WIREDGOV

Following reports in The Guardian suggesting that the Chancellor of the Exechequer may be about to introduce a one-year rent freeze over the coming weeks, the NRLA has issued its response to this speculation.

As we make clear, the move would run counter to previous pledges from the Government ruling out any interventions of this kind and, if introduced, a freeze would significantly worsen the already chronic supply crisis unfolding across the UK.

Commenting on reports that the Chancellor is considering imposing a one-year rent freeze, Ben Beadle, Chief Executive of the National Residential Landlords Association, yesterday said:

“Introducing a rent freeze would be a disaster for landlord and investor confidence and consequently the supply of homes in England. 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. Such a move would run completely counter to good economic sense and the Government’s own prior decision to rule out such measures.

“At a time when demand for rental housing continues to significantly outweigh supply, we agree with the Housing Minister’s view that any form of rent controls would make life more difficult for renters.

“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. For many, it may be enough to conclude that this is the moment to exit the private rented sector for good.”

Notes:

• On 13th April, in response to a written question from Dan Carden MP, the Housing Minister Matthew Pennycook MP, yesterday said:

“The Government do not support the introduction of rent controls, which we believe could make life more difficult for renters. There is sufficient international evidence from countries such as Sweden and Germany, and from individual cities such as San Francisco, as well as the recent Scottish experience, to attest to the potential detrimental impacts of rent controls on tenants.”

• The International Monetary Fund has noted that: “There is no clear evidence that rent controls have led to lower rents, rather they seem to be associated with lower housing supply.”
• Further information about the NRLA can be found at www.nrla.org.uk. It posts on X @NRLAssociation.
• The NRLA’s press office can be contacted by emailing press@nrla.org.uk or by calling 0300 131 6363.