Housing Secretary Angela Rayner has dismissed the idea of implementing rent controls in England as part of Andy Burnham’s efforts to address the rising cost of living.
Rayner stated that the Renters Rights Act is already making a significant impact on the market by enabling individuals to challenge rent increases through tribunals and avoiding bidding wars for rental properties.
During an interview on BBC Breakfast, Rayner expressed that rent controls, like those in Scotland, have not proven effective in lowering rents. She believes that the Renters Rights Act is a more effective approach to stabilizing the rental market.
Although the new Prime Minister previously advocated for rent freezes while serving as Greater Manchester Mayor, rent controls, such as capping price increases or freezing rents, are not currently part of the proposed plans.
Temporary rent controls were enforced in Scotland in 2022 but expired in the previous year. The upcoming legislation in Scotland will grant ministers the authority to designate rent control areas and allow councils to limit rent increases on certain properties up to a maximum of 6%.
While London Mayor Sadiq Khan and Green Party leader Zack Polanski advocate for rent-related actions, landlord groups caution that such measures could deter property rentals, impacting supply.
Rayner, who recently rejoined the Cabinet after a stint on the backbenches, acknowledged the challenges in meeting the government’s manifesto goal of constructing 1.5 million homes by the end of the current Parliament. She emphasized the difficulties posed by rising construction costs but remains committed to the target.
In his campaign leading up to becoming Prime Minister, Burnham pledged to initiate the largest council house building initiative since the post-war era, emphasizing the housing crisis’s detrimental effects on public finances. Although specific details are yet to be disclosed, Burnham previously proposed a goal of constructing half a million social homes by 2030.
Burnham has also raised the possibility of reforming land and property taxation methods while advocating for the elimination of stamp duty fees.
