Rent caps could be introduced in England by a Labour government, the party’s shadow chancellor Rachel Reeves revealed over the weekend.

Speaking on BBC Radio Essex, Reeves said she could see the case for controlling rent rates in rent hotspots, but said she was against a national scheme.

She added that the measure would allow local authorities to prevent landlords from raising rents above a set amount each year, as has happened in Scotland.

Admitting that Scots rent caps have failed to prevent rents rising, she said: “I think [rent controls] should be up to local areas to decide. There may be the case for that in some [cities or neighbourhoods], but as a blanket approach, I’m not convinced by that.”

Reeves comments indicate that there is a policy debate going on within the Labour Party, which has flip-flopped between being against rent controls, while saying it might give some local councils seeing surging rents more powers to curtail them.

Right approach

The party has released a statement saying: “As Rachel Reeves said, she does not believe rent controls are the right approach.

“While Labour believes action needs to be taken to address extortionate within-tenancy rent rises, rent controls are not national Labour Party policy as we remain mindful of the risk they could pose to the availability of rental properties and the harmful impacts any reduction in supply would have on renters.”

Never works

Speaking on LBC Radio yesterday, TV star and Landlord Action founder Paul Shamplina (pictured) said: “It’s clear we have an issue with affordability of rent for tenants and that something has to give.

“Rent capping however never works in the private sector. But why have rents risen so dramatically in the last few years? Mainly because landlords have been selling up.

“I’ve been saying for the best part of three years that the rental stock crisis would get worse and crank up ten-fold if rent caps were brought in by Labour, stifling investment. Look what’s happened in Scotland.

“Give landlords some tax incentives back to stay in the market, if they let tenants stay longer in their properties – it’s not rocket science.”