No 10 dismisses Reeves’s reported plan for freeze on private rents

Downing Street has dismissed reports that Chancellor Rachel Reeves is planning to impose a one-year freeze on private sector rents as part of a broader strategy to tackle the rising cost of living. While Reeves has not ruled out the possibility, a No 10 spokesperson confirmed that freezing rents is not currently under consideration, emphasizing the government’s focus on cutting energy bills and supporting renters through other means. The proposed rent freeze, reportedly aimed at mitigating housing cost spikes linked to the fallout from the Middle East conflict, would exclude newly built properties to encourage ongoing housebuilding. The idea of a rent freeze marks a notable shift for Reeves, who previously opposed rent controls in Labour’s renters’ rights reforms set to take effect imminently. The potential policy has sparked market reactions, with shares in major UK buy-to-let lenders such as Paragon and One Savings Bank falling following the news. Supporters argue that radical measures are needed to alleviate the cost of living crisis, particularly as economists warn that the UK faces disproportionate economic impacts from global disruptions, including soaring oil prices and closed shipping lanes. Experts caution, however, that while a rent freeze could lower rents on affected properties, it may inadvertently push rents higher in unregulated segments of the market and reduce the overall supply of rental housing. This could undermine efforts to increase housing availability, including Labour’s pledge to build 1.5 million new homes during this parliamentary term. Research from the German Institute of Economic Research suggests that rent controls typically lead to an average decrease of 9.4% in regulated rents but can distort the broader rental market, complicating efforts to balance affordability with supply.