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renting til I die

The Rent's Too High: 21St Century Rent Control

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Another petition by Generation Rent. It may not make a difference but it only takes 2 secs to sign so what the heck, sign it anyway!

Generation Rent
http://www.generationrent.org/

Here's the full petition:

The rent's too high: 21st century rent control

We, the undersigned, call on Parliament to implement a system of rent controls that provides respite to tenants who in many cases are paying extortionate portions of their incomes on rents. We urge Parliament to recognise renters are near breaking point and to take action on this speedily.


Sign here: http://www.generationrent.org/rentcontrol?recruiter_id=10974

And while you are at it, write to all of your possible MP's about renting in your area as well!

There are two weeks left until polling day and the parties have set out their stalls on housing policy. All the main parties agree that to make homes affordable we need to build more of them. But to most renters, who are already working two days a week just to pay their landlord, that isn't enough.

It will take years to build enough houses to bring down rents - renters need more affordable homes now. That's why we're calling for rent control. This should be a priority of the next government, whoever forms it.

Do your local candidates agree? Email them now and ask them to support rent control.

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Another petition by Generation Rent. It may not make a difference but it only takes 2 secs to sign so what the heck, sign it anyway!

I am not an economist but all the attempts of price fixing I have seen end in at a minimum significant unforseen and unwanted consequences or at worst economic collapse, why do you think rent price fixing would be any different.

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Another petition by Generation Rent. It may not make a difference but it only takes 2 secs to sign so what the heck, sign it anyway!

I am not an economist but all the attempts of price fixing I have seen end in at a minimum significant unforseen and unwanted consequences or at worst economic collapse, why do you think rent price fixing would be any different.

Care to give some examples.

As it goes, economic collapse would be fine with me! At least it would get rid of all the artificial props and we would see a proper reset (which would likely include a HPC! That is still the name of the site, isn't it?).

As for comparing a few rent controls as price-fixing, how much price-fixing has been acted in the current property bubble? Of course price-fixing for the VI's is just fine and dandy, a little more protection for private renters and 'oh no this will cause the economy to collapse!' I think if the economy does collapse it will more likely be down to the unforeseen consequences of QE, ZIRP, funding for leading and HTB1, 2, 3! Not because my LL is limited to how much rent he can squeeze me for!

Edited by renting til I die

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I suppose the most relevant example was here in the 70s when rent controls led to a collapse in the availability of rental accommodation, but when I posted i was thinking more of the number of left wing states across the world that implement price controls and then seem to be suprised when the market collpases leading to shortages of the product the price fixing was intended to make available to all. For an extreme example Venezuela managing to conjour up a fuel shortages in the counry with the world's largest oil reserves takes some beating.

Who knows what would be the impact of an economic collapse, unless you truely have nothing to lose you could up worse off.

I cannot argue with your last point asset prices have been artificially inflated and its hard to see how this can be safely unwound.

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I suppose the most relevant example was here in the 70s when rent controls led to a collapse in the availability of rental accommodation, but when I posted i was thinking more of the number of left wing states across the world that implement price controls and then seem to be suprised when the market collpases leading to shortages of the product the price fixing was intended to make available to all. For an extreme example Venezuela managing to conjour up a fuel shortages in the counry with the world's largest oil reserves takes some beating.

Who knows what would be the impact of an economic collapse, unless you truely have nothing to lose you could up worse off.

I cannot argue with your last point asset prices have been artificially inflated and its hard to see how this can be safely unwound.

When so many landlords are leveraged to ****** via BTL lending, how can they withdraw their properties from the rental market? They NEED to rent it out.

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I posted this a few months ago, but I'll post it again here. Yes, there is a problem with rents, but rent control is not the answer.

richc, on 11 Dec 2014 - 1:18 PM, said:snapback.png

I'm not going to do the research for you showing all the academic studies demonstrating the harm of rent controls because you seem to have already made your mind up, but, can I ask, have you ever lived in a city with rent controls?

After university, I lived in San Francisco, where they had rent control for the majority of rental units. Here's how it worked. In a city where the majority of housing was in the rented sector, there were almost no flats on the market for rent and those that did come up on the market were astronomically expensive. If you wanted to live somewhere, you had to "house share" which meant renting a room in an ageing hippy's run-down rented flat completely outside of any legal protection. The "tenant" of this flat didn't actually have a paying job (other than going to political demonstrations and smoking a lot of pot), and they paid almost no rent to the landlord. They simply lived off of the rent they collected from sub-letting to young people. If they decided one day that they didn't like you anymore (for instance, after you refuse to sleep with them), you'd find your stuff out on the pavement with no legal recourse what so ever. Rent control is a complete non-solution that really will only make things worse.

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When so many landlords are leveraged to ****** via BTL lending, how can they withdraw their properties from the rental market? They NEED to rent it out.

The need to rent out the property. They won't be able to do any maintenance on it.

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Generation Rent should be focusing on more productive solutions to the rental crisis.

Banning agency fees for tenants would fix a market failure and improve the situation for tenants. The tenant has no influence on the buying decision when the landlord chooses which estate agents to list the house with, so they shouldn't bear the costs for that decision. The landlord should pay, and then they can pass the costs along in a higher rent if they want to.

Increasing the security of tenure would be a small change that would offer a huge improvement for tenants without the downside of rent control. The government could say that if BTL landlords want to be run as a professional business and have tax relief for mortgage interest, then they need to be running their business like a professional and offering 2 year leases.

The idea of rent control is a cheap gimmick, more befitting of our current crop of politicians.

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The need to rent out the property. They won't be able to do any maintenance on it.

Maintenance? Is that the best you can do?

Far poorer standards in general in the private rental sector would indicate maintenance is not a priority to landlords even when they can name any price they like for rent.

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Generation Rent should be focusing on more productive solutions to the rental crisis.

Banning agency fees for tenants would fix a market failure and improve the situation for tenants. The tenant has no influence on the buying decision when the landlord chooses which estate agents to list the house with, so they shouldn't bear the costs for that decision. The landlord should pay, and then they can pass the costs along in a higher rent if they want to.

Increasing the security of tenure would be a small change that would offer a huge improvement for tenants without the downside of rent control. The government could say that if BTL landlords want to be run as a professional business and have tax relief for mortgage interest, then they need to be running their business like a professional and offering 2 year leases.

The idea of rent control is a cheap gimmick, more befitting of our current crop of politicians.

Valid but it needs a sea change in sentiment that BTL is not easy money and you need to look after tenants. Even ineffectual rent controls would go some way toward that more than just banning letting fees. This is an agent and tenant issue not a. Landlord one.

Besides, does the Scottish legislation prevent agents charging landlords? Moving the fees to that side does not necessarily help tenants. I'd just throw back your maintenance comment...

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Valid but it needs a sea change in sentiment that BTL is not easy money and you need to look after tenants. Even ineffectual rent controls would go some way toward that more than just banning letting fees. This is an agent and tenant issue not a. Landlord one.

Besides, does the Scottish legislation prevent agents charging landlords? Moving the fees to that side does not necessarily help tenants. I'd just throw back your maintenance comment...

Regarding agency fees, they are very much a landlord issue. The landlord makes the decision on which agent to employ. That is the key fact. Landlords control the process, and as such, they should bear the costs of the decision that they make. There are real costs involved in employing an agent, and simply passing a law banning the charging of fees to tenants does not make the cost go away. The point of any legislation should be to align the payment of those costs with decision rights so that the market can function as efficiently as possible.

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Maintenance? Is that the best you can do?

Far poorer standards in general in the private rental sector would indicate maintenance is not a priority to landlords even when they can name any price they like for rent.

Landlords cannot "name any price they like for rent". The point of any legislation should be to increase maintenance standards in the PRS. Rent control does the exact opposite.

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Three year leases. Rent increases controlled within that three year lease to a low percentage. Tenant able to break the lease early with no penalty. Easier evictions for landlords when their tenants break any clause (such as non payment). I would sign such a petition.

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Three year leases. Rent increases controlled within that three year lease to a low percentage. Tenant able to break the lease early with no penalty. Easier evictions for landlords when their tenants break any clause (such as non payment). I would sign such a petition.

This should be tied to the tax relief for BTL mortgage interest. If you want to be a professional landlord, then be a professional landlord and offer the above to your tenants. Otherwise, BTL is just speculation and should be treated the same as buying shares where margin interest is not tax deductible.

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This should be tied to the tax relief for BTL mortgage interest. If you want to be a professional landlord, then be a professional landlord and offer the above to your tenants. Otherwise, BTL is just speculation and should be treated the same as buying shares where margin interest is not tax deductible.

You're suggesting the concept of "amateur" landlords who aren't obliged to provide 3 year leases but then don't get the tax relief? Actually, that is a really, really good proposal. Gives flexibility to an owner occupier who might have to relocate overseas for a year to rent out their house still.

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You're suggesting the concept of "amateur" landlords who aren't obliged to provide 3 year leases but then don't get the tax relief? Actually, that is a really, really good proposal. Gives flexibility to an owner occupier who might have to relocate overseas for a year to rent out their house still.

I think this would be a politically viable win/win. Tenants would be given protection from arbitrary rent increases, and landlords would be required to behave more professionally, but there would still be flexibility.

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Rent is high because of two reasons. Firstly the supply of homes is artificially restricted. Secondly, rent is subsidised via housing benefit. Take away the props and rents will fall.

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Secondly, rent is subsidised via housing benefit. Take away the props and rents will fall.

And if one realizes that the housing benefit is ~17 billion, which ends up in landlords' pockets. Putting the knife in this seems a pretty easy way into reducing the budget deficit, which stands at ~100 billion.. Not hard to see, yet no politician even seems to realize what a distorting effect** the housing benefit scheme has.

**) For those that find it hard to believe. Try to find a rental accommodation in your area that asks less than the local allowed housing benefit. Good luck!

Edited by moesasji

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Landlords cannot "name any price they like for rent". The point of any legislation should be to increase maintenance standards in the PRS. Rent control does the exact opposite.

This, Having regulation that states, for example, repair times with financial penalties would do more to improve the lot of the average renter than any of this ******** around rent controls. broken boiler = 2 days. broken window - 7 days. mold - 14 days. etc etc etc.

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