Angela Rayner stops Mayor’s plan to impose rent controls on landlords

London Mayor Sadiq Khan appears to have lost his years-long fight to win the power to improve rent controls.

Media reports over the weekend suggest that the new Labour government has made it clear that it will not be devolving the power to limit rent rises to Metro Mayors such as Khan: all but one of England’s Metro Mayors are Labour.

London media outlets say a spokesperson for the Ministry of Housing, Communities and Local Government has stated that Housing Secretary Angela Rayner has “no plans whatsoever to devolve rent control powers”.

In the spring, before the General Election, Labour leader Sir Keir Starmer told the Local Democracy Reporting Service (LDRS) that rent controls were not Labour’s “policy at the moment”, while admitting that “Sadiq feels strongly about this” and pledging to “work together as we go forward”.

But Rayner’s department has stated: “Fixing Britain’s housing crisis is one of our top priorities, and giving struggling renters more rights and security is an important issue for this government, but there have been no conversations with the Mayor of London about introducing rent controls.

“Lack of supply is fuelling the housing crisis, and we are taking action to boost housebuilding. We will work closely with the mayor and boroughs so we can increase housing delivery in London.”

Almost exactly a year ago Mayor Khan and activist group Generation Rent issued a joint appeal for rent controls in the capital, claiming that “unchecked private rents in London could soar to upwards of £2,700 pcm next year.” 

In a joint statement featuring Khan and Generation Rent’s chief executive Ben Twomey, the Mayor said: “These figures reveal the clearest picture yet of why rent controls are so necessary. Private renters make up nearly a third of everyone living in the capital, but they are being consistently let down by a Government that refuses to listen and take urgent action to protect them from even greater financial hardship.  

“Londoners re-elected me on a manifesto pledge to push for the powers to control rents and I will not stop advocating for this lifeline on their behalf. I am delivering on my promise to build a better, fairer and more prosperous London by building more affordable homes in the capital and providing vital support to Londoners through the cost-of-living crisis.” 

And Twomey - a former Labour candidate in Police Crime and Commissioner elections - added: “Spiralling rents are driving families into poverty and on to the streets. That is why we support the Mayor’s call for devolved powers to take action to stabilise rents. The average London renter is already putting 40 per cent of their wages straight into their landlord's pocket, and this situation shows no sign of improving on its own. 

"Controlling rents doesn’t address the lack of homes that allows landlords to charge so much on new tenancies. To tackle that we also need a big increase in the supply of social and affordable homes, and the Mayor is right to call for funding to build as much of this as possible in London. Without action, Londoners will continue to face sky-high rents which are forcing the likes of nurses and teachers out of the city and hollowing out our communities." 

The figures from Khan claimed that 49 per cent of children in private rented homes lived in poverty. 

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