Housing Secretary Angela Rayner has rejected the idea of implementing rent controls in England as part of Andy Burnham’s efforts to address the cost of living.
Rayner dismissed the notion, highlighting the effectiveness of the Renters Rights Act in the market. She mentioned that the Act enables individuals to challenge rent increases through tribunals and prevents competitive bidding for rental properties.
During an interview on BBC Breakfast, Rayner stated that rent controls were not under consideration due to the experiences in regions like Scotland, where they did not lead to reduced rents. She emphasized the importance of alternative methods to stabilize the rental market.
Although the Prime Minister previously advocated for rent freezes as the Mayor of Greater Manchester, rent controls, such as capping price hikes or freezing rents temporarily, are not currently part of the proposed strategies.
In Scotland, temporary rent controls were in place in 2022 but expired last year. Future legislation will allow Scottish ministers to designate rent control areas, granting councils the authority to limit rent increases on certain properties to a maximum of 6%.
While London Mayor Sadiq Khan and Green Party leader Zack Polanski support actions on rent, landlord groups caution that such measures could deter property rentals, impacting supply.
Rayner, who recently rejoined the Cabinet after a period on the backbenches, acknowledged the challenges in fulfilling the government’s pledge to construct 1.5 million homes by the end of the current Parliament. She acknowledged the rising construction costs as a significant hurdle.
Despite the obstacles, Rayner affirmed her commitment to achieving the target, likening it to a personal challenge like running a marathon in under five hours. She emphasized her determination not to be deterred, stating that she thrives on overcoming underestimations.
Prior to assuming office, Burnham pledged to initiate the largest council house building initiative since the post-war era, aiming to address the housing crisis and its impact on public finances. He proposed a goal of constructing half a million social homes by 2030.
Burnham also hinted at potential reforms in property taxation and previously advocated for the elimination of stamp duty.