Mortar and Margins episode 20
Britain’s increasingly hostile political climate towards landlords and property investors has become one of the defining themes of the current Labour leadership debate. As speculation intensifies over who could eventually replace Keir Starmer, many in the property sector are wondering whether a change at the top would bring any meaningful shift in housing policy, or simply more pressure on landlords through rent controls and regulation.
At the heart of the debate is a growing perception among property owners that they have become politically expendable. Across large parts of the political spectrum, landlords are increasingly portrayed not as providers of housing but as obstacles to affordability and fairness. The Renters’ Rights Act, once considered a major intervention, is now being criticised by parts of Labour’s left wing for not going far enough.
Stabilisation?
The central concern is the possibility of rent controls, or more realistically, “rent stabilisation”. Under these proposals, landlords would still be able to set initial rents at market levels, but future increases during a tenancy could be capped. Some suggested models would link rent rises to inflation or wage growth, whichever is lower.
Supporters argue this would provide tenants with greater security and predictability. Critics, however, believe it would create long-term distortions in the market. Ironically, some of the landlords most affected would be smaller or more ethical landlords who have historically kept rents low and only increased them occasionally. Under a rigid stabilisation system, these landlords could suddenly find their properties financially unsustainable, particularly where mortgages or rising maintenance costs are involved.
There is also concern that rent controls could unintentionally increase rents over time. If annual increases become expected and regulated, landlords may feel compelled to raise rents every year simply to avoid falling behind future inflation. Historical comparisons suggest that, in some scenarios, regulated rent increases could actually produce higher rents over long periods than the current market system.
The likely outcome, according to many within the sector, would be an accelerated exit of smaller landlords from the market. Institutional investors, by contrast, may actually benefit. Large corporate landlords are often better equipped to absorb regulatory complexity and can operate profitably within tightly controlled systems. In effect, stricter regulation could reduce competition and consolidate housing ownership into the hands of larger financial institutions.
Despite growing political rhetoric, there is scepticism that a new Labour leader would radically alter policy. The bigger issue, many argue, is communication rather than ideology. Critics of Keir Starmer often claim his leadership lacks clarity and conviction, while supporters of potential successors such as Angela Rayner, Wes Streeting or Andy Burnham are already positioning themselves as more authentic voices for different wings of the party.
Yet beneath the headlines, the core direction of travel on housing policy may remain broadly unchanged. Labour’s leadership contenders appear united on expanding tenant protections, increasing regulation and applying greater pressure to landlords, even if they differ in tone or presentation.
ISSN 2979-1405. Mortar & Margins is produced in Solihull by Propenomix. Its editors are Duncan Hooper and Adam Lawrence