Government will not introduce rent controls

The government’s rental reforms White Paper has ruled out introducing rent controls, amidst fears that they could be introduced to the housing market in England.

The White Paper, ‘A Fairer Private Rented Sector’ confirms the policy.

It said: “This Government does not support the introduction of rent controls to set the level of rent at the outset of a tenancy.

“Historical evidence suggests that this would discourage investment in the sector and would lead to declining property standards as a result, which would not help landlords or tenants.”

The housing minister Eddie Hughes then reiterated this point in the House of Commons.

He said: “I have to be blunt and say, ‘Under no circumstances’ – that is simply not a Conservative policy and it is not something we are going to pursue.”

Rather than rent controls the White paper proposed that landlords can only be increased once per year.

Meanwhile tenants can challenge landlords through a First-tier Tribunal if they deem a rental increase to be unreasonable.

Rent review clauses will come to an end, meaning landlords cannot pre-determine future rent increases.

These changes are motivated by government fears that some landlords will effectively evict tenants by increasing rents by an unfair amount.

Rent controls are active in Scotland, as landlords cannot increase rent in any year by more than the Consumer Price Index plus 1%.

New study finds rent controls fail landlords, tenants, and homeowners

Comments 2

  1. Don’t bet your house on it and when Boris is finally kicked out and personality bypass Labour are in rent controls will follow sure as day follows night

    For those in right areas holiday lets are way forward

  2. I don’t think that we will have to wait for labour to get in. This Government doesn’t keep promises and who is Eddie Hughes? Just a very junior minister who can soon be disposed of or overruled. If the Tories are slipping in the polls especially in an election year they will put rent control measures into their manifesto hoping to secure the votes of the 6-7 million voters living in the PRS. They won’t call it “rent control” (after all they promised not to do that) but they will draw up a scheme with a different name that amounts to the same thing. There will be no sympathy for landlords. With all the vilification we get our image must have slipped below that of Estate Agents by now! The fall out will be after the election when landlords sell up, but by then the Tories will be back in power which is all they care about.

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