Angela Rayner Blocks Mayor’s Rent Control Plan

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London Mayor Sadiq Khan appears to have lost his long-running battle to gain control over rent regulation in the city. Despite his efforts over the years, recent media reports suggest that the new Labour government has decided not to transfer the authority to set limits on rent increases to Metro Mayors, including Khan. This move is notable given that nearly all of England’s Metro Mayors are from the Labour party.

The decision reflects the government’s stance on housing policy, as a spokesperson from the Ministry of Housing, Communities, and Local Government confirmed that Housing Secretary Angela Rayner has “no plans whatsoever to devolve rent control powers.” This announcement marks a significant setback for Khan and other Labour Metro Mayors who have pushed for greater control over housing costs in their regions.

London media outlets have reported that this policy decision means Khan’s long-held ambition to introduce stricter rent controls in London will not be realised under the current government. The stance is likely to impact the ongoing debate over housing affordability and the role of local authorities in managing rental markets.

Earlier this year, prior to the General Election, Labour leader Sir Keir Starmer conveyed to the Local Democracy Reporting Service (LDRS) that rent controls were not part of Labour’s current policy agenda. He acknowledged that London Mayor Sadiq Khan has been a strong advocate for rent controls and assured that Labour would continue to collaborate on housing-related matters as they progress. This sentiment was intended to reflect Labour’s willingness to address housing issues through joint efforts, despite the absence of rent control policies at the time.

Despite this, recent statements from Housing Secretary Angela Rayner’s department have made it clear that there have been no official discussions with the Mayor of London regarding the introduction of rent controls. The department underscored that fixing the housing crisis remains a top priority for the government. They emphasised that while enhancing renter rights and security is a significant issue, the primary focus is on tackling the housing supply shortage. The government is committed to increasing housing delivery through expanded housebuilding efforts and will work closely with the Mayor and local boroughs to achieve this goal.

The spokesperson added that the emphasis is on addressing the fundamental issues of supply that are contributing to the current housing crisis. This approach includes fostering greater collaboration with local authorities to boost housing availability in London, rather than pursuing rent control measures. The government’s strategy aims to address the root causes of housing shortages and improve the overall housing market rather than implementing immediate rent control solutions.

Nearly a year ago, Mayor Sadiq Khan, in collaboration with the activist group Generation Rent, issued a significant appeal for implementing rent controls in London. They warned of a concerning trend, predicting that unchecked private rents in the capital could potentially surge to over £2,700 per month within the next year if no action was taken.

In a joint statement, Mayor Khan and Ben Twomey, the chief executive of Generation Rent, emphasised the urgency of the situation. Mayor Khan stated, “These figures paint a stark picture of why rent controls are urgently needed. With nearly a third of London’s population living as private renters, it is alarming that they are continually let down by a government that has failed to address their needs. The current lack of action could lead to even greater financial hardship for these renters, who are already struggling with high living costs.”

Mayor Sadiq Khan stated, “Londoners re-elected me with a promise to advocate for rent control powers, and I will continue to push for this change on their behalf. I am committed to fulfilling my pledge to create a fairer and more prosperous London by increasing the availability of affordable housing and supporting residents through the cost-of-living crisis.”

Ben Twomey, a former Labour candidate in Police Crime and Commissioner elections, added, “Rising rents are pushing families into poverty and homelessness. We support the Mayor’s push for devolved powers to regulate rents and address this issue. With the average London renter spending 40 percent of their wages on rent, this situation is unlikely to improve without intervention.”

“Controlling rents alone won’t address the underlying issue of high rental costs. The real solution requires a substantial increase in the availability of social and affordable housing. This shortage enables landlords to charge higher rents for new tenancies. Therefore, the Mayor’s push for increased funding to build more affordable homes in London is an essential step. Without a significant rise in housing supply, Londoners will continue to face prohibitively high rents. This situation is not only pushing out crucial workers like nurses and teachers but also damaging the fabric of our communities by making it difficult for them to stay in the city.

Khan’s figures highlight a stark reality: 49 percent of children living in private rented homes are experiencing poverty. This data underscores the urgent need for comprehensive action to improve the housing situation and ensure that affordable housing options are available for those in need.”