Author : Marry-Anne Bowring
Lisa Nandy, a member of the Labour Party, recently spoke out against rent controls, a view contrary to the party line on the subject. She believes that implementing rent controls could lead to homelessness and sees it as a temporary solution to deeper housing problems.
This stance is a major departure from the party's stand as it had previously supported rent controls, which were also included in their manifestos. The Welsh First Minister, Mark Drakeford MS, expressed his concerns regarding proposals to freeze rents. He stated that a rent freeze is a crude approach that brings unintended consequences. He cited the example of Scotland, where a rent freeze resulted in a decrease in available rental properties because buy-to-let landlords faced significant increases in their mortgage costs. According to the Bank of England, a 20 per cent increase in private sector rents would be required just to cover the additional expenses incurred by buy-to-let landlords since mortgage rates have risen over 2022 and 2023. Also, the Scottish scheme does not signify a universal rent freeze but applies only to specific individuals and circumstances.
In Wales, the First Minister believes that more nuanced and less heavy-handed alternatives must be sought and implemented to address the challenges individuals face in the rental market face. The recent opposition to rent controls is based on worries about unintended effects such as more evictions and worsening rental supply issues. Critics argue that rent controls may not effectively address the root causes of the housing market's challenges, like the lack of affordable homes and declining house construction.
However, Lisa Nandys views are not shared by some other Labour Party members like Sadiq Khan and Andy Burnham. They have called for rent freezes. The party's position on rent controls varies among different individuals and the regions they represent. Meanwhile, the Landlords and the National Residential Landlords Association have welcomed Labour's opposition to rent controls, stating that it wouldn't solve the rental supply crisis. However, some critics view the party's decision to abandon their promise of rent controls as a U-turn. Association chief executive Ben Beadle agreed with the Labour Party's view that rent controls would not effectively solve the rental supply crisis faced by tenants nationwide. Instead, he emphasised the importance of implementing a comprehensive plan to increase the availability of homes for private rent, as well as for other types of tenure.
Beadle further highlighted the need to unfreeze housing benefit rates promptly to provide support to vulnerable tenants who are experiencing difficulties accessing the rental market. Beadle's remarks come in response to reports indicating that the Labour Party may be rejecting calls for rent controls put forward by London Mayor Sadiq Khan and other individuals. Lisa Nandy's opposition to rent controls represents a shift in the Labour Party's position. They have concerns about potential negative consequences and believe that more comprehensive solutions are needed to address housing issues.
Mary-Anne Bowring FIRPM FRICS FARLA FCABE Founder/Head of Asset Management
Strategic partnerships, holistic delivery/ opportunities, growth, value engineering, thought leadership
Ian Barber MD BTR Mobilisation & Leasing
Runs HQ & site lease-up teams. Drives rent pricing, mobilisation, marketing, happy residents!
Jon Curtis MRICS Head of Building Engineering
Chartered Building Surveyor. Lectures on EWS1 & building safety. Runs CapEx programmes.
Kate Robinson MIRPM MD Blocks/FM Management (London Region)
Master plan setup, ops and staffing and resident engagement. ISO45001 champion.
Lee Harle Partner Ringley Law
Plot conveyancing. Debt litigation. Group Company Secretary.
Anthony Kingdon MIRPM AssocRICS MD Blocks/FM Management (North Region)
Stakeholder engagement. Mixed tenure specialist. Budget management. Plant audit, PPM compliance.
Chris Georgalis MRICS Head of Commercial Valuation
Chartered Valuer. Rental valuations: retail, leisure. IRR modelling and valuations for secured lending. Compulsory purchase & rent reviews
Nichola Pughe MRICS Head of Residential Valuation
Chartered Valuer. Rental development & mixed use valuations, IRR modelling. Leasehold enfranchisement specialist
Libby Chen MSc Compliance Manager
Operational Plant & Equipment strategy PPM Compliance lead, Asset tagging Client major projects
Dipesh Parekh Director PlanetRent
Customer centric, vertically integrated PropTech/fin-tech solutions.
Leana Aristodemou MIRPM MARLA AssocRICS Strategic lead: ESG & Asset Business Plan delivery
Financial modelling, valuation analyst to support underwriting & fund reporting.
Natalie Birmingham Helpdesk Support Manager
Trainer & Helpdesk Manager: people, systems,contractors. ISO45001 supply chain accreditation.
Steve Norman Planning Director
Land due diligence (opportunities & constraints) Has contributed to a number of award winning schemes.