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The Lead: Market Reacts to Potential Rent FreezeShares in some of the UK's biggest buy-to-let lenders such as Paragon and One Savings Bank have fallen after it emerged that the chancellor may make private landlords commit to a one-year rent freeze. In an effort to protect households from rising living costs as a result of the Iran war, Rachel Reeves is considering whether to ban landlords in England from increasing rents for a limited period of time.The Event Details: Government's Contemplated Rent Control MeasureThe potential rent freeze would be the latest in a line of restrictive measures imposed on private landlords by successive governments since 2015 in a bid to crack down on the once booming buy-to-let sector. On Friday, the Renters' Rights Act will come into force, bringing significant changes to the sector. The new law aims to give renters more security by banning no-fault evictions, limiting rent rises to once a year and only up to "the market rate", and stopping landlords from accepting an offer over asking price.The Data Analysis: Stock Market Impact on LendersStock in OSB Group, one of the UK's biggest buy-to-let mortgage providers, was down 3.6% at 510p as investors worried the rent freeze would hurt the FTSE 250 company behind the lenders Kent Reliance and Precise Mortgages. Shares in Paragon Banking Group, another large buy-to-let lender, slumped 2.4% to 733p. The FTSE 250 group is largely focused on lending to professional landlords who own more than three properties.The Impact Analysis: Shifting Landscape for UK Private Rental SectorTimothy Douglas, the head of policy and campaigns at Propertymark, which represents property agents, said the reports of a rent freeze were "alarming" for landlords when the Renters' Right Act is already introducing "huge regulatory change." He added: "Rent controls risk distorting the market and undermining investment at a time when demand already far outstrips supply." Douglas said the government should instead focus on increasing housing supply and supporting long-term investment in the private rented sector.The Prediction: Future of UK Housing Policy and InvestmentThe Treasury declined to comment on "speculation" about the proposal, while Education Secretary Bridget Phillipson stated they are not actively considering a rent freeze. However, the potential policy continues a trend of increasing regulation on the private rental sector. Scotland previously implemented a rent freeze from September 2022 to April 2023, which was followed by increases capped at 3% for 12 months. Industry experts warn that further regulatory intervention could lead to reduced investment in the sector, potentially exacerbating housing supply issues in the long term.