rents and Affordability’.

Propertymark recently conducted a survey in Wales, revealing that 95% of agents believe rent controls would reduce housing supply. The organization argues that the Welsh Government should instead address the underlying issues of inadequate housing supply and the barriers preventing its increase.

The push for rent controls in England is backed by several charities, including The Living Rent Campaign. The campaign highlights that since the abolition of fair rent tenancies in 1989, private renting has become increasingly unaffordable for many households. It points to European countries with rent controls, suggesting they have achieved lower rents and better-quality rental homes.

While the debate over rent controls continues, Pennycook’s clear opposition indicates that the Government will pursue other avenues to protect tenants and address housing affordability issues in England.

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