Michael Gove – ‘No rent freeze or rent cap’

Michael Gove – ‘No rent freeze or rent cap’

11:33 AM, 27th March 2023, About A year ago 8

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The Levelling Up secretary Michael Gove says there won’t be a rent freeze or a rent cap for landlords in England this year as part of the proposed Renters Reform Bill.

He was speaking on the ‘Sunday with Laura Kuenssberg’ show when he was asked about the lack of support for housing in the recent Budget.

Ms Kuenssberg said that tenants had been in touch about rents and that official statistics show that rents ‘are going up very significantly’.

‘Anecdotal evidence of rent sometimes going up’

She added: “We’ve had anecdotal evidence of rent sometimes going up by 20-25, even 30%. Is it acceptable for landlords to be putting rent up above inflation?”

Mr Gove replied: “In most circumstances, no.”

Ms Kuenssberg then asked: “And what are you going to do about landlords who are doing that?”

‘How the private rented sector can be better regulated’

Mr Gove said: “Well, we’re bringing forward reforms a little bit later this year – in just a couple of months’ time actually – to look at how the private rented sector can be better regulated.

“We’re not talking about rent freezes or rent caps, but we are not talking about protection for tenants.”

He continued: “At the moment there is a situation where tenants can be evicted without any fault on their part and some, a tiny minority of unscrupulous landlords, are using the threat of eviction in order to Jack up rents and to victimise tenants.

“It’s important that we recognise, as your question does, that a healthy private rented sector is absolutely vital to making sure people have the right home at the right place, at the right time.”

‘Protect tenants from unscrupulous landlords’

He said: “But we do need to make sure that we protect tenants from unscrupulous landlords, even as we also give landlords the power to get rid of anti-social tenants as well.”

Mr Gove was asked about landlords who are ‘profiteering at the expense of their tenants’.

He said: “In every market there will always be actors who will attempt to exploit circumstances in their interests not in the public interest, yes.”


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Comments

LordOf TheManor

14:24 PM, 27th March 2023, About A year ago

'A healthy private rented sector is absolutely vital to making sure people have the right home at the right place, at the right time'..... says Gove.

Lord of the Manor says: A healthy private rented sector is absolutely vital to employment mobility, job promotion, first time home-makers, those coming out of long term relationships and those meeting unforeseen circumstances. All these tenant-types need to either find or re-find their feet somewhere.

The private rented sector came about to allow such people to have the right home in the right place at the right time. Sadly, too many of these places are filled by tenants for whom the right place would be social housing.

The government needs to recognise the necessity and provision of social housing. Build it and manage it, Mr Gove.

Simon Williams

15:41 PM, 27th March 2023, About A year ago

All he needed to say was that the latest ONS data shows rents have risen in the last 12 months at about half the rate of inflation.

Reluctant Landlord

17:54 PM, 27th March 2023, About A year ago

Gove is everywhere, with a bloody opinion on everything. Rishi's rent boy it seems ...

JB

21:15 PM, 27th March 2023, About A year ago

Kuenssberg is SO biassed - typical BBC journalist

Landlord costs are affected by:

Insurance up 30-40%

Maintenance up by inflation++%. It was reported on the news today that the shortgage of builders has allowed builders to earn £125,000pa.

Licensing up by *"#$%

Inability to evict non paying tenants (due to court backlog) up @@@@% and rising by ####%

Base interest rates up from 0.5% to 4.25% (850%) resulting in mortgage payments (the biggest expense for most landlords) doubling or tripling

Then there are special taxes and regulations where landlords are specially singled out from other businesses to reduce their profit - and these are really biting now.

Poor tenants, the government really must hate them.

Poor landlords because we are villified by those who are ill informed and think its all our fault

Tony Gordon

21:21 PM, 27th March 2023, About A year ago

I think there’s likely to be a race to raise rents further now, due to Goves planned announcement.

Crouchender

9:44 AM, 28th March 2023, About A year ago

I have already started increase rents to a much higher baseline as I know that Labour will in power in about 18 months time so then they WILL impose FREEZE/CAPS to the joy of tenants for even for the length of a term of government (5 years) so wise LLs need to be be aware and contingency plan.

JB

9:53 AM, 28th March 2023, About A year ago

Reply to the comment left by Crouchender at 28/03/2023 - 09:44
I agree, as soon as the election date is announced I will be incresing my rents.

When Queen Nic announced her rent freeze in scotland I immediately increased mine in case we got the same in England.

Politicians are having a disastrous effect on our poor tenants - who always pay for it in the end.

Crouchender

10:27 AM, 28th March 2023, About A year ago

Reply to the comment left by JB at 28/03/2023 - 09:53
Absolutely. Most LLs during covid times dropped rents, gave payment holidays and froze rents but politicians have very short memories.

In Gove's interview he did say politician rate £10000 / day was 'MARKET' rate for work outside as as MP!.

Well us LLs are just charging the market rate after years on not raising rents (which goes UP and supply goes down- Basic economics)!

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