Labour Rules Out Giving Mayors Power to Impose Rent Controls

The Labour Party has decisively ruled out granting regional mayors, including London’s Sadiq Khan, the power to impose rent controls. This comes amidst ongoing debates over how to address the UK’s housing crisis, particularly the skyrocketing rents in cities like London.

Lisa Nandy, the Shadow Secretary of State for Levelling Up, Housing and Communities, clarified the party’s position, stating that while rent controls might seem like an appealing solution, they are ultimately a “sticking plaster.” She warned that such measures could lead to unintended consequences, such as reducing the supply of rental properties. Nandy emphasized, “When housebuilding is falling off a cliff and buy-to-let landlords are leaving the market, rent controls that cut rents for some will almost certainly leave others homeless.”​ (The Independent).

Sadiq Khan, a long-time advocate for rent controls, expressed his disappointment but maintained his focus on increasing housing supply in London. He previously argued for a two-year rent freeze in the capital, but in recent discussions, he has acknowledged the challenges. Khan remarked, “I understand the arguments on both sides – those landlords and developers who say if you did this, we’ll just simply withdraw from the property market. That’s why we’re going to have a commission that includes landlords, developers, tenants, and renters.”​ (Evening Standard).

Ben Beadle, Chief Executive of the National Residential Landlords Association (NRLA), echoed concerns over the potential impact of rent controls. He warned that such measures would “choke off supply further, undermining what little choice tenants currently have when looking for somewhere to live.”​ (Property Industry Eye).

Labour’s decision to sideline rent controls in favor of boosting housing supply reflects a broader shift in strategy. The party now seems focused on increasing the construction of affordable homes and supporting tenant rights without resorting to direct rent regulation.