The Government has ruled out the option of following Scotland’s example and introducing a rent cap.

Housing minister Felicity Buchan told MPs rent controls would not help tenants or landlords to deal with the cost of living crisis.

Buchan also informed the House of Commons that there was no date yet for the publication of the Renters’ Reform Bill.

She said: “The Government do not support the introduction of rent controls in the private rental sector. Evidence suggests that they discourage investment, lead to declining property standards and may encourage illegal sub-letting, which would help neither tenants nor landlords.”

“In the UK, rent increased by 4.4% in the year to January 2023. We are clearly aware that there is a lot of pressure on household budgets, which is why the Treasury put together an enormous £37 billion cost of living package in 2022-23,” Buchan added.

Spiralling

The minister was responding to Nadia Whittome, the Labour MP for Nottingham East, who said: “In September last year, a survey by the tenants’ union ACORN found that 48% of private renters had received a rent hike from their landlord since January 2021. Some increases were as high as 67%.

“In a cost of living crisis, that is fuelling poverty and homelessness. Will the Government act now to freeze rents, allowing vital breathing room while more permanent solutions to tackle spiralling housing costs are devised?”

Propertymark welcomes the Government’s stance on rent controls: “Propertymark is pleased that this has been clarified so emphatically, as we know that rent controls would deter new landlords from entering the market, and discourage those already in the sector who are facing rising mortgage costs and tax penalties.”

Scottish Government U-turns replacing rent freeze with cap