Landlord News

Rent Controls Would Spell Disaster for Tenants, Warns RLA

Em Morley - August 8, 2016
Rent Controls Would Spell Disaster for Tenants, Warns RLA

Rent Controls Would Spell Disaster for Tenants, Warns RLA

Jeremy Corbyn’s plans to introduce rent controls and secure tenancies in the private rental sector would spell disaster for tenants, warns the Residential Landlords Association (RLA).

The Labour leader has vowed to implement rent controls and secure tenancies if he is elected Prime Minister at the next general election. However, the RLA has spoken out against Corbyn’s plans, saying that they would deter many landlords from investing in the buy-to-let sector, which would reduce the supply of homes to let.

Last week, Corbyn announced ten pledges in his bid to become the prime minister, but the RLA believes his plans would worsen the UK’s housing crisis.

The Chairman of the RLA, Alan Ward, explains: “Jeremy Corbyn’s call for rent controls would be a disaster for tenants. He is ignoring all history and experience, which shows that where such controls are applied, they choke off the supply of homes to rent, making it more difficult for tenants to access decent and affordable housing. This has previously been acknowledged by Labour’s former minister responsible for housing in Wales.

“Rather than playing the populist tune, Mr. Corbyn would do well to consider the facts. Figures in the English Housing Survey show that private sector tenants are spending an average of four years in their current property, up from 3.7 five years ago. Such tenants are also more satisfied with their accommodation than those in the social rented sector, according to the same survey.”

The RLA has long opposed the introduction of rent controls, insisting that the Government should address the issue of housing supply by encouraging greater levels of housebuilding in order to stabilise rents in the long-term, rather than penalising landlords.

The RLA’s objection to Corbyn’s plans arrives as the Society of Licensed Conveyancers calls for the Government to scrap Stamp Duty.

The group believes that abolishing Stamp Duty, particularly the 3% surcharge for landlords, would create a more “buoyant and vibrant” property market.

Do you agree with these recent calls?