Sadiq Khan has reignited his campaign to bring rent controls to London, telling Assembly members this week it remains his top demand for devolved powers. The Labour Mayor argued the measure was vital to improve conditions for renters, but landlords warn it could damage supply and worsen affordability.
Renewed pledge raises landlord alarm
Rent caps were a centrepiece of Khan’s re-election campaign in May, and he has repeatedly pushed the idea since taking office. Citing Scotland’s rent freeze as a precedent, Khan questioned why Londoners should be treated differently. “Why can’t we have what Edinburgh has?” he asked.
The NRLA warns that rent controls risk driving landlords out of the market in Scotland, citing registration-declines and reports from members about plans to sell or reduce portfolios. According to policy director Chris Norris, this could further reduce housing choice and put upward pressure on rents over time.
White paper and Renters’ Rights Bill
A government devolution white paper, currently under review, has prompted speculation about new housing powers being handed to local leaders. Khan hopes this could pave the way for rent controls in the capital.
Yet the Department for Housing has drawn a red line. A spokesperson told The Telegraph: “The Government will not allow rent controls in London or anywhere else. We will empower tenants to challenge excessive rent hikes through our Renters’ Rights Bill to give people housing security.”
Analysts note that the Renters’ Rights Bill is more focused on procedural protections—such as giving tenants tools to dispute unfair rises—than on hard caps. For landlords, this means rent setting remains a market decision, though disputes could rise once the Bill takes effect.
Political calculations in play
Despite resistance, Khan is pressing on, hinting that Labour’s internal dynamics may shift the debate. With Manchester Mayor Andy Burnham rumoured to be weighing a leadership challenge to Sir Keir Starmer, Khan appears to be keeping the rent control issue alive in case of a change at the top.
London letting agent Sarah Miles said many landlords are “deeply uneasy” about the rhetoric. “Talk of rent caps, even if they don’t materialise, creates uncertainty,” she explained. “Investors want stability, and right now a lot are questioning whether London is worth the risk.”
Editor’s view
Rent control is a political slogan that plays well to tenants but delivers little in practice. The evidence from Scotland is already sobering: landlords exiting, supply shrinking, and younger tenants competing for fewer properties. If City Hall keeps pushing, London investors may again be forced to ask whether the political climate makes buy-to-let a worthwhile venture. Could the capital’s rental market be at risk of long-term stagnation if these ideas keep resurfacing?
