Landlords reacted with fury on Tuesday after Rachel Reeves opened the door to imposing a rent freeze to ease the cost of living.
The Chancellor said she would do 'everything we can' when asked if she would impose a year-long ban on private landlords putting up prices.
However, there was confusion after Downing Street and a Cabinet minister claimed there were 'no plans' to implement the policy.
Labour has repeatedly ruled out rent controls but appeared to be wavering after the Greens made it a flagship party policy.
Asked by Labour MP Yuan Yang whether she would 'examine the case for a fixed-term rent freeze in the private rented sector', the Chancellor did not deny the claims.
Speaking in the Commons, Ms Reeves replied: '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.
'We will do everything we can to also help people in
the private rented sector, because we must ensure that this conflict in the Middle East does not result in our constituents being poorer.'
Landlords have reacted with fury after Rachel Reeves opened the door to imposing a rent freeze
But the Prime Minister's official spokesman said: 'We have no plans to implement this. Our focus remains on cutting bills and backing renters alongside lower energy prices.' Earlier on Tuesday, Education Secretary Bridget Phillipson said a rent freeze 'is not the approach we are taking'.
She told Times Radio: 'That isn't something that we are actively considering.
'Just to be completely clear, that is not the approach we'll be taking. But as you'd expect, the Chancellor is concerned, as we all are, about the impact of the conflict in the Middle East on family finances and is looking at what more might be required to help families to get through this, but not that.'
Following her exchange with Ms Reeves in the Commons, Ms Yang said: 'The Chancellor didn't rule out a fixed-term freeze on private sector rents... As Trump's war in Iran continues to drive up costs, this move would provide vital security for young families, who are most affected by the cost of living.'
But landlords branded it an 'inept, knee-jerk government intervention' and said it would increase rents as it had in Scotland.
Melanie Leech, chief executive of the British Property Federation, said: 'We recognise the current pressures on individuals and households, but there is no surer way
for the Government to kill off its ambitions to deliver the new homes we need, and the jobs and tax revenue that flow from that, rather than well-intentioned but inept, knee-jerk government intervention.
'If a temporary rent freeze is being considered by the Chancellor, she must learn the lessons of the disastrous impact of the failed attempt to introduce rent controls in Scotland, with rents for new lets rising significantly after controls were introduced, alongside a standstill in new home-building.'
The National Residential Landlords Association said the move would be a 'disaster' and also warned it would put up prices. Chief executive Ben Beadle said: 'Introducing a rent freeze would be a disaster for landlord and investor confidence and consequently the supply of homes in England.
'There is no evidence to suggest that it would make rents more affordable. In fact, the impact on supply would inevitably drive new rents still higher.'