Activists are beginning to pile pressure on London Labour Mayor Sadiq Khan, claiming the public will be disappointed if he toes the official Labour line on rent controls.
Party leader Sir Kier Starmer and shadow housing secretary Angela Rayner have both made it clear that the party is against rent controls, fearing they will lease to a reduction in landlords and higher rents anyway because of the scarcity of properties.
But Khan - who is standing for re-election in under a month from now - has yet again made an election pledge to argue for rent control powers to be given to him, should he win on May 2. Khan has consistently called for such powers, and has consistently been ignored by the government.
However, Khan believes he may have found a way of imposing limited rent controls by the back door through the introduction of what he calls ‘rent control homes’ - properties built in London from public funds and with rents capped in line with local areas’ key worker salaries.
Khan said on social media over the weekend: “I’m proud of how I’ve supported renters as Mayor bu there’s more to do. If re-elected I will build at least 6,000 rent control homes, invest more in tackling rogue landlords, and introduce far-reaching reforms to help renters defend their rights.”
He continued: “While the Tories are in the pockets of the landlord lobby, I’ll be a renters’ champion …. [I’ll be] a Mayor who will always stand up for renters.”
Now activists have claimed that Khan’s so-called New Deal for Renters will not ease London’s housing crisis without comprehensive rent controls.
However, the London Renters Union issued a statement over the weekend calling on Khan to continue campaigning for city-wide rent controls and push the Labour party to commit to devolution of power over rents.
The LRU claims that Starmer has shied away from rent controls, focusing only on the devolution of powers to implement landlord licensing.
But the union claims: “Housing costs take up nearly half of Londoners’ wages for those on lower incomes. Rough sleeping is at record levels in the capital while London councils face bankruptcy under the increased strain of homelessness services.”
And it takes a swipe at landlords, stating: “Meanwhile, the majority of mortgage-free landlords continue to hike rents and half of buy to let landlords focus on growing their portfolios.”
The union claims polling suggests that 69% of Londoners want rent controls, and it believes that 10 European countries successfully use such controls of some kind.
The LRU has also called for the establishment of a Rent Control Commission with the purpose of developing the capital’s plan for the policy, as well as an increased investment in council housing.
A spokesperson for the activists says: “Sadiq Khan’s New Deal will fall flat if he does not continue to push for the power to cap rents in London. London renters are trapped in a cycle of instability and many will feel let down if Khan stops campaigning for city-wide rent controls under a Labour government.
“6,000 new rent controlled properties will not bring security to the capital’s three million private renters who are living in fear that they will be forced out of their homes by an unaffordable rent increase.
“A third term offers Khan a once-in-a-generation opportunity to push a likely new Labour government and bring much-needed rent control to the capital.”
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The only way to stop the upward pressure on rents is to abolish Section 24, bin the RRB and generally stop attacking landlords.
Reinstating taper or indexation relief would also help to encourage landlords to stay in the industry long term while allowing them a retirement route when the time comes. Without a sensible exit route why would anyone enter the industry? Without a steady flow of new entrants a shortage of supply leads to higher rent.
Perfect as ever Jo...
I think it is called capitalism, the system we have lived under forever? Try Russia or China if you want an alternative.
Combined with rent price data, Propertymark says that "landlords in Scotland are increasing rents between tenancies to cover their costs and anticipated costs due to a fear of ongoing rent control legislation.”
So Sadiq says “While the Tories are in the pockets of the landlord lobby" ???
I seriously doubt that considering the kicking we have all had from successive Tory chancellors since 2015.
I suspect in the end Labour will cave in ( as per) and rent controls will come in.
Not wanting to state the obvious, but isn't social housing rent controlled housing? So building 6000 social rent homes is not particularly ambitious for a city the size of London.
Come the RRB along with proposed rent controls and properties to let in London will be virtually non existent as per pre introduction of section 21 back in the 1970/80s
Londonistan is not like the rest of the country.
Sad IQ Khan will, regrettably, win the election😟 but I doubt Sir Kneel and Darth Rayner will introduce rent controls in the rest of the country.
What the point of rent control if there are no properties to rent?
LL's will simply exit the market if they cannot charge reasonable rents, they will simply be forced to sell the property. It will be like Tesco selling a loaf of bread for 10p, but having none of the shelves.
Pointless!!!!
In Scotland you are not allowed to exit the market... Hence I have a property sitting empty.... At least I know it's still mine that way.
Will he tackle rogue tenants? will he tackle the disgraceful state of HA properties? ……….
Will he fk, it won't attract enough headlines for this self serving tool.
Rent increases now while we still can
Ah, little Sadiq khan is a comical character with his lies and pretence of competence.
So he says he will build 6000 homes if re-elected but has been in for 8 years so far and not built even one so far?
His revolutionary idea of rent controlled homes is just social housing - nothing new in that at all Sadiq - and 6000? Not even a drop in the ocean.
Our capital deserves an effective competent mayor - hoping Londoners have enough sense to give Sadiq the elbow and not elect another equally deluded alternative - unless of course, they’re enjoying their record levels of violence and knife crime.
Steve , didn’t he not come from a Council Estate, benefited from the tax payers subsidised fee rearing , living & education, the mind set is there, similar other benefit Claimants maybe 2/3 generations, expected, entitled.
I digress.
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