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Housing

Rachel Reeves is reportedly considering introducing a rent freeze. Will it help renters?

The chancellor is said to be considering blocking landlords from raising rents in a bid to protect renters from the rising cost of living driven by war in the Middle East

Rachel Reeves is reportedly considering whether to freeze rents in a bid to protect renters from the war in the Middle East’s impact on the cost of living.

Reports in The Guardian suggest the chancellor is in the early stages of devising a package of measures to help households struggling to keep up with soaring bills as the US-Iran war continues.

One of the mooted measures would be to block landlords in England from hiking rents for a limited amount of time, potentially up to a year.

The move would be a boost for tenants who have seen rents rise above both inflation and wages in recent years without any targeted support.

Campaign group Generation Rent has estimated that the proposed rent freeze could save renters £324 a year on average.

Ben Twomey, chief executive of Generation Rent, described the plan as “encouraging”.

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“Many renters are already paying more than we can afford. Further rent rises due to international events way out of our control would pull even more people into poverty,” said Twomey.

But landlord body the National Residential Landlords Association has criticised the proposed plan, describing it as a “disaster for landlord and investor confidence”.

What could a rent freeze mean for the private rented sector?

What rent freezes could mean for tenants?

Thousands of renters attended a protest calling for rent controls to be introduced in England earlier in April.

That comes off the back of rent rises which have seen the average rent grow by 8% over the past two years, according to the Joseph Rowntree Foundation. Tenants have been spending an average of £1,200 a year on rent over that time.

Government figures show private renters spend an average of 34% of their incomes on housing costs, rising to as much as 46% in London, compared to 19% of incomes for households with mortgages and 28% for social renters.

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That leaves renters particularly vulnerable to rising energy and food bills amid the disruption to the Strait of Hormuz.

The prospect of the government interfering in the private rented sector has, until now, been remote.

Clara Collingwood, director at the Renters’ Reform Coalition, said: “We welcome reports the government are considering taking action on rising rents.

“Tenants in England are already in a genuine cost of living crisis, with nearly a third forced to cut back on essentials due to the cost of their rent. And now we’re looking down the barrel of further inflation and price hikes due to the Iran war – all options should be on the table to keep people in their homes.

“But making renting more affordable will require sustained action. In the longer term the government should consider capping in-tenancy rent increases, so rents can’t rise faster than inflation or wage growth.”

While the Renters’ Rights Act is set to come into force later this week, the long-awaited legislation does little to address the issue of affordability.

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The Westminster government did ban evictions during the Covid pandemic but has consistently spoken out against rent controls.

Housing minister Matthew Pennycook rejected calls for rent controls to be introduced during parliamentary debates on the Renters’ Rights Act.

Pennycook told the House of Commons during Renters’ Rights Act debates: “The government sincerely believes the introduction of rent controls in the private rented sector could harm tenants as well as landlords as a result of reduced supply and encouraged investment”.

By contrast, the Scottish government has committed to introducing rent controls and previously limited rent increases during the cost of living crisis.

Green Party leader Zack Polanski has also voiced support for rent controls, calling for them to be enforced across all private rented homes in England.

What could rent freezes mean for landlords?

Lobby groups have already warned that many landlords could look to exit the sector in the face of the increased taxation and tighter regulation through the Renters’ Right Act.

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The introduction of rent freezes has sparked further warnings landlords will look to sell up.

Ben Beadle, chief executive of the National Residential Landlords Association, said: “Introducing a rent freeze would be a disaster for landlord and investor confidence and consequently the supply of homes in England. Any hope of growing the market – or even retaining the homes that millions of families rely on – would be lost.

“There is no evidence to suggest that it would make rents more affordable. In fact, the impact on supply would inevitably drive new rents still higher. Such a move would run completely counter to good economic sense and the government’s own prior decision to rule out such measures.

“At a time when demand for rental housing continues to significantly outweigh supply, we agree with the housing minister’s view that any form of rent controls would make life more difficult for renters.”

The impact of rent controls has been mixed.

The Institute of Economic Affairs think tank published research in 2024 arguing against the introduction of rent controls. 

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The research claimed to review 196 academic studies across 100 countries over 60 years. It found that most studies showed that rent controls succeeded in lowering rents for controlled units but led to higher rents in other properties not subject to the limits.

Beadle said: “Even if these reports prove to be speculation, it is reckless for this kind of uncertainty to be created in the same week that major reforms already causing concern among landlords come into force. For many, it may be enough to conclude that this is the moment to exit the private rented sector for good.”

Timothy Douglas, head of policy and campaigns at Propertymark, also described reports of rent freezes as “alarming” and called on the government to build more homes instead. The Labour government has pledged to build 1.5 million homes by 2029.

“Evidence from across the UK, particularly in Scotland, shows rent controls restrict supply, deter investment, and reduce choice for tenants. Singling out landlords to solve the cost of living is not the answer,” he said.

Landlords have long warned of an exodus that could reduce the supply of rental homes and drive prices up even higher than current record-high levels.

However, with the Renters’ Rights Act measures set to come into force this week, it remains to be seen whether this is the case. No-fault evictions, also known as section 21 evictions, which allow landlords to evict tenants without giving a reason are set to be banned.

Tenants union Acorn said this week that the proportion of cases involving section 21 notices reported by its members has increased from just over one in five in October when the Renters’ Rights Act passed in parliament to nearly one in three by January.

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But Rightmove recently reported that advertised rents failed to rise in the first three months of 2026 for the first time, citing a wider choice of properties and lower tenant demand in the lead up to the new legislation’s arrival. 

While many landlords may choose to exit the sector ahead of rent reforms, it is also unclear who is buying the homes they sell, whether it is other landlords or new homeowners.

Read more:

How will the Renters’ Rights Act change rent increases?

The Renters’ Rights Act is already set to limit landlords’ ability to hike rents to just once per year.

Now landlords will have to follow a ‘section 13 process’. That involves giving a tenant two months’ notice of the increase in writing.

Tenants will be able to challenge an increase they feel is unfair or out of step with market rents through a first-tier tribunal.

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