Labour commits to introducing rent controls

Labour commits to introducing rent controls

14:41 PM, 27th September 2017, About 7 years ago 71

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In Jeremy Corbyn’s speech at the Labour party conference today in Brighton he committed the party to introducing rent controls if they got into power.

In his speech Corbyn said:”We will control rents, when the young generation’s housing costs are three times more than that of their grandparents. That is unsustainable.”

“Homes should be for the many not speculative investments for a few.”

“Rent controls exist in many cities across the world and I want our cities to have those powers too and tenants to have those protections”

No further details of how rent controls would work precisely were given in the speech. However, Andrew Gwynne, Labour’s general election co-ordinator, later said “if New York has them then London can have them.”

Gwynne indicated that rents have soared under an unregulated rental market and action is needed to bring the costs down which will be fleshed out in a Green Paper in due course.

On the availability of housing in general Corbyn went on to say: “We also need to tax undeveloped land held by developers and have the power to compulsorily purchase.

“When councils come forward with proposals for regeneration, we will put down two markers based on one simple principle – regeneration under a Labour government will be for the benefit of the local people, not private developers, not property speculators.

“First, people who live on an estate that’s redeveloped must get a home on the same site and the same terms as before. No social cleansing, no jacking up rents, no exorbitant ground rents. And second, councils will have to win a ballot of existing tenants and leaseholders before any redevelopment scheme can take place. Real regeneration, yes, but for the many not the few.”

Editors Note:

ONS Chart below provided by Property118 member

 


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Gromit

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10:34 AM, 28th September 2017, About 7 years ago

Reply to the comment left by NW Landlord at 28/09/2017 - 09:57 Sadly I think you may be right.
The old adage "Oppositions do not win elections, Governments lose them" comes to mind.
This Government seems hell-bent on losing the next election by scr***ng its core voters.

Monty Bodkin

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10:40 AM, 28th September 2017, About 7 years ago

Reply to the comment left by Redouane Houmrani at 27/09/2017 - 19:02
"the build to rent is taken the lead more flats are build like never before ."

Before getting too excited about the corporate sector being the saviour of UK housing, check out the stats of how many units are actually being built over the next 5 years. As a proportion of the rental sector, it is tiny.

Speaking of tiny, also check out the size of some of the units being built- around 15 sqM. Compare that to a small 50sqM flat in the private rental sector that can be rented for less.

The only way corporate landlords can compete with private landlords is with a massively tilted playing field of tax breaks and bungs in their favour and punitive taxes on private landlords.

Mark Alexander - Founder of Property118

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10:43 AM, 28th September 2017, About 7 years ago

Reply to the comment left by NW Landlord at 28/09/2017 - 10:08
At some point I will be writing an article about EPUT's, but whether it will be a positive or a negative article will obviously depend on my further research.

Richard U

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12:10 PM, 28th September 2017, About 7 years ago

From a social perspective I wouldn't mind a rent increase caps for existing tenants. But I can't help but think that solution to what is genuinely a problem is to work with finance to encourage longer tenancies. I fear rent caps, will just lead to people being trapped - motivated by a cheaper rent than few new properties on the market. Surely it would be better to let people decide whether they want a long or short tenancy with rates set for an agreed term?

Mark Alexander - Founder of Property118

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12:19 PM, 28th September 2017, About 7 years ago

Why would tenants want to commit to longer tenancies? Surely one of the main attractions of renting is flexibility without ties? Do you know what the average tenancy length is in the UK and what percentage of tenancies are ended by landlords? I do, and I think you would be shocked. Don't fall for propaganda

Monty Bodkin

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12:32 PM, 28th September 2017, About 7 years ago

Reply to the comment left by Mark Alexander at 28/09/2017 - 12:19Good points Mark.
English Housing Survey here;
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/627686/Private_rented_sector_report_2015-16.pdf
"Most private renters move because they want to but one in ten was asked to leave by their landlord."
And the vast majority of those were asked to leave for very good reason.

Mandy Thomson

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13:44 PM, 28th September 2017, About 7 years ago

Decent food is a right for everyone, whatever their income, whatever their background. Food should be sustenance for the many, not speculative investments for a few.
And we could substitute clothes, healthcare, transport etc. And no, healthcare under the NHS isn't free, it comes from taxes, but I have seen many patients, my own father included, pay dearly in suffering for a cash straitened NHS reliant on tax payer's money and no other investment.
Anyway, back to the main point, all property is theft, isn't it?

Richard U

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14:14 PM, 28th September 2017, About 7 years ago

Reply to the comment left by Mark Alexander at 28/09/2017 - 12:19
Hi Mark, that' a fair question. Personally I did want to when I rented, and as a landlord, I would welcome the option. If anyone knows the answer to this question please share...

Mark Alexander - Founder of Property118

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14:57 PM, 28th September 2017, About 7 years ago

Reply to the comment left by Richard U at 28/09/2017 - 14:14
I came up with the solution years ago Richard. It was discussed in Parliament and Shelter even acknowledged it works. However, they also had their own ideas, debates moved on to other things and it was all forgotten. I do all I can to keep reminding them that a Deed of Assurance is far better for all parties than a longer tenancy term but it always seems to fall on deaf ears.

Anyhow, the link below explains the solution ...

https://www.property118.com/deed-of-assurance-document-template-download/

There was also quite a long discussion thread on this very subject which you can read via the link below ...

https://www.property118.com/the-private-rented-sector-evolution-deed-of-assurance/

Mandy Thomson

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15:26 PM, 28th September 2017, About 7 years ago

Reply to the comment left by Dr Rosalind Beck at 28/09/2017 - 08:49
Unfortunately, Mr Corbyn's extremist ideas don't just end with the economy: Jeremy Corbyn heckled for skipping Israeli event at Labour conference. If you haven't time to read the story, he declined an invitation to an event with the Friends of Israel (Emily Thornberry announced he was "not attending any of these receptions") as he was supposed to be working on his keynote speech. However, later that evening he was photographed at a party given by the Mirror....

A few people have compared Corbyn to Trump. Although they're on different poles of the political spectrum, they are both reckless extremists with unpalatable ideas. Also, are the extreme right and the extreme left wings really that far apart in their ideologies?

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