Downing Street has dismissed the idea of a freeze on private sector rents even as Rachel Reeves left the door open to such a move, after the Guardian revealed the chancellor has been considering it as an option to cut the cost of living.

A No 10 spokesperson said on Tuesday that freezing private sector rents was “not the approach we will be taking” after sources told the Guardian it was Reeves’s preferred solution for dealing with a spike in housing costs in the wake of the Iran war.

They added: “We have no plans to implement this. Our focus remains on cutting bills and backing renters alongside lower energy prices.”

Yuan Yang, a Labour MP and economist, asked Rachel Reeves about the rent freeze idea.

Reeves, however, failed to rule out the idea when asked about it in the Commons, telling the Labour MP Yuan Yang: “I will do everything in my power and use every lever we have to bear down on the cost of living, including for people in the private rented sector.”

The chancellor was understood to have been…