Minister says Conservative Government will ‘never allow rent controls in England’:-
Introduction
The cost-of-living crisis currently snowballing throughout the UK will be affecting everyone in different ways, including both landlords and tenants. Rent controls are rules set by the government to restrict the amount of rent a landlord can charge their tenant and are currently being discussed across the four nations of the UK in an attempt to curb the impact of the cost-of-living crisis.
Current position in the UK
The new housing minister Felicity Buchan has assured landlords during the annual NRLA conference that her government will never bring in rental controls. This essentially means that this government will never limit the amount of rent that private landlords can charge their tenants, leaving it up to landlords to decide whether to increase their rents alongside rising bills. This is only relevant for the private rented sector, as of course Hunt’s autumn budget, released just one day after Buchan’s speech, introduced a 7% cap on rent increases for the social housing sector.
Buchan’s snub of rent controls came as a direct response to London Mayor Sadiq Khan’s request for a two-year rent freeze for the private sector in the capital, as the average advertised London rent soars to over £2,300 per month.
Further, Scotland have taken a contrasting approach with First Minister Nicola Sturgeon recently announcing a rent freeze for public and private properties in a direct response to the cost-of-living crisis.
Advantages and disadvantages of rent controls
Buchan’s reasons for ignoring a plea for rent controls is that it would lead to ‘disinvestment in the sector, which is not good for anyone’, thus highlighting the important balance between creating an affordable private rental sector and ensuring there is not a shortage of homes, which could be caused if landlords decide to sell their investment properties rather than continue to rent them out.
In brief, the potential benefits of rent controls are that they help to ensure housing remains affordable for tenants and allows them to plan for the future in a more secure manner. It may also mean that tenants remain in their properties for longer, as they can afford to do so, and decreases potential rent arrears and potentially the subsequent evictions.
However, as set out by our government earlier in the week, introducing rent controls in England may lead to landlords selling their rental properties, and subsequently disinvestment in the market. This could potentially create a housing shortage in the private rental sector, an issue which is already in a delicate state.
How WLS can help
At Woodstock Legal Services we encourage landlords to communicate with their tenants and find a solution that is agreeable to both parties. This involves getting to know your tenants so you can discuss possible solutions that are tailored to them individually; for example discussing ways to make the property more fuel efficient so tenants save on their energy bills, thus making any necessary rent increase more affordable.
Should you need any assistance in coming to an amicable resolution with your tenants, please do not hesitate to contact the friendly team at Woodstock. We pride ourselves on taking an alternative approach to other landlord and tenant specialists, which lead to Woodstock being awarded the best Legal Services Provider at the National Landlord Investment Awards 2022.
