Propertymark has welcomed a commitment from the UK’s housing minister Eddie Hughes that the UK government is not considering rent controls in England.

In a written reply to a question from Labour MP Rachael Maskell, Hughes said there was enough evidence available to show they would discourage investment in the private rented sector and lead to declining property standards.

Hughes comments: “Historical evidence suggests that rent controls would discourage investment in the sector and would lead to declining property standards as a result, which would not help landlords or tenants.”

“Recent international examples also suggest that rent controls can have an inadvertent negative impact on the supply of housing and may encourage more illegal subletting.”

Last month, the Queen’s Speech set out plans for a ‘renters’ reform bill’ which the government said is designed to deliver a better deal for the 4.4m households in England’s private rented sector.

Hughes explains: “Through this, we will abolish ‘no fault’ evictions by removing Section 21 of the Housing Act 1988, providing security for tenants in the private rented sector and empowering them to challenge poor practice and unfair rent increases without fear of retaliatory eviction.”

“It is important to note that currently if tenants with periodic tenancies believe the level of rent increase is unfair, they can already refer the matter to the Property Chamber of the First-tier Tribunal for independent adjudication. The Tribunal will consider whether the rent increase is in line with market rent,” he adds. 

Meanwhile, the devolved governments in Scotland, Wales and Northern Ireland are pursuing their own provisions for rent controls.

Propertymark head of policy and campaigns Timothy Douglas says: “Only last month we urged the Minister to study closely his department’s own statistics* that show tenants are 40 times more likely to be made homeless because their landlord has become so disillusioned with the tax and legislative burden and wants to sell their property, than because they can’t afford the rent.”

“His decision to publicly rule out rent controls in England suggests that he has taken our advice.”

“The policy of rent controls may be popular among those looking for a short-term solution to rising market rents amid the cost-of-living crisis, but they will not solve the root cause of the problem, which is an undersupply of homes across all tenures.”

“In a free market, where rents are allowed to flex in line with demand, investment in the private rented sector is incentivised. This provides a far more effective solution to the issue of affordability and encourages the long-term supply of good quality housing,” Douglas adds.