16th
Apr 2021
An industry trade body is scathing about London Mayor Sadiq Khan’s bid to be given powers to introduce private sector rent controls.
Currently Khan has no power over landlords’ rents but he intends to achieve it if re-elected.
The industry trade body analysis highlights that during the mayor’s term of office rents are 10% lower than in 2016 when compared to the Retail Price Index.
It states that data from the Office for National Statistics does indeed show that rents throughout London have dropped by 9.6% from Khan’s first month in office (April 2016) up to February 2021.
Even when the data is compared to the Consumer Price Index that includes housing costs which the government plans to start using, rents dropped by 5.1% during the same five-year period.
The body warns that by taking control of rent increases when linking to inflation will undoubtedly leave tenants having to dig deeper into their pockets.
In spite of the HM Treasury’s report in 2010 (whilst Labour was in power) it warned of the real dangers of imposing rent controls on inner city housing, however Khan is still beating the drum in his manifesto for this power to be given to him if re-elected.
The HM Treasury report which assessed the effects of imposing rent controls abolished in 1988, concluded that it had been the root cause in the “decay of much of the inner-city housing stock.”
The spokesperson for the body, said: “Rent controls would be a disaster for London as the last Labour government made crystal clear. They would mean tenants actually paying higher rents than leaving them to market forces.
“The story of rent controls wherever they have been introduced is that they exacerbate an already serious shortage of available homes.
“Rather than calling for things he cannot deliver, the Mayor should focus on using the powers he already has to boost the supply of available housing, including for private rent.”
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