Sadiq Khan calls for a 2 year Private Rents freeze

Sadiq Khan calls for a 2 year Private Rents freeze

13:33 PM, 10th March 2022, About 7 months ago 6

Text Size

The Mayor of London, Sadiq Khan, is calling on Government to give him the powers to freeze private rents in the capital for two years to save rent for thousands of Londoners, but no help for Landlords, struggling to cope with the rocketing cost of living.

New City Hall analysis, based on estate agent Savills forecasts, shows that freezing private rents for two years would save London tenants on average a total of £2,988 across both years, with £881 in the first year and £2107.60 in the second year.

Research from City Hall and YouGov previously estimated that a quarter of London’s 2.4 million privately renting adults had fallen behind on their rent, or said they were likely to do so, as a direct result of the pandemic. More than a third of private renters polled said they thought the pandemic was having a ‘large impact’ on their personal finances, with half a million Londoners now potentially facing eviction.

Ofgem has already announced an average rise of £693 fuel bills for 1st April by raising the energy price cap, with further steep rises expected due to spiralling global gas prices. The most recent Bank of England Monetary Policy Report has forecast that inflation will rise still further to over seven per cent.

The Mayor of London, Sadiq Khan, said: “Private renters make up nearly a third of everyone living in the capital and they are set to be hit by a devastating combination of price and bill rises. Too often the needs of private renters are ignored by both landlords and the Government.

“Rising fuel and energy costs – which will hit renters in energy inefficient homes the hardest – are already causing anxiety and stress, with a big rise in the energy price cap due next month. That’s why today I’m calling on ministers to give me the powers to stop rents rising in the capital, and help me to give people a chance to get back on their feet after the pandemic.”



Comments

Ron H-W

14:56 PM, 10th March 2022, About 7 months ago

That's £73.40 per month in the first year and £175.63 per month in the second year (OR, an additional £102.63 in the second year).
Such a freeze would hit hardest those who are decent to their tenants, rather than putting up the rent at every opportunity.
So, BECAUSE I haven't raised the rents for 3 years, I must continue at that 2019 rate for a further 2 years.
Looks like I need to put up my rents NOW, before this measure comes into force!!!!!

"Unintended consequences"? - see https://en.wikipedia.org/wiki/Unintended_consequences#Perverse_results
and https://en.wikipedia.org/wiki/Perverse_incentive

Perhaps Mr Khan should consider introducing a Council Tax discount for those who rent?
But I don't think he will - apparently it NEEDS to be the landlords who end up out of pocket!
I believe that, unless certain attitudes change, the supply of private rented accommodation will become dangerously short.
Why doesn't he, instead, work towards reversing the large-scale reduction in social housing which happened during the last few decades as a result of certain policies?

Ron H-W

15:47 PM, 10th March 2022, About 7 months ago

And why should other tenants (i.e. of social housing and other public-sector housing, rather than P.R.S.) miss out on Mr Khan's "generosity" and "help"?

krish

20:22 PM, 10th March 2022, About 7 months ago

Excuse me....
In real terms, a freeze in rent means much more than just a loss of the amount by which the rent would have been increased. Freeze in rent does not freeze the ever increasing costs of operating a rental property. Annual increase in landlord insurance premium, boiler cover costs, repairs & maintenance costs, and a whole bucket of other expenses are not going to freeze. So, BTL operators are expected to meet these increasing costs but not increase the rent to meet the operational costs; something is not getting across to the policy makers. I think the talk should start from freeze of increase in operational costs, then a reversal of S24, and then there can be a meaningful discussion about freeze on rent.

Martin Roberts

22:13 PM, 10th March 2022, About 7 months ago

Will he be telling the super markets and petrol stations to freeze their prices?

Gary BTLowner

12:31 PM, 12th March 2022, About 7 months ago

What about the interest rate rises we`ll see, 3 more are predicted this year. The landlords just absorb those as well I suppose. With London prices the mortgages will be large. I expect more bankruptcies.

Mick Roberts View Profile

16:24 PM, 12th March 2022, About 7 months ago

Reply to the comment left by Ron H-W at 10/03/2022 - 14:56
Same here Ron, I've got several that's paying £520pm when all surrounding rents are £800pm.
I do hope in a way rent controls come in, as the likes of me & u who don't put up every year (I tend to only do when Housing Benefit levels increase, so it don't cost the tenant any extra-Apart from if Selective Licensing increases) may mean we get an inflation rent increase every year paid for by the Benefit system-If they on Benefits that is.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now