Rent controls - good or bad?

Labour intends to bring in rent control, which I think is a good idea, but I'm surprised at the flimsy attempts to destroy its credibility.

The intention is to allow rents to rise only by the rate of inflation for the next 3 years, but anyone would think they'd promised to give them away free judging by the hysterical reaction.

Surely responsible landlords would think Labour's proposal was only fair. People are struggling with the high rents as it is. Only the sharks would object, and say they can't afford to maintain their properties on this.

What do you think?

How much is a high rent?

No, that isn't what they are proposing, they are proposing: (Guardian)

Labour will tell landlords that they will only be able to increase rent for tenants by less than inflation for the duration of a contract. The party is also saying it wants three-year contracts to be standard to provider greater security for renters and for landlords to reveal how much the previous tenant paid. The party does not propose to set an overall nationwide limit on how much landlords can charge per property or per room.

There is a significant difference. In a country where most rental stock is in private ownership, these proposals mean that investing in rental properties is going to be far less interesting, not just acquiring new property, but more importantly also bringing existing stock up to market conditions.

Also, what does the three year contract mean realistically? It can well be interpreted as a construction that binds tenants as much as it binds landlords. Not healthy at all. Finally, who says the landlords won't bring in extra charges before the contract is signed, the silly fees charged by estate agents are only going to get worse.

If this proposal gets through, nobody will win.

 

Also, what does the three year contract mean realistically? It can well be interpreted as a construction that binds tenants as much as it binds landlords. Not healthy at all. Finally, who says the landlords won't bring in extra charges before the contract is signed, the silly fees charged by estate agents are only going to get worse.

 

If this proposal gets through, nobody will win.

At least Labour are trying to do something, it may help reduce the bill for housing benefit.

Who wants a 3 year contract when they're renting anyway??

I never did when I was renting.

What happens when you want to get out of it early???

Are they going to just let you walk away without issue??

Who wants a 3 year contract when they're renting anyway??

I never did when I was renting.

 

What happens when you want to get out of it early???

Are they going to just let you walk away without issue??

Well if you have children in the local school I would imagine 3 years security is the very least you would want. Families who couldn't afford to buy, used to look to social housing to give them stability. Now that is no longer available in most cases, they will need to find it elsewhere. Therefore the private sector needs to step in and try to make up the shortfall.

Anything that could cool the buy to let market is welcome but this is just a sticking plaster. More is needed to get more homes built in the right places, to cut housing benefits, to remove tax breaks for landlords and to control the supply of easy credit to the buy to let market. Plenty of other things need to change too around how properties are managed in terms of over-occupancy, safety checks and background checks to filter out illegal migrants and anti-social tenants.

When I was growing up I remember a certain individual called Nicholas van Hoogstraten. The guy was a private landlord, nationally prominent and just about public enemy number one. How on earth have we reached a situation where hundreds of thousands of people would emulate him if they could?

Anything that could cool the buy to let market is welcome but this is just a sticking plaster. More is needed to get more homes built in the right places, to cut housing benefits, to remove tax breaks for landlords and to control the supply of easy credit to the buy to let market. Plenty of other things need to change too around how properties are managed in terms of over-occupancy, safety checks and background checks to filter out illegal migrants and anti-social tenants.

 

When I was growing up I remember a certain individual called Nicholas van Hoogstraten. The guy was a private landlord, nationally prominent and just about public enemy number one. How on earth have we reached a situation where hundreds of thousands of people would emulate him if they could?

Without BTL many people would be homeless . BTL is vital

Without BTL many people would be homeless . BTL is vital

I agree BTL is vital, but surely that doesn't preclude an honest, mutually beneficial arrangement? Why is that so difficult? Isn't that all the Labour proposal is trying to ensure?

Without BTL many people would be homeless . BTL is vital

A private property rental market is vital I agree but not the way it is operated now. Every political party is rounding on the buy to let market as it currently stands and the reasoning is simple: aspiring homeowners are increasingly forced to compete with buy to let investors, the proportion of owner-occupiers is decreasing year on year and that isn't good politically.

Expect a massive backlash in the coming years because this can't continue.

Buy to let is sucking the life out of the economy. As a business at the scale it is now it adds nothing, deflects investment away from commerce and industry, and helps keep alive a proportion of the banking sector that does nothing but service the buy to let industry.

Things are going to have to change.

Dont think there will be many landlords up north complaining about tenants having to sign a 3 year agreement and rent going up with inflation . Different down south in London area

were rents are high to start with might be okay Treble what they are in sheffield at least. Making people sign a 3 year lease up north no chance they want to get in the real world. Is the country being run by a set of idiots. I havent put my rents up for 3 years as i have good tennants . Looks like i can order a new car then bad news for my tennants.

It's a good thing