Rachel Reeves, the Labour Party’s shadow chancellor, has hinted that the party may entertain the idea of implementing rent controls in specific areas, though this does not align with the party’s official stance.
During a conversation with BBC Radio Essex, Reeves noted, “I think that should be up to local areas to decide. There may be the case for that in some local areas, but as a blanket approach, I’m not convinced by that.”
The Mayor of London, Sadiq Khan, who has been recently re-elected, continues to advocate for the ability to regulate rents in the city.
In response, a Labour Party spokesperson clarified: “As Rachel Reeves said, she does not believe rent controls are the right approach.
“Labour acknowledges the need for measures against excessive rent increases during tenancies, but does not endorse rent controls as a nationwide policy due to concerns about potential negative effects on the supply of rental properties and the subsequent detrimental effects on tenants.
“If in power, Labour intends to confront the issues ignored by the Conservatives by ensuring justice and protection for renters, including the abolishment of Section 21, preventing bidding wars among tenants and expanding Awaab’s law to include the private renting sector.”
Recently, Labour initiated a report that suggested the adoption of ‘third-generation rent stabilisation’ measures, which would entail enforcing rent ceilings and controlling rent hikes.
However, Lisa Nandy, the shadow secretary of state for international development, has publicly criticized these measures as being a temporary fix. Following her comments, she was demoted from her previous position as the shadow housing secretary.
