Introduce rent controls

Policy baseline

The Green manifesto supports rent controls. Direct fiscal cost is low, but economic risk is mostly private rental supply and maintenance.

• Targets private renters in covered tenancies.
• Landlords and future renters bear risk.
• Design determines supply effects.

Core trade-offs

The direct beneficiaries are incumbent renters facing high rents. The costs fall mainly on landlords and potentially future renters. The main economic question is rental supply and maintenance may fall.

• Incumbent renters facing high rents gain most directly.
• Costs fall mainly on landlords and potentially future renters.
• Key risk: rental supply and maintenance may fall.

Fiscal impact by 2028-29

+GBP 0.0bn to +GBP 2.0bn. Central estimate: +GBP 0.2bn.

• Positive numbers mean net fiscal cost; negative numbers mean Exchequer savings.
• Main channel is the scored tax, spending or delivery change.
• Offsets depend on tax receipts, behaviour and pass-through.
• Range reflects uncertain implementation and economic response.
• This is not an official costing.

Economic impact by 2028-29

• Jobs: Little direct employment effect; construction and letting activity may fall.
• Wages: Incumbent tenants gain disposable income; landlords lose rental income.
• Prices: Controlled rents fall for covered homes; uncontrolled rents may rise.
• GDP / productivity: Likely negative for rental supply and maintenance unless narrowly targeted.

Assessment

This is a real trade-off, not a free gain. Incumbent renters facing high rents benefit, while landlords and potentially future renters bear most costs. Overall output depends on behaviour, capacity and pass-through.

Confidence: Medium-low. Higher on the policy target and fiscal channel; lower on behaviour, pass-through and economy-wide effects.

Main risks

• Supply contraction: Landlords may sell or underinvest if expected returns fall.
• Targeting risk: Incumbent tenants gain more than households trying to enter the market.
• Maintenance risk: Lower returns can reduce repairs and quality.

Safeguards

• Limit coverage and review supply effects.
• Protect new construction incentives.
• Track evictions, listings and repairs.

Academic evidence

UK government evidence

Sources

• PolicyLens illustrative scenario methodology for introduce rent controls Internal - PolicyLens, 2026
• The Effects of Rent Control Expansion Academic article - Diamond, McQuade and Qian, American Economic Review, 2019
• The Economic Implications of Housing Supply Academic article - Glaeser and Gyourko, Journal of Economic Perspectives, 2018
• Green Party manifesto: a reaction Think tank analysis - Institute for Fiscal Studies, 2024
• Green Party manifesto summary Manifesto summary - Local Government Association, 2024
• Housing supply indicators, UK Official statistics - Office for National Statistics, 2025
• Manifesto for a Fairer, Greener Country Party policy source - Green Party of England and Wales, 2024

Other Green policies

• Raise the minimum wage to £15
• Index public-sector pay to inflation
• Add public-pay restoration premiums
• Raise low-paid public-sector wages
• Cap organisation pay ratios at 10:1
• Protect pay in transition schemes
• Create a single worker status
• Equal terms for outsourced workers