Mar

Khan claims rent controls to cut landlord income by £3,000 during first years of scheme

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The Mayor of London Sadiq Khan has claimed that rent controls would save tenants £3,000 during the first two years of the scheme, if his plans are given the green light.

But the Labour mayor’s calculations are wishful thinking – so far Conservative central government has ignored his previous calls to be given rent control powers.

Nevertheless, the latest figures from Khan’s office reveal the likely reduction in rental income that landlords could face should a change in political power within Westminster take place, particularly as his latest call as the backing of campaigning group Generation Rent.

The organisations, along with Shelter, holds considerable sway in the corridors of Whitehall where renters’ voting power increasingly checkmates landlords’ concerns.

Khan’s new figures are based on rent inflation predictions by estate agency Savills, which reveals that that freezing private rents for two years would save Londoners on average a total of £2,988 across both years including £881 in the first year and £2,107 in the second.

His calls for rent controls are backed up by the cost of living crisis facing many tenants as inflation and in particular energy costs spiral upwards.

Devastating combination

“Private renters make up nearly a third of everyone living in the capital and they are set to be hit by a devastating combination of price and bill rises. Too often the needs of private renters are ignored by both landlords and the Government,” he says.

“Rising fuel and energy costs – which will hit renters in energy inefficient homes the hardest – are already causing anxiety and stress, with a big rise in the energy price cap due next month.

“That’s why today I’m calling on ministers to give me the powers to stop rents rising in the capital and help me to give people a chance to get back on their feet after the pandemic.”

NRLA reaction

Ben Beadle (pictured), of the National Residential Landlords Association, says: “A rent freeze would be disastrous for the private rented sector. At a time when costs are rising sharply and will continue to do so with extra spending needed for energy efficiency upgrades and higher mortgage rates, all it would do is drive more landlords out of the market.”

Read more about rent controls.

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