The UK Government has confirmed its opposition to rent controls, creating a policy divide with the Green Party ahead of May’s local elections.
Housing minister Matthew Pennycook told Parliament that the Government “does not support the introduction of rent controls, which we believe could make life more difficult for renters.”
International evidence cited
Pennycook referenced international examples to support the Government’s position, stating: “There is sufficient international evidence from countries such as Sweden and Germany, and from individual cities such as San Francisco, as well as the recent Scottish experience, to attest to the potential detrimental impacts of rent controls on tenants.”
The minister said he had reviewed “a wealth of evidence” on both direct and indirect forms of rent regulation, concluding that such measures “typically benefit settled and better-off tenants more than those looking for a home or needing to move”.
Green Party campaign focus
The Green Party, led by Zack Polanski, has positioned rent controls as a central campaign issue. According to Polanski, renters are “stuck in an over-inflated market where landlords can often charge what they want”. The party has pledged to give local authorities powers to introduce caps and pursue a national system if in government.
The policy debate comes as rental price growth has stagnated for the first time since 2017, potentially shifting the political landscape around rental market regulation. Meanwhile, buy-to-let lending has risen 18% with remortgaging activity dominating the sector.
Pressure for rent caps has also emerged from within Labour, with Dan Carden MP urging ministers to “look again at the evidence and start to consult”.
Industry response
Kurt Mueller, Director of Corporate Affairs at Grainger, Britain’s largest listed private landlord, endorsed the Government’s stance, telling Housing Today: “It’s good to see continued support from the UK Government for common sense with their steadfast commitment against rent controls and the damaging impact they would have for renters and the market generally.”
The policy disagreement highlights differing approaches to addressing rental affordability concerns, with the Government favouring supply-side interventions over price controls as the May local elections approach.
