Pennycook outlines government’s opposition to rent controls as Polanski’s Green Party calls for caps

Matthew Pennycook has reiterated the government’s opposition to private rent controls, after the Green Party put support for capping rents at the centre of its local election campaign.

The housing minister in parliament on Monday said: “The government does not support the introduction of rent controls, which we believe could make life more difficult for renters.

“There is sufficient international evidence from countries such as Sweden and Germany, and from individual cities such as San Francisco, as well as the recent Scottish experience, to attest to the potential detrimental impacts of rent controls on tenants.”

Dan Carden, Labour MP for Liverpool Walton, urged Pennycook to “look again at the evidence and start to consult.”

Pennycook added: “I have looked at a wealth of evidence, particularly international evidence, of what the impact of first and second-generation rent controls are, as well as more subtle forms of rent control, which can have differential impacts on different groups.

“Such controls typically benefit settled and better-off tenants more than those looking for a home or needing to move.”

The housing minister’s comments come days after the Green Party launched its campaign ahead of the local elections on 7 May.

The Green Party said its members elected in May will “use their voice to pressure the Labour government to give local authorities the power to introduce rent controls to curb overheating rents in their area.” The party has also pledged to “totally” abolish leasehold and introduce rent controls nationally if it gets into government.

Leader Zack Polanski, speaking to the BBC’s Laura Kuenssberg earlier this year said one of the groups that is “feeling the pinch” the most is renters.

“They’re stuck between people who own their own house and people who have a council house. They’re stuck in an over-inflated market where landlords can often charge what they want,” he said.

“Now, there’s 16 European countries that have brought in rent controls, and it has been successful. So I think the obvious thing to do here is to look at the evidence where it’s not worked, and not do that. Look at where it’s worked and make sure we adopt a similar system.”

Pennycook’s opposition to rent controls was welcomed by Kurt Mueller, director of corporate affairs and executive committee member at Grainger, Britain’s largest listed private landlord.

Mueller, highlighting the housing minister’s comments on the LinkedIn social media platform, said: “It’s good to see continued support from the UK Government for common sense with their steadfast commitment against rent controls and the damaging impact they would have for renters and the market generally.”