Lisa Nandy rejects hire controls as ‘sticking plaster’ answer to housing disaster

Labour’s Lisa Nandy has rejected the thought of hire controls, calling it a “sticking plaster” answer to the UK’s housing disaster.

The shadow housing secretary mentioned the transfer – supported by many senior figures inside her celebration – would “almost certainly” go away some individuals homeless.

Giving a speech in Manchester, she mentioned: “When housebuilding is falling off a cliff and buy-to-let landlords are leaving the market, rent controls that cut rents for some, will almost certainly leave others homeless.

“It could be politically simpler to place a sticking plaster on our deep-seated issues, however whether it is cowardice that bought us right here, it’s by no means going to get us out.”

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Labour mayors, together with London’s Sadiq Khan and Greater Manchester’s Andy Burnham, have known as for hire freezes amid hovering prices for tenants.

Average rents for properties throughout Britain have reached report highs this yr as demand for housing continues to outstrip provide.

Experts warn renters are being additional squeezed due to the mortgage disaster, with landlords passing on rising charges to tenants.

Ms Nandy’s speech marked a shift in tone from feedback she made final autumn, when she mentioned she was “personally very interested” in the potential for native leaders imposing short-term hire controls of their areas over the winter.

She centered as an alternative on guarantees to not shrink back from “difficult choices” in terms of constructing extra properties, accusing ministers of being “afraid of the taboo” of the inexperienced belt.

A Labour spokesperson mentioned it was unfair to characterise her newest announcement as a U-turn, including: “A rent freeze has never been Labour party policy” underneath Sir Keir Starmer’s management.

The coverage was, nevertheless, included within the manifestos of former leaders Jeremy Corbyn and Ed Miliband.

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Scotland’s First Minister Humza Yousaf mentioned it was “astonishing” that Labour is “joining the Tories” in opposing the measure.

He tweeted: “Proud the SNP-led Scottish Government not only introduced rent controls but has extended them in order to protect tenants. Labour joining with the Tories in opposing rent controls is quite astonishing. At this rate, will Labour have any promises left to break?”

However, the National Residential Landlords Association (NRLA) welcomed Ms Nandy’s place, saying hire controls “would do nothing to address the rental supply crisis that tenants across the country now face”.

Chief govt Ben Beadle mentioned: “What renters need is a proper plan to boost the supply of homes for private rent alongside all other tenures.

“Housing profit charges must also be unfrozen directly to help susceptible tenants who’re struggling to entry the rental market.”

A six-month rent freeze in Scotland came to an end in April but controls are still in place, with most increases in private rent limited to a 3% rise.

Restrictions on the rent private landlords can charge tenants are being considered by the Welsh government, but no official plans are in place.

Local leaders in England have also been calling for the power to impose rent controls but ministers have ruled this out – arguing the measure leads to declining standards and a lack of investment.

Labour has outlined numerous schemes to enhance the speed of home constructing within the UK, together with extra constructing on the inexperienced belt, reintroducing the housing targets watered down final yr by the federal government, making it cheaper to buyout agricultural land for growth and “tilting the power” in favour of first-time consumers.

Sir Keir Starmer’s spokesperson mentioned one of many strengths of the devolved system is that mayors can advocate for coverage they need however “ultimately it is for Keir to determine what will be in the manifesto at the next election”.

They added: “I think our position on this has been pretty clear.”