Industry figures have expressed their delight that the new Andy Burnham-led Labour government is resisting rent controls for England.

Over the weekend Housing Secretary Angela Rayner made clear these were not on the agenda, despite earlier comments from Burnham In broad support of controls.

In response, James Gwynne – lettings manager at Nicol & Co – says: “ Rent controls can only work if there is adequate provision of housing in the first place.

“The rental sector has seen significant changes in the last few months and needs time to respond and settle down.

“More regulation of the private rented sector can now only be effectively introduced when either the sector sees growth, or if the government invests significantly in the provision of social and council housing.”

He believes the lessons learned from Scotland’s temporary period of rental controls between 2022 and 2025 showed that many landlords chose to sell, rather than continue letting properties.

“Property portals and letting agents reported a noticeable reduction in available rental stock.

“As existing rents were capped, landlords significantly increased asking rents when properties became vacant.

“Fewer rental properties meant more applicants competing for each vacancy, and prospective tenants often faced dozens of competing applicants.”

And Vanessa Hale, chief executive of new trade body Real Estate:UK, says Rayner’s decision is “excellent news for the housing sector.”

She continues: “Ministers have heeded our warnings about the harm they could cause to new homes and the jobs and economic benefits they bring. Improving affordability must remain the priority.

“But the answer is increasing the supply of homes, not introducing measures that risk deterring the investment needed to deliver them.

“The UK’s housing challenge is fundamentally one of undersupply. The focus should therefore be on the policies that unlock viability, attract investment and accelerate delivery.

“We welcome the clarity provided today and look forward to continuing to work with Government on solutions that support the delivery of more homes across the country.”