A recent call from a left-wing think tank urges the UK government to introduce rent controls to address the growing issue of unaffordable housing costs for renters. The Institute for Public Policy Research (IPPR) warns that without intervention, over 2.5 million renters could face housing they cannot afford, highlighting the urgency of reform in the private rented sector.

IPPR Proposes a ‘Double Lock’ Rent Control System

The IPPR suggests implementing a “double lock” mechanism to stabilise rent increases. This system would cap annual rent rises at whichever is lower between inflation or wage growth, aiming to make rents more predictable and affordable for tenants. According to the think tank’s analysis, had such a system been in place since 2020, rents would be approximately 7% lower by 2030. This would translate into average savings of around £850 per year for renters in England, and over £1,700 annually for those in London.

Furthermore, the IPPR estimates that this policy could reduce the number of households struggling with unaffordable rents by 140,000 compared to a scenario with no government intervention.

Dr Maya Singer Hobbs, senior research fellow at IPPR, emphasises the scale of the problem: “Millions of renters are being pushed to the brink by a housing market that simply isn’t working for them. This is no longer a marginal issue affecting a small group, it is a mainstream cost-of-living crisis hitting working households across the country.” She adds that the current system leaves renters vulnerable to external shocks and rising costs beyond their control, and calls for rent caps to protect tenants and ensure rents grow in line with affordability.

Support from Generation Rent

Generation Rent has also advocated for rent controls, highlighting that private renters in England now spend an average of 36% of their gross income on rent, equating to more than four months’ income annually going directly to landlords. Ben Twomey, chief executive of Generation Rent, stated: “It’s not right that over four months of our income every year is being swallowed up by landlords.”

He welcomed the government’s recent consideration of a rent freeze but stressed the need for longer-term solutions. Twomey called for metro mayors to be granted powers to limit rent increases in major cities, where rental costs are particularly burdensome.

Industry Concerns Over Rent Controls

Despite these calls, many industry experts and politicians warn that rent controls could have unintended negative consequences. Sir James Cleverly, shadow housing secretary, told The Telegraph that rent controls would be “completely disastrous for tenants.” He argued that capping rents would reduce the supply of rental properties, push rents higher for new tenants, and drive landlords out of the market. Cleverly also criticised Labour’s policies, saying: “Labour’s red tape and higher taxes have already forced up rents and reduced choice for renters.”

Paul Shamplina, founder of Landlord Action, echoed these concerns, noting that rent controls do not work and that recent legislation, such as the Renters’ Rights Act, has already caused many good landlords to leave the sector due to increased uncertainty and regulatory burdens.

Welsh Political Context and the NRLA’s Position

The debate over rent controls is particularly relevant in Wales, where Plaid Cymru recently emerged as the largest single party in the Senedd elections, pledging to “better protect renters.” However, the National Residential Landlords Association (NRLA) has warned that introducing rent controls in Wales would deter investment in the private rented sector amid an ongoing supply crisis.

Ben Beadle, chief executive of the NRLA, described rent controls as “a disaster for renters and the Welsh private rented sector.” He pointed out that such measures have historically failed to address the root causes of high rents, which stem from rising costs faced by investors that are passed on to tenants. Beadle expressed a willingness to work with the next Welsh government to ensure landlords’ concerns are considered during policy development.

What this means for landlords

The prospect of rent controls raises significant concerns for landlords and letting agents. While intended to make housing more affordable for tenants, such measures could reduce rental yields and discourage investment in the sector. This may lead to a contraction in available rental properties, ultimately limiting choice for tenants and potentially increasing rents for new tenants due to reduced supply.

Landlords must stay informed about potential regulatory changes and engage with policymakers to ensure that any reforms balance tenant protections with the sustainability of the rental market. The ongoing debate highlights the need for solutions that address affordability without undermining landlord confidence or the viability of private renting.

Source: Based on reporting from Property118

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

Those looking to join and access the full training and certification can register here: https://landlordassociation.org.uk/landlord-association-membership-uk/

TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/