Sadiq Khan has pledged to tackle rising rents in London by making the issue a key part of his bid to be re-elected as mayor in 2020.
Labour said it wanted to introduce more controls on rent rises in its manifesto for the 2017 General Election, and polls by City Hall and YouGov reveal that two thirds of London renters want the amounts landlords can charged to be capped. Khan, mayor of the capital since 2016, also wants tenants to have greater legal rights but he will only be able to lobby the government to make any changes in London itself.
“The arguments for rent control are overwhelming, and Londoners overwhelmingly want it to happen,” he told Metro.
“I am delighted Karen Buck MP has agreed to work with my Deputy Mayor for Housing on proposals for new laws that would help make private rents more affordable.
“Over the last decade, the housing crisis has forced more and more Londoners to rent privately. This rise has exposed just how out of date and unfit for purpose the laws are that are meant to protect renters.
London rents on the rise
Around 2.4m people rent in London, roughly 27% of its population. Recent figures from Rightmove showed rents rising at 2.1%, the fastest rate in the capital for four years, and they predict a further hike of 4% in 2019. But supply cannot meet demand and is having an effect on rents, with a fall in rental stock of 22% in 2018.
However housing secretary James Brokenshire hit back, and claimed the current mayor had overseen an “eye-watering 20% drop in new-builds” since entering office. Brokenshire has argued that rent controls would lead to poorer housing standards, and even a drop in stock if landlords chose to leave the market.
Khan admits he is “frustrated” by his lack of powers but does point to the introduction of a rogue landlord checker in his time as mayor as evidence of measures that can be taken.
Hannah Slater, policy manager at Generation Rent, backed Khan’s proposals, saying: “Londoners are paying some of the highest rents in the world and many are struggling to keep a roof over their head in the area they grew up in or close enough to where they work.
“Renters need stability in our homes that can only come from certainty over what rent we pay – but we need to afford a home in the first place. We applaud the Mayor’s commitment to explore how rent controls can work to provide Londoners with stable and affordable homes.”
More supply the solution?
But John Stewart, Policy Manager at the Residential Landlords Association, queried the ideas and said adding much-need stock should be a priority.
“The Labour Party in Wales has previously rejected rent controls arguing that they reduce incentives to invest in new property when we need more and lead to a reduction in the quality of housing. The same would be the case in London.
“All evidence around the world shows that where forms of rent control are in place, decoupling prices from the value of properties hurts both tenants and landlords.
“In the end what is needed is a relentless focus on boosting the supply of housing.”
