Are Rent Controls Coming To The UK?

Yes, if Jeremy Corbyn has anything to do with it. Is Labour trying to become the renters' party?

Jeremy Corbyn Promised Rent Controls At Labour Party Conference

by Vicky Spratt |
Published on

At any political conference, the party leader's speech is a big moment. It's used to take stock, reflect and also signpost the direction that will be taken in the future. It also, invariably, includes a few big headline-grabbing policy announcements.

Jeremy Corbyn used his to mock the Daily Mail (a demonstration of incredible defiance given that they are the country's most read newspaper), condemn the abuse of people on social media, flip reverse the Tory's narrative about the 'magic money tree' saying it is, in fact, they who think cash grows on trees, say we need more workplace democracy and, finally, talk about one of the biggest issues currently facing this country.

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I'm not talking about Brexit. For once, it's not about Brexit. Corbyn's speech was a welcome break from what you might argue has become one of the biggest distractions and exacerbators of our age from the problems that need to be solved in order to improve the lives of people in real terms.

I am, of course, talking about the housing crisis. Specifically, Corbyn went in on regeneration and spiralling rental costs.

The Labour leader invoked the symbolic, tragic and appalling imagery of Grenfell Tower, saying 'the chilling wreckage' was a monument to this country's failed economic and housing systems. He went on to say there should be 'no more social cleansing' and 'no more jacking up rents' as he announced rent controls as a Labour policy, as well as a crackdown on regeneration projects which he framed more as gentrification projects.

The regeneration of estates has made headlines for all the wrong reasons this year. Take the Heygate Estate in South London, for instance, where residents' homes we bought by the local authority via compulsory purchase orders at less than 40% of their market value, amid promises of brand new social housing and a 'community feel'. When the redevelopment was finished, it was revealed that every flat in it had been sold to a foreign investor.

Corbyn said that under his leadership the Labour Party would make sure that tenants on such estates could return to them once they were rebuilt and explicitly criticised the neoliberal notions and economics behind such regeneration schemes, authored largely by Margaret Thatcher, for failing British people.

Then, he turned his attention to rent controls. During this summer's election, it was a Labour policy to make sure rent rises were tied to inflation. As things stand they often rise far, far beyond it and what people can actually afford. Today, he implied the party would go much further, saying:

'Rent controls exist in many cities across the world and I want our cities to have those powers too and tenants to have those protections. We also need to tax undeveloped land held by developers and have the power to compulsorily purchase. As Ed Miliband said: use it or lose it. Families need homes.'

This announcement has, as you would expect, attracted interest and anger in equal measure. Anyone currently renting, either privately or socially, will welcome this proposal. Those with vested interested will be spitting feathers.

Rent controlsounds great but it's actually rather complicated. As Polly Neate, Shelter CEO, points out: 'There is a growing debate about the crisis facing those who rent, with families facing rising bills and insecure lets. Shelter supports controls that lengthen tenancies and protect families from unfair rent rises but not old fashioned rent-setting which we think could end up harming the very people on low incomes they’re meant to help, if and when landlords sell their properties.'

She added that 'after the horrific tragedy of the Grenfell fire [Shelter] believe it is absolutely essential to listen to tenants in a meaningful way and we hope the Labour Party will deliver on their promise to do so.'

And, on Labour's promise to undo the Government's very unpopular cap on housing benefit for young people she said: 'with too many Britons struggling in an extremely expensive private rented sector, we welcome Labour’s pledge to unfreeze housing benefit for the young so they can afford their rent but the situation is absolutely desperate for over a million others who this proposal would leave in a benefits freeze that is creating a real and immediate danger of being made homeless. We hope Labour will pledge to unfreeze housing benefit for the many and not just the young.'

In this summer's election, Corbyn not only robbed Theresa May of a majority and started a conversation which engaged people who had previously not felt included in politics. The last year has also seen renters and non-homeowners be taken seriously as a political force so it's no surprise that these issued formed a central part of the Leader of the Opposition's speech. When it comes to Labour's housing proposals, as ever, the devil is in the detail and whether they'll get a chance to put them into practice remains to be seen. They could certainly do a lot worse than position themselves the party of the renting classes, though.

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Follow Vicky on Twitter @Victoria_Spratt

This article originally appeared on The Debrief.

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