Labour has pledged to launch a major review into private home rents following the recent surge in rental values, vowing to ‘tilt the balance of power back towards tenants’.
The latest data from Rightmove, released on Friday, revealed that average asking rents for new tenants outside London have risen to another new record high of £1,172 per calendar month (pcm).
This further hike means average rents for newly listed properties rose by 9.7% in 2022 compared with the previous year, which is the second largest year on record for rent growth behind only 2021.
In London, Rightmove says average asking rents accelerated in growth in the final months of the year, rising by 5.8% compared with the previous quarter, taking average asking rents for new tenants to a new record of £2,480pcm.
In Inner London, which includes some of the capital’s most expensive areas, average asking rents surpassed £3,000pcm for the first time.
One of the biggest frustrations for both tenants and agents has been the lack of available properties, as draconian tax changes introduced in recent years deters landlords from investing in the buy-to-let sector.
But instead of seek to incentivise more landlords to invest in the buy-to-let sector, Lisa Nandy, shadow levelling up and housing secretary, has revealed plans to launch a review that that could deter even more people from investing in the private rented sector.
Speaking ahead of the party’s annual London conference over the weekend, she commented: “Housing isn’t a market. It’s a fundamental human right.
“That’s why Labour has set out plans to tilt the balance of power back towards tenants through a powerful new Renters’ Charter and a new Decent Homes Standard.
“Security in your home, the right to make your home your own and most of all the right to live in a home fit for human habitation is non-negotiable.”
Nandy has already pledged to put in place a Renter’s Charter within 100 days if Labour won the next election.
It would reduce landlord powers to kick out tenants or stop them keeping pets.
Stephen Cowan, the leader of Hammersmith and Fulham Council, will lead the review into how any reforms would work.
“I’m delighted that Steve is going to drive forward this work so that we are ready to go on day one,” Nandy added.
Comments (16)
Not that we ever needed another reason to keep this idiotic Labour party out of power, but if we did, then this is it.
What a stupid statement by Lisa Nandy. Until I moved house 4 months ago, she was my local MP. You wouldn’t know this, however – local legend has it that she hasn’t even a clue where her constituency is.
She evidently has even less clue about the housing market. Yes, Lisa, it’s a market whether you like it or not.
And I simply cannot for the life of me understand WHY on earth both parties seem intent on punishing and penalising the very people who could solve the housing crisis at a stroke. Simply, if fewer than a quarter of all UK landlords bought one more property over the next 12 months, there would be enough rental stock for everyone – but this won’t happen, and the exodus from the market will continue, whilst this utter stupidity keeps coming out of our politicians’ mouths and brains.
Following the same housing policy route the Scottish Government has taken and look at the dysfunctional wreck that’s turned out to be
As Ms Nandy thinks housing is not a market but a fundamental human right then she and her Labour Party should provide all the rental housing instead of looking to THE MARKET to fund or provide housing. After all Labour can drive out landlords by just undercutting the rents with the housing they SHOULD BE PROVIDING. Can the Labour Party provide such levels of housing – of course not. When politicians speak such utter nonsense they make themselve look like total idiots. The landlord bashing over the last 10 years has been the prime mover of rental increases but of course politicians are not renowned for telling the truth.
Well said Will2 & everyone else. U say it simply the truths of their actions.
Oh the joy of politics. Another day and another inane plan for the PRS. I am sure there will be more talk about the PRS as we get closer to the election. I fear the proposals / thoughts will start becoming more unpalatable for landlords and as we all know the current situation which is not great will get a lot worse. The PRS is a business not a charity and until it is treated as one we shall continue this downward spiral.
So” Labour has set out plans to tilt the balance of power back towards tenants through a powerful new Renters’ Charter and a new Decent Homes Standard”. While I think tenants have quite enough power already, isn’t this what the Conservatives are planning to do starting in 2023 anyway? The only way that Labour can add to this potential landlord misery will be to introduce some sort of rent controls in England. Unfortunately a renter’s home is not their own it will never be, it belongs to somebody else and the owner must retain the final right to the property. Like Mick Roberts says, if Labour want to buy up our portfolio and free issue it to the existing tenants to fulfil their “basic human rights” that’s fine by me. I am sure we could even negotiate a bit of discount for them in exchange for an easy life.
Yes, I’d give 10% discount if they can honour to keep the tenants on at current rents guaranteed for 10 years.
Every week I hear of another small landlord who has had enough of the continuous anti-landlord agenda and subsequently decides to sell their properties before it gets even worse. Do these career politicians even begin to understand the dire consequences if this situation is left to continue for another couple of years. The PRS is the solution to the ever-growing problem, not the cause..
“Housing isn’t a market. It’s a fundamental human right” – so is eating and hearing. Watch out Tesco and EDF etc.
Just this posting of the very daft Ms Nandy’s proposals will damage the housing for the private rented sector. It will add significantly to the fact that no government is on the side of investors, the very people that provide the housing so desperately needed by tenants. This is a bit like leaving expensive presents for tenants under the Christmas tree and then leaving the door open so they can see it all disappear before their very eyes!
All the power sits with tenants, and even without legislation, ’emergency’ action is taken to ‘protect’ them e.g. eviction halts, breathing space, court closures, no bailiffs… This all adds to the landlords burden, and is the reason I want out ASAP. Labour will be back in 2 years, and I will no longer be a landlord by then.
As ever none of this thought through and dreamed up by people with no knowledge of the industry. “Allow tenants to have pets” – do they realise head leases often forbid pets? Permit renters to “make reasonable alterations to a property” – one person’s view of “reasonable” may not be another’s? Introduce “four month notice periods”. Reduce eviction powers for landlords whose tenants are in arrears. I could go on …….. As said by other commentators, I hope Ms Nandy has plans up her sleeve to create lots of social housing PDQ!
“Housing isn’t a market. It’s a fundamental human right.”
Food isn’t a market. It’s a fundamental human right.Health isn’t a market. It’s a fundamental human right.Heating isn’t a market. It’s a fundamental human right.And so on…Will they amend all of their policies to mirror this quote?
She says
“Housing isn’t a market. It’s a fundamental human right.
Well it isn’t my right to give it, I don’t have to give it. I can invest the money elsewhere, If it’s a human right, u can buy all my houses off me cause I don’t want em any more & you can give this fundamental human right.
Spot on Mick. Labour had better plan for a massive increase in social housing as they force even more LLs out of the market. Plus of course they overlook the fact that many LLs add to housing stock so they’ll have to cover that too. Should be interesting to see how it turns out for them.
“Housing isn’t a market”. Crass ignorance. Thick is too generous for this moronic do-gooder.