Labour and Greens Propose Rent Cap to Shield Tenants Until 2029

The Labour Party is considering a new three-year rent cap aimed at protecting millions of renters by limiting increases until 2029. Green Party leader Zack Polanski has called on Labour leader and Makerfield MP Andy Burnham to take action, demanding an “emergency brake” on rent rises as private rental costs reach record highs.

Speaking at the Green Party conference, Polanski highlighted the “scandalous cost of private rents” and the urgent need to construct council homes on a significant scale. Recent figures show rent increases accelerated from 3.3% to 3.7% between June and July 2026, despite the introduction of the Renters’ Rights Act in May. Private renters currently spend on average 34% of their household income on rent in 2024-25.

The proposed emergency brake would cap rent increases over three years at the lowest of three measures: the Consumer Prices Index (CPI), wage growth, or 2%. Polanski emphasised the human impact of rising rents, describing stories from families where young adults remain living with parents due to unaffordable housing costs.

He stated, “Whether it’s council homes or terraced housing, many young people are unable to afford independent living. Some miss university lectures to save on travel costs, while others struggle to find work or save for a deposit. Even some in their thirties are returning to their parental homes with their families, with temporary stays becoming long-term arrangements.”

Polanski argued that landlords have increased rents beyond wage growth for too long, forcing renters to make severe sacrifices. He called for an emergency brake to prevent sudden rent hikes or evictions linked to rent increases. This measure aims to provide renters with stability and allow wages to catch up with housing costs. It would also give the government time to develop a national Fair Rents Guarantee to maintain affordable rents in the long term.