Labour may give local councils the power to set rent caps if it wins power later this year, something few landlords or agents will welcome.

Shadow Chancellor Rachel Reeves (main picture) said in a BBC Radio interview she would support a cap on rents in some areas, but not everywhere.

I think that should be up to local areas to decide.”

“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,” she said on BBC radio.

Double lock

And a report commissioned by Labour recently proposed the use of controls. The policy was recommended by Stephen Cowan, the Labour leader of Hammersmith and Fulham Council, who said a ‘double lock’ linking increases to local wage growth and inflation should be introduced.He also said rents should only increase once a year, with tenants given at least four months’ notice.

New mandate

Labour mayors Sadiq Khan, Andy Burnham and Steve Rotheram, in London, Greater Manchester and Liverpool respectively, have all called for freezes.

Khan has been pushing for the power to restrict rent increases for many years, and has a renewed mandate to get this after being re-elected earlier this month.

Cap expired

In Scotland, the ruling Scottish National Party under former First Minister Nicola Sturgeon introduced a rent cap after rejecting a freeze, to help tackle the cost of living crisis.

The Scottish rent cap expired in March to be replaced by an arbitration scheme for a year. Under the Housing (Scotland) Bill there are proposals for long term rent controls for private tenancies, as well as stronger protection against eviction.

Rents in Scotland ‘set to rocket’ as cap lifted – claim

Picture credit: CC BY-NC-ND 4.0