Cameron will NOT consider rent controls.

ruggedtoast

PasturesNew wrote: »

My friend has a flat in NY. He is rent controlled and explained to me how it works. Once you're in, the rent is set and a maximum rise/year is set out .... so once in you should always be able to afford to stay in that flat. He said that new incomers now would have to pay double what he pays. So each is rent controlled, based on the initial entry poit - he'd certainly not be able to afford to rent another rent controlled flat in that same block. I think his rent's £500/month for a 1 bed with heating and water included.

I guess it stops the LLs remortgaging, pocketing the equity and then putting up the rent to cover the new mortgage.

Here they would just give you a section 21 and start again, which the Tories aren't going to do anything about either.

Generali

HAMISH_MCTAVISH wrote: »

Of course he won't.

That was never in doubt.

Well I think this shows that Cameron isn't a complete idiot.

Rotor

PasturesNew wrote: »

My friend has a flat in NY. He is rent controlled and explained to me how it works. Once you're in, the rent is set and a maximum rise/year is set out .... so once in you should always be able to afford to stay in that flat. He said that new incomers now would have to pay double what he pays. So each is rent controlled, based on the initial entry poit - he'd certainly not be able to afford to rent another rent controlled flat in that same block. I think his rent's £500/month for a 1 bed with heating and water included.

I guess it stops the LLs remortgaging, pocketing the equity and then putting up the rent to cover the new mortgage.

It also traps you're friend in the flat , reduces labour mobility and ties the landlord into holding a property until your friend leaves so true market value can be achieved,

Linton

PasturesNew wrote: »

My friend has a flat in NY. He is rent controlled and explained to me how it works. Once you're in, the rent is set and a maximum rise/year is set out .... so once in you should always be able to afford to stay in that flat. He said that new incomers now would have to pay double what he pays. So each is rent controlled, based on the initial entry poit - he'd certainly not be able to afford to rent another rent controlled flat in that same block. I think his rent's £500/month for a 1 bed with heating and water included.

I guess it stops the LLs remortgaging, pocketing the equity and then putting up the rent to cover the new mortgage.

Presumably a landlord wanting a rent increase could just suggest, in a friendly way of course, that the existing tenant moves elsewhere.

JasonLVC

Rent controls are common place across Europe, Germany, Netherlands, Sweden and Switzerland all have forms of rent control.

In Geneva (Swiss), landlord must demonstrate his increased costs to justify an uplift in rent, tenants can challenge in Courts if not satisfied with reason for increase. In Sweden I think the rents are set by the local council.

The UK is big on home ownership whilst Europeans tend to prefer the rental model so it makes sense that Eurpe would have some form of control in place......but has the UK fallen out of love with ownership? If so, then if the rental market here continues to grow maybe we do need controls?

HappyMJ

We already have rent control it's called supply and demand. Charge too high a rent and the tenant refuses the rent increase hands in tenancy termination notice and moves somewhere cheaper and the property is vacant. If there is nowhere cheaper then the rent is set at a fair value and the tenant will stay or the property will be re-let quickly.

coastline

There won't be any major shift in the housing situation as its all linked to worldwide economic recovery...
Nearly three years in and thirteen years watching from the sidelines suggests the government are only tinkering with planning and start up building schemes.
The housing shortage was hightlighted a decade ago and nothing was done then...apart from say 2m homes were needed at some point in the future.
Trouble with renting is it doesn't take into account affordability whereas buying does when you apply for a mortgage...
Some people will be paying half of their monthly income and maybe more to rent...this situation could go on for decades.

http://www.guardian.co.uk/money/2012/sep/12/rental-market-london-south-east-overheating

BTL up from 275,000 to 1.4m in 10 years..

http://www.thisismoney.co.uk/money/pensions/article-2233371/Four-landlords-live-rent-pension.html

GeorgeHowell

Be interesting to know why in the UK most people think that renting is throwing money away compared with buying. Whereas on the continent apparently most don't think that. Is it because controls keep rents down in those countries ? The perception here is that controls would just squeeze down the availability of rented domestic accommodation. Perhaps on the continent renting out is generally less hassle for landlords so more are willing to do it for less ? Landlords here will tell stories of the hassles with some tenants : failure to pay rent or late payment, not looking after property well or keeping it clean, pestering them at inconvenient times about fixing minor and non-urgent issues, taking in lodgers or sub-letting without agreement, and sometimes disappearing leaving more owed in rent than the deposit covers. Obviously not all tenants are trouble, but maybe because renting is more established on the continent being a good tenant is more of a social norm ?

IveSeenTheLight

coastline wrote: »

BTL up from 275,000 to 1.4m in 10 years..

How much RTB social housing has bee sold off?

N1AK

Rent Controls (at least stabilisation) seem to be a good thing to me. Even if the limit on increases was simply inflation+1% or something similar rents could be increased considerably over time but it would make living in rented accommodation more stable.

I'd even accept a model that said rents could be increased ~4% each full year as normal however larger rises would need more notice (perhaps 2 complete years).