Could a rent freeze be on the way?

With the Iran war set to push up prices across the board, the government is looking at ways to protect household budgets - and a one-year rent freeze is one option on the table.

The Guardian reports that chancellor Rachel Reeves is considering imposing a one-year rent freeze on private sector homes.

That would mean landlords in England won’t be allowed to increase rents for a limited period of time.

Why are rent freezes being considered?

If you’ve been following closely, you’ll know that ministers have consistently ruled out the idea of introducing rent controls.

And they were absent from the government’s flagship renters’ rights act, which came into effect last week.

But the US-Israel war with Iran has changed the picture completely, pushing up oil prices and driving fears of a renewed cost-of-living crisis.

And ministers have acknowledged that even if the conflict ends tomorrow, the economic damage won’t be instantly undone.

The Treasury has refused to confirm or deny reports of a possible rent freeze, saying only that it won’t comment on “speculation”.

But sources have told the Guardian that there is “growing alarm” within government about how the Iran war will affect households’ finances.

As a result, they’re willing to consider exceptional measures to help people.

New-build homes would be exempt from rent freeze

The Guardian understands that if a rent freeze is introduced, it won’t apply to new-build properties.

Ministers want to deliver 1.5m homes in the current parliament in an effort to improve the affordability and supply of housing.

So the government hopes exempting these properties from a rent freeze will encourage developers to keep working on new schemes.

What help is available for renters?

If you’re finding rent hard to afford, there are several forms of support you may be entitled to:

Universal credit

If you’re of working age, universal credit (UC) may include extra money to help with rent and service charges. 

This housing element is usually included in your monthly UC payment and paid directly to your landlord.

You can also apply for additional support from your UC if you're dealing with financial hardship.

Housing benefit

If you’re over state pension age, you might qualify for housing benefit through your local council. 

Some people under pension age may also be eligible, particularly if they live in supported or temporary housing.

The amount you receive depends on:

• your age
• where you live
• the size of your household

Crisis and resilience fund

Under the Crisis and Resilience Fund (CRF), councils in England will get multi-year funding so they can provide targeted help to people who need it most.

The CRF aims to:

• provide a safety net for households hit by unexpected financial shocks
• help people become more financially resilient in the longer term
• prevent recurring hardship, so people are less likely to repeatedly need emergency help like food parcels

Charity grants

Organisations like Turn2us can help you find and apply for grants and other financial support from charities and local community groups.

Try our household bills calculator

If you’re worried about how rising costs could affect your finances, it could be worth trying our free and interactive household bills calculator.

It only takes a few minutes to use and shows how bills may change based on where you live.

Once you’ve done this, try our free budget planner to map out your monthly finances. 

And if you’re struggling with the cost of living, remember that you might be entitled to some support.

Use our benefits calculator to find out what benefits you’re eligible to claim.