New analysis from the Institute for Fiscal Studies (IFS) has claimed that capping rents would not bring down rents.
The IFS examined rent control systems across Europe and North America and found a consistent pattern. Rent caps may help tenants already in regulated homes, but they do not reduce overall rents across the market. In many countries, rent controls have led landlords to withdraw properties from the market. Some have converted homes to other uses or reduce maintenance. The think tank warns that unless the UK’s housing market behaves differently from those studied, rent controls would likely shrink supply without delivering the widespread rent reductions renters desperately want.
Green Party see rent controls as key to bring down rents
Despite this, the Green Party insists rent controls are essential to tackling the housing crisis. With rents rising faster than wages in many cities and some tenants spending more than 40 percent of their income on housing, the Greens argue that renters need immediate protection from what they describe as “rip off rents.”
“Spiralling rents are ripping the heart out of communities across the UK. Renters are being forced to cut back on essentials just to afford the cost of a roof over their heads.”
Green Party Leader, Zack Polanski, speaking at the New Economics Foundation
Green Party deputy leader Zack Polanski has become one of the most vocal champions of rent caps. He argues that rent caps would give tenants breathing space while longer term reforms such as mass social housing construction take shape.
Polanski also insists that international examples show rent controls can work when designed properly. “We know that rent controls can work, and we can learn so much from the different models that have been tried elsewhere. A Green government would bring in rent controls. We would stop the chokehold of rip off rents and breathe life back into our communities,” he said.
The IFS remains unconvinced. Its analysis suggests that while rent caps may offer short term relief for some tenants, they risk creating deeper structural problems. This includes tighter supply and worsening affordability for future renters. The think tank argues that boosting housing supply, reforming planning rules and expanding social housing would be more effective ways to bring rents down sustainably.