New Prime Minister Andy Burnham is considering a rent freeze as part of an emergency cost-of-living package, the details of which could be announced in the next few days.
Mr Burnham said ministers were still examining measures that could provide households with help quickly, with energy bills and bus fares already being lowered.
Former Chancellor Rachel Reeves proposed a rent freeze earlier this year but opposition from landlords meant that the plan did not progress.
Speaking to reporters after his first Downing Street address as Prime Minister, he said: "We are looking at measures that could make a difference this year."
He added: "We're just finalising the details. We just want to do some things that people will feel and feel quite quickly.
"It won't solve everything, it won't take all of the pressure off, but it just shows the direction of travel and that we're serious about helping them out.”
Mr Burnham has also said that ending rough sleeping will be his first priority in office.
Scotland's rent freeze
A rent freeze would mean landlords cannot increase rent for a period and critics argue that rent controls deter investment, put landlords under financial pressure and reduce the number of homes to rent.
Scotland, which introduced a rent freeze in 2022 under former first minister Nicola Sturgeon, is offered as an example.
That’s because when rents were later allowed to rise under a temporary cap, there were sharp rises reported.
Critics also warn that developers had been discouraged from investing in homes to rent and that landlords were withdrawing properties from the market.
Angela Rayner returns to government
Mr Burnham's mooted proposal coincides with Angela Rayner's return to government as Housing Secretary.
Ms Rayner resigned last September as deputy prime minister and Housing Secretary after admitting underpaying stamp duty on a property. The issue was settled in May with HMRC.
Departmental accounts later showed that after resigning, Ms Rayner received a £16,876 severance payment, the Local Government Chronicle reports.
No to rent controls - NRLA
Ben Beadle, the chief executive of the National Residential Landlords Association, welcomed Ms Rayner's return but urged the government to reject rent controls.
He said: "We welcome Angela Rayner back as Housing Secretary.
"Boosting housing supply will be one of the government's most pressing issues, and we stand ready to work constructively with ministers on this agenda.
"With the private rented sector facing significant further changes, it is vital that reforms are practical and fair for both tenants and responsible landlords."
He added: "Underpinning all of this is a need to rule out any form of rent control.
"As Angela Rayner herself and the cross-party Housing Select Committee have all warned, rent controls would undermine the supply of the homes to rent so many tenants urgently need."
Rent freeze will hurt landlords
Simon Thompson, the managing director of Accommodation for Students, said: "Hearing about a mooted plan for a rent freeze means landlords face renewed uncertainty over government intervention.
"Any restriction on rent rises could squeeze margins while tax, finance and maintenance costs continue to rise."
He added: "The prospect may also affect future investment decisions and encourage some landlords to reconsider remaining in the sector.
"Ministers will now face pressure to balance household affordability with the need to retain and expand available housing and they'll need to appreciate that a rent freeze won't help housing supply."
