Housing Secretary Angela Rayner has dismissed the idea of introducing rent controls in England as part of Andy Burnham’s efforts to address the rising cost of living.
Rayner emphasized that the Renters Rights Act is already making a significant impact on the market by enabling individuals to challenge rent increases through tribunals and preventing bidding wars for rental properties.
When questioned about rent controls on BBC Breakfast, Rayner stated that they are not under consideration due to observations from areas like Scotland where such measures did not lead to decreased rents. She suggested that stabilizing the rental market through different means would be more effective.
Although the new Prime Minister had previously advocated for rent freezes during his tenure as Greater Manchester Mayor, rent controls, such as capping price increases or freezing rents temporarily, are not currently part of the proposed plans.
Temporary rent controls were in effect in Scotland in 2022 but expired last year. Future legislation will grant Scottish ministers the authority to designate rent control areas and empower councils to limit rent increases on certain properties to a maximum of 6%.
While London Mayor Sadiq Khan and Green Party leader Zack Polanski support action on rent issues, landlord groups have cautioned that implementing rent controls could discourage property rental, potentially affecting the supply.
Rayner, who recently rejoined the Cabinet after a period on the backbenches, also acknowledged the challenges in meeting the government’s pledge to construct 1.5 million homes by the end of the current parliamentary term. She noted that factors like rising construction costs have posed significant obstacles to achieving this target.
Despite the difficulties, Rayner affirmed her commitment to the housing goal, comparing it to a personal challenge like running a marathon in under five hours. She emphasized her determination to persevere and meet the set target, highlighting her resilience in the face of skepticism.
Prior to assuming the role of Prime Minister, Andy Burnham pledged to initiate the largest council house building initiative since the post-war era, aiming to address the housing crisis that he described as detrimental to public finances. Although specific details are yet to be revealed, Burnham previously proposed a goal of constructing half a million social homes by 2030.
Burnham has also suggested potential reforms in property and land taxation and advocated for the elimination of stamp duty as part of his broader housing policy agenda.
