Ed Miliband put tackling London’s soaring rents at the heart of his local elections campaign today — but was immediately accused of risking an exodus of private landlords.
Labour’s leader unveiled a signed “Cost of Living Contract” to give voters, containing previous promises to freeze energy bills plus a scheme to strengthen tenants’ rights and cap rent rises.
But housing industry experts said there was a risk landlords would withdraw properties from the rental market if they were tied to less flexible terms.
David Butler, co-founder of Rentonomy.com, said it could drive up rents: “The big risk is that the supply of rented accommodation will dry up if landlords feel they won’t have enough control over who is living in their property.”
Past attempts to control rates saw the rental sector shrink between 1945 and 1991 to 7 per cent of the market.
Tories claimed Labour was split, highlighting a recent interview where housing spokesman Emma Reynolds flatly opposed rent controls.
Tory party chairman Grant Shapps said: “Four months ago their housing spokesman was saying that rent controls wouldn’t work — now she’s promising to introduce them in government.”
But Labour denied any contradiction, saying today’s plan did not amount to Seventies-style state rent-setting.
Mr Miliband launched his local and European elections bid in the London borough of Redbridge.
Labour’s plan includes laws to make three-year tenancies the norm, instead of the now common six-month agreements. Landlords could set any rent to begin with, but would be forced to keep annual rises in line with the market.
Mr Miliband said: “We need to deal with the terrible insecurity of Britain’s private rental market.
“It breeds instability and that is bad for tenants, bad for families, bad for landlords, and bad for our society.”
