The UK government has reaffirmed its opposition to rent controls despite growing calls from some Labour MPs and London Mayor Sadiq Khan. While rent controls are set to be introduced in Scotland by mid-2027, the government maintains that such measures could have adverse effects on both landlords and tenants in England.

Government stance against rent controls

Labour MP Dan Carden recently submitted a written question asking whether the government had considered piloting rent stabilisation in areas experiencing persistently high rent inflation. Housing Minister Matthew Pennycook responded by emphasising the government’s clear position against rent controls, including rent stabilisation measures.

He stated: “We believe they could make life more difficult for private renters, both in terms of incentivising landlords to increase rents routinely up to a cap where they might otherwise not have done, and in pushing many landlords out of the market, thereby making it even harder for renters to find a home they can afford.”

This response highlights the government’s concern that rent controls might unintentionally encourage landlords to raise rents to the maximum allowed and potentially reduce the number of available rental properties.

Pressure from London’s Mayor and Labour MPs

Despite the government’s opposition, London Mayor Sadiq Khan continues to advocate for rent controls, placing them “at the top of his list” under the English Devolution and Community Empowerment Bill. Some Labour MPs also support such measures, reflecting ongoing political debate within the party and across the country.

Meanwhile, the Scottish government has announced plans to introduce rent controls in phases, with implementation expected by mid-2027. This divergence in policy between Scotland and England underscores differing approaches to addressing rental affordability.

New protections on rent increases

Mr Carden also queried the government on the effectiveness of existing protections against unreasonable rent increases. Under the forthcoming Renters’ Rights Act, landlords will only be permitted to raise rents once a year, and tenants will have the right to challenge increases they consider unfair.

Mr Pennycook explained that currently rent increases can occur through various mechanisms, but tenants can only challenge those made via Section 13 notices of the Housing Act 1988. The new legislation will standardise the process, requiring landlords to serve a simple Section 13 notice with at least two months’ notice before any rent increase takes effect.

Tenants who believe a proposed rent increase does not reflect the market rate will be able to challenge it at the First-tier Tribunal. However, the tribunal will not be able to set a rent higher than the landlord’s proposed amount, even if it finds the market rent is higher. It may also delay increases by up to two months in hardship cases.

Implications for the tribunal system

Concerns have been raised about the potential impact of these reforms on the court system. Geoffrey Vos, Master of the Rolls and head of civil justice in England and Wales, warned that the new rules could incentivise tenants to challenge every rent increase to delay implementation, potentially overwhelming tribunals.

This highlights the delicate balance policymakers must strike between protecting tenants and maintaining an efficient dispute resolution process.

What this means for landlords

Landlords should note that while rent controls remain off the table in England, the Renters’ Rights Act will impose stricter rules on how and when rents can be increased. The once-a-year limit on rent rises and the requirement to follow a standardised notice process aim to bring greater transparency and fairness to rent adjustments.

However, landlords may face increased challenges from tenants disputing rent increases, which could lead to delays and additional administrative burdens. Staying informed about these changes and preparing for potential tribunal cases will be essential for managing rental portfolios effectively.

Source: Based on reporting from Property118

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