Milliband promises rent controls

chewmylegoff

On the 10pm news at the moment. Labour will prevent private rents from rising faster than inflation. Except they won't as the policy is that you can agree a market rent at the start of the tenancy and then only up it by inflation (didn't say which measure) each year.

Did say that extra security of tenure would be introduced as well but no specifics.

This is the only link I can find:

http://www.belfasttelegraph.co.uk/news/uk/miliband-plans-to-cap-rent-rises-31171500.html

Appears extra security of tenure has already been announced. Labour will also ban fees to tenants.

Sounds like landlords will just be jacking the rent up massively at the start of each new contract...

HAMISH_MCTAVISH

chewmylegoff wrote: »

Sounds like landlords will just be jacking the rent up massively at the start of each new contract...

As already happened in Scotland when the SNP started enforcing the no-fees clause in Scottish law.

ukcarper

I've heard that before 3 year tenacies price increase no more than inflation for duration of contract, sounds reasonable to me.

cells

HAMISH_MCTAVISH wrote: »

As already happened in Scotland when the SNP started enforcing the no-fees clause in Scottish law.

Im skeptical that that is true. Also if rents did go up marginally (say 1% ) thats not bad considering they may have saved 5% of the annual rent on not having to pay often unjust fees.

Southend1

It's CPI. And the guardian reports that landlords will be required to disclose the previous tenant's rent to prospective tenants before agreeing to a new tenancy, to avoid rent being jacked up at each change of tenant.

cells

Southend1 wrote: »

It's CPI. And the guardian reports that landlords will be required to disclose the previous tenant's rent to prospective tenants before agreeing to a new tenancy, to avoid rent being jacked up at each change of tenant.

How does that avoid an increase between tenants?

Southend1

cells wrote: »

How does that avoid an increase between tenants?

I guess the theory is that if the previous tenant was renting at £600 a month then prospective tenants would not accept a rent of £900. Whether this would work in practise....

cells

Better to cap rents at £800pm in London and £600pm elsewhere

15 million renters would surely vote for that

CLAPTON

Interesting that the start of the tenancy can be the market rent; the prospective tenant will be entitled to know what the previous tenant paid.
They will then be in a better position to explain why they should pay less than the market rent : I wonder what argument they would use.

Maybe Ed will apply this to house sales as well;
Before you can sell at the market rate, you have to tell the buyer what you paid so the buyers are in a better position to explain why you should sell below market price.

Got to be a winner : I will email Ed asap with the idea.

cells

Southend1 wrote: »

I guess the theory is that if the previous tenant was renting at £600 a month then prospective tenants would not accept a rent of £900. Whether this would work in practise....

Thats plain stupid

If there are no homes for rent below £1000pm now, and you went to view a house advertised at £1000pm what would it matter if the last tenant was paying £500pm?

Your choice is not £1000pm or £500pm
Yoir choice is to take that for £1000 or take another for £1000

cells

CLAPTON wrote: »

Interesting that the start of the tenancy can be the market rent; the prospective tenant will be entitled to know what the previous tenant paid.
They will then be in a better position to explain why they should pay less than the market rent : I wonder what argument they would use.

Maybe Ed will apply this to house sales as well;
Before you can sell at the market rate, you have to tell the buyer what you paid so the buyers are in a better position to explain why you should sell below market price.

Got to be a winner : I will email Ed asap with the idea.

How does knowing the last paid price put you in a better position