Landlords will welcome the news that rumours that the chancellor Rachel Reeves was muting a one-year rental freeze to help consumers with the cost-of-living have now been dismissed.
Sources had previously told the Guardian that such rent controls were Reeve’s preferred solution to deal with the spike in housing costs prompted by the Iran War. While a No 10 spokesperson had previously said that freezing private sector rents was not an approach the government would be taking, Reeves had refused to rule out the idea in the House of Commons earlier this week.
However, since then, housing secretary Steve Reed has been reported as saying it’s “crystal clear” that it’s not an approach the government will take.
Wider issues add pressure
Timothy Douglas, head of policy and campaigns at Propertymark, said: “News that the Secretary of State for Housing, Steve Reed, has dismissed any prospect of introducing rent controls across England will be welcome news for many directly involved in providing much-needed housing stock within the private rented sector.
“Insight from across the UK, and especially from Scotland, has consistently shown rent controls deter investment, constrain supply, and decrease choice for many tenants.
“In addition, wider issues are also continuing to influence the domestic economy, applying additional pressures on landlords and would risk pushing the sector to the brink of collapse.” Instead, he said that the government should focus on encouraging investment across the private rented sector to keep pace with current and future demand, with all departments working together towards the single goal.
This article is taken from Landlord Today