The Government has restated its opposition to rent controls, opening up a clear policy divide with the Green Party ahead of May’s local elections.

Housing minister Matthew Pennycook (pictured) told Parliament: “The Government does not support the introduction of rent controls, which we believe could make life more difficult for renters.”

Detrimental impact

He pointed out that: “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.”

He then added that he had reviewed “a wealth of evidence” on both direct and indirect forms of rent regulation, warning that such measures “typically benefit settled and better-off tenants more than those looking for a home or needing to move”.

The Green Party, led by Zack Polanski, has made rent controls a central part of its campaign, arguing caps are needed to curb rising costs.

According to Polanski, renters are “stuck in an over-inflated market where landlords can often charge what they want”, and the party has pledged to give local authorities powers to introduce caps as well as pursue a national system if in government.

Pressure to introduce rent caps has also come from within Labour itself, with Dan Carden MP urging ministers to “look again at the evidence and start to consult”.

It’s good to see continued support from the UK Government for common sense.”

Kurt Mueller, Director of Corporate Affairs at Grainger, Britain’s largest listed private landlord, however, endorsed Labour’s approach, telling Housing Today: “It’s good to see continued support from the UK Government for common sense with their steadfast commitment against rent controls and the damaging impact they would have for renters and the market generally.”