Local councils will be given the power to limit “skyrocketing” rent increases in the private sector if Labour came to power.
Shadow chancellor John McDonnell said at Labour’s economic conference at the weekend that help was needed for people “at the mercy of an unforgiving, unrestrained housing market and landlords”.
Rent rises would be pegged to inflation, and the “local rent regulation” would be set locally, not nationally.
Meanwhile the new Labour mayor of London, Sadiq Khan, told the BBC that he does not favour rent controls in the capital.
However, in his bid to become Mayor, a manifesto commitment was to create a new form of affordable housing with rent based on a third of average local income.
Meanwhile in Wales, the Welsh Assembly has announced a new rent-to-own model, whereby monthly rental payments accrue the tenant a percentage stake in the property, owning it outright after 30 years.
In Manchester there could also be a rent-to-own housing model if Labour’s Andy Burnham succeeds in his bid to become mayor.
He would use a £300m pot of devolved cash to compulsorily buy up run-down housing which would be let out under a rent-to-own scheme.
Launching his campaign, Burnham said there were too many irresponsible landlords from outside the region “raking in money” from badly maintained privately rented homes.
Comments (4)
I didn’t realise that the “raving looney party” were in coalition with labour or are they the same people. What happens when interest rates rise?
Being disillusioned with the tory govt despite having voted for them, is it too hard to have a govt that wont bash and war against private landlords? If there is one then I would vote for them.
Rent controls are artificial and not what a free market requires. It would not help anything. It would stifle and restrict properties. Build more houses to dilute house prices & reduce the demand down for houses selective immigration like Australia and USA
Allowing a tenant to rent but also ” buy” into the property that a private landlord owns !! omg serious? – Come on Labour you have a chance of converting a Tory boy in me to vote for you if you had a sensible policy on private landlords. Labour appear more daft then Conservatives and thats saying something now. So a tenant rents for 5 years do they then “own” 5/30th of MY property? thats just NUTS, completely bonkers and makes me feel so sad that we have idiots that think like this ‘telling’ us and trying to get into power.
At lease we can vote out OUR idiots in Govt. We cant vote out the Idiots in the EU that will control us if we stay in.
1970’s rent control with locally set rents. Ask those who were practicing in the 1970’s and early 80’s and they will tell you that it will reduce rented property availability as landlords seek to invest elsewhere, it will reduce flexibility in labour markets as it will become increasinly difficult to find anywhere to rent. Those in the worst position, the ones it aims to help, will be worse off as the rental markets dry up and it will cause a greater housing crisis. Housing standards and repair will drop and landlords will put off maintenance due to affordability. Public and social new housing is the answer, the only answer. This communistic approach will fail.
30yrs to buy a house… Just as scary as having a mortgage. What if you want to move??!