What Would Rent Controls In London Actually Mean For Renters?

Sadiq Khan has announced his intention to completely overhaul tenancy laws for London renters, asking the government for increased power to enforce measures that will better protect the growing population of people taken advantage of by the extortionate rents in the capital city.

According to a new report launched at City Hall today, the London mayor is seeking devolved powers that would allow him to create a universal register of landlords that would better enforce standards across the board. More than that, Khan wants to establish a London private rent commission that would implement rent control, and most importantly, rent stabilisation measures like rent caps.

Essentially, it could completely change the landscape of London renting. ‘It is high time for private renting in London to be transformed. Londoners need fundamental change that is long overdue,’ Khan said. ‘Unlike other mayors around the world, I have no powers over the private rented sector. That’s why this landmark report sets out a detailed blueprint of what the government must do to overhaul tenancy laws, and what powers City Hall needs from them to bring rents down.’

It’s important because while London might have the largest population in the UK, it is unliveable for many of us. In a housing market that has pushed the proportion of private renters from 11% to 26% since 1990, the huge cost of renting is a lot to do with it. Whether you’re born in the city or not, London inhabitants are regularly being priced out of homes and neighbourhoods, with the average portion of income spent on rent sitting at 53%.

For those living outside London, it’s shocking to read given that the experts recommend for housing to be affordable in our daily lives it should be no further than 30% of our income. And yet, for Londoners, we barely bat an eye seeing figures like that – with many of us used to the reality of dwindling disposable incomes.

But would Khan’s proposals change that sad truth? It’s questionable. While yes, rent controls could help tons of Londoners in the short term, arguments against it state that because landlords and investors would have less incentive to enter the market, prices overall would inevitably rise.

However, these systems are proven to work well in other over-populated cities like Berlin and New York, with polling by YouGov and City Hall stating over two-thirds of Londoners favour rent caps. In fact, in Berlin a five-year rent freeze has been announced and welcomed by those within the city. But ultimately, any decisions made like this come down to the government – and whether or not the new Prime Minister is willing to give Khan greater power in the housing market.

‘Londoners are being priced out of the neighbourhoods they grew up in, couples are delaying having kids and many tenants dare not complain about disrepair in case their landlord retaliates with a rent hike,’ said Dan Wilson Craw, director of the housing campaign group Generation Rent, ‘Sadiq Khan recognises the ambition and urgency needed to improve life for private renters. We hope the new prime minister recognises this too and acts quickly.’

So, will the new PM – most likely Boris Johnson – agree with Khan? He, and we, can only hope. ‘I'm hoping he learned as the mayor of London himself is that we've got a housing crisis,’ Khan told Refinery29UK, ‘and successive governments (and I include the Labour Party in that) have let down London.’

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