Labour has reiterated its position on rent controls following the release of an independent report commissioned by the party, signaling a departure from some of the recommendations outlined within.
The report, unveiled this week, urges Labour to diminish reliance on the private rented sector (PRS) and proposes the implementation of what author Stephen Cowan terms as ‘third-generation rent stabilisation’. This framework encompasses rent caps and limitations on rent escalations.
Cowan, who serves as the Labour leader of Hammersmith and Fulham Council, presented various suggestions in his report. Nevertheless, several proposals have been overtaken by amendments to the Renters (Reform) Bill, rendering them outdated. Among these are ideas for a national landlord register, the elimination of section 21 (‘no-fault’ evictions), a prohibition on rent review clauses, and constraints on mid-tenancy rent hikes—elements already incorporated into the government’s agenda.
Labour’s standpoint on rent control contrasts with advocacy from tenants’ groups, who frequently push for such measures. Despite commissioning the report, former shadow housing secretary Lisa Nandy dismissed rent controls as merely a temporary fix, citing concerns over exacerbating the homelessness crisis—a stance seemingly inconsistent with previous indications of support.
Earlier this year, Labour leader Sir Keir Starmer emphasized that rent controls are not party policy, citing apprehensions regarding their potential adverse effects on rental property availability and the well-being of renters.
In his report, Cowan, who engaged with NRLA Chief Executive Ben Beadle during the research phase, cautioned against ‘first-generation rent controls,’ contending that freezing or reducing rents could detrimentally impact the private rented sector.
NRLA Policy & Campaigns Director Chris Norris, present at the report’s launch event, highlighted the outdated nature of the research, conducted over a year ago, and underscored concerns about measures that artificially suppress rents, warning of their potential to diminish rental housing availability amidst soaring demand.
As the nation gears up for a potential general election, Sir Keir Starmer has outlined Labour’s immediate priorities, with housing supply notably absent from the agenda. The party’s proposed initiatives span economic stability, NHS waitlist reductions, border security enhancements, the establishment of a publicly-owned clean energy enterprise, and bolstering community policing and educational resources.