.png)
London Labour Mayor Sadiq Khan demands to be given the power to control private rents in London.
Khan claimed that rents in the capital could increase by almost 20 per cent over the next five years, unless he was given powers to control the market. His forecast source was the Savills prediction of 19% London rent rise by 2025, and combining that with Rightmove's figures for new tenancies Khan claims rent averages would rise to £2,289 a month.
In the May Mayoral election Khans proposal was for a ‘London Private Rent Commission’, which would be tasked with designing and implementing rent controls and also be empowered to freeze private rents to shield renters from financial problems like the impact of the pandemic.
The Mayor also highlighted that nearly a third of Londoners rent from letting agents and private landlords, which had made groups like the Association Of Residential Letting Agents publicly frustrated with members like Timothy Douglas, ARLA’s policy and campaigns manager stating:
“Letting agents and landlords have been, and continue, supporting tenants through the pandemic, which includes agreeing to reductions in rent in order to sustain tenancies and this should be reflected in the Mayor’s approach to housing going forward.”
“There is no evidence that rent controls prove to be effective and they generally lead to unintended consequences that reduce investment, drive down standards and lessen the number of properties available to rent.”
Voices are appearing on both sides with Baroness Alicia Kennedy, the director of generation rent backing the Mayor by saying:
“Without urgent action on rent levels, more Londoners will face these dilemmas in the 2020s and quality of life will deteriorate.”
There voices will need to come together if the lettings market is going to enter 2022 in a stronger position than the uncertain times of 2021.
