The Institute for Public Policy Research (IPPR) has proposed a national rent stabilisation scheme designed to limit rent increases whilst addressing supply and investment concerns typically associated with rent controls.
Writing in Red Brick, Tazu Walden states that 2.4 million households in the private rented sector are struggling to pay their rent, identifying affordability as a major gap in current rental reform.
Double-lock mechanism
The IPPR’s proposed ‘double-lock’ model would cap rent rises according to both wage growth and the Consumer Price Index (CPI), with controls applying during tenancies and when properties are re-let.
Walden acknowledged that policymakers have historically viewed rent controls with caution. “Government has been uneasy about rent controls because their history is littered with cases – New York, Berlin, Massachusetts, Stockholm – where poorly designed systems have had negative consequences,” she wrote.
The proposal addresses common criticisms of rent control schemes, including concerns about reduced supply, property quality, new housebuilding, inequality, and mobility. The framework includes exemptions for new-build homes, support for landlords meeting higher housing standards, and tighter regulation of short-term lets.
National implementation
IPPR argues the controls should be applied nationally rather than regionally to avoid market distortions and reduce incentives for tenants to remain in properties solely to retain lower rents.
The proposal comes as English rents have jumped 6.5% as landlords adjust to new rules, placing additional pressure on tenants. Meanwhile, buy-to-let yields have shown mixed performance, with quarterly falls despite annual gains, highlighting the evolving dynamics within the rental market.
The think tank’s intervention adds to ongoing debate about how to balance tenant affordability with maintaining sufficient rental supply and encouraging property investment in the sector.
