News

Angela Rayner rules out rent controls in England

Foto : James Miller - ninoda.com

Rayner Confirms No Rent Controls Planned for England

Ninoda.com – Housing Secretary Angela Rayner has made clear that the government will not introduce rent controls across England. Speaking to BBC Breakfast, she explained that recent reforms under the Renters’ Rights Act—which took effect this past May—are already producing meaningful changes in the housing sector.

Rayner noted that while certain regions of the UK have experimented with rent restrictions over recent years, these measures have not consistently succeeded in lowering rental prices. She emphasized that the current administration is focusing on strengthening tenant protections through existing legislation rather than implementing new controls.

Historical Context and Political Shifts

Prime Minister Andy Burnham previously advocated for rent freezes during his tenure as Greater Manchester mayor in 2023, citing the ongoing cost of living emergency. However, Rayner clarified that circumstances have evolved since that period.

“Three years ago, Andy called for that because there was a significant crisis in the rental market. We implemented between then the Renters’ Rights Act which is giving renters more power and control.”

She added that she does not view rent freezes or broader controls as the appropriate solution at present.

Scotland’s Evolving Approach

Scotland introduced temporary rent controls in October 2022, though these provisions lapsed last year. Under upcoming legislation, Scottish ministers will gain authority to designate specific zones as rent control areas, with implementation anticipated by 2027. Local councils will also receive powers to limit rent increases on certain properties to a maximum of 6%.

Political Reactions

Green Party leader Zack Polanski has urged the government to extend rent controls to all rented accommodation in England. In response to Rayner’s comments, he characterized Burnham as “continuity Starmer” and criticized the administration’s approach on social media platform X.

“The new prime minister talks a lot of about helping with the cost of living crisis. This is the one single measure that would help the most and save billions. All talk.”

Former Labour leader Jeremy Corbyn, who committed to introducing rent controls during the 2019 general election campaign, expressed strong disappointment with the decision.

“There is no hope of ending homelessness if we do not stand up to vested interests and take action against extortionate private rents. We need rent controls, and we need them now.”

London Mayor Sir Sadiq Khan has similarly advocated for a rental price cap for some time. Meanwhile, Conservative shadow housing minister Gareth Bacon warned that rent controls could prove “disastrous,” arguing they would worsen problems created by Labour’s policies that have already pushed landlords out of the market and limited options for tenants.

“Labour are clearly divided. Burnham’s pick for housing secretary has disowned a policy he himself has repeatedly backed,” he stated.

Understanding Rent Controls

The term encompasses various government interventions, ranging from limiting annual price increases to maintaining frozen rates for set periods. Landlord organizations caution that such measures might intensify the housing shortage by discouraging property owners from offering rentals.

The Renters’ Rights Act aims to provide greater stability for the approximately 11 million individuals renting from private landlords. Key provisions include the elimination of fixed-term tenancies, stricter eviction procedures, and restrictions allowing rent increases only once annually based on the property’s open market value.

Housing Targets and Broader Agenda

Rayner also addressed the government’s ambition to construct 1.5 million new residences by 2029. In an interview with BBC Radio 4’s Today programme, she acknowledged that rising construction expenses have made this goal more difficult to achieve, though she remains committed to the target.

“1.5 million homes is a difficult target. It was when I made the target, but I’m going to keep the target, and I’m not going to be defeated,” she said.

Opposition critics argue the objective has become unrealistic due to Labour’s taxation policies and regulatory burden. During Burnham’s leadership campaign, he pledged to launch the most substantial council housing construction initiative in decades and discussed potential modifications to stamp duty and council tax, though specific details remain forthcoming.

As part of his commitment to establishing a “cost of living government,” Burnham has introduced several initiatives during his first week in office aimed at providing financial relief. These include reducing VAT on household energy bills beginning in October and reinstating a £2 bus fare cap in England outside London from January 2027.

Leave a Comment