The prospect of dreaded rent controls being imposed by a Labour government are growing with a report originally commissioned by Lisa Nandy when she was shadow housing secretary expected to be published tomorrow which will suggest the introduction of rent caps for millions of people.
The report, leaked by the Guardian recommends a string of measures to offer renters facing soaring rents a lifeline and is thought to have been led by Stephen Cowan, the Labour leader of the London Borough of Hammersmith and Fulham.
Although the report was commissioned by Nandy the party appears to have distanced itself from the findings as they do not reflect its official view.
However, as Property Soup revealed in February letting agents are already expected to face more red tape if Labour wins power with the party’s deputy leader Angela Rayner promising to extend the Government’s ‘Awaab’s Law’ to private as well as social landlords.
Last year she also vowed to ban Section 21 no-fault evictions without exception on Labour’s first day in power and a swathe of other changes are also expected to come into play too.
DOUBLE LOCK
Stephen CowanIn this latest report Cowan proposes a ‘double lock’ across England and Wales for those renewing tenancies that would guarantee any rise is capped at either consumer price inflation or local wage growth – whichever is lower.
However, the Guardian also reveals that the report warns measures such as rent freezes or limits on rises between tenancies could make it harder to find a rental property, pushing prices up further.
Another recommendation disclosed by the newspaper would be for rents to only be increased once a year, with tenants receiving at least four months’ notice of any increase.
Cowan says in the report: “Renters have a right to know that their home will be safe and of good standard. And good landlords have a right to compete in a market where everyone plays by the same rules. These recommendations will enable those things to happen efficiently and quickly.”
Last month Property Soup revealed how Resolution Foundation research showed average rents could rise by 13% over the next three years and that the cost of new tenancies had grown by 18% since January 2022 with the proportion of poorer families renting almost tripling from just 11% in the mid-1990s to nearly 30% in 2021-22.
