The Housing Secretary has categorically ruled out rent freezes on private landlords despite concerns about the impact of the Iran war on cost of living.
Steve Reed on Wednesday said ministers were “not looking at rent controls” after reports the Chancellor was considering banning increases for 12 months.
When asked about the proposal, Rachel Reeves on Tuesday told the Commons: “I will do everything in my power and use every lever we have to bear down on the cost of living, including for people in the private rented sector.”
But Mr Reed insisted on Wednesday that banning landlords from increasing rents was not on the cards.
“We are doing everything to help people in private rented [homes].
“That's why we're bringing in the Renters’ Rights reforms this Friday.
“But we're not looking at rent controls. And the reason we're not doing that is when this was introduced by the Scottish government, it ended up with rents going up much higher, and the amount of homes that were available to rent going down.
“And it's not just Scotland, that's happened in other countries around the world as well. So we don't want to make life harder for renters.
“We'll do everything we can to make their lives better.”
Reports this week suggested the Chancellor was considering imposing a one-year rent freeze on private sector landlords to help households deal with the economic fallout from war in the Middle East.
The measures would exclude new build properties in an attempt to encourage housebuilding.
Economists have predicted Britain will be harder hit than other developed countries by inflation resulting from the conflict, which has sent the price of oil soaring as shipping lanes are closed.
Previously Labour ministers, including Ms Reeves, have resisted proposal to include rent controls in the renters’ rights reforms, which come into force on Friday.
It comes after a new report found renters in London have been left behind as homeowners have benefited from far more space in which to live.
The average floorspace per person in the capital has risen by nearly 30 per cent over two decades, according to the study by Centre for London.
But nearly all of this extra living space has gone to homeowners, and very little to private renters.
It is now common for young professionals to pay more than £1,000 a month to rent a room in a shared house or flat, with many less well off people seeing an even bigger share of their take-home pay eaten up by rent.
Antonia Jennings, chief executive at Centre for London, told the Standard: “Private renters are paying extortionate prices to live in small, overcrowded, and often poor-quality homes, with issues like damp and mould left unresolved for years.
“Meanwhile, thousands of Londoners are sleeping rough on our streets.”
