Angela Rayner is facing mounting pressure from MPs (Image: Getty)
Angela Rayner is battling left-wing MPs who are demanding legally-enforced rent controls despite warnings it would destroy the housing market.
They want a quango to decide the rent private landlords are allowed to charge for every home, based on the size of the property, location and local income levels.
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But Ms Rayner, the Secretary of State for Housing, Communities and Local Government, has vowed to resist the demand as well as calls for landlords to be banned from increasing rents faster than the rate of inflation.
Labour rebels have joined forces with Green MPs and independents including former leader Jeremy Corbyn in an attempt to amend the Government’s Renters’ Rights Bill, which is to be debated in Parliament today.
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Calls for rent increases to be capped in line with inflation or average wage rises, whichever is lower, are backed by 20 Labour MPs as well as Greens and independents.
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A smaller group of MPs want a new organisation, to be called the Independent Living Rent Body, to set rents.
Ministers say the quango would need to set prices for 950,000 properties every year and the cost would be huge, while rent controls would drive landlords out of the market.
Housing Minister Matthew Pennycook said: “The Government believe that would impact negatively on tenants as well as landlords, as a result of reduced supply, discouraged investment and declining property sales.”
Deputy Prime Minister Ms Rayner has previously ruled out the idea, saying: “Rent controls restrict housing supply, which does not help anyone, but our Bill takes practical measures to help renters by empowering tenants to tackle unreasonable rent hikes and prohibiting unfair rental bidding, and we will continue to assess potential action on sky-high rents.”
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Meanwhile landlords have criticised measures in the Bill which are backed by the Government that would limit the amount of rent landlords can ask for in advance. The National Residential Landlords Association said this would make landlords reluctant to accept tenants without any credit history such as students or people without steady jobs.
Policy Director Chris Norris said: “The Government is cutting off any assurance responsible landlords might seek when renting to those who cannot easily prove their ability to sustain tenancies and pay their rents. In the end those who will suffer most are those the Government most wants to help.”
The Government says The Bill delivers on Labour's manifesto commitment to overhaul the experience of renters, banning Section 21 ‘no fault’ evictions and giving 11 million private renters security so they can stay in their homes for longer and build lives in their communities.