Labour has said ministers’ decision to scrap housebuilding targets in England could cost renters an extra £200 a year by 2030.
The shadow housing secretary, Lisa Nandy, said Labour is “the party of homeownership” as the local elections campaign entered the final straight.
Nandy said Labour would not treat tenants like “second class-citizens” and said the government’s approach to housebuilding, including withdrawing a 300,000-a-year target, would lead to the lowest rates of new-builds completed since the second world war.
The target became a bone of contention with Conservative backbenchers last year, with Rishi Sunak eventually caving in to pressure and making the plan of building 300,000 homes a year in England advisory rather than mandatory.
Both he and former prime minister Liz Truss had told the leadership election in summer 2022 that they would relax rules on housebuilding and, in the face of pressure from 50 MPs led by Theresa Villiers, he got rid of the target.
Labour has said it will reverse the changes and introduce a “renters’ charter”, which would include a national register of landlords, longer notice periods and a ban on no-fault evictions.
It said the current housing policies, including the change in housebuilding plans, would cost an extra £208 a year by 2030 if trends continue.
Private rents in England have risen by 4.5% in the 12 months up to February 2023, according to government figures, exacerbating the cost of living crisis for those in rental accommodation.
New figures released this week showed the average rent in the UK is £1,190 per calendar month, and £2,500 in London.
Nandy said: “Rishi Sunak’s reckless decision to roll over to his own MPs doesn’t just mean he’s abandoned a whole generation of young people’s dreams of homeownership – it’s also hitting renters right now who are already facing a cost of living crisis.”
Labour’s figures are based on data from planning and development consultancy Lichfields. The party leader, Keir Starmer, has introduced a target of 70% homeownership.
Their pledges followed the Tory party’s plans to ban no-fault evictions. The proposal featured in the 2022 Queen’s speech, with plans announced to put a bill before parliament before the end of the 2022-2023 session.
Data for March showed the biggest fall in housebuilding since the first Covid lockdown, Labour said.
Nandy added: “The next Labour government will never treat renters like second-class citizens.
“We will tilt the balance of power with a new renters’ charter that will deliver powerful new rights and protections for tenants, including longer notice periods, a ban on no-fault evictions and the right to make changes to your home.
“We will also build more homes to both rent and buy, including social and affordable homes, and we will restore social housing to the second largest form of tenure.”
