Would rent controls be a “disaster” for tenants in London?
Jeremy Corbyn has been talking rent controls. He has said he will make three year tenancies the norm and keep rent rises in line with inflation. The Policy Director of the Residential Landlords’ Association, David Smith said, ”Rent controls would be a disaster for tenants. History has proved that they stifle investment and reduce supply.” The association feel this would make it difficult for people to find a decent place to live. What are renters saying on this matter? I doubt they are siding with the Residential Landlords’ Association.
What is stifling tenants?
If stifling is the word of the moment let us look at the facts. In London, the average time it takes for a first time buyer to get onto the property ladder rose to seventeen years. Seventeen years to save that deposit. A couple would need eight years to save the same 15% deposit.
Why is it taking so long to save? Imagine living with the knowledge that it could take almost two decades to have a deposit for your first property. What is a key factor in how long it takes to stockpile these funds? Cost of living is one. Rent is another. On balance, uncertainty around rent seems a lot more stifling to tenants than rent controls.
Renting into retirement
The Resolution Foundation has estimated that a third of people currently in their twenties and thirties could still be renting their homes by retirement. This is assuming that the decline in UK home ownership rates continues on it’s downward spiral.
If we are set to have a population where up to a third of all properties are owned by landlords, it surely would make sense to regulate the industry. Changes in tax laws have seen off a lot of amateur landlords. There are still plenty of investors out there however. The professional landlord is definitely making money. Correspondingly rents in the UK are set to rise 15% by 2023.
Looking for affordable properties to rent in South West London?
We believe that fairness for all is possible and rent controls don’t have to be stifling for anybody. If you have a property to let or would like to see what we currently have on our books in Nine Elms and surrounding areas, please click on the links below to get in touch with us.