A local authority is considering the introduction of rent controls. If successful, other councils could use the policy as a template.
The plan is to offer private landlords financial incentives in the form of loans for capital repairs, if they agree to cap rent rises in line with inflation.
Labour-led Camden Council in London has called in the London School of Economics for a feasibility report, likely to be available this autumn.
The council says it wants to stabilise rent rises. The LSE report will also look at how landlords can be encouraged to offer longer lets.
Both rent controls and longer lets are in line with official Labour party policy.
Julian Fulbrook, Camden’s cabinet member for housing, said: “We have to think hard about carrots as well as sticks.”
Camden’s proposed policy is being followed with interest by other local authorities in London and elsewhere.
Comments (2)
In my little world (a long way from Camden) investment landlords in the PRS need yield in order for their business model to work……..yield relates to property value so am I missing something here? The council are proposing to increase the loan to value on a property whilst reducing the yield…..hmmmmm I think I would struggle to sell this idea to my clients.
East Lincs was giving landlords 5 year interest free loans to bring the properties up to scratch as long as you then rented to their tenants 3 years ago. Camden is hardly setting the heather on fire.