Confirmation from the government that it will not be introducing rent controls has been welcomed by trade body Real Estate:UK.
There had been concerns in the industry that the arrival of a new prime minister in Andy Burnham would mean new regulations being introduced for the PRS.
However, housing secretary Angela Rayner — a key appointment by Burnham — has since confirmed these would not be an area of focus for the government.
“We won’t be looking at rent controls,” said Rayner when appearing on BBC Breakfast, explaining that these hadn’t worked in places like Scotland.
“The work we've done to make sure that landlords are giving people fair rents, people can challenge rent hikes at tribunal now, making sure that people are not being in bidding wars to get to get rents now is actually having an impact on the market, which is more favourable to renters, and that's a better way of stabilising the rental market.”
Vanessa Hale, CEO at Real Estate:UK, has since welcomed this as “excellent news” for the housing sector.
“RE:UK has consistently made the case and will continue to make the case, against rent controls, and most recently to the incoming prime minister, chancellor and housing secretary, and we welcome that fact that ministers have heeded our warnings about the harm they could cause to new homes and the jobs and economic benefits they bring,” said Vanessa.
“Improving affordability must remain the priority, but the answer is increasing the supply of homes, not introducing measures that risk deterring the investment needed to deliver them.
“The focus should therefore be on the policies that unlock viability, attract investment and accelerate delivery.”
