Government Rules Out Rent Controls: Focus Remains on Renters' Rights Act

Government Rejects Rent Control Policy

Housing Secretary Angela Rayner has confirmed that the government is not considering introducing rent controls in England, despite previous calls for the policy from Prime Minister Andy Burnham. Speaking to the BBC on 27 July 2026, Rayner stated that the reforms introduced through the Renters' Rights Act, which came into force in May 2026, are already delivering significant change in the private rented sector.

Rayner's comments represent a decisive shift away from a policy Burnham previously championed. While serving as mayor of Greater Manchester in 2023, Burnham had called for private sector rents to be frozen to help ease the cost of living crisis. However, the government has now made clear that it views rent controls as an ineffective measure.

Why Rent Controls Were Rejected

The Housing Secretary questioned the effectiveness of rent control schemes, pointing to examples elsewhere in the UK that had failed to deliver meaningful rent reductions. She said: "I don't think that rent freezes, rent controls, is a way forward at the moment. Three years ago, Andy called for that because there was a significant crisis in the rental market. We implemented between then the Renters' Rights Act which is giving renters more power and control."

This position reflects a broader policy approach where ministers will continue to rely on the Renters' Rights Act as the primary tool for reforming the private rented sector, rather than introducing price controls. The Act already includes provisions limiting rent increases to once annually, with increases tied to a property's "open market rent".

Scotland's experience with temporary rent controls, which were introduced in October 2022 but expired last year, may have influenced the government's thinking. New Scottish legislation will allow ministers in Holyrood to designate certain areas as rent control zones, with implementation expected by 2027.

Investment Implications

For buy-to-let investors, the government's clear stance against rent controls provides regulatory certainty for rental strategies. The emphasis on the Renters' Rights Act rather than price controls suggests the government intends to maintain a market-driven approach to the private rented sector. However, investors should remain aware of ongoing regulatory changes within the existing framework.

Those considering rental investment should review how the Renters' Rights Act impacts their portfolios. Investors seeking opportunities in the current market may benefit from exploring deal finder resources to identify investment-grade properties, or using BTL hotspot analysis to identify regions with strong rental demand.

Political Disagreement

Not all voices support the government's position. Jeremy Corbyn, who pledged to introduce rent controls during the 2019 general election when serving as Labour leader, described Rayner's announcement as "extremely disappointing". He argued: "There is no hope of ending homelessness if we do not stand up to vested interests and take action against extortionate private rents. We need rent controls, and we need them now."

The disagreement highlights ongoing political debate around housing policy, though the government's current direction appears firmly set against rent control measures in the near term.

Source: Property Industry Eye.