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

IPPR Proposes National Rent Stabilisation Scheme for UK

The Institute for Public Policy Research (IPPR) has proposed a national rent stabilisation scheme aimed at limiting rent increases and addressing affordability issues in the UK private rented sector. The proposal comes as 2.4 million households in the sector are reported to be struggling to pay their rent.

The IPPR's suggested 'double-lock' model would cap rent rises based on both wage growth and the Consumer Price Index (CPI). These controls would apply during tenancies and when properties are re-let. The framework also includes exemptions for new-build homes, support for landlords who meet higher housing standards, and tighter regulation of short-term lets.

The proposal addresses common concerns about rent control, such as the potential for reduced supply, property quality, new housebuilding, inequality, and tenant mobility. IPPR argues that implementing the controls nationally, rather than regionally, would help avoid market distortions and reduce incentives for tenants to stay in properties solely to retain lower rents.

This intervention comes at a time when English rents have increased by 6.5% as landlords adjust to new rules, adding pressure on tenants. Buy-to-let yields have shown mixed performance, with quarterly falls despite annual gains, reflecting ongoing changes in the rental market.

The IPPR's proposal contributes to the ongoing debate about balancing tenant affordability with maintaining rental supply and encouraging property investment, issues that are highly relevant to letting agents and inventory clerks across the UK.