What is Margaret Mullane MP proposing on rent controls?

Margaret Mullane, Labour MP for Dagenham and Rainham, published a piece on LabourList calling for rent control trials at local authority level in areas with significant social and economic pressures. She proposes a model similar to Ireland's rent pressure zones, where rent increases are capped in tight housing markets. She also calls for a major increase in social rented housing alongside any rent controls.

How would rent controls affect buy-to-let landlords?

Rent controls would cap how much landlords can increase rent each year, limiting income growth on existing tenancies. This directly impacts cash flow, yield, and the financial case for holding BTL properties. In areas with rent pressure zones, landlords would need to maximise rental income at the point of new tenancy setup, as annual increases would be restricted. It could accelerate portfolio exits among highly leveraged landlords.

Does the Renters Rights Act already regulate rent increases?

Yes. Under the Renters Rights Act which came into effect on 1 May 2026, landlords can only increase rent once per year, must give proper notice, and tenants can challenge increases at a tribunal as excessive. However, the Act does not cap the amount of the increase — it only restricts the frequency and process. Mullane's proposal would go further by limiting the percentage by which rents can rise.

Could rent controls actually become law in England?

Currently this is a backbench MP's proposal, not government policy. Rent controls are not in the Labour manifesto nor in any government bill. The Treasury and Number 10 have not commented. However, with housing costs driving welfare spending above £30bn per year, the policy has fiscal appeal. The most likely route would be a pilot scheme in a few local authorities, as Mullane proposes, before any national rollout.

What can landlords do now to prepare for potential rent controls?

Landlords should review their current rent levels against market rates to ensure they are at or near market value. If your portfolio is in high-demand urban areas, consider longer tenancies at sustainable rent levels to lock in income. Review mortgage affordability at current rental income levels. Explore portfolio diversification into regions less likely to face rent controls. And consider incorporating via a SPV if not already done, as company structures may offer more flexibility in a controlled rent environment.

Labour MP Calls for Rent Controls: Landlord Impact 2026

A Labour MP has called for private rent controls to be trialled in England, arguing that high rents are driving the Housing Benefit bill above £30 billion a year and pushing councils to the brink of financial collapse. For UK landlords, the proposal signals that the political conversation on rent regulation is far from over — and may be just beginning.

Margaret Mullane, Labour MP for Dagenham and Rainham, published the call in a LabourList article on 23 June. She argues that the Renters Rights Act — which came into effect on 1 May and ended no-fault evictions — does not go far enough. The next step, she says, is to cap how much landlords can increase rent in areas where housing is under the most pressure.

Mullane’s proposal is not government policy. The Treasury and Number 10 have not commented. But with 25 comments on Landlord Today in a single day and cross-party interest in housing costs, this is a debate that will not go away.

This article breaks down what Mullane is proposing, how it would work in practice, what it means for buy-to-let investors, and what you should do now to prepare.

What Margaret Mullane is actually proposing

Mullane’s article makes four arguments:

1. Rent increases are outpacing incomes. Since 2010, average private rents in England have risen 45% to £1,340 per month. For lowest-income renters, housing costs now absorb roughly half of their income. Forty per cent report difficulty meeting housing costs, according to Joseph Rowntree Foundation data cited in the piece.

2. Housing Benefit is ballooning. The Housing Benefit bill has grown to over £30 billion per year, with the majority paid to private landlords. Local authorities spend an additional £3 billion on top of that. Mullane argues this means taxpayers are effectively subsidising high rents and that rent controls would reduce the welfare bill.

3. Rent controls are not radical. She points to Ireland, France, and Germany, which all limit rent increases in tight housing markets. Ireland’s rent pressure zones cap annual increases at a percentage linked to inflation. The UK itself had rent controls for over 70 years between the First World War and the Housing Act 1988. She calls for a trial of similar measures at local authority level.

4. Social housing is the real answer. Mullane acknowledges that rent controls alone are insufficient. She calls for a “seismic shift” in the supply of social rented homes, arguing that expanded council housing must form the foundation of any strategy to tackle the housing crisis.

Her article is explicitly a discussion starter, not a legislative proposal. She writes that she wants to “begin a discussion on rent controls” and suggests a trial in areas with “significant social and economic pressures.”

How rent controls would work in practice

The model Mullane points to is Ireland’s rent pressure zones. In designated areas where rents are rising fastest, annual rent increases are capped at a rate linked to the Harmonised Index of Consumer Prices (HICP) plus a small additional percentage. New tenancies are not price controlled at the point of setup, but once a tenancy is in place, the annual increase is capped.

For England, this would mean:

Local authority level designation. A council or combined authority could apply for rent pressure zone status if its area meets affordability criteria.
Annual increase cap. Existing tenancy rents could only rise by CPI inflation plus a fixed percentage (typically 2-4% in international models).
New tenancies exempt. The initial rent at the start of a new tenancy would not be directly capped, though the government could introduce vacancy control (extending caps to new lets) in a second phase.
Tenant challenge rights. Tenants could challenge above-cap increases at a tribunal, as they already can under the Renters Rights Act for increases they consider excessive.

The key question for landlords is whether a local authority trial would expand to national rollout. In Ireland, rent pressure zones were introduced in Dublin initially and then expanded nationwide. If England follows the same path, every landlord with urban property could eventually face rent caps.

What the Renters Rights Act already does on rent increases

It is important to understand the baseline. The Renters Rights Act, which took effect on 1 May 2026, already changed the rules on rent increases:

Rents can only be increased once per year (previously, landlords could propose increases at any time).
Landlords must give at least two months’ notice of any increase using the prescribed Form 6B.
Tenants can challenge an increase at the First-tier Tribunal (Property Chamber) as “excessive.”
The tribunal will consider local market rents, the condition of the property, and the landlord’s costs.

What the Act does NOT do is cap the amount of the increase. A landlord can propose a 10% or 20% increase — the tenant can challenge it, but there is no statutory ceiling beyond what a tribunal considers reasonable. See our full Renters Rights Act timetable for details on all phases.

A rent control regime would add a hard cap on top of the existing process. That is the key difference.

What rent controls would mean for buy-to-let landlords

Rent controls directly target the income side of the BTL equation. For a landlord operating on thin margins — and many are — even a modest cap on annual increases can change the financial viability of a portfolio.

Cash flow impact. If annual rent increases are capped at CPI (currently around 2.5-3%) while mortgage costs, insurance, and maintenance rise faster, real income per unit shrinks. A landlord paying 5.07% on a two-year fix with an interest-only mortgage is already seeing most of the rent go to the lender. Cap the rent and the numbers get tighter.

Portfolio strategy shift. With capped annual increases, the financial incentive shifts from long-term hold with regular increases to maximising rent at the point of new tenancy setup. This could lead to higher initial asking rents — the opposite of what rent controls intend — as landlords seek to front-load income before the cap applies.

Portfolio exits accelerate. Landlords already leaving the sector — RICS data shows a net balance of -28% in landlord supply — would have another reason to sell. The Green Party dropped its landlord ban earlier this month, but the rent control debate fills the same regulatory threat space. If landlords expect future income to be capped, disposals today at current prices become more attractive than holding through uncertainty.

Regional variation. Rent controls would most likely target high-pressure urban areas: London, the South East, Manchester, Bristol, Edinburgh. Landlords with portfolios in these areas face the greatest risk. Investors in lower-pressure markets (North East, Scotland, Wales) may see limited impact, and could benefit from displaced investor capital moving north.

For deal sourcers and active investors, the regional divergence creates opportunity. As institutional and amateur capital flees potential rent-control zones, prices in affected areas may soften. That opens acquisition windows for cash buyers and those who can hold through a controlled-rent environment.

Our guide to the best UK cities for BTL investment already flags Manchester and Birmingham as high-growth markets — but also as the most likely candidates for future rent regulation. If you are buying in those cities today, factor rent control risk into your underwriting.

The political reality: how likely is this to become law?

This is a backbench MP’s policy proposal, not a government bill. Rent controls are not in the Labour manifesto, not in the King’s Speech, and not on any government legislative timetable. Number 10 has not commented. The Treasury has not commented. That makes the odds of national rent control legislation in this parliament fairly low.

However, three factors could change the picture:

1. The welfare budget. The OBR expects welfare spending to rise from £322.6 billion in 2025/26 to £373.4 billion by 2029/30. With the Housing Benefit component already above £30 billion and rising, the Treasury has a fiscal incentive to support policies that reduce the benefit bill. Rent controls would not eliminate Housing Benefit spending, but they would slow its growth — and every percentage point matters in a tight fiscal environment.

2. The Autumn Budget. Chancellor Reeves’s first full Budget is expected in October or November. If it includes welfare reform — as many expect — rent controls could be presented as a demand-side measure to contain housing costs without cutting benefits. The stamp duty debate and the 77% surge in CGT both suggest the Treasury is actively looking at property-related tax and spending levers.

3. Political momentum. Mullane’s article attracted 25 comments on Landlord Today on publication day. The Renters Rights Act was itself a backbench pressure campaign that became government policy. If more Labour MPs take up the rent control cause — particularly in high-rent constituencies — it could become a party conference issue and then a policy commitment.

The most likely near-term outcome is a pilot: one or two local authorities given powers to designate rent pressure zones, probably in Labour-controlled councils with existing housing pressures. That would test the model without national disruption. A national rollout would require a second term Labour government at the earliest.

What landlords should do now

Rent control is not law. It may never be law. But the direction of travel — more tenant protection, more regulation on rental income — is clear. Here are the practical steps to take today.

1. Audit your current rent levels. If your rents are below market rate, you have an opportunity to correct before any cap is introduced. Use your local market data or an agent to check what comparable properties are achieving. An under-priced portfolio is leaving money on the table regardless of the regulatory outlook. Our rental yield calculator can help you model the numbers.

2. Run the stress test. Model what your portfolio cash flow looks like if annual rent increases are capped at CPI (2.5%) for five years while mortgage costs stay near current levels. Can you still service the debt? Can you maintain the property? If the answer is no on either front, consider restructuring or selling before any regulatory change forces your hand.

3. Consider longer tenancies. The Renters Rights Act already encourages longer tenancies. Offering a three-year or five-year tenancy with a fixed rent schedule can lock in income, reduce void risk, and create a more stable relationship with your tenant. It also reduces the risk that a future rent control regime catches you mid-tenancy with capped increases.

4. Look north and west. If your portfolio is concentrated in London or the South East, consider geographic diversification. Markets in the North East, Scotland, and Wales have lower entry costs, higher yields, and — critically — less political pressure for rent controls. The north-south divide that is shaping house prices is also shaping the regulatory risk map.

5. Use a limited company structure. If you are buying personally, consider transferring to a SPV. Company structures offer more flexibility on profit extraction and may be better positioned to manage in a controlled-rent environment where operational efficiency matters more than income growth. See our limited company BTL guide for the full comparison.

6. Stress-test your deals with the BRRR strategy. The BRRR strategy becomes more attractive when income growth is constrained, because you rely on capital recycling and equity extraction rather than rent growth. If you can buy, refurbish, rent, and refinance successfully, the rent control debate matters less — you are not holding for decades of income growth.

The bottom line is this: rent control is not imminent, but the conversation has started. The Landlord Today article with 25 comments in one day shows how quickly this topic mobilises opinion on both sides. For property investors, the smart move is to assume that rent growth will be constrained in high-demand urban areas within 3-5 years — and underwrite your deals accordingly.