Sadiq Khan's Rent Control Plan for London

London Mayor Sadiq Khan wants to build 6,000 new homes with rent controls for key workers in the capital if he is re-elected in next month’s local polls.

Campaigners also hope re-election as mayor will strengthen his hand in lobbying the government to bring in rent controls across the country.

Khan explained his new plan in a preview of his New Deal for Renters, which will launch on Friday. (April 12)

The deal proposes £4 million of funding to set up a London licensing hub and includes a pledge to help renters claim a two-year rent refund from landlords who break the law.

“Renters are at the sharp end of the country’s housing crisis and need a mayor who’s prepared to fight their corner,” said Khan.

“I’ve been calling for the power to freeze rents in the capital for years, but the government has refused. I’m not willing to stand by and do nothing, so I commit to delivering new rent-control homes across London, with 6,000 in the first phase. These will be homes for rent that key workers and middle-income Londoners can afford.”

Rent controls are legal measures allowing local councils to set rents or to regulate how they increase.

Do rent controls work?

Labour urged to support rent controls

According to the Office for National Statistics (ONS), rents in the capital are rising faster than anywhere else in England or Wales. The latest data shows a 10.6 per cent year-on-year rise in February, with the average tenant paying £2,035 monthly.

Labour mayor Khan’s fight to win rent controls for London has fallen on deaf ears in a Tory-dominated Westminster, but he hopes the forthcoming general election will tilt the balance in his favour.

Campaigners want a new Labour government to establish a rent control commission.

A London Renters Union spokesperson said: “London renters are trapped in a cycle of instability, and many will feel let down if Khan stops campaigning for city-wide rent controls under a Labour government. Some 6,000 new rent-controlled properties will not bring security to the capital’s three million private renters, who fear that an unaffordable rent increase will force them out of their homes.

“A third term offers Khan a once-in-a-generation opportunity to push a likely new Labour government and bring much-needed rent control to the capital.”

London landlords pay £10m in fines

Meanwhile, tech firm Kamma’s monthly property licensing update discloses that landlords who violated licensing in the capital have paid more than £10 million in fines.

The firm also notes that London councils are on track to beat last year’s record of opening 32 licensing schemes, with 19 new schemes already opened this year—a 30 per cent increase over the same time last year.

Kamma CEO Orla Shields said: “The surge in fines and licensing measures across London are clear indicators of the growing seriousness with which regulatory compliance is being treated. This year’s record-breaking figures represent a strong stance against non-compliance for agents and landlords in London.”