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Milliband promises rent controls
Comments
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I think it will work too well. It really will knee cap landlords to offer a market tempting rent and then keep that locked down for three years. It may cause a slow rental market but will keep rents down.
Which in turn will keep house prices from booming too much, maybe bring on a bit of a crash. Won't be too good for the economy but will help skint renters.
If it is effective at keeping rents down then the most probably impact on renters is that there supply will drop more than the demand.
i.e. houses that are sold to owner occupiers will in general have fewer people living in them than rented properties; so while demand will drop a bit the supply will drop more.
There will be little incentive for new landlords to enter the market once it becomes a political football with the ever present threat of more regulation.
In practice, of course this will lead to 'premiums' for available properties and an unofficial letting market.
Total economic illiteracy.0 -
If it is effective at keeping rents down then the most probably impact on renters is that there supply will drop more than the demand.
i.e. houses that are sold to owner occupiers will in general have fewer people living in them than rented properties; so while demand will drop a bit the supply will drop more.
There will be little incentive for new landlords to enter the market once it becomes a political football with the ever present threat of more regulation.
In practice, of course this will lead to 'premiums' for available properties and an unofficial letting market.
Total economic illiteracy.
The problem is for many renters in the South East, the current system isn't working. Rent control with social housing seems to be the only solution, the market failed to deliver. Having normal workers in our capital paying half their money in rent is far from ideal.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
If it is effective at keeping rents down then the most probably impact on renters is that there supply will drop more than the demand.
i.e. houses that are sold to owner occupiers will in general have fewer people living in them than rented properties; so while demand will drop a bit the supply will drop more.
Not if done together with much more social housing being built.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
The problem is for many renters in the South East, the current system isn't working. Rent control with social housing seems to be the only solution, the market failed to deliver. Having normal workers in our capital paying half their money in rent is far from ideal.
the answer is more house building and smaller increase in population.
rent caps will make it worse for the very people you want to help.
whilst spending half one's income on rent may not be ideal, having nowhere to live at all is somewhat worse: fewer rentals is the inevitable result of rent caps.
if social housing increases supply then it will partially be welcome as it can always to sold off later.0 -
the answer is more house building and smaller increase in population.
rent caps will make it worse for the very people you want to help.
whilst spending half one's income on rent may not be ideal, having nowhere to live at all is somewhat worse: fewer rentals is the inevitable result of rent caps.
if social housing increases supply then it will partially be welcome as it can always to sold off later.
It's not exactly a rent cap in the true sense.0 -
the details are unclear but
what is a 'true sense'?
The details are fairly clear rent set at beginning of 3 year contract the rises limited to CPI until end of contract, a true cap would be to set an amount that rents couldn't go above. To be honest I don't think it will make much difference.0 -
The details are fairly clear rent set at beginning of 3 year contract the rises limited to CPI until end of contract, a true cap would be to set an amount that rents couldn't go above. To be honest I don't think it will make much difference.
The details, such as they are, are to be found here - http://www.labour.org.uk/issues/detail/renting
The plan is to;
- change the law to make three-year tenancies the norm
- place on upper ceiling on rent increases during said three-year tenancy
On that basis, I am also inclined to believe that it will not make that much difference.0 -
The details are fairly clear rent set at beginning of 3 year contract the rises limited to CPI until end of contract, a true cap would be to set an amount that rents couldn't go above. To be honest I don't think it will make much difference.
if the rent at the beginning of the three year period is set without state interference, then is seems purely cosmetic except that I would expect every 'standard' contract would include the CPI yearly increase0 -
Rent controls did just the job in Germany, affordable housing for everyone.
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