THE PROPERTY FILTER TAKE
The Green Party has proposed a three-year rent cap on private rents, limiting rises to the lowest of CPI inflation, wage growth or 2%. It is a party proposal, not law.
The opportunity window is in the maths: under a 2% ceiling, a £1,000 monthly rent reaches £1,061.21 after three rises, against £1,115.16 at 3.7% a year.
You may wish to re-run any long-hold deal with rent rises held at 2% a year, and consider speaking to a qualified adviser before changing your plans.
What would a 2% ceiling on rent rises do to your next deal? The Green Party has proposed a three-year rent cap on private rents (PropertyWire, 5 October 2026). Rises would be limited to the lowest of the Consumer Prices Index (CPI, the main measure of inflation), wage growth or 2%. Leader Zack Polanski set it out at the party's conference in Brighton. It is a party proposal, not law, and none of the reports I read gives a timetable for it becoming law.
What exactly has the Green Party proposed?
Polanski called for "a three-year emergency brake on private rents", with "no rent rises above CPI, wage growth or 2%", whichever is lower (LBC). LBC reports the policy is modelled on the pensions triple lock. The Press Association notes the state pension rises by the highest of inflation, wage growth or 2.5% (Nation.Cymru). The Greens take the lowest.
According to PropertyWire, the party said the three-year period would give government time to develop a national fair rents guarantee. Polanski said the brake would stop "sudden hikes" and "evictions under the guise of rent rises".
Which nations would it cover? Propertymark's own write-up describes a brake on private rents "in England and Wales". The speech reports I read do not name the nations. Propertymark's summary also says rents "would be frozen at current levels for three years, with only limited exceptions", which does not match the speech wording quoted above. I'd treat the detail as unsettled.
What would a 2% ceiling do to your rent roll?
Here's the angle. Because the cap is the lowest of three measures, it can never exceed 2%. It would only go lower if CPI or wage growth fell below that. The Press Association reports that annual wage growth excluding bonuses was 3.5% between May and July 2026 (Nation.Cymru). It adds that average UK monthly private rents rose 3.7% in the 12 months to July 2026, according to the Office for National Statistics.
Run the numbers on a £1,000 monthly rent. On my own arithmetic, three annual rises of 2% take it to £1,061.21. Three rises at 3.7% take it to £1,115.16. That is a gap of £53.95 a month, or £647.40 a year by year three. This is an illustration, not a forecast. If your deal only stacks with strong rent growth, our free stress test calculator shows how much a lender will lend against today's rent at a stressed rate.
In England, under the Renters' Rights Act, rent can only go up once a year, with changes starting from 1 May 2026 (Shelter England). Property118 reports the Act allows landlords to increase rent once a year, to the property's open market rate. Our free property resources for landlords cover the wider changes to tenancy law.
What does Scotland tell us, and where is the opportunity?
Timothy Douglas, Propertymark's head of policy and campaigns, said "rent caps do not address the underlying shortage of homes or the rising costs of providing and maintaining them" (Property118). He said that in Scotland, "our members have reported rent increases between tenancies, stalled investment and landlords leaving the market following temporary rent caps". Those are member reports. Property118 also reports the Institute for Fiscal Studies has previously warned of "unintended consequences" from rent controls.
Generation Rent's chief executive Holly Williamson said a limit on rent increases "would be a welcome commitment" for private renters (Property118).
Scotland has its own framework under the Housing (Scotland) Act 2025. In a designated rent control area, rises on private residential tenancies would be limited to CPI plus 1%, up to a maximum of 6%, during and between tenancies (Scottish Government). The first council rent reports are due by 31 May 2027. And the cap does not apply when rent is set at the start of a new tenancy in, for example, a property completely new to the private rented sector.
That carve-out is the part worth watching. Scotland's design leaves the opening rent on some new lets outside the cap, so in my view where you add homes can matter as much as what you charge. Our property investment strategies hub compares the main routes.
If rent growth is ever capped, the margin on a deal comes from the price you pay. Deal sourcing software that flags motivated sellers is one way to find that discount.
Key takeaways
The Green Party proposes capping private rent rises for three years at the lowest of CPI, wage growth or 2%. It is a party proposal, not law.
Propertymark describes the plan as covering England and Wales, while the speech reports do not name the nations.
On a £1,000 monthly rent, three 2% rises give £1,061.21, against £1,115.16 at 3.7%, a gap of £53.95 a month.
In England, the Renters' Rights Act already limits rent rises to once a year from 1 May 2026.
In Scotland, rent control areas under the Housing (Scotland) Act 2025 would cap rises at CPI plus 1%, up to 6%.
Frequently asked questions
Is the Green Party rent cap law?
How would the proposed rent cap be calculated?
Does the proposal apply in Scotland?
What are the current rent increase rules in England?
