11:04 AM, 3rd February 2025, About 8 hours ago 29
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Jeremy Corbyn has called for the introduction of rent controls as part of broader reforms to address the rising costs faced by tenants in London.
The government claims its Renters’ Rights Bill, which includes measures such as banning section 21 ‘no-fault’ evictions and bidding wars, limiting rent increases to once a year, and allowing tenants to challenge excessive hikes, is ‘transforming rights’.
However, Mr Corbyn, now an independent MP for Islington North, told BBC London that these reforms would still enable landlords to make ‘excessive profits’ and leave tenants ‘exploited’.
The National Residential Landlords Association (NRLA) emphasised that reforms must be fair to both renters and landlords. Rent prices have surged to record levels in recent years, especially in London.
Mr Corbyn said: “I grew up with the whole idea of rent controls.
“There were rent controls in this country until Margaret Thatcher came along, there are still rent controls in New York, in San Francisco and in many countries across Europe.
“There’s nothing wrong with them, it seems to me a reasonable way of preventing excessive profits being made in the private rented sector and exploiting people who are in desperate housing need.”
He added: “Don’t people have a right to a roof over their head? Is it good? Is it right that so many people sleep rough every night? In a modern, civilised society, can’t we say there’s a guarantee of a roof over your head?”
Mr Corbyn also has issues with rising rents and told the programme: “To pay £2,000 a month for a one- or two-bedroom flat in my constituency means that if you take as a norm your payment for your housing shouldn’t be more than half your take home pay means your take home pay would need to be over £4,000 a month.
“That’s £48,000 a year take home pay, which means your gross pay needs to be somewhere around £80,000.”
In response, the NRLA’s chief executive, Ben Beadle, said: “Landlords are not against reform, but it is important that landlords have confidence in the sector and I’m not so sure that they do at the moment.
“We have no issue with section 21 being replaced as long as the alternative is viable and workable.
“We mustn’t forget that it takes landlords on average seven months to get possession of their property back at the moment the Minister, Matthew Pennycook, has already said that the court system is on its knees.
He added: “How is it going to bring the timeframes down for landlords with legitimate reasons like antisocial behaviour? Or significant rent arrears to get possession of their properties back.”
A Ministry of Housing, Communities and Local Government spokesperson said: “Our Renters’ Rights Bill will give tenants stronger powers to challenge excessive rent hikes.
“We are also taking action to cap advance payments to one month’s rent, end unfair bidding wars and ban no fault evictions, so tenants can reap the rewards of greater security and stability in their homes.”
The Politics London show item featuring Jeremy Corbyn is here – the item starts at 19:50.
Cider Drinker
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Sign Up9:30 AM, 3rd February 2025, About 9 hours ago
Somebody needs to explain to this relic of the past that wholly rents are high, landlords’ profits are lower than ever.
Rents are high because of leeches like him. Unfair taxation, unjustified Selective Licensing, regulations that only apply to the PRS and disproportionate fines for minor errors.
JaSam
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Sign Up9:38 AM, 3rd February 2025, About 9 hours ago
Put in controls for arrangement fees and interest with BTL leaders and then we might consider it. No didn't think so!
Whilst you're at put in controls for holiday company's charging extortion prices outside term time. No didn't think so either!!
Back to the drawing broad Jeremy.
Martin
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Sign Up11:10 AM, 3rd February 2025, About 8 hours ago
Here's a thought for you.
How about profit controls?
So after expenses (including the mortgage) and my salary a property is only allowed to make a certain net profit.
To level the playing field, where that property doesn't make a profit there should be a Government subsidy available to top it up.
That way landlords would be able to ride out the tough times and not feel forced to leave the sector.
Look at that Jeremy isn't the only one that can come up with an idea not rooted in the real world!
David Lawrenson
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Sign Up11:25 AM, 3rd February 2025, About 7 hours ago
Reply to the comment left by Cider Drinker at 03/02/2025 - 09:30
Even socialist Swedish economist Asser Lindbeck got it when he said "Rent controls were the second best way to destroy a city after bombing it".
But still Jezza doesn't get it.
What a plonker he is.
"Now children, there is a thing called the birds and the bees and there is a thing called supply and demand... "
God, give me strength!
Rookie Landlord
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Sign Up11:28 AM, 3rd February 2025, About 7 hours ago
It is slightly irritating to hear that LLs are making excessive profits and this is impacting the numbers of homeless people on the street. I've never voted Tory in my life, but I still remember Norman Tebit's "get on your bike" remark. And that's exactly what I did when I was younger and couldn't find work. I didn't make myself homeless. The homeless situation is a bit more complex than high rental costs. Mental illness, abuse etc play a part.
I don't think it's so straight forward to determine what's an excessive profit. Easier to determine what an excessive rent is.
David Houghton
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Sign Up11:30 AM, 3rd February 2025, About 7 hours ago
The irony when we consider how his wife exploits poor people for excessive profit
Karen Cadore
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Sign Up11:39 AM, 3rd February 2025, About 7 hours ago
What planet are you on!
I wish we were all making excessive profits, get in the real world, you and your government cronies have ripped private landlords apart..
Have you not seen that there is a mass exodus to get out.
Cider Drinker
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Sign Up11:40 AM, 3rd February 2025, About 7 hours ago
More of my tenants’ rent went in tax in 2023/24. Much more. Especially when VAT is taken into account.
For this FY, my profit will start with a minus sign.
You’ll never stifle the loony left.
Ryan Stevens
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Sign Up11:45 AM, 3rd February 2025, About 7 hours ago
If you can't afford to live in Islington don't live in Islington.
Dylan Morris
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Sign Up12:05 PM, 3rd February 2025, About 7 hours ago
I doubt any landlord is making excessive profits but we know one thing for sure, the reported profit of unincorporated landlords is falsely inflated due to Section 24.
I can see where all this is going. The Government will be nervous about introducing rent controls, so such decision will be devolved down to local councils so they can decide and take the flack, as per selective licensing.