Big thumbs up from letting agents following Government’s rejection of rent controls

Property industry leaders have praised the Government for its latest refusal to introduce rent controls in England.

This follows housing secretary Michael Gove’s most recent outburst during which he rejected the arguments for rent controls.

Backdoor eviction

“Rents in the private rented sector should be agreed between landlords and tenants, and it is not for government to intervene in this,” he said in a letter to the housing select committee of MPs.

“We are clear that landlords must be able to raise rents in line with market prices, but that rent increases which are significantly above this should not be used as a means of backdoor eviction.”

Ramped up

Pressure on the Government to act on rents has been ramped up as prices have spiralled in many parts of the country, especially London.

Gove stated in his letter that he rejected a call for Valuation Office Agency data to be made public, so some type of assessment could be made on what constitutes a ‘justified rent increase’.

Shrink

Propertymark says rent controls discourage investment and are not an effective way of regulating rent levels. They are more likely to cause the private rented sector to shrink, and will not benefit vulnerable tenants, it says.

It is vital that landlords are not deterred from the market.”

Timothy Douglas, head of policy and campaigns at Propertymark, says: “Propertymark sees no advantages in restricting rent increases or introducing any rent stabilisation measures.

“It is vital that landlords are not deterred from the market and have finances to invest and improve property standards,” he says.

“Increasing the supply of properties, rather than capping rents will ensure rents fall and agents and their landlords stay in the market.”

In Scotland, a rent cap was introduced in April, but many landlords are increasing rents between tenancies to avoid it, Propertymark has said.

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