Activists are beginning to pile pressure on London Labour Mayor Sadiq Khan, claiming the public will be disappointed if he toes the official Labour line on rent controls.
Party leader Sir Kier Starmer and shadow housing secretary Angela Rayner have both made it clear that the party is against rent controls, fearing they will lease to a reduction in landlords and higher rents anyway because of the scarcity of properties.
But Khan – who is standing for re-election in under a month from now – has yet again made an election pledge to argue for rent control powers to be given to him, should he win on May 2. Khan has consistently called for such powers, and has consistently been ignored by the government.
However, Khan believes he may have found a way of imposing limited rent controls by the back door through the introduction of what he calls ‘rent control homes’ – properties built in London from public funds and with rents capped in line with local areas’ key worker salaries.
Khan said on social media over the weekend: “I’m proud of how I’ve supported renters as Mayor bu there’s more to do. If re-elected I will build at least 6,000 rent control homes, invest more in tackling rogue landlords, and introduce far-reaching reforms to help renters defend their rights.”
He continued: “While the Tories are in the pockets of the landlord lobby, I’ll be a renters’ champion …. [I’ll be] a Mayor who will always stand up for renters.”
Now activists have claimed that Khan’s so-called New Deal for Renters will not ease London’s housing crisis without comprehensive rent controls.
However, the London Renters Union issued a statement over the weekend calling on Khan to continue campaigning for city-wide rent controls and push the Labour party to commit to devolution of power over rents.
The LRU claims that Starmer has shied away from rent controls, focusing only on the devolution of powers to implement landlord licensing.
But the union claims: “Housing costs take up nearly half of Londoners’ wages for those on lower incomes. Rough sleeping is at record levels in the capital while London councils face bankruptcy under the increased strain of homelessness services.”
And it takes a swipe at landlords, stating: “Meanwhile, the majority of mortgage-free landlords continue to hike rents and half of buy to let landlords focus on growing their portfolios.”
The union claims polling suggests that 69% of Londoners want rent controls, and it believes that 10 European countries successfully use such controls of some kind.
The LRU has also called for the establishment of a Rent Control Commission with the purpose of developing the capital’s plan for the policy, as well as an increased investment in council housing.
A spokesperson for the activists says: “Sadiq Khan’s New Deal will fall flat if he does not continue to push for the power to cap rents in London. London renters are trapped in a cycle of instability and many will feel let down if Khan stops campaigning for city-wide rent controls under a Labour government.
“6,000 new rent controlled properties will not bring security to the capital’s three million private renters who are living in fear that they will be forced out of their homes by an unaffordable rent increase.
“A third term offers Khan a once-in-a-generation opportunity to push a likely new Labour government and bring much-needed rent control to the capital.”
