Islington Declares Rent Crisis and Demands Power to Cap Rents 2026

Key Points

• Islington Council formally voted to declare a borough-wide “private renting crisis” on Thursday, 24 September 2026.
• The local authority passed a motion to commit to lobbying both the Mayor of London, Sir Sadiq Khan, and the Secretary of State for Housing, Angela Rayner, for devolved powers to design and implement local rent caps and an emergency rent freeze.
• Figures published by the Office for National Statistics (ONS) show average private rents in Islington reached £2,868 per month in August 2026—marking an annual increase of 6.2 per cent. Official council documents placed average rents as the third highest in London at £2,828 earlier in the year.
• Approximately one-third of Islington residents live in the private rented sector, accounting for nearly 37,000 privately leased homes.
• Councillor Jason Jackson stated that unaffordable rental costs are directly driving residents to council services for emergency homelessness support and temporary accommodation.
• Councillor Michael O’Sullivan expressed concern that unscrupulous landlords are exploiting loopholes following the implementation of the Renters’ Rights Act in May 2026 by using massive rent hikes as a back-door method for “revenge” evictions.
• The Labour Government has consistently resisted calls to introduce rent controls, with Housing Secretary Angela Rayner ruling out national caps in July 2026 and ministers confirming no current plans to devolve pricing powers to London.

Islington (North London News) October 2, 2026 – Islington Council has formally declared that the borough is in a state of “private renting crisis” following a decisive council vote on Thursday, 24 September 2026. A majority of local councillors voted to commit the North London borough to actively lobby both the Mayor of London and the Secretary of State for Housing for emergency devolved powers. The council seeks statutory authority to introduce long-term rent controls, cap price increases between and within tenancies, and enforce an immediate localized rent freeze across the local authority area.

As reported by Josef Steen of MyLondon, housing leaders in the borough warned that escalating rents are forcing local residents into severe economic hardship, pushing families into overcrowded conditions, and placing an unsustainable strain on municipal homelessness prevention services.

Why did Islington Council declare a private renting crisis?

The motion was brought to the council chamber amid mounting local data highlighting severe affordability issues across North London. Approximately 37,000 properties—representing roughly one-third of all households in Islington—are managed within the private rented sector.

According to figures from the Office for National Statistics (ONS) cited by Josef Steen of MyLondon, average private rents in Islington rose to £2,868 per month in August 2026, representing a 6.2 per cent year-on-year increase. Council documentation submitted for the 24 September meeting noted that Islington consistently records the third-highest average rent of any borough in Greater London, standing significantly above the Greater London average of £2,294 per month.

Addressing the chamber, Councillor Jason Jackson, Executive Member for Homes and Neighbourhoods, outlined the direct operational impact on local government resources. As reported by Josef Steen of MyLondon, Councillor Jason Jackson stated: “People are coming through our doors for homelessness support or temporary accommodation” as a direct consequence of being priced out of their homes by unsustainable rent demands.

The amended motion, moved by Councillor Jackson Caines and seconded by Councillor Hayden Banks, highlighted that 2024 polling indicated around 75 per cent of UK adults and 44 per cent of landlords support some form of rent regulation. The motion also referenced research from University College London (UCL), titled Taking Back Control of Rents, which advocated for an immediate nationwide rent freeze to reduce state expenditure on housing benefits and protect vulnerable tenants.

What arguments were raised regarding landlord behaviour and the Renters’ Rights Act?

During the debate, councillors evaluated the ongoing impact of the Renters’ Rights Act, which took effect on 1 May 2026. While the national legislation introduced sweeping reform—including the elimination of Section 21 “no-fault” evictions and the outlawing of rental bidding wars—local representatives argued that statutory gaps remain.

As reported by Josef Steen of MyLondon, Labour Councillor Michael O’Sullivan told the council chamber that “ordinary people cannot live in Islington unless they live in conditions that are slum-like and very, very overcrowded”.

Councillor Michael O’Sullivan warned that “rogue landlords” are actively attempting to bypass the ban on no-fault evictions by imposing exorbitant rent increases that force tenants to leave voluntarily. As reported by Josef Steen of MyLondon, Councillor Michael O’Sullivan stated that landlords were using rent spikes for “revenge” against tenants requesting repairs or asserting their legal rights, adding: “Rent caps are the solution to this. We had this before, and it’s about time to reintroduce it”. Independent rent officers previously held powers to establish legally binding “fair rents” until the mechanism was abolished under Margaret Thatcher’s Conservative administration via the Housing Act 1988.

Data cited during the session from the English Housing Survey highlighted that private renters in England now allocate an average of 34 per cent of their gross income towards housing costs, the highest proportion among all tenure types.

How has the central Government responded to requests for rent controls?

Despite growing pressure from local authorities, central government policy remains explicitly opposed to statutory rent caps.

As reported by Josef Steen of MyLondon, Secretary of State for Housing Angela Rayner definitively ruled out the introduction of national rent caps in July 2026, maintaining that the provisions set out under the Renters’ Rights Act provided tenants with sufficient legislative protection, tenure security, and price challenge mechanisms.

Furthermore, while Mayor of London Sir Sadiq Khan has repeatedly requested devolved statutory powers from Westminster to establish a London Rent Commission and implement a regional rent freeze, government ministers confirmed in June 2026 that there are “no plans” to grant such devolved powers to City Hall.

Islington Council joins a growing list of municipal authorities—including Brighton and Hove City Council, Oxford City Council, and Worcester City Council—that have formally passed resolutions calling for rent control powers. In Greater Manchester, Mayor Bev Craig has similarly pledged to establish a regional Commission on Rents to explore options for structural rent limits.

What is the background of this development?

The private rental sector in Greater London has experienced unprecedented structural inflation over the past four years, driven by a combination of elevated mortgage interest rates for buy-to-let landlords, shrinking long-term rental stock, and high demand across central urban boroughs.

Historically, domestic rent controls operated in the United Kingdom throughout much of the twentieth century following the introduction of the Increase of Rent and Mortgage Interest (War Restrictions) Act 1915. The system was systematically updated through subsequent Rent Acts, culminating in the Rent Act 1977, which enabled local rent officers to evaluate properties and register a maximum statutory “fair rent” based on physical condition and local amenities. However, the Housing Act 1988 fundamentally deregulated the sector by introducing Assured Shorthold Tenancies (ASTs) and allowing open-market pricing on all new tenancies created after January 1989.

In recent years, local councils across London have faced escalating financial pressure due to statutory homelessness duties. When private tenancies end or become financially unsustainable, local authorities are legally obligated to provide temporary accommodation to eligible residents. Municipal leaders have repeatedly warned that the escalating market costs of securing temporary accommodation threaten the financial solvency of urban councils across the capital.

To address localized housing quality, Islington Council previously announced expanded Selective Property Licensing and Houses in Multiple Occupation (HMO) licensing schemes in September 2026, aimed at enforcing safety standards and landlord compliance across the private sector. However, municipal powers to directly regulate lease pricing remain strictly curtailed by national primary legislation.

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What is the prediction for how this development will affect local residents and landlords?

The declaration of a “private renting crisis” by Islington Council serves as a formal political mandate, but its immediate practical impact on local residents, landlords, and housing market dynamics will depend entirely on future legislative decisions at Westminster.

For private tenants residing in Islington, the council’s vote will not result in an immediate statutory freeze or cap on their current rent payments. Because primary legislation passed by Parliament is required to alter property pricing frameworks, tenancy agreements will remain governed by open-market dynamics and the provisions of the Renters’ Rights Act 2026. Tenants seeking to challenge above-market rent hikes must continue to utilize established statutory mechanisms, such as appealing unreasonable increases to the First-tier Tribunal (Property Chamber). However, the resolution guarantees that local council resources will be actively directed toward political lobbying campaigns and increased enforcement of property standards through local landlord licensing regimes.

For private landlords and property investors operating within Islington and Greater London, the resolution signals heightened political scrutiny and potential regulatory friction. While formal rent caps remain blocked by the Ministry of Housing, Communities and Local Government, the mounting political consensus among urban councils may lead to increased local administrative oversight, stricter property licensing compliance, and tighter enforcement against constructive or “revenge” evictions achieved through price hikes.

If central policy were ever to shift toward devolving rent control powers to regional authorities, financial analysts suggest property investors might adjust their portfolios by exiting high-cost urban areas or shifting capital into alternative asset classes, which could further alter the total supply of private rental housing in North London. In the short to medium term, the political impasse between local councils demanding emergency intervention and central government prioritizing market flexibility is expected to prolong public debate surrounding urban housing affordability.