MPs urge Angela Rayner to reconsider rent controls in England

A group of 26 MPs, including members of the Labour and Green parties, have written to Housing Secretary Angela Rayner urging the government to reconsider its refusal to introduce rent controls in England. The MPs argue that high rents, which consume up to 36% of average salaries, contribute to poverty and reduce local consumer spending.

Proposed models from the Autonomy Institute and the Joseph Rowntree Foundation suggest three potential approaches: a CPI-linked cap, a nominal freeze, or a moderate system limiting increases during tenancies to CPI and between tenancies to CPI plus 2%. These models are paired with tax reforms, such as restoring mortgage-interest deductions, to mitigate the risk of landlords exiting the market.

However, the Institute for Fiscal Studies (IFS) has warned against such measures. The IFS suggests that rent controls could reduce the supply and quality of rental housing, as landlords may be encouraged to sell their properties. While controls might benefit existing tenants in the short term, economists warn they could also lead to a reduction in property sale prices and a shrinking private rented sector.