Sadiq Khan has suggested a Labour government might allow him to bring in rent controls across London, despite the party u-turning away from the policy nationally this week.
The mayor has long called for Ministers to empower him to freeze private rents in the capital for two years, but the Conservative government has refused, arguing the policy would worsen the housing crisis by choking off the supply of properties.
Labour’s shadow housing secretary, Lisa Nandy, had said last year she was “personally very interested” in the possibility of local leaders being able to impose rent controls in their areas over the winter.
But in a striking change of tone this week, Ms Nandy told the Chartered Institute of Housing conference in Manchester: “When housebuilding is falling off a cliff and buy-to-let landlords are leaving the market, rent controls that cut rents for some will almost certainly leave others homeless.
“It might be politically easier to put a sticking plaster on our deep-seated problems, but if it is cowardice that got us here it is never going to get us out.”
Mr Khan said however that he was still “hopeful” a Labour government will grant him rent control powers.
Speaking at the State of London Debate on Thursday night, the mayor pointed out that rent freezes had been introduced by the Scottish Government, and “the skies have not fallen in”.
He added: “It’s going to take years and years for the supply to meet the demand, and I’m hoping the next Labour government devolves the power to us to bring rent controls [in].”
Asked by host James O’Brien whether he had spoken with the party nationally about that, Mr Khan said: “We have had a conversation.”
On the question of whether he was “optimistic” about his request being granted, the mayor replied: “I’m hopeful.”
Recent polling data revealed that 24 per cent of private renters in the capital (about 650,000 people) are struggling to meet rent payments, while six per cent (about 160,000) say they have fallen behind in the last six months.
Within City Hall, the Conservatives have accused Mr Khan of “populist politics” in his repeated demands for rent controls.
At a London Assembly meeting earlier this month, Conservative group leader Neil Garratt said: “The problem with it, like so many other populist political ideas, is that it doesn’t work.
“It restricts the supply and ultimately makes the problem worse. Everywhere where it has been tried, it doesn’t work.”
