The Housing Minister Steve Reed ​has said the Government is ‌not looking at rent controls, in sharp contrast to reports earlier this week.

It follows suggestions less than 48 hours earlier ​that a one-year freeze ​on rent increases was ⁠being considered.

Rachel Reeves was reported as saying on Monday that she was considering a rent freeze to ​ease cost-of-living pressures.

However, Reed appeared to do a fast backtrack on the proposed policy when speaking on Times Radio yesterday.

“We are not ​looking at rent controls,” Reed told Times Radio, adding that ​when such a policy was introduced ‌in ⁠Scotland it “ended up with rents going up much higher”.

Helping tenants

His comments come ​less than 48 hours ⁠after Chancellor Rachel Reeves said she ​would do everything ​possible ⁠to help people renting their homes in the ⁠private ​sector.

A report in The Guardian claimed the Chancellor was considering a rent freeze for a limited period.

Such a rent freeze would be unprecedented – even the Covid pandemic failed to prompt the Johnson Government to make such a move – and restricting rents in England would require parliamentary approval.

Wales recently rejected such a move while Scotland has implemented a limited system of rent controls due to go live next year.

Rent controls often end up hurting the very people they’re meant to help.”

Timothy Douglas of Propertymark, said: “Rent controls might sound like a quick fix for rising housing costs, but in practice they often end up hurting the very people they’re meant to help, tenants.

“Evidence from across the UK, particularly in Scotland, shows that strict limits on rent can discourage landlords from investing in rental properties. When that happens, the number of homes available to rent shrinks, making it harder for tenants to find suitable places to live and reducing choice.

“When supply drops but demand stays high, it can actually push rents up in the long run. On top of that, wider economic pressures are already making it more expensive for landlords to provide rental homes, and adding rent controls risks pushing some landlords out of the market altogether.

“For tenants, the real priority should be a healthy, well-supplied rental market where there are enough homes to meet demand. Encouraging investment in housing helps keep options open, supports better standards, and is more likely to deliver stable, affordable and sustainable rents across the long term rather than forcing a regime of strict rental price controls.”

The Ministry of Housing, Communities & Local Government was contacted for comment.