Rent Controls: Solution to Soaring Rents – or Risk to Housing Supply?

With rents rising sharply across the UK, rent controls are firmly back on the political agenda. Scotland is moving ahead with new powers for councils to cap increases, while London and Greater Manchester leaders have called for similar measures.

But as a building surveyor working with buyers, landlords and investors across Essex and beyond, I can’t help asking: what are the wider consequences for the housing market?

Let’s take a look at what’s happening – and what property owners need to consider.

Why Rent Controls Are Back in the Spotlight

In Scotland, the Housing (Scotland) Act 2025 will allow councils to apply for rent control zones, limiting increases to CPI + 1%, capped at 6%. This would apply both during and between tenancies.

In England, the Renters’ Rights Act 2025 (coming into force in May) strengthens tenants’ rights by:

  • Banning no-fault evictions

  • Limiting rent increases to once per year

  • Giving tenants more power to challenge rises

However, it stops short of introducing rent caps.

Meanwhile, political figures such as Sadiq Khan and Andy Burnham have openly supported rent control discussions.

The pressure is understandable. According to ONS data:

  • Average UK private rent: £1,368 (Dec 2025)

  • London average: £2,268 per month

For many renters, housing costs are stretching finances to breaking point.

Lessons from Berlin

https://images.openai.com/static-rsc-3/H32RUkpLVS6NLYsHRNzcKCu4-P7gKe8zUts7f9HEzoPI110ahaBzV6F1uE-92tvBZ7xrHBwF6Vz3EHwznLNc9CNMdu5dI3N0z-hyXxQeX5k?purpose=fullsize&v=1

In 2020, Berlin introduced a strict rent freeze, capping rents at pre-pandemic levels.

The policy was later overturned by Germany’s constitutional court, but during its short life:

  • Advertised rental supply reportedly fell sharply

  • Conversions from rental to owner-occupation increased

  • Debate intensified around long-term impact

Supporters argue it protected sitting tenants.
Critics argue it reduced supply and discouraged investment.

The key takeaway? Policy design matters enormously.

The Core Tension: Tenant Protection vs Market Confidence

Even many economists acknowledge rent controls benefit existing tenants. The challenge lies in the unintended consequences:

Potential Benefits

  • Greater stability for renters

  • Predictable costs

  • Reduced eviction risk

  • Short-term affordability relief

Potential Risks

  • Reduced landlord confidence

  • Less investment in maintenance and upgrades

  • Fewer rental properties entering the market

  • Two-tier systems where some properties are exempt

As a surveyor, one particular concern is maintenance standards. If margins tighten significantly, some landlords may delay repairs or upgrades. That can impact:

  • Building fabric condition

  • Compliance with safety regulations

  • Energy efficiency improvements

  • Long-term asset value

What This Means for Landlords

If rent controls expand in England, landlords will need to be sharper than ever in managing risk.

That includes:

  • Ensuring properties meet required standards

  • Keeping up with compliance (EICR, EPC, fire safety, etc.)

  • Understanding how restrictions may affect long-term yield

  • Considering whether refurbishment could justify higher rental values within legal limits

A well-maintained property is far more defensible if regulations tighten.

What This Means for Buyers and Investors

For buy-to-let investors, uncertainty creates hesitation. But it can also create opportunity.

If supply tightens and landlords exit the market, we may see:

  • More ex-rental stock coming up for sale

  • Increased focus on quality over quantity

  • Greater emphasis on energy performance and compliance

That’s where a detailed pre-purchase survey becomes critical. Investors must understand:

  • Hidden defects

  • Upcoming repair liabilities

  • Retrofit costs

  • Long-term maintenance planning

In a regulated environment, margin for error shrinks.

The Bigger Picture

Rent controls are not a new idea. They’ve been used in various forms for over a century, often during housing shortages.

The real question isn’t whether they are “good” or “bad”.

It’s whether they form part of a broader housing strategy that includes:

  • Increased housing supply

  • Social housing investment

  • Clear regulatory standards

  • Balanced incentives for landlords

Without supply growth, controlling price alone rarely solves the root issue.

Final Thoughts from a Surveyor’s Perspective

Whether you’re a landlord, investor or first-time buyer, the rental debate highlights one consistent truth:

Property is a long-term asset that must be properly maintained, understood and managed.

Policy may change.
Markets may shift.
But building condition, compliance and risk management remain constant.

If you’re purchasing a rental property – or reviewing an existing one – make sure you fully understand its condition before committing financially.

Thinking of Buying or Reviewing a Rental Property?

At Ashton Lee Surveyors, we provide:

  • RICS Level 2 and Level 3 surveys

  • Detailed defect analysis

  • Practical repair advice

  • Clear, jargon-free reporting

If you’d like to discuss a property purchase or portfolio review, get in touch today.

Because in an uncertain market, knowledge really is power.