Sadiq Khan is plotting to impose rent controls in London in a move that could slash landlords’ incomes by thousands of pounds a year.
The Mayor is poised to ask the Government for powers that will allow him to regulate the capital’s rental market, The Telegraph understands.
It comes as competition for private rented housing in London remains fierce with the average tenant paying £2,086 per month, according to official figures.
Parliament would be required to pass laws to give the Mayor the necessary powers to regulate prices set by private landlords.
Mr Khan has been pushing for greater powers since 2016, a move rejected by the Conservative government.
However, Labour has signalled that it would be open to introducing some rent controls.
Prime Minister Keir Starmer told voters during an election debate in May: “We have to stop the landlords ripping off tenants who are doing this bidding war. We can pass legislation to say you can’t do it because it’s driving rents through the roof. We have to have a scheme in place to stop them driving rent up and up.”
The Chancellor has also suggested she would be in favour of rent caps for local authorities.
It was reported in May that during an interview with BBC Radio Essex, Rachel Reeves was asked if she would commit to “introducing some kind of cap on rents”.
Ms Reeves replied: “Where that has happened, it’s not always delivered the results that people might want.
“I think that should be up to local areas to decide, there may be the case for that in some local areas, but as a blanket approach, I’m not convinced by that.”
There is a range of potential options that could be on the table to make rent more affordable should Mr Khan be granted the powers, such as freezing rental increases above a certain rate.
However a similar measure introduced by former first minister Nicola Sturgeon in Scotland last April backfired and drove up rents instead. Under the 3pc cap, rents surged 11pc – the highest annual rent growth of any UK nation.
