IPPR Proposes ‘Double-Lock’ Rent Cap as UK Faces Rising Living Costs

The IPPR proposes capping rent increases in England at whichever is lower—inflation or wage growth—a “double-lock”. The cap would apply to all tenancies, while new builds are exempt for ten years. Landlords making upgrades could raise rents above the cap, and a licensing system would limit short-term lets.

IPPR proposes rent cap linked to inflation or wages

The proposal comes as the UK confronts a surge in living costs tied to Iran’s war, expected to push inflation to the top among G7 economies this year. Chancellor Rachel Reeves is set to unveil a cost-of-living package in May after a proposed one-year rent freeze was rejected.

The Guardian

IPPR estimates that 2.4 million to 4 million UK households spend over 30 % of income on rent, a figure projected to rise by 340 000 by 2030. Expanding housing benefit to cover 30 % of rents would cost an additional £600 million annually.

IPPR proposes rent cap linked to inflation or wages

The IPPR frames the cap as a “carefully tailored” tool to curb unaffordable rents. Chancellor Reeves has pledged to “use every lever we have to bear down on the cost of living, including for people in the private rented sector.” A Ministry of Housing spokesperson called the recent ban on no-fault evictions a major tenant protection.

Birmingham Mail

Analysts note that Scotland’s temporary caps introduced in 2022 were followed by a sharp rent surge after they lapsed in 2024. Academic research warns that while capped units see lower rents, exempt properties may experience faster rent growth, widening inequality.

IPPR proposes rent cap linked to inflation or wages

Sources differ on the number of households facing unaffordable rents: The Guardian reports 4 million, while PropertyWire reports 2.4 million. No regional breakdown is provided.

Birmingham Mail

• “There are millions of people living with unaffordable housing costs, and if you want to bring those down quickly there are not many options.” — Maya Singer Hobbs, IPPR author

IPPR proposes rent cap linked to inflation or wages

• “You could spend a lot more money on housing benefit, but that is expensive. You could invest in new supply, but that takes a long time to feed through into costs. That’s why we are calling for a rent cap, albeit carefully tailored.” — Maya Singer Hobbs, IPPR author

The Guardian

• “I will do everything in my power and use every lever we have to bear down on the cost of living, including for people in the private rented sector.” — Rachel Reeves, Chancellor of the Exchequer

The Guardian

• “Banning no-fault evictions is the biggest change to renting in a generation and will free families from the misery it has created.” — Ministry of Housing spokesperson

Birmingham Mail

Reeves’ cost-of-living announcement later this month will reveal whether the double-lock rent cap is adopted and outline exemptions.

IPPR proposes rent cap linked to inflation or wages