Landlords shouldn’t be allowed to increase rents by more than inflation, according to a new report commissioned by Labour politicians. What else does it say, and would a Labour government really implement its recommendations?
What the report says about rent controls
Under the proposals, rent increases at tenancy renewal would be subject to a “double lock” in England and Wales, which would limit them to the lower of local wage growth or Consumer Price Index inflation.
The report also says that rent increases should be restricted to one a year (a policy already included in the Renters (Reform) Bill), and calls for tenants to be given at least four months’ notice of any rent increase.
However, there is no recommendation in the report to cap rents between tenancies, meaning that landlords could freely set whatever rent they choose for new tenants. The report’s authors warn that between-tenancy rent controls could push landlords out of the market and reduce supply for tenants.
However, Scotland’s temporary rent increase cap may have reduced supply, despite restricting rent increases only within tenancies, suggesting that any form of rent control could make life harder for tenants.
Will Labour cap rent increases?
Two things would need to happen for the rent control proposals to be implemented. Labour would have to win the next election, and party leaders would need to accept the report’s recommendations.
A lot can change in the run-up to an election, but on current polling a Labour win looks like quite a safe bet.
However, bringing in rent controls looks less likely. The report was commissioned by former Shadow Levelling Up Secretary Lisa Nandy, but the party’s current leadership didn’t attend the launch event and said that the report doesn’t reflect party policy. Senior Labour figures, including party leader Kier Starmer, have previously rejected rent controls despite pressure from Labour mayors and left-wing activists.
Other tenant headlines
Private Members Bill aims to prevent unfair treatment of tenants – Landlord Today
Fewer tenants in rent arrears – Property Industry Eye
Awaab’s Law: Private renters ‘baffled’ at their exclusion – BBC
