NLA critical of Labour housing policies

by Property118.com News Team

9:04 AM, 27th April 2015
About 6 years ago

NLA critical of Labour housing policies

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NLA critical of Labour housing policies

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?”tape

Comments

Joe Bloggs

12:04 PM, 28th April 2015
About 6 years ago

Reply to the comment left by "Anthony Endsor" at "28/04/2015 - 12:01":

true, but also true that the tenant will prob not leave if rise is sensible. tenants dont like disruption either.

Jay James

12:52 PM, 28th April 2015
About 6 years ago

Re inflation-only rent increases proposed by Labour.
Given the multiple possible formal methods of calculating inflation rates, one wonders what Labour intend to count as inflation for rent increase purposes.

Gary Nock

13:35 PM, 28th April 2015
About 6 years ago

The lowest one of course which used to be CPI.

Jay James

13:57 PM, 28th April 2015
About 6 years ago

I think they are capable of changing the goal posts if and when they become the Government, to ban any but the most trivial rent increases.
Oops, did I just imply that politicians mislead us?

Rod

13:05 PM, 3rd May 2015
About 6 years ago

Don't forget that labour also intend to bring in a 3 year minimum tenancy! If they win the election it would be a good idea to email our protest to Emma Reynolds who is labours housing minister, as I have already done.

Gary Nock

14:48 PM, 3rd May 2015
About 6 years ago

Just sent out my letters advising tenants of rent increase options with Section 13 Notices as from 1st July 2015 dependent upon their tenancy start date. Well done Mr Moribund!!

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