Labour makes it clear – no rent controls

Labour makes it clear – no rent controls


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Labour’s housing minister Matthew Pennycook has made it clear ahead of the local elections – his party does not back rent controls.

He told MPs: “The government does not support the introduction of rent controls, which we believe could make life more difficult for renters.

“There is sufficient international evidence from countries such as Sweden and Germany, and from individual cities such as San Francisco, as well as the recent Scottish experience, to attest to the potential detrimental impacts of rent controls on tenants.”

He says his administration has analysed “a wealth of evidence” on both direct and indirect forms of rent regulation.

And he adds that controls “typically benefit settled and better-off tenants more than those looking for a home or needing to move”.

His clear statement, less than three weeks ahead of the polling day on May 7, draws a distinction from the Green Party, seen as a Labour challenger in many areas.

Over the weekend Green leader Jack Polanski was co-organiser of a march backing rent controls.

Unite the Union, the National Education Union (NEU), and the Public and Commercial Services Union (PCS) were among groups backing the Green Party demo, which attracted thousands of marchers.

A statement by one of the groups involved in the protest – the London Renters Union (LRU) – accuses Labour of failing renters. 

It says: “Although the Renters Rights Act will come into force on May 1, the government is failing to tackle rising rents and the severe shortages of social housing. 

“Their plan to hand more powers to private developers will only create more extortionate private rentals that will drive up prices for local residents.

“While the government fails renters, the far-right has weaponised the housing crisis. 

“Migrants are on the receiving end of a cynical campaign of disinformation that tries to convince the public that British nationals are being de-prioritised in housing allocation.”

Elyem Chej of the LRU comments: “Tenants need an alternative to our rigged housing system. 

“Soaring rents are pushing us into poverty and out of our neighbourhoods while corporate giants build luxury flats we can’t afford. 

“Keir Starmer’s government is making the housing crisis worse, cosying up to private developers and selling out our communities.” 

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