In a response to a written question from Labour MP Rachael Maskell, Hughes said historical evidence suggested that rent controls discouraged investment in the sector and would lead to falling property standards.
He added that international examples would suggest that rent controls can have inadvertent negative impact on supply of housing and encourage illegal subletting.
Hughes reiterated that the government had committed to introducing a renters reform bill in this parliamentary session and it planned to abolish no fault evictions by removing Section 21 notices.
“It is important to note that currently if tenants with periodic tenancies believe the level of rent increase is unfair, they can already refer the matter to the Property Chamber of the First-tier Tribunal for independent adjudication. The Tribunal will consider whether the rent increase is in line with market rent,” he noted.
Propertymark welcomed the decision and said its own statistics showed tenants were 40 times more likely to be made homeless as landlords could become “disillusioned with the tax and legislative burden and want to sell their property, than because they can’t afford the rent”.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “His decision to publicly rule out rent controls in England suggests that he has taken our advice.
“The policy of rent controls may be popular among those looking for a short-term solution to rising market rents amid the cost-of-living crisis, but they will not solve the root cause of the problem, which is an undersupply of homes across all tenures.”
He added: “In a free market, where rents are allowed to flex in line with demand, investment in the private rented sector is incentivised. This provides a far more effective solution to the issue of affordability and encourages the long-term supply of good quality housing.”
