The Labour government has ruled out rent controls – despite the Renters Rights Bill restricting landlords’ powers to increase rents as necessary.
Housing Secretary Matthew Pennycook told his Conservative shadow, James Cleverly: “My department regularly reviews external research and evidence related to various aspects of the private rented sector.
“The government has been clear it does not support the introduction of rent controls, including rent stabilisation measures.
“We believe they could make life more difficult for private renters, both in terms of incentivising landlords to increase rents routinely up to a cap where they might otherwise not have done, and in pushing many landlords out of the market, thereby making it even harder for renters to find a home they can afford.”
Under the Bill, set to become law possibly next week, landlords will only be able to increase rent once a year, must provide two months’ notice, and can only use a Section 13 notice for periodic tenancies.
Contractual rent increases in fixed-term tenancies will be abolished in the private sector, and tenants can challenge a rent increase as excessive and apply to a tribunal, which can only lower the rent or keep it the same.
Not every Labour politician appears to support Pennycook.
Notably London Labour Mayor Sadiq Khan has been a long-standing supporter of rent controls over the private sector, and an advocate of his office receiving the powers to impose them.
Greater Manchester Mayor Andy Burnham supports rent controls and has joined with other Labour mayors in advocating for stronger rent protections, including a rent freeze, to address the cost-of-living crisis. Indeed, two years ago Burnham, Khan and Liverpool Mayor Steve Rotheram signed an open letter to the then-Conservative government calling for an immediate rent freeze and a ban on evictions during the cost-of-living crisis
And on Wednesday of this week the former Labour leader Jeremy Corbyn – now sitting as an independent MP for part of Islington – told the Commons: “In my constituency, a two-bedroom flat in the private rented sector goes for about £2,000 a month, which is way above what most people can afford. There is a desperate need, in inner-city areas in particular, for rent regulation.”
This article is taken from Landlord Today