Former Labour leader Jeremy Corbyn has warned the government that renter reforms would still allow landlords to make “excessive profits” unless rent controls are introduced.

The MP, who represents Islington North as an independent, told the BBC that tenants would feel exploited despite the Renters’ Reform Bill due to soaring rents in the capital. He explained that for someone to comfortably afford a one- or two-bedroom flat costing about £2,000 per month in his constituency, a tenant would need to earn £80,000.

Corbyn said the government’s plans don’t go far enough and that rent controls are necessary. “There were rent controls in this country until Margaret Thatcher came along, there are still rent controls in New York, San Francisco and in many countries across Europe,” he told BBC London.

“It seems to me a reasonable way of preventing excessive profits being made out of the private rented sector and exploiting people who are in desperate housing need.”

No support

The government has said it does not support rent controls, arguing that it leads to higher rents at the start of a tenancy, can make it harder for prospective tenants to find a home and can lead to unregulated subletting.

Speaking on the programme, NRLA chief executive Ben Beadle (pictured) said reforms must be fair for both renters and landlords. He added that while landlords were not against reforming the system, they needed to have confidence in the proposals.

“I'm not so sure they do at the moment,” said Beadle. “We have no issue with section 21 being replaced as long as the alternative is viable and workable.”