Rent Controls

Meeting: 
MQT on 2013-05-22
Session date: 
May 22, 2013
Reference: 
2013/1543
Question By: 
Nicky Gavron
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

I have recently been asked to put the following question to you by constituent:

'On the 22nd of March in a Twitter Q&A Mr Johnson said that the problem with introducing a private rental cap was that it would 'discourage supply'. Does Mr Johnson really think that private landlords would let properties sit idle if their potential rent earnings were capped, or does he recognise they would have to choose between renting at the capped price or selling the property, stimulating the housing market and helping Londoners onto the housing ladder?'

Answer

Answer for Rent Controls

Answer for Rent Controls

Answered By: 
The Mayor

When rent controls were in existence, the Private Rented Sector accounted for just 12 per cent of London's stock, which, given current demand, would substantially exacerbate the existing challenges facing the private rented sector.

The only effective way to slow the pace of rent rises is to increase supply, which I am doing through building 100,000 affordable homes over two Mayoral terms, supporting Londoners into home ownership through a range of schemes, thus taking pressure off the private rented sector; and through the Build to Rent fund, which the GLA has led in London, where over 4,000 homes in London are shortlisted for funding.