Labour warned by Generation Rent of alienating core voters without a rent freeze

Labour needs to act decisively and introduce a rent freeze in England now or risk alienating its core voters who helped deliver a landslide victory.

Writing in Labour List, Nye Jones, the head of campaigns at Generation Rent, says that while the Renters’ Rights Act will reset the private sector, supporters are struggling with rent rises.

He writes that Labour’s blind spot on rents is becoming a political liability as the RRA doesn’t ‘tackle the soaring cost of renting’.

Mr Jones also criticises Labour’s plans to build more homes as an effective way to bring down rents.

Rent cap is ‘common sense’

He explains: “Generation Rent’s modelling found that, even if the government meets its target of building 1.5 million new homes, this will reduce rent inflation in England by just 1.8 percentage points.

“This analysis is based on a large share of these homes being for social rent, which has already come under threat as affordable housing targets for developments in London have since been significantly watered down.

“At Generation Rent, we believe a common sense solution to this problem is a cap on how much landlords can raise the rent, linked to the lower of inflation or wage growth.

“This would protect renters from sudden, unaffordable rent hikes, while still giving landlords room to raise the rent modestly in line with inflation.”

Rent cap in Devolution Bill

The tenant activist group has been pressing for the powers to be included in the English Devolution and Community Empowerment Bill.

That would give combined authority mayors the power to impose rent rises.

Sadiq Khan has said such authority sits at the ‘top of his list’, while Andy Burnham has previously voiced support.

However, ministers have indicated the proposal falls outside the bill’s scope.

Rents are a Labour ‘headache’

The government’s lack of action, Mr Jones believes, is ‘kicking the can down the road’ to create ‘real headache’ for Labour at the next election.

He adds: “Private renters were the most likely tenure type to vote for Labour in 2024.”

YouGov polling recently found Labour is losing twice as much support to parties on the left than on the right.

Plus, research from the Joseph Rowntree Foundation found that economic insecurity is the main reason for voters switching away from Labour.

Mr Jones points to Green Party leader Zack Polanski’s enthusiastic support of rent controls for helping the party take one sixth of Labour’s support.

Most landlords are retired

Landlords also come in for criticism with Mr Jones claiming that 42% of landlords declare mortgage interest payments on their tax returns and the rest don’t have a mortgage.

Also, according to the Private Landlord Survey, two thirds of landlords are retired and three in 10 are in full-time employment.

He writes: “Unchecked rents are leading to a huge transfer of wealth from traditionally Labour voting younger, working people to more conservative leaning asset rich people.”

“Each month, renters up and down the country continue to send a huge chunk of their income to a landlord who they may have never met.

“If this really is a government for working people, Labour must prove it by stopping runaway rent hikes from crushing the very voters who put the government in power.”