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.

Government Confirms No Plans for Rent Controls in England

Housing secretary Angela Rayner has stated that the government is not considering the introduction of rent controls in England. Rayner said the Renters’ Rights Act, which came into force in May, is already having a significant impact on the private rented sector.

Rayner made these comments in an interview with the BBC, where she questioned the effectiveness of rent controls, noting that similar schemes introduced elsewhere in the UK had not necessarily brought rents down. She said, “I don’t think that rent freezes, rent controls, is a way forward at the moment.”

The government’s position marks a departure from a policy previously supported by new prime minister Andy Burnham, who, as mayor of Greater Manchester in 2023, had called for private sector rents to be frozen until the cost of living crisis had eased. Rayner referenced the Renters’ Rights Act as the main vehicle for reforming the private rented sector, stating that it gives renters more power and control.

Temporary rent controls were introduced in Scotland in October 2022 but expired last year. Under new legislation, Scottish ministers will be able to designate certain areas as rent control zones, with these measures expected to come in by 2027.

The Renters’ Rights Act currently limits rent increases to once a year and stipulates that rents can only be raised to the property’s open market rent.

Former Labour leader Jeremy Corbyn criticised Rayner’s announcement, describing it as “extremely disappointing” and reiterating his support for rent controls.

This development is relevant for UK letting agents and inventory clerks, as it confirms that the government will continue to rely on the Renters’ Rights Act for private rented sector reforms, rather than introducing rent controls.