Landlords lash out against rumoured rent freeze in England
Key Points
- Landlords have hit back against rumoured rent freezes in England, saying this could be 'the straw that breaks the camel's back'.
- Chancellor Rachel Reeves is reportedly considering rent controls among a raft of measures aimed at easing the effect of the Iran conflict on local household budgets.
- The NRLA argues there is no evidence that rent controls work, and that this could in fact lead to higher rents if implemented.
- Landlords pointed to the incoming Renters' Rights Act and rising costs of managing property as factors already putting them under pressure.
With Chancellor Rachel Reeves rumoured to be considering a rent freeze in England due to the war in Iran, landlords have pushed back against the idea, saying it could be ‘the straw that breaks the camel’s back’.
On Monday 17 April, The Guardian reported that Reeves was considering a proposal to ban the raising of rents in England for 12 months.
This rent freeze would aim to provide tenants with much-needed economic relief due to increasing pressure on their household budgets as a result of the Iran conflict and ensuing energy crisis.
The measure could reportedly form part of a broader package of government intervention to protect those most vulnerable from the effects of rising bills.
The Treasury has not yet issued any statement confirming the rumours around these measures, stating that it will not comment on speculation.
Landlords have responded to these rumours by saying these measures could presage ‘a disaster’ for the private rental industry.
Chief executive of the National Residential Landlords’ Association (NRLA) Ben Beadle said there was no evidence these interventions would work and said they would have the opposite of their intended effect.
“Introducing a rent freeze would be a disaster for landlord and investor confidence and consequently the supply of homes in England,” Beadle said.
“Any hope of growing the market – or even retaining the homes that millions of families rely on – would be lost.”
“There is no evidence to suggest that it would make rents more affordable. In fact, the impact on supply would inevitably drive new rents still higher,” he added.
Beadle argued that implementing a rent freeze would be economically counterproductive and contradict the Government’s previous decision to rule out rent controls.
He lamented the current difficulties faced by landlords, citing rising costs and the incoming Renters’ Rights Acts as factors that are already placing those who rent out residential properties under pressure.
“Even if these reports prove to be speculation, it is reckless for this kind of uncertainty to be created in the same week that major reforms already causing concern among landlords come into force,” Beadle said.
“For many, it may be enough to conclude that this is the moment to exit the private rented sector for good.”
