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Labour MP Diane Abbott, who is also a potential Labour candidate for the mayor of London, has joined with campaign group Generation Rent to call for private sector rent controls in the capital.

Under the proposals, monthly rents could be no more than 50 per cent of the local annual council tax bill. On a typical Band A London bedsit, this maximum rent could equate to about £390 per month, which is 35 per cent of the London Living Wage.

Landlords could opt out of the rent control system in return for a surcharge on the rent they charge above the cap. This money would go to the Mayor of London to fund new social housing, which, in turn, would reduce housing demand and lower the market rents.

Generation Rent says London's private renters currently pay far more for a roof over their heads than is considered reasonable. The median private rent in London is 51 per cent of the median salary.

About half of the London population already rents - either as private or social tenants - and all trends predict a continuing increase in that number. By 2021, Generation Rent claims that 49 of the capital's 73 parliamentary seats will have more renters than home owners.

Abbott, who recently announced her intention to stand as London Mayor, has written to the Prime Minister and to Ed Miliband demanding powers for the London Mayor and local authorities outside of London to implement the proposed system where the public wants it.

A major international city without measures to stabilise rent runs the risk of rents spiralling out of people's reach. It is no coincidence that New York, Paris and Berlin all have some version of rent control. For too long politicians have rejected any form of rent controls but it is time to look at the issue again she says.

Comments

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    I rent a house out where I live for only 425 for a two bed property PCM. Its my pension, You dont need to enforce longer tenancy terms as good tenants dont get told to move out. So it seems London landlords who most dont live in UK are determining policy in this country as they are the one pushing up rents

    you put your rent up people would just find something cheaper but not in london as it over populated. get real labour party wake up.

    • 26 April 2015 09:02 AM
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    The funds received from the sale of council houses was supposed to be used to fund social housing but councils spent it on other things.

    Now there are no funds left to build social housing and private landlords and private tenants are being asked to foot the bill.

    • 11 December 2014 14:44 PM
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