Labour commits to introducing rent controls

by Property 118

3 months ago

Labour commits to introducing rent controls

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Labour commits to introducing rent controls

In Jeremy Corbyn’s speech at the Labour party conference today in Brighton he committed the party to introducing rent controls if they got into power.

In his speech Corbyn said:”We will control rents, when the young generation’s housing costs are three times more than that of their grandparents. That is unsustainable.”

“Homes should be for the many not speculative investments for a few.”

“Rent controls exist in many cities across the world and I want our cities to have those powers too and tenants to have those protections”

No further details of how rent controls would work precisely were given in the speech. However, Andrew Gwynne, Labour’s general election co-ordinator, later said “if New York has them then London can have them.”

Gwynne indicated that rents have soared under an unregulated rental market and action is needed to bring the costs down which will be fleshed out in a Green Paper in due course.

On the availability of housing in general Corbyn went on to say: “We also need to tax undeveloped land held by developers and have the power to compulsorily purchase.

“When councils come forward with proposals for regeneration, we will put down two markers based on one simple principle – regeneration under a Labour government will be for the benefit of the local people, not private developers, not property speculators.

“First, people who live on an estate that’s redeveloped must get a home on the same site and the same terms as before. No social cleansing, no jacking up rents, no exorbitant ground rents. And second, councils will have to win a ballot of existing tenants and leaseholders before any redevelopment scheme can take place. Real regeneration, yes, but for the many not the few.”

Editors Note:

ONS Chart below provided by Property118 member

 

Comments

Mark Alexander

3 months ago

All landlords will then increase rents annually in line with RPI or whatever the rules say.

Remember to increase any rents which are under market value to the current rent levels before the next election.

Don't worry about demand, there are less landlords investing now and quite a few selling so demand is set to rise. That's why Corbyn thinks his policy makes sense. He's telling the masses what he thinks they want to hear to win votes!

Sami Houmrani

3 months ago

Reply to the comment left by Mark Alexander at 27/09/2017 - 16:55
I totally agree with you but the build to rent is taken the lead more flats are build like never before .

Brexit will make lease people coming and Community European given hard time to UK this will only make the economy unstable for many years to come.

Landlords with higher mortgages they are the first to be affected. within next 4 years you will see property markets in slow down like never before.

I hope I am wrong.😢

Mark Alexander

3 months ago

There is, of course, the possibility that people will see property as the only safe haven for their £££ and buy property in a company to avoid the restrictions on finance cost relief.

I can see EPUT unit trusts taking off in a big way

Sami Houmrani

3 months ago

That’s what I did all my new purchase are in limited company Fingers course no more surprises within (Ltd).

Also I would like to take this opportunity to say thank you for all the advice and guidance you have provided to landlords and Tenants over the years.

If I have not educated myself by reading daily property 118 I would probably sold all my property’s by now.

Gary Dully

3 months ago

It won't stop at rents!

When the economy implodes under Corbyns communism, the queues for milk and bread will follow.

As a kid in the 60's I remember the Government announcing a weekly increase of the price of milk and bread.

The economy has moved on since those days.

But this guy has learned nothing.

I wonder if he intends to blame us for Section 24?

Neil Patterson

3 months ago

ARLA's David Cox has commented:

"“The Labour Party clearly hasn’t learnt the lessons of history. The last time rent controls existed the private rented sector went from housing 90 per cent of the population to just seven per cent. Whenever and wherever rent controls are introduced, the quantity of available housing reduces significantly, and the conditions in privately rented properties deteriorate dramatically”

“Landlords, agents, and successive governments over the last 30 years have worked hard to improve the conditions of rented properties and this is like taking two steps backwards. Rent control is not the answer – to bring rent costs down we need a concerted house building effort to increase stock in line with ever-growing demand”

Neil Patterson

3 months ago

David Smith of the RLA said:

“History has proved that they stifle investment and reduce supply; making it much more difficult for tenants to find somewhere decent to live. Contrary to suggestions, most landlords have one or two properties, which are an investment in their pension and, rather than being wealthy landowners, they are mainly basic rate taxpayers. The private rented sector is a key part of providing more housing and has invested in providing homes for the population, putting more homes into use than other landlord types”

“Rents are high due to the continued failures by successive governments of all stripes to build enough new homes in the right places. Instead of attacking landlords who are helping to provide homes, it would be better to treat them as part of the solution and to supplement their efforts with a sustained and well thought out building programme overseen by government”

Mark Alexander

3 months ago

A retired account friend of mine, who prefers not to be named, emailed me last night to say ....

"Corbyn’s speech was shown live on BBC 2's Daily Politics show. At about 1 hour 37 minutes into the show he started talking about the Grenfell disaster for over 2 minutes. He then continued by saying “A decent home is a right for everyone, whatever their income, whatever their background. Houses should be homes for the many, not speculative investments for a few”.

Just before the end of the programme, Andrew Gwynne, Shadow Communities and Local Government Secretary, was asked how rent control would work. He said “We are absolutely adamant that we fix this housing crisis.” If by fix he means make permanent he is right.

Pressed for an example of a city that he thought would be a good model to follow he said “New York”. He said “If it could work in New York it could work in London.” Thus begging the question.

On the BBC News channel Rachel Shabi, Guardian journalist and ubiquitous TV pundit, said young people are being locked out of housing and it is wrong for people to make money out of people’s basic right to have somewhere to live. Presumably she wants the PRS to be nationalised as well."

Another friend, also cc'd into the email thread, said ....

"The funny thing is the New York model is famous for NOT working, and has many critics. It totally stifles mobility as nobody ever leaves. The blocks subject to it are the very worst in terms of maintenance and appearance, everything done down to a price. They therefore blight neighbourhoods. The people around them hate them. I know, I've been there as a friend lives in one and apart from the low rent rises, nobody has a good word to say about them."

Neil Patterson

3 months ago

ONS Chart provided by Property118 member has been added to the article above

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