In a notable policy reversal, the Labour Party has abandoned its pledge to implement rent controls if it wins the next general election, a move that contrasts sharply with its previous stance on the issue. This change, occurring just nine months after the policy was endorsed, has raised questions about Labour’s commitment to tackling the housing crisis.

In September 2022, Lisa Nandy, Labour’s shadow communities secretary, expressed strong support for giving local authorities the power to freeze rents. At the Labour Party conference, she stated, “Local mayors and council leaders should be able to make decisions to freeze rent increases in their local areas over the winter. And I’ve asked my team to look at that to see if we can work that up into a workable proposal. I think doing nothing is not an option.”

This pledge was seen as a critical step in addressing the soaring rents that burden many tenants across the UK. It echoed Labour's historical commitment to regulating rents, a promise consistently included in its manifestos since Ed Miliband's leadership.

However, by 2023, Nandy had dramatically shifted her position. Speaking at the Housing 2023 gathering of industry professionals, she dismissed the idea of rent controls as a “sticking plaster” that could exacerbate homelessness. “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,” she stated.

This stark reversal signifies a significant departure from Labour's previous commitments and has sparked debate about the party’s housing strategy. The decision to scrap the rent control policy marks a major shift in thinking, highlighting the complex challenges Labour faces in addressing the housing crisis without exacerbating other issues.

SOURCES

1st Video: Nandy: Labour will explore powers for mayors and councils to freeze rents - https://labourlist.org/2022/09/nandy-labour-will-explore-powers-for-mayors-and-councils-to-freeze-rents/

2nd Video: Labour scraps pledge to bring in rent controls in latest U-turn - https://www.independent.co.uk/news/uk/politics/labour-rent-controls-lisa-nandy-keir-starmer-b2365616.html

3. Lisa Nandy speech to Housing 2023 - https://policymogul.com/key-updates/29590/lisa-nandy-speech-to-housing-2023

4. Labour leadership accused of U-turn over rent controls - https://www.theguardian.com/politics/2023/jun/28/labour-leadership-lisa-nandy-accused-u-turn-rent-controls