Rachel Reeves considering rent freeze to limit Iran war fallout

Rachel Reeves is considering imposing a one-year rent freeze on private sector homes amid growing alarm in government about the impact of the Iran war on voters’ budgets. Landlords in England would be banned from raising rents for a limited period of time under the proposals, which are being debated within government as part of a major cost of living package to be launched in the coming weeks. The measure would be a significant reversal from the chancellor, who has resisted including rent controls in the government’s renters’ rights reforms, which come into force on Friday. But sources informed of the government discussions say ministers are now sufficiently worried about what the conflict in Iran will mean for mortgages and household budgets that they are willing to consider exceptional measures. With Labour braced for heavy losses at the local elections, Keir Starmer looking vulnerable as prime minister and economists predicting a surge in inflation, ministers are looking for immediate ways to ease the cost of living for voters. George Bangham, head of social policy at the New Economics Foundation thinktank, said: “We have an affordability crisis in the private rented sector, which dates back to before the pandemic. Other countries in western Europe already do this, and England used to from 1915 until 1989. …