Labour says rent controls for UK cities could be based on London

Labour says rent controls for UK cities could be based on London


Todays other news
The Renters Rights Bill turns to the House of Lords...
Liam Monaghan is managing director of London Central Portfolio...
There are revenue streams to emerge from the Renters Rights...
The analysis is by Hamptons, part of the Connells Group...
The homes were originally sold under the controversial Right To...


Labour’s candidate for London Mayor wants to control private rents – and he wants the capital to be a template for other big UK cities.

Sadiq Khan has told the Independent newspaper that the introduction of rent controls in London could be replicated in other cities where housing is unaffordable.

The London Mayoralty does not include powers to control rents but at the last poll for the post – in 2016 – Khan called for increased authority over the private rental sector.

For this election – taking place today – he’s done the same, and tells the paper:  “I’m in favour of the government giving me the powers to bring in rent controls. I think we’ve got to recognise that London is different to the rest of the country in terms of housing need.

“The average cost of a one-bedroom home in London is more than the average cost of a three-bedroom home in the rest of England.”

Figures have shown rents have actually fallen in London over the past 15 months but Khan is unrepentant.

“Rents may have fallen slightly in London during the pandemic because some Londoners have temporarily left the city […] but this is only a temporary blip. My worry is that in a few months’ time hopefully we will have an [economic] recovery but we will be in the situation we had before.”

Lettings trade bodies have taken issue with Khan’s bid for power over rents.

An analysis by the National Residential Landlords Association shows that private rents have fallen every year in real terms throughout Khan’s period of office and are now nearly 10 per cent lower than five years ago when compared to the Retail Price Index.

The NRLA says figures from the Office for National Statistics show that rents in the capital have fallen by 9.6 per cent between April 2016 (the month before Khan first came to office) and February 2021. 

Even compared to the Consumer Price Index – including housing costs, which the government has said it plans to start using – rents fell by 5.1 per cent over the same period.

The NRLA is warning that any move to control rent rises by linking them to inflation would leave tenants worse off.

You can see the Khan interview in the Independent here

 

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Letting Agent Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
5 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Recommended for you
Related Articles
The Renters Rights Bill turns to the House of Lords...
Liam Monaghan is managing director of London Central Portfolio...
There are revenue streams to emerge from the Renters Rights...
The homes were originally sold under the controversial Right To...
The BoE has come to a decision on interest rates...
The removal of temporary rent controls may make buy-to-let more...
There will be a greater emphasis on digitisation....
Recommended for you
Latest Features
The Renters Rights Bill turns to the House of Lords...
Liam Monaghan is managing director of London Central Portfolio...
There are revenue streams to emerge from the Renters Rights...
Sponsored Content
With less than a month to go until the UK...
The UK government has implemented 16 financial sanctions rule changes...
The owners of the Rentman software application (for property Lettings...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here