Sadiq Khan is lobbying for powers to introduce rent controls in London, echoing Nicola Sturgeon’s failed experiment in Scotland — a move critics warn will backfire by driving costs even higher for tenants.
The Mayor of London told the London Assembly last week that pressing the Government for the ability to cap rent rises was one of his priorities under devolution reforms. “Why can’t we have what Edinburgh has?” he asked.
However, Scotland’s rent cap, introduced in 2022 by the SNP, backfired dramatically. Despite a freeze and a 3% cap on annual increases, rents in Scotland surged 11% in 2024 — the steepest rise of any UK nation, outpacing both England and Wales. Analysts said landlords simply hiked rents sharply when properties changed hands, exploiting a loophole in the system.
The Scottish Government scrapped the policy in April this year, after it became clear it had failed to protect tenants in cities such as Edinburgh and Glasgow.
Mr Khan, who earns £170,000 a year — more than the Prime Minister — has long campaigned for rent controls, despite resistance from Labour colleagues. He previously proposed a two-year rent freeze during his re-election campaign and has pledged to keep lobbying ministers.
His calls come as London renters face record costs, with demand for private accommodation far outstripping supply. But landlord groups warn rent caps would make matters worse by discouraging investment in the private rental market.
James Cleverly, the shadow housing secretary, branded Khan’s push “economically illiterate”, saying: “Rent controls will force more rental providers out of the market, reduce supply, and make renting in London even more expensive.”
The National Residential Landlords Association echoed those concerns, saying: “Rent controls discourage investment in the private rented sector. At a time of unprecedented supply shortages, this would significantly worsen the predicament of tenants.”
The Government’s upcoming English Devolution white paper could give mayors the right to request such powers, but ministers would retain the ability to veto them. For now, housing officials have said they will not permit rent controls in London or elsewhere, instead pointing to the forthcoming Renters’ Rights Bill, which will allow tenants to challenge “excessive” hikes.
A spokesperson for Mr Khan defended his stance, saying: “The Mayor is concerned about the impact of unaffordable private rents and is determined to do everything in his power to make housing more affordable for London’s 2.6 million private renters.”
