The Labour government has put to rest growing speculation about granting regional mayors the power to impose rent controls on private tenancies. This definitive stance comes amidst ongoing debates surrounding the UK’s housing crisis and its impact on tenants and landlords alike.
Government’s firm stance on devolution of rent control powers
In a clear statement to the Evening Standard, the government declared it has “no plans whatsoever to devolve rent control powers” to regional leaders. This announcement effectively ends discussions about potential rent caps or freezes that some mayors, including London’s Sadiq Khan, had previously advocated for.
A spokesperson for the Ministry of Housing, Communities and Local Government (MHCLG) reinforced this position, stating: “There have been no conversations with the Mayor of London about introducing rent controls.”
Khan’s rent freeze proposals take a back seat
Despite his previous calls for a two-year freeze on private rents in London, Sadiq Khan’s office has now confirmed that rent controls are “not currently a priority” in ongoing negotiations with ministers. This shift in focus aligns with the government’s refusal to consider devolving such powers to regional authorities.
Landlords voice concerns over potential market impact
The National Residential Landlords Association (NRLA) has expressed strong opposition to the concept of rent controls. Ben Beadle, Chief Executive of the NRLA, warned: “Rent controls would be a disaster for tenants.” He elaborated on the potential consequences, stating, “All [rent controls] would do is choke off supply further, undermining what little choice tenants currently have when looking for somewhere to live.”
In response to the broader housing crisis, the government has emphasised its commitment to increasing the supply of homes as a key solution. The MHCLG spokesperson noted: “Lack of supply is fuelling the housing crisis, and we are taking action to boost housebuilding.” The government plans to collaborate closely with the Mayor of London and local boroughs to enhance housing delivery in the capital, rather than pursuing rent control measures.
For UK landlords and property investors, this announcement provides clarity on the government’s approach to addressing housing challenges. While the debate on affordable housing continues, the focus appears to be shifting towards supply-side solutions rather than direct market interventions.
