Labour rules out rent controls despite Sadiq Khan’s push

Despite London Mayor Sadiq Khan saying that powers to cap rents are “at the top of his list,” the Labour government insists it has no plans to introduce them.

In answer to a written question, Housing Minister Matthew Pennycook claims he has not discussed rent controls with Mr Khan.

As previously reported by Property118, Mr Khan previously campaigned for rent controls during his London Mayoral election campaign.

Government has been clear it does not support rent controls

Shadow Housing Secretary, Sir James Cleverly, asked whether the Ministry of Housing, Communities and Local Government have “received representations from the (a) Mayor of London and (b) combined authority mayors on rent controls since July 2024.”

In response, Mr Pennycook claims the government has no plans to introduce rent controls and has not discussed them with Mr Khan.

Mr Pennycook said in response: “The government has been clear it does not support the introduction of rent controls, including rent stabilisation measures.

“We believe they could make life more difficult for private renters, both in terms of incentivising landlords to increase rents routinely up to a cap where they might otherwise not have done, and in pushing many landlords out of the market, thereby making it even harder for renters to find a home they can afford.

“The government has not received direct representations from the Mayor of London or Mayors of other Strategic Authorities in respect of rent controls, and we have not discussed their introduction at a local level.”

This is despite Mr Khan telling the London Assembly’s Mayor’s Question Time the opposite. He claimed: “I’ve been lobbying for some time to devolve to different parts of the country the ability to have rent controls.”

As previously reported on Property118, while the Devolution Bill is currently going through Parliament, Mr Khan wants to streamline “the clunky process” for requesting rent-control powers, but assured Assembly Members that this is one of his main priorities for devolution.