Mar

Rent controls central plank in Sadiq Khan’s mayoral re-election bid

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Mayoral Election:

London’s mayor
Sadiq Khan says the mayoral election is nothing less than a
referendum on rent controls.

“If I am
re-elected on May 7th, I will continue to stand up for Londoners
bearing the brunt of our city’s housing crisis by demanding that
City Hall is given the power to introduce rent controls in the
capital. Today, I launch my re-election campaign by declaring that
the forthcoming contest is nothing less than a referendum on rent
controls.

“Voters will face a clear choice between a Labour mayor who will continue to stand up for renters, or a Tory candidate who has shown he will oppose the measures needed to help Londoners struggling with the cost of living, says Khan.

However, The
Residential Landlords Association (RLA) and the National Landlords
Association (NLA), landlord bodies representing over 60,000 landlords
between them have voiced their concerns about Sadiq Khan’s plans to
introduce rent controls.

Both associations
agree on the issue, claiming that rent controls in London would be a
disaster for aspiring tenants.

“Khan’s proposal
comes after experts highlighted the danger rent controls would cause
at a time when the demand for private rented homes in the capital is
outstripping supply, according to both the RLA and the NLA.

Mr Kahn has said
that, “London gave me the chance to go from the council estate
where I grew up to being mayor of the greatest city on earth. But I
fear that if my Tory opponent gets into City Hall, many Londoners
will be forced out of our city due to skyrocketing rents and denied
the same opportunities to fulfil their potential.

“It’s clear that in recent years, London’s private rents have spiralled out of control – between 2010 and 2020, rents rose by 27%. The average private rent for a one-bedroom home in London is now more than the average for a three-bed home in every other region of England. The Tories might not like it, but Londoners need rent controls now,” Khan says.

But the Centre for
Cities has expressed its concerns about imposing strict rental
controls which it says would “close off London to new residents.”
And last year, Professor Kath Scanlon, a housing expert at the London
School of Economics, following a detailed study, said that the rent
control proposal would result in landlords deciding to leave the
rental market.

John Stewart, policy
manager for the Residential Landlords Association and Chris Norris,
policy director for the National Landlords Association, said jointly:

“Rent controls
might appear attractive to those already renting but they would be a
disaster for anyone looking for somewhere to rent.

“All they would
achieve, as history and experience elsewhere tells us, is to drive
landlords out of the market exacerbating an already serious shortage
of homes available.

“Instead of
putting out simplistic and superficially appealing proposals in
attempt to win votes, the Mayor should focus on boosting the supply
of available housing using the powers he already has.

“Only then will he
make any discernible impact on improving the affordability of housing
across the capital.”

David Cox, chief
executive of ARLA Propertymark, has said:

“Rent controls do
not work; it hits hardest those its designed to help the most, and
the Mayor of London has failed to learn the lessons of history. The
last time rent controls existed in this country, the private rented
sector shrunk to the lowest levels ever recorded.

“At a time of
demand for PRS homes massively outstripping supply, rent controls
will cause the sector to shrink. In turn, this means professional
landlords will only take the very best tenants, and the vulnerable
and low-income people that rent controls are designed to help, will
be forced into the hands of rogue and criminal operators, who may
exploit them.”

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