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fru-gal

London Mayoral Hopeful Diane Abbott Proposes 50% Levy On Rents Above Local Caps

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http://www.standard.co.uk/news/mayor/mayoral-hopeful-abbott-proposes-50-levy-on-rents-above-local-caps-9912718.html

http://www.insidehousing.co.uk/tenancies/diane-abbott-pledges-rent-controls-in-mayoral-bid/7007307.article

From the Inside Housing article;

A London mayoral hopeful has pledged to cap private rents in the capital and levy cash from private landlords to build more social housing.

DIANE_ABBOT_250.jpg

In a joint statement with campaigning group Generation Rent, Diane Abbott, the current MP for Hackney, said ‘for too long politicians have rejected any form of rent controls’.

Her proposals would see private monthly rents capped at 50 per cent of the local annual council tax bill, which would equate to around £390 a month on a typical Band A London bedsit.

Landlords could opt out by paying a surcharge on the rent charged above the cap, with the money raised being used to build new social housing.

Ms Abbott is currently the Labour MP for Hackney North and Stoke Newington, and announced her intention to run in the 2016 mayoral election last month.

She said: ‘A major international city without measures to stabilise rent runs the risk of rents spiralling out of people’s reach. It is no coincidence that New York, Paris and Berlin all have some version of rent control.’

The London mayor does not currently hold the powers needed to implement the rent controls, but Ms Abbott has called for greater devolution so that her proposals could be put in place if she were to be elected.

In May, Ed Miliband also pledged to introduce private sector rent controls if Labour wins the 2015 general election. However, these would only limit increases in rent, using benchmarks such as average market rents.

This comes as Shelter has called for a three-pronged approach to provide ‘stable’ private rented sector.

Edited by fru-gal

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That won't drive landlords out of London or reduce repairsn and upkeep will it? No no.

All the landlords I've had don't maintain their properties now anyway so what difference would it make. And if landlords can't make the profit they like anymore then they will sell, leaving more homes for FTB's. Houses won't just disappear, ignore the scare stories about rent controls.

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The real scare story about rent controls is what happened last time. That is to say, the biggest of all housing disasters in the UK of 1945-2014.

The last time there were proper rent controls was a completely different market/era to what it is now. Some form of rent controls are desperately needed in London.

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If the alternative is Boris.

I'm a free market capitalist. But if the choice is between corporatism (Boris) or socialism (Diane), then id choose socialism everytime. It may be rigged, but at least I get a few crumbs my way.

Sure, Diane Abbott hates me because i'm white. Johnson thinks im scum because i'm poor and has devoted his life to rigging the economy to keep me that way. So on a personal level, either im indifferent to.

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am loathed to give her any praise but she's one of the few mps who has openly talked about a house price bubble and that it needs popping. She's bonkers but tbh i prefer her to the other Labour hopefuls; champagne socialist 'aristocrats' Tessa Jowell & Margaret Hodge (nee Oppenheim,Zionist shill and child abuse apologist), or Labour machine robots David Lammy or Sadiq Khan.There's no way she'll be the official Labour candidate.

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The last time there were proper rent controls was a completely different market/era to what it is now. Some form of rent controls are desperately needed in London.

Couldn;t disagree more.

#bringbackcapitalism #letmktsetrates #stopinterfering #banHTB

THOSE will sort out rents and prices. Not your interventions.

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Couldn;t disagree more.

#bringbackcapitalism #letmktsetrates #stopinterfering #banHTB

THOSE will sort out rents and prices. Not your interventions.

None of your suggestions will ever happen, so the least worst (rent controls) is preferential in my opinion.

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Guest Jemmy Button

With a policy like that, she would certainly get my vote. Anything which irks those Fagin-like London tossbag Slumlords is fine by me...

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Sure, Diane Abbott hates me because i'm white. Johnson thinks im scum because i'm poor and has devoted his life to rigging the economy to keep me that way. So on a personal level, either im indifferent to.

LibLabCon are brought together by their contempt of the pleb.

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With jail for those leaving properties empty being the cherry on top? Then there's the Mansion tax etc.

At any rate watching how it all turns out should be a bit of laugh.

It'll all be reneged on of course.

The LibLabCon does have a lot to answer for.

Edited by billybong

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ftbs will not buy in those conditions

loans will not be available

So you're saying BTL landlords won't sell and they won't rent either?

Nonsense.

They'll either sell (and be forced to accept what a market not driven by BTL will pay) or they'll continue to rent and suffer the levy.

There is no such thing as a free market in housing and land in the UK and there hasn't been for several thousand years tbh.

I hate Abbott (and she probably hates me) but she's one of few MPs who seem to "get" there's a housing crisis and radical measures are now needed.

I'd vote for a sh1t in a hat rather than Boris though, so she only needs to be marginally better than that.

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I'm saying people buy when there are loans available. And they don't buy when loans are scarce.

L/Ls won't upkeep if their incomes are artificially held down. As happened/s everywhere with rent caps.

Result crap housing.

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I dislike Abbott too but she is the only one offering a radical solution and to not follow the predictable, insipid, don't rock the boat policies of everyone else (so far). If she opens the doors for the possibility of proper rent controls and it is obviously popular then hopefully other mayoral candidates will follow suit and see that they can't afford to not offer something real and concrete to renters.

Besides, it is not just her. David Lammy has spoken about rent controls as was Ken Livingstone during the last electoral campaign. None of these people would be offering it if it wasn't popular or needed. Of course tptb and landlords/the rich will smear it and say it won't work but of course they would say that as it would ruin their decades long party and they have the media in their pockets to churn out scare stories in much the same way as the mansion tax has about "poor" grannies living in multi-million pound homes that will have to pay a bit more every year, a policy that very few people apart from those with vested interests (the rich, landlords) see as unjust.

Edited by fru-gal

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I'm saying people buy when there are loans available. And they don't buy when loans are scarce.

L/Ls won't upkeep if their incomes are artificially held down. As happened/s everywhere with rent caps.

Result crap housing.

Landlords don't do upkeep now in my experience, they have no incentive to as they know they can get some other desperate ******er to live in squalor if their current tenant doesn't want to. I live in a very middle class area, my landlord is a millionaire. He won't spend a penny on the property. We have so many problems in our place, many of which we have had to fix ourselves, at our own cost or he has done extremely cheaply. He hasn't even had the yearly gas inspection done, we have had to tell him it is over six months late and a legal requirement. I can't imagine what it must be like for people who are poorer than us. And don't forget revenge evictions are still legal so landlords have all the aces.

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None of your suggestions will ever happen, so the least worst (rent controls) is preferential in my opinion.

Maybe but I campaign for them. I will never campaign for Marxism and interventionism

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Maybe but I campaign for them. I will never campaign for Marxism and interventionism

But we live in the real world where politics in our lifetime will always be interventionist. In that context it's positive if someone is a) identifying the importance of the problem and B) proposing a break with the status quo.

Edited by thecrashingisles

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Maybe but I campaign for them. I will never campaign for Marxism and interventionism

I have similar ideals to you. Rent controls aren't the solution or the problem, the issue is why are they even considered necessary.

If nearly everyone on this forum accepts favouritist and interventionist forces determine land and house prices, how can we then conclude today that rent controls are bad - on a market clearing or mismatch basis? Marking a measure against particular not free market policies, whether that's in terms of finance and credit, regulatory skew, tax differences etc doesn't add up. Any theory has to take account of reality; one can't advocate that rents are equal to the marginal cost of supply unless there's evidence of that.

A lot of literature on rent controls talks in terms of economic assumptions. Like they would reduce the appeal of private sector letting, driving down building and investment. But as far as I can tell in this country, the bulk of private sector letting consists of BTL buying up pre-existing property or selling it between themselves. Not building or improving them.

So it looks a lot like we have a national reverse rent-control policy. Does that make the opposite good. Not automatically either but the problem with rent controls, like most things, is the means of State application. Not necessarily the concept.

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