Labour deputy leader named among MPs renting out rooms to colleagues

Labour’s new deputy leader is among MPs renting out rooms to colleagues at taxpayers’ expense, new figures reveal.

New figures from the Daily Mail show five landlord MPs pocketed over £30,000 last year by letting properties to colleagues in the House of Commons.

The Parliamentary watchdog had previously pledged to review the practice amid concerns about potential conflicts of interest.

One of these MPs is Lucy Powell, who replaced Angela Rayner as Labour’s Deputy Leader following Rayner’s resignation over stamp duty controversy.

Arrangement saves money claims Lucy Powell

Ms Powell previously told The Big Issue that she was not a landlord, explaining that she has a lodger and shares her flat with another MP.

She has previously declared rental income in the register of interests, but said she earns less than £10,000 and only declares it for transparency.

However, in a new development, Ms Powell has confirmed that she lets a room to a fellow MP, who claims the rent and bills through expenses.

A spokesperson for Ms Powell told The Telegraph that the arrangement saves money because it is below market rent.

The spokesperson told the Telegraph: “In a long-standing arrangement, Lucy pays for all her own London accommodation costs instead of claiming £30,000 a year that she could have for the 13 years she’s been an MP.

“As she has been completely transparent about over the last 10 years, her friend and colleague shares with her as a lodger, contributing for rent and bills via  Independent Parliamentary Standards Authority (Ipsa).

“Again claiming well under the permitted allowance, and an amount independently assessed as value for money. Throughout this time, she has transparently declared this arrangement, despite it being below the threshold to do so.

“Ipsa is responsible for determining whether this represents value for money and transparency for the taxpayer and has consistently done so.”

Malicious intent who wish to cause harm

A decade ago, the Parliamentary watchdog said it would review MPs letting properties to one another due to concerns over potential conflicts of interest.

However, it has continued to permit existing arrangements, provided the landlord MP does not also claim expenses for their own second home.

IPSA has refused to identify the MPs involved, claiming to the Daily Mail: “Due to the low numbers of MPs who are landlords, we believe that disclosing the names would have a substantial likelihood of attracting the interest of those with malicious intent who wish to cause harm.”

The news follows the London Renters Union demand a ban on MPs as landlords after data reveals Labour has the highest number of landlord MPs.

Jae Vail, spokesperson for the London Renters Union, told the i: “Until parliament is free of landlord MPs, renters will not trust the government to deliver the bold action we need. It’s time for the government to ban landlords from parliament and start working for ordinary people, investing in council housing and capping rents.”

However, the National Residential Landlords Association (NRLA), defended landlord MPs.

A spokesperson for the NRLA told the i: “Calls for MPs to be totally banned from being landlords are fuelling an unhelpful narrative that providing homes to rent is a bad thing” when demand is outstripping supply.

“Being a landlord is not a bad thing. For MPs, it is vital that when deciding whether to rent out property, they have the time to fully meet the responsibilities of being a landlord.”