Chancellor Rachel Reeves’ proposal for a potential year-long rent freeze in the private rented sector is meeting strong opposition from landlords and industry experts. This comes as many landlords are already planning rent increases in response to the new Renters’ Rights Bill and rising costs.
Landlords plan rent rises despite freeze proposal
Recent research by Pegasus Insight reveals that 61% of landlords intend to increase rents over the next 12 months. Among these, 75% cite the Renters’ Rights Bill as a key factor influencing their decision. This legislation, which introduces significant regulatory changes, is already shaping landlords’ pricing strategies.
Reports suggest the Chancellor is considering a temporary rent freeze to ease household budget pressures, though the Treasury has described these reports as speculation and declined to comment.
Industry voices warn of unintended consequences
Mark Long, founder and managing director of Pegasus Insight, warns that a rent freeze would be an unprecedented intervention in the private rented sector. He explains: “A rent freeze would represent unprecedented intervention in the private sector, thwart the business plans of the majority of landlords and potentially force some out of business.”
Long highlights that landlords are not setting rents arbitrarily but are responding to legislative changes and increased costs, which feed directly into rent pricing. He adds that a rent freeze could be “the straw that breaks the camel’s back” for landlords already struggling financially.
Concerns over housing supply and market distortion
Timothy Douglas, head of policy and campaigns at Propertymark, emphasises the risks of additional rent controls amid the implementation of the Renters’ Rights Act. He states: “Evidence from across the UK, particularly in Scotland, shows rent controls restrict supply, deter investment, and reduce choice for tenants.”
Douglas warns that rent controls could distort the market and undermine investment at a time when demand far outstrips supply. He urges the government to focus on increasing housing supply and supporting long-term investment rather than imposing measures that could make it harder for renters to find homes.
Industry leaders criticise policy uncertainty
Oli Sherlock, managing director of insurance at Goodlord, describes the rent freeze proposal as “policy duplication at best, and outright confusion at worst.” He stresses the need for clarity and consistency as landlords, agents, and tenants prepare for major legislative changes.
Sherlock notes that evidence shows rent controls tend to reduce supply and distort the market, ultimately harming tenants. He calls for a coherent approach rather than overlapping interventions that risk undermining confidence in the sector.
Warnings against knee-jerk government action
Melanie Leech, chief executive of the British Property Federation, warns that a temporary rent freeze could damage efforts to deliver new homes and the associated economic benefits. She points to the failed rent control attempt in Scotland, where rents for new lets rose significantly and new home-building stalled.
Similarly, Olivia Harris, chief executive of housing charity Dolphin Living, argues that a rent freeze addresses symptoms rather than the root cause of the housing affordability crisis. She highlights the severe shortage of rental homes in the UK and advocates for building more homes, particularly those with intermediate affordable tenure, to improve affordability and supply.
What this means for landlords
Landlords face a challenging environment as they navigate the impact of the Renters’ Rights Bill alongside rising costs. The prospect of a rent freeze adds further uncertainty, potentially limiting their ability to cover expenses and maintain profitability. Industry experts warn that such measures could force some landlords out of the market, reducing rental supply and exacerbating affordability issues for tenants.
Clear, consistent policies that support investment and increase housing supply are widely seen as more effective solutions to the sector’s challenges than rent controls or freezes.
Public debate and media attention
The issue has attracted media attention, including a segment on the James O’Brien show on LBC titled ‘Choose your fighter: James O’Brien vs landlord’. In this discussion, O’Brien debates landlords over the rent freeze proposal, using the phrase that he would “break out the world’s tiniest violin” for landlords who complain about the measures.
Source: Based on reporting from Property118
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