Labour Mayoral hopeful Diane Abbott MP has called for a system of private sector rent controls in a paper published today with renter rights campaign Generation Rent.
Under the proposals, monthly rents could be no more than 50% of the local annual council tax bill. On a typical Band A London bedsit, this maximum rent could equate to about £390 per month, which is 35% of the London Living Wage and would be considered a truly affordable proportion of wages.
Landlords could opt out of the rent control system in return for a surcharge on the rent they charge above the cap. This money would go to the Mayor of London to fund new social housing, which, in turn, would reduce housing demand and lower the market rents.
Generation Rent says London’s private renters currently pay far more for a roof over their heads than is considered reasonable. The median private rent in London is 51% of the median salary.
About 50% of the London population already rents their home – either as private or social tenants – and all trends predict a continuing increase in that number. By 2021, Generation Rent predicts that 49 of the capital’s 73 parliamentary seats will have more renters than home owners, translating into huge democratic pressure for cheaper housing rather than ever rising house prices.
Diane Abbott, who recently announced her intention to stand as London Mayor, has written to the Prime Minister and leader of the opposition to demand powers for the London Mayor and local authorities outside of London to implement the proposed system where the public wants it.
Abbott said: “A major international city without measures to stabilise rent runs the risk of rents spiralling out of people’s reach. It is no coincidence that New York, Paris and Berlin all have some version of rent control. For too long politicians have rejected any form of rent controls but it is time to look at the issue again.”
Alex Hilton, director of Generation Rent, said: “This rent slavery, where people are ground down working to build their landlords’ buy-to-let empires, is untenable. People are having to choose whether to cut back on food or heating to meet their rents. The next Mayor of London will either preside over the implementation of rent controls – and respite for the majority of Londoners – or they will see uncontrolled rent strikes as ordinary people reach their breaking point.”
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Comments
Diane Abbott is an opportunist politician with a big ego. Her children are privately educated,she earns plenty from `'guvvie' jobs, see http://www.theyworkforyou.com/mp/10001/diane_abbott/hackney_north_and_stoke_newington#register
She doesnt understand the phrase `the market decides the price` or `you cannot buck the market` because she is a `socialist` and thinks she can..it just distorts the market.
It turns out this staged food poverty game is for people awaiting the useless councils to pay their dole.
There is no poverty in the UK aside from indolent spongers who smoke and drink the money they get, then get the socialists and marxists to bat their corner that its unfair they can't all have iPhones and 56inch TV's (OOPS, MOST OF THEM DO HAVE THESE)
Rent controls, what sort of out of touch morons would come up with this. never mind how the property owner and their mortgage and costs, just fine them for being too expensive according to labourite commies, they desperately need votes and the only people who will vote for them aside from the socialists in Hampstead, are the uneducated masses living off the labours of hard working brits who are being squashed under the fiscal responsibility. Vulnerable my bum!
Big mouth, small brain!
just shows how out of touch with reality these people are, just like the stupid archbishop talking about food poverty while dressed in gold plated clothes and speaking from a palace, hypocrits all of them.