Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 3 weeks ago 35
Responding to Labour Party leader Ed Milliband’s announcement on new measures to cap rents, a legal requirement to disclose rent charged to previous tenants, and restricting tax reliefs for landlords who don’t keep properties to basic standards.
Richard Lambert, CEO of the NLA said, “we understand Labour wants to assure tenants they have their concerns at heart, but this policy will backfire because they don’t understand the economics of supplying private housing to rent.”
“These changes will have far-reaching consequences for the private rented sector, for landlords’ willingness to put their own money into providing homes, and for mortgage lenders’ view of the risk in supporting them. If these proposals are going to be rushed into the first Queen’s Speech, less than a month away, without time to think through the consequences, Labour’s good intentions could make the housing crisis worse, not better.”
“NLA research has found that around two-thirds of landlords don’t increase rents during a tenancy. Capping annual price rises to inflation sounds like a great consumer protection initiative, but wherever these formulas have been introduced, it’s proved to be counterproductive because it leads to a culture and expectation of regular increases by whatever is allowed.”
“Restricting tax reliefs for landlords who don’t keep their properties up to standard is a good headline, but it leaves many questions unanswered. Who decides that the restriction will bite and how would it be assessed?”
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