CHANCELLOR Rachel Reeves could impose a hugely controversial rent freeze on private sector homes.
Landlords in England would be banned from raising rents for up to one year under the proposals, according to the Guardian.
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Rachel Reeves is reportedly considering imposing a one-year private-sector rent freeze Credit: Getty
Under the proposed plan, landlords across England would not be allowed to raise rents for a 12-month period Credit: Getty
The idea is being debated within government as part of a cost of living package in response to the Iran war.
Left-wing Labour MPs – worried about losing votes to the Green Party – are likely to welcome a freeze.
But it will trigger fears it will discourage housebuilding and clobber landlords already reeling from new laws on renters’ rights.
Robert Colvile, head of the Centre for Policy Studies think-tank, said: “This feels like a mind-boggling scale of intervention in the private market.
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“If the government wants to bring rents down it should build an awful lot more houses.”
Reeves is said to be looking at a number of interventions in the rental markets.
Insiders said that her favoured option was the outright freeze, lasting 12 months.
The chancellor has previously resisted similar moves, including proposals for rent controls in the Renters’ Rights Act, which come into force on Friday.
Ms Reeves is understood to be exploring several potential interventions in rental markets as part of her broader strategy to contain housing costs.
The Treasury said it would not comment on “speculation”.
Similar rental restrictions have recently been introduced elsewhere, including Scotland, where MSPs passed legislation enabling ministers to cap rents in designated areas.
Spain is another country where tenants can now demand a freeze lasting up to two years.
It comes as the prime minister said that Brits may have to change where they go on holiday and what they buy in the supermarket this year because of the Iran war.
Sir Keir Starmer said that the longer the war went on, the more “people might change their habits” as he sought to “level with the public” about the threat of disruption.
Speaking to Jattvibe, the PM said: “I can see that if there’s more impact, people might change their habits.
“Where they go on holiday this year, what they’re buying in the supermarket, that sort of thing.”
Asked if that meant there may be shortages of food and fuel, Sir Keir said his message to the public was still that they should not panic.
He added: “We chose not to get involved in this war. That was the right thing to do.
“But we must protect the British people from the impact of it.”
The government has confirmed it is preparing plans to offset potential food and fuel shortages caused by the Iran War.
The Prime Minister will chair another meeting of a Cabinet committee on Tuesday which was set up to deal with any shortfalls.
Meanwhile, a group of ministers will meet twice a week to monitor stock levels and supply chain disruptions.
