Labour split on rent controls

Labour split on rent controls

The Labour Party is considering controlling rents in certain hotspots according to shadow chancellor Rachel Reeves – despite it not being ‘national Labour Party policy’.

Speaking to BBC Radio Essex, Reeves said: “I think that should be up to local areas to decide. There may be the case for that in some local areas, but as a blanket approach, I’m not convinced by that.”

Newly re-elected London Mayor Sadiq Khan has repeatedly appealed for the power to control rents in the capital.

A Labour Party spokesperson responded with this statement: “As Rachel Reeves said, she does not believe rent controls are the right approach.

“While Labour believes action needs to be taken to address extortionate within tenancy rent rises, rent controls are not national Labour Party policy as we remain mindful of the risk they could pose to the availability of rental properties and the harmful impacts any reduction in supply would have on renters.

“In government, Labour would act where the Conservatives have failed to ensure fairness and security for renters, immediately abolishing Section 21, ending tenant bidding wars and extending Awaab’s law to the private rented sector.”

Last week Labour commissioned a report which recommended for ‘third-generation rent stabilisation’, meaning rent caps and restrictions on increases.

However Lisa Nandy, shadow secretary of state for international development, has gone on record in calling them a “sticking plaster” solution. She was demoted from her role as shadow housing secretary after making that comment however.