economy
Rachel Reeves considering rent freeze to limit Iran war fallout
Exclusive: Sources say chancellor is examining exceptional measures to protect household budgets
TL;DR
- Rachel Reeves is considering a one-year rent freeze for private sector homes in England.
- The proposal aims to mitigate the impact of the Iran war on voters' budgets and rising inflation.
- This measure would be a reversal of previous resistance to rent controls.
- Supporters cite affordability crises and successful rent controls in other European countries.
- Critics warn that rent controls could discourage new housing development.
- The freeze might exempt new-build properties to encourage construction.
- Labour has a target to build 1.5 million homes but is currently falling short.
- Similar rent control measures exist in Scotland and Spain.
- The government hopes these measures will improve Labour's standing after expected local election losses.