Green Party backs rent controls to stop landlord price hikes
Green Party leader Zack Polanski has proposed a three-year rent cap to protect tenants from 'runaway rents.'
Green Party leader Zack Polanski has called for a three-year “emergency brake” on private rents to cap increases.
Speaking at his party’s conference in Brighton, Polanski says the move would put an end to the “fear and uncertainty” plaguing renters and tackle the runaway rents which have outstripped wages across the country.
For too long, landlords have been able to hike prices way beyond wages.”
The brake would prevent rents rising above inflation, wage growth or 2% – whichever is lowest.
It forms part of what the Green Party describes as its fair rents guarantee.
Polanski says the brake would allow wages to begin catching up with runaway rents.
Emergency brake
He says: “For too long, landlords have been able to hike prices way beyond wages. Leaving renters forced to meet the cost to keep a roof over their heads, cutting back and back and back on everything else.
“That’s why I’m calling for a three year emergency brake on private rents. No rent rises above the consumer prices index, wage growth or 2% – whichever is lower. No sudden hikes. No evictions under the guise of rent rises. No more fear and uncertainty.
“That emergency brake would give renters vital breathing space. Let wages begin to catch up with the rents that have outstripped them for too long. Gove government time to develop a national fair rents guarantee – to keep rents fair and affordable for everyone, for ever.”
“If policymakers want to make renting more affordable in the long term, the priority must be increasing housing supply and creating the conditions for responsible investment in the private rented sector.
“Propertymark has consistently warned against rent controls because they can have unintended consequences. In Scotland, our members have reported rent increases between tenancies, stalled investment and landlords leaving the market following temporary rent caps.
“Evidence from rent-control schemes internationally also suggests they can reduce investment and the supply of rental homes.
“Any policy to support tenants must therefore consider both the immediate impact on renters and the longer-term need to maintain and increase the supply of homes in an already constrained market.”
The cost of money has gone up over 3% over the last five years. This increases a £250k mortgage by £7500 a year or increases the return on £250k savings by £7500. Add government interference which in making rental homes safer and more efficient than most owner occupied ones, has added costs. Also add multiple registration schemes at landlords cost. Make referencing a landlord cost. Make higher earners pay tax on money they didn’t get. Get ready to add up to 10% income tax to rental income (+2% rate on 20%).
Now add a politician who will say or do anything to hang on to the coat-tails of power, perhaps enabling him to personally leave his council tax defunded house boat and rent in the most expensive part of the UK.
Yet another politician that doesn’t understand basic economics. Add costs to landlords, compliance, tax etc and they get at least partially passed on as rent increases. Make it difficult for landlords so some sell up. Less supply so rents go up. Build more of the types of homes required. Not the swathes of 4 and 5 bed houses that give builders the best returns and spring up in soulless developments along the motorway arteries of our cities.