Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Angela Rayner Faces Pressure Over Rent Controls as Legal Experts Respond

Angela Rayner, the Housing Secretary, is facing increasing calls to reconsider her opposition to rent controls. According to Property Industry Eye, a letter organised by Labour MP Chris Hinchliff has been signed by 26 MPs, including Labour, Green, and Jeremy Corbyn, urging the government to introduce rent controls to address affordability in the private rented sector.

Rayner previously ruled out rent controls, stating last month that such policies had not necessarily reduced rents in other countries and that the Renters’ Rights Act provided tenants with greater protection against excessive rent increases. The government has reiterated that it has “no plans to introduce rent controls.”

The Institute for Fiscal Studies (IFS) has issued new analysis warning that introducing rent controls in the UK could lead to lower house prices and a reduced supply of rental homes. The IFS noted that while limiting rent increases could benefit existing tenants in the short term, it may also encourage landlords to sell properties, shrinking the private rented sector. IFS economists Matthew Oulton and Tom Wernham cited international evidence suggesting that rent controls can reduce both the supply and quality of rental housing.

Kristine Ng, partner at Morr & Co, highlighted concerns that restricting landlord returns could discourage investment in the private rented sector, which is already under pressure. Ng noted that while rent controls might offer short-term protection for tenants, they risk reducing the number of homes available to rent and could put further strain on housing supply.

The IFS also pointed out that although more landlords selling could make homeownership more accessible for some, many renters may still lack the means to buy. The analysis suggests that the main risk is a reduction in rental supply, rather than just changes in house prices.

Rent controls have previously operated in Britain, but controls on rents for new tenancies were removed in 1988. A Treasury spokesman stated that the chancellor remains focused on supporting households and that fiscal decisions will be announced at formal fiscal events.