Chancellor Rachel Reeves has proposed introducing a one-year rent freeze on private sector homes.
26/03/2025. London, United Kingdom. Chancellor Rachel Reeves leaves 11 Downing Street to make her Spring Declaration. Photo by Alecsandra Dragoi / Finance
The proposals, first reported in The Guardian, would ban landlords in England from increasing rents for a period of 12 months.
Ben Beadles, chief executive of the National Residential Landlords Association, said a rent freeze would be “a disaster for landlord and investor confidence and therefore for the supply of housing in England”.
Beadle explains: “Any hope of growing the market – or even of preserving the homes on which millions of families depend – would be lost.”
“There is no indication that this would make rents more affordable. In fact, the impact on supply would inevitably push new rents up even further. Such a move would be completely at odds with common economic sense and with the government’s previous decision to rule out such measures.”
The rent freeze is being proposed as part of a wider package to tackle rising bills across the board, which will be launched in the coming weeks.
This comes after Housing Minister Matthew Pennycook said on April 13: “The Government does not support the introduction of rent controls as we believe it could make life more difficult for tenants.”
“There is sufficient international evidence from countries such as Sweden and Germany, and from individual cities such as San Francisco, as well as the recent Scottish experience, to support the potential harmful effects of rent controls on tenants.”
Beadle added: “At a time when demand for rental properties continues to significantly exceed supply, we agree with the Housing Secretary’s view that any form of rent control would make life more difficult for tenants.”
“Even if these reports turn out to be speculation, it is foolhardy that this kind of uncertainty is being created in the same week that major reforms that are already causing concern among landlords are coming into effect. For many, it may be enough to conclude that now is the time to leave the private rental sector for good.”
In his comments, Mark Long, founder and chief executive of Pegasus Insight, said: “A rent freeze would represent an unprecedented intervention in the private sector, thwarting the business plans of the majority of landlords and potentially pushing some out of business.”
“Landlords are not placing rents in a vacuum. Many are already considering the impact of the Renters’ Rights Bill, in addition to higher costs, and that is directly influencing pricing decisions.”
“Introducing a rent freeze in that environment could be the straw that breaks the camel’s back for those already struggling to take stock.”