Jeremy Corbyn calls for rent controls to prevent ‘excessive’ landlord profits

Jeremy Corbyn has called for the introduction of rent controls as part of broader reforms to address the rising costs faced by tenants in London.

The government claims its Renters’ Rights Bill, which includes measures such as banning section 21 ‘no-fault’ evictions and bidding wars, limiting rent increases to once a year, and allowing tenants to challenge excessive hikes, is ‘transforming rights’.

However, Mr Corbyn, now an independent MP for Islington North, told BBC London that these reforms would still enable landlords to make ‘excessive profits’ and leave tenants ‘exploited’.

The National Residential Landlords Association (NRLA) emphasised that reforms must be fair to both renters and landlords. Rent prices have surged to record levels in recent years, especially in London.

‘Rent controls in this country’

Mr Corbyn said: “I grew up with the whole idea of rent controls.

“There were rent controls in this country until Margaret Thatcher came along, there are still rent controls in New York, in San Francisco and in many countries across Europe.

“There’s nothing wrong with them, it seems to me a reasonable way of preventing excessive profits being made in the private rented sector and exploiting people who are in desperate housing need.”

He added: “Don’t people have a right to a roof over their head? Is it good? Is it right that so many people sleep rough every night? In a modern, civilised society, can’t we say there’s a guarantee of a roof over your head?”

Issues with rising rents

Mr Corbyn also has issues with rising rents and told the programme: “To pay £2,000 a month for a one- or two-bedroom flat in my constituency means that if you take as a norm your payment for your housing shouldn’t be more than half your take home pay means your take home pay would need to be over £4,000 a month.

“That’s £48,000 a year take home pay, which means your gross pay needs to be somewhere around £80,000.”

In response, the NRLA’s chief executive, Ben Beadle, said: “Landlords are not against reform, but it is important that landlords have confidence in the sector and I’m not so sure that they do at the moment.

“We have no issue with section 21 being replaced as long as the alternative is viable and workable.

“We mustn’t forget that it takes landlords on average seven months to get possession of their property back at the moment the Minister, Matthew Pennycook, has already said that the court system is on its knees.

“How is it going to get better?”

He added: “How is it going to bring the timeframes down for landlords with legitimate reasons like antisocial behaviour? Or significant rent arrears to get possession of their properties back.”

A Ministry of Housing, Communities and Local Government spokesperson said: “Our Renters’ Rights Bill will give tenants stronger powers to challenge excessive rent hikes.

“We are also taking action to cap advance payments to one month’s rent, end unfair bidding wars and ban no fault evictions, so tenants can reap the rewards of greater security and stability in their homes.”

Read our guest author’s article about Jeremy Corbyn and why the former Labour leader’s view on rent controls is wrong.

The Politics London show item featuring Jeremy Corbyn is here – the item starts at 19:50.