Speaking to the BBC, Rayner said the reforms introduced through the Renters’ Rights Act, which came into force in May, were already having a “significant impact” on the private rented sector.
She also questioned the effectiveness of rent controls, arguing that schemes introduced elsewhere in the UK had not “necessarily brought rents down”.
The comments appear to rule out a policy previously backed by new prime minister Andy Burnham. While serving as mayor of Greater Manchester in 2023, Burnham called for private sector rents to be frozen until the cost of living crisis had eased.
The government’s position suggests ministers will continue to rely on the Renters’ Rights Act, rather than rent controls, as the main vehicle for reforming the private rented sector.
Rayner said: “I don’t think that rent freezes, rent controls, is a way forward at the moment.
“Three years ago, Andy called for that because there was a significant crisis in the rental market.
“We implemented between then the Renters’ Rights Act which is giving renters more power and control.”
Temporary rent controls were introduced in Scotland in October 2022 but expired last year.
Under new legislation, ministers in Holyrood will be able to designate certain places in Scotland as rent control areas – expected to come in by 2027.
Jeremy Corbyn, who pledged to bring in rent controls during the 2019 general election when he was the Labour leader, described Rayner’s announcement as “extremely disappointing”.
“There is no hope of ending homelessness if we do not stand up to vested interests and take action against extortionate private rents,” he said. “We need rent controls, and we need them now.”
Under the Renters’ Rights Act rents can also only be increased once a year to the property’s “open market rent”.
