Thinktank calls for ‘double lock’ England private rent cap to ease living costs
One of the thinktanks closest to the Labour government is urging ministers to introduce private sector rent controls in England, as the chancellor weighs up how to ease a surge in living costs caused by the Iran war.The Institute for Public Policy Research (IPPR) has published a paper calling for a rent “double lock”, which would link rent increases to either wages or inflation, depending on which was lower.While others on the left have previously called for rent controls, the IPPR’s extensive links inside government will increase pressure on ministers to include the idea in a cost of living package to be announced by Rachel Reeves later in May.The Guardian revealed last month that Reeves had been considering a one-year rent freeze to deal with a rise in inflation which economists say is now inevitable, but the idea was quickly dismissed by Downing Street.Maya Singer Hobbs, the author of the paper, said: “There are millions of people living with unaffordable housing costs, and if you want to bring those down quickly there are not many options.
“You could spend a lot more money on housing benefit, but that is expensive.You could invest in new supply, but that takes a long time to feed through into costs.That’s why we are calling for a rent cap, albeit carefully tailored.”With the war in Iran entering its 11th week and the strait of Hormuz still closed, Reeves has been looking at how to deal with the expected jump in inflation, which is predicted to be the joint highest in the G7 this year.The chancellor will make a speech later this month setting out her plans, which are likely to include support for energy bills, but government sources say she has been looking at a number of other ways to reduce prices for consumers.
One option under consideration until recently was a one-year freeze on private sector rents, something the government had previously dismissed as part of its renters’ rights package, for fear that it would reduce the rate of housebuilding.A day after the Guardian revealed details of the plan, Downing Street ruled it out.But the chancellor is understood to be looking at other ways to keep housing costs low.She told the Commons last month: “I will do everything in my power and use every lever we have to bear down on the cost of living, including for people in the private rented sector.”The IPPR has calculated 2.
4 million people in the UK now have unaffordable rents, meaning it costs more than 30% of their gross income.That number is expected to rise another 340,000 by the end of the decade.Under its plans, private sector rents would be capped at whichever was lower of the 12-month average of either consumer price inflation or wage growth.This would also apply to new tenants moving into a property.Any new building would be exempted from the cap for the first 10 years in a bid to encourage developers to continue building new homes.
A landlord who has done extensive work on their property – such as installing double glazing or solar panels – would also be allowed to raise rents beyond the cap.As part of the thinktank’s plan, housing benefit would be increased to cover the cheapest 30% of rents, costing an additional £600m a year.And to avoid landlords converting their properties to Airbnbs instead, the institute is recommending a new licensing system for short-term lets and a cap on the number of nights a property can be rented out for on a short-term basis.Staff at the IPPR have been presenting their ideas to officials in the Treasury, Downing Street and the Ministry of Housing, Communities and Local Government in recent weeks.Other countries have introduced rent controls at various times, with mixed success.
The Scottish government introduced temporary rent controls in 2022, but rents then jumped sharply after they expired last year.Academics say that while controls typically keep costs down on those properties covered by a cap, rents on those which are not covered rise more quickly than they otherwise would have done.
‘Hold the line’: Burnham tells allies in parliament he still has options to return
Andy Burnham has told Labour MPs they should hold the line and that he has options to return to parliament after several seats identified by his allies failed to materialise.Two seats that backers of the Greater Manchester mayor had described as “nailed on” as recently as Monday night are now out of contention after the MPs concerned got cold feet.Burnham spoke to a number of MPs by phone on Tuesday and assured them that he still intended to seek an imminent return to parliament.The Guardian was told by two MPs on Wednesday that Jeff Smith, who represents Manchester Withington, an affluent suburb of the city, was in talks about stepping aside for Burnham, but his friends denied it. Asked whether he was about to make way, Smith told the Press Association he was not
EU proposes end to ‘five tabs, three apps and a prayer’ for cross-border train bookings
Cross-border train journeys through several European countries are the stuff of many a holidaymaker’s dreams.But the reality of trying to buy the tickets, navigating multiple websites without knowing who can help if a connection is missed, can prove less than relaxing. As one MEP puts it, it can often require “five tabs, three apps and a prayer”.Now, however, the European Commission has proposed that before the end of the decade passengers should be able to buy one ticket for one journey and be better protected when trains are late or cancelled.“Europeans will be able with the click of a button to plan, compare and purchase multimodal journeys across borders while benefiting from stronger rail passenger rights, greater transparency and better protection every step of the way,” the EU transport commissioner, Apostolos Tzitzikostas, said on Wednesday, as he published new rules intended to transform the “excessively complex” experience he said rail travellers met when booking tickets
What is the king’s speech and what is the state opening of parliament?
The king’s speech is the centrepiece of the state opening of parliament, the main ceremonial event of the parliamentary calendar, and the only regular occasion when the three constituent parts of parliament – the sovereign, the House of Lords and the House of Commons – meet. It marks the start of the new parliamentary year,Although delivered by the monarch in their constitutional role as the UK head of state, the speech is written by the government to outline its policies and proposed legislation for the new parliamentary session. Formally called the “speech from the throne” because it is delivered from the throne of the House of Lords, the monarch reads it out in a neutral tone. Whatever their private feelings the monarch must not show any preference for any political party or its policies.The event is taking place as the prime minister, Keir Starmer, fights for his future in Downing Street after heavy losses in the 7 May elections
Online safety campaigners reveal Starmer frustrations after Phillips exit
Internet safety and children’s rights campaigners have accused Keir Starmer of failing to act on proposals to stop children sending and receiving nude images on their phones, after Jess Phillips resigned from the government saying she was tired of seeing “opportunities for progress stalled and delayed”.The Labour politician was one of four ministers who quit on Tuesday and joined more than 80 MPs calling for the prime minister to go.In a coruscating letter she focused on a lack of urgency and boldness in tackling child abuse images, accusing Starmer of failing to take action to stop children being able to take or send naked pictures.She said: “Over a year ago I presented solutions, long worked on by brilliant civil servants, that would end the ability for children in the UK to take naked images of themselves.“We could stop this abuse
Are working-class voters lost to Labour for good? | Letters
It would be helpful for progressive parties and the media to focus more on why so many people voted for Reform UK. Your article (What’s behind surge in support for Reform and Greens across England? Five key takeaways, 10 May) indicates that it gained more support in deprived areas – but this doesn’t answer the question why.What sort of UK do Reform voters want? Do they want councils that reduce local care services for their vulnerable elderly relatives and children, to save a few pennies off council tax? The ending of environmental protections? The scrapping of equal-opportunities policies that protect women and minority groups?When Reform voters are asked about the party’s policies, they fail to articulate much apart from “stop the boats” – because Reform’s plans have very little detail or real‑world application.The Labour government has been in power for less than two years and has delivered the Renters’ Rights Act and the Employment Rights Act, removed the two-child cap on universal credit, increased provision of free school meals and facilitated millions more NHS appointments.The focus on personality-driven politics has left the door open for local governments to be led by privately educated multimillionaires who dismiss the climate crisis and favour cryptocurrency
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It used to be football managers who measured their time at a club in months. Or even days at Spurs. Anything over two years qualifies you for a long service medal. Now it’s prime ministers. In fact it’s worse than that
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