Rent Freeze Eyes on UK Landlords, Shares Drop

0:00On April 28, shares in major UK buy-to-let lenders like Paragon and OSB Group drop sharp on the London Stock Exchange after reports hit that. Chancellor Rachel Reeves is eyeing a one-year rent freeze for private landlords in England. This move aims to shield households from spiking living costs tied to fallout from the Iran War, and markets reacted fast when trading kicked off. Tuesday, with OSB down 3.6% to 510 pence, and Paragon slipping 2.4% to 7.33. Pence. These FTSE 250 firms specialize in mortgages for landlords, especially pros owning multiple properties, and investors fear the freeze could. Sqeeze their bottom lines amid already tight regulations. On Friday, the New Renters Rights Act rolls out, banning no-fall evictions, capping rent hikes to once a year at market rates and blocking bids. Over asking price, piling more pressure on the sector that's faced curbs since 2015.

1:01Industry voices like property mark call it alarming, warning rent controls distort the market and deter investment when supply lags far behind demand. Echoing Scotland's 2022 freeze that later capitalizes at 3% leaving everyone watching for Reeves' next play.