Generation Rent has urged the Labour government to introduce a rent freeze in England to prevent alienating the core voter base that contributed to its recent electoral success. The campaign group highlights that rising rents remain a significant issue for private renters, despite the introduction of the Renters’ Rights Act (RRA), and warns that failure to act could create political challenges ahead of the next election. This development is particularly relevant for landlords and agents as it signals potential future regulatory changes affecting rent levels and tenant relations.

Generation Rent calls for a rent freeze amid rising rental costs

Nye Jones, head of campaigns at Generation Rent, has criticised Labour’s current approach to rent control, stating that the Renters’ Rights Act does not address the escalating cost of renting. Writing in Labour List, he argues that while the RRA aims to reset the private rental sector, it fails to prevent rent increases that are placing financial pressure on tenants. This concern is significant for landlords, as it indicates growing political and public pressure for more stringent rent regulation.

Rent cap proposed as a common-sense solution

Generation Rent’s modelling suggests that even if the government meets its target of building 1.5 million new homes, the impact on reducing rent inflation would be minimal—approximately a 1.8 percentage point decrease. Much of this new housing is expected to be for social rent, but affordable housing targets have been weakened in some areas, such as London. Consequently, Generation Rent advocates for a rent cap linked to the lower of inflation or wage growth. This approach aims to protect tenants from sudden rent hikes while allowing landlords modest increases aligned with economic conditions.

Calls to include rent control powers in the Devolution Bill

The group has also pressed for rent control powers to be included in the English Devolution and Community Empowerment Bill, which would enable combined authority mayors to regulate rent rises locally. Prominent figures such as London Mayor Sadiq Khan and Greater Manchester Mayor Andy Burnham have expressed support for this measure. However, government ministers have indicated that such proposals fall outside the current scope of the bill, leaving the issue unresolved at a national legislative level.

Political implications for Labour and the rental sector

Generation Rent warns that the government’s current inaction on rent controls risks creating a “real headache” for Labour in future elections. Private renters were the most likely group to vote Labour in 2024, but recent polling shows Labour losing support to parties on the left, partly due to economic insecurity. The Green Party’s endorsement of rent controls has attracted a notable share of Labour’s former voters, illustrating the political sensitivity of rental affordability. For landlords, this signals potential shifts in policy priorities that could affect rental market dynamics and regulatory frameworks.

Landlord demographics and wealth transfer concerns

The campaign group also highlights that a significant proportion of landlords are retired or in full-time employment, with 42% declaring mortgage interest payments on their tax returns. Generation Rent argues that unchecked rent increases effectively transfer wealth from younger, working renters—traditionally Labour supporters—to older, asset-rich landlords who tend to lean more conservative politically. This perspective underscores the broader socio-economic debates surrounding private renting and may influence future policy discussions impacting landlords.

Implications for landlords and agents

For landlords and letting agents, the call for rent freezes or caps represents a potential shift towards tighter regulation of rental increases. While protecting tenants from sudden rent hikes is a key policy goal, landlords will need to navigate the balance between maintaining rental income and complying with any new restrictions. Staying informed about these developments is essential for effective property management and tenant relations in a changing legislative environment.

Looking ahead: TLA’s Trusted Partners Hub

The Tenant and Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. This initiative will include legal, trades, insurance, financial, mortgage, tenant screening, and other relevant services. Providers interested in joining can register their interest at the TLA website.