The Green Party has proposed a three-year cap on private rental increases, with leader Zack Polanski announcing the policy at the party’s conference in Brighton.
Under the proposal, rent increases would be limited to the lowest of three measures: the Consumer Prices Index, wage growth, or 2%. The policy, described as an ’emergency brake’, forms part of what the party calls a fair rents guarantee.
Polanski stated: “For too long, landlords have been able to hike prices way beyond wages. Leaving renters forced to meet the cost to keep a roof over their heads, cutting back and back and back on everything else.”
Industry response
The proposal has drawn criticism from property sector representatives. Timothy Douglas, Head of Policy and Campaigns at Propertymark, argued that rent caps fail to address underlying supply issues.
“Tenants are facing genuine affordability pressures but rent caps do not address the underlying shortage of homes or the rising costs of providing and maintaining them,” Douglas said.
Propertymark cited evidence from Scotland, where members reported rent increases between tenancies, stalled investment and landlords exiting the market following temporary rent caps. The organisation noted that international evidence suggests rent control schemes can reduce investment and the supply of rental homes.
Market implications
The rental market debate comes as house price to earnings ratios have fallen to their lowest levels since 2015, whilst the wider property sector faces pressure from various policy changes.
Douglas emphasised that any policy supporting tenants must consider both immediate impact on renters and longer-term effects on housing supply. “If policymakers want to make renting more affordable in the long term, the priority must be increasing housing supply and creating the conditions for responsible investment in the private rented sector,” he added.
The proposal would prevent what Polanski described as “sudden hikes” and “evictions under the guise of rent rises”, aiming to provide renters with what he termed “vital breathing space” to allow wages to catch up with rental costs. The party stated the three-year period would give government time to develop a national fair rents guarantee system.
