Milliband promises rent controls

CLAPTON

cells wrote: »

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

no idea, but I thought Ed would be able to explain it better than I.

cells

Just put a cap on rents much easier much more effective.
£800 max per month London
£600 max elsewhere
Empty homes levy of £600pm too

very quickly the rental sector would shrink from its ~20% of the housing market to ~10%. Three million renters would become owners fairly rapidly

Gangaweed

Typical ignorant politicians idea.

Just get enough houses built and the problem will sort itself out.

CLAPTON

cells wrote: »

Just put a cap on rents much easier much more effective.
£800 max per month London
£600 max elsewhere
Empty homes levy of £600pm too

very quickly the rental sector would shrink from its ~20% of the housing market to ~10%. Three million renters would become owners fairly rapidly

It's probably true that if one makes letting less attractive some landlords will sell and so there will be an increase in owner occupation.

However, most owner occupiers tend to have lower number of people per property than renters (most owners don't go in for multiple occupancies whilst rental businesses do).

That would mean people without anywhere to live at all and not market forces to find a solution.
Presumably one would expect the state to step in and stop the people sleeping on the street.

Ronaldo_Mconaldo

CLAPTON wrote: »

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.

.

You can find all of that information out on Zoopla in about 2 minutes.

chewmylegoff

Ronaldo_Mconaldo wrote: »

You can find all of that information out on Zoopla in about 2 minutes.

I think that was his point... Being able to find out what the last sale price was hasn't exactly put the brakes on HPI.

wymondham

This is wrong. Landlords should be free to set whatever rent they want as its their business - it should be driven by the free market. The idea of capping is presumably to combat the fact we don't have enough social housing and house prices are too high so people cant go down that route? People often seem trapped in rented because they don't have other options..... so maybe address this problem?


Sounds a bit sticky plaster to me.

Generali

cells wrote: »

Just put a cap on rents much easier much more effective.
£800 max per month London
£600 max elsewhere
Empty homes levy of £600pm too

very quickly the rental sector would shrink from its ~20% of the housing market to ~10%. Three million renters would become owners fairly rapidly

When rent caps were removed effectively via the AST, the quality of rental properties went up markedly. If they are reinstated then by far the most likely outcome is quality goes back down.

lawriejones1

It actually makes reasonable sense. The expectation must be that interest rates will go up at some point, and - whilst professional landlords make provision for this - your amateur will attempt to pass this straight on to the tenant. I've seen it happen and it's not pretty.

I personally would introduce a 3 month notice period, where landlords need to give 3 months to the tenant if they intend to raise the rent. If they can't agree, tenant can walk away with no penalties.

Landlord can then market the property at what he/she defines as a fair rent. In-tenancy rises (subject to 3 months notice period) should be pegged to inflation.

Generali

lawriejones1 wrote: »

It actually makes reasonable sense. The expectation must be that interest rates will go up at some point, and - whilst professional landlords make provision for this - your amateur will attempt to pass this straight on to the tenant. I've seen it happen and it's not pretty.

I personally would introduce a 3 month notice period, where landlords need to give 3 months to the tenant if they intend to raise the rent. If they can't agree, tenant can walk away with no penalties.

Landlord can then market the property at what he/she defines as a fair rent. In-tenancy rises (subject to 3 months notice period) should be pegged to inflation.

You can't have rent controls without security of tenure.