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UK Rules Out Rent Freeze After Reeves’ Comments Jolt Rental Market

Ministers now face pressure to aid renters through other tools.

Overview

  • Downing Street ruled out a rent freeze hours after Tuesday’s Commons exchange in which Chancellor Rachel Reeves refused to dismiss the idea.
  • Housing Secretary Steve Reed said Wednesday he was “crystal clear” the government is not doing a rent freeze, countering suggestions raised by the earlier reports.
  • The rumours pushed down shares in buy-to-let lenders on Tuesday, with OSB Group off 3.6%, Paragon down 2.4%, and Grainger also falling by about 3%.
  • Reports described a one-year cap on rent increases that would exclude new-builds as a short-term response to Iran-related cost pressures.
  • Landlord groups and many economists warned such controls would shrink supply and raise new-let rents, a debate now shifting to how else to help tenants as the Renters’ Rights Act takes effect.