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Labour To Cap Rent Increases

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"the Labour leader said he wanted to do more to stop the estimated 4.5 million households renting privately from being "ripped off". He is pledging to cap rents during the course of the standard three-year tenancies so they cannot rise by more than the CPI measure of inflation, which is currently 0%"

http://www.bbc.co.uk/news/election-2015-32468997

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Sure sign of an imminent rental price crash then.

Ed Milliband calling the top like always, like with his energy-price caps.

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They're also planning to strip tax relief from interest payments on BTL mortgages if landlords don't keep their properties "up to basic standards": http://www.theguardian.com/politics/2015/apr/25/ed-miliband-peg-private-rent-rises-to-inflation

Yet more bureaucracy, overpaid Labour-type jobs to police it, that won't be followed through anyway onto Landlords - who will appeal it if they do lose tax relief... and how long such a sanction for, for individual landlord.... .

How long did it take to get deposit x3 payback system if landlord didn't protect deposit properly working - only very recently after so many many years.. with landlords for years able to wriggle out of it at the last minute if tenant took them to court by simply repaying the deposit.

In a first Labour Queen’s speech of a new parliament, Labour will also introduce legislation requiring landlords to disclose rents charged to their last tenants so that householders have proper information and can negotiate the best deal at the start of their contract. Rogue landlords who do not keep their housing stock up to basic standards will have their “buy to let” tax relief slashed.
Edited by Venger

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I don't understand why Labour don't just pledge to do away with BTLtax relief altogether? They apparently need to make massive cuts or huge tax rises, why not just get rid of this benefit that only benefits landlords (unpopular), will be a populist move and will actually be economically literate. It is a no brainer so probably won't happen.

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This is dynamite! Miliband has played his ace card.

Those 4.5m crosses are going in the Labour box on May 7th.

The sheer brilliance of it is the Tories have no comeback no comeback at all as those 4.5m renters know they're all about the props and HPI

Be a few boomer retirement dreams in tatters tonight

Twitter:

Eric Pickles- Rent control appears to be the most efficient technique presently known to destroy a city except for bombing

Labour is also warning "rogue" landlords that they face losing tax relief enabling them to offset 10% of their annual rental income against falls in the value of furniture and appliances.

If properties are not adequately maintained, Mr Miliband said landlords would not be able to claim all of the so-called "wear and tear allowance", arguing they should not be "subsidised for providing accommodation that fails to meet basic standards."

Edited by workingpoor

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It is not a BTL tax relief it is a business expense as BTL is a business. Define 'basic standards' .... is it the same 'basic standard' as those beds in sheds that have been in Slough (and other places) for the last 10 years.

Welcome to reality. This here is called politics. Perhaps Bruce was right about you all along.

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It is not a BTL tax relief it is a business expense as BTL is a business. Define 'basic standards' .... is it the same 'basic standard' as those beds in sheds that have been in Slough (and other places) for the last 10 years.

I've seen a lot of private rented properties and very few meet what I'd call 'basic standards'. Just recently I visited a friend in a newly refurbished 'flat'..

The 'flat' in question was the size of the room I grew up in. The 'bathroom' was about two foot across, with the added convenience of being able to wash your hands as you take a shit, which is maybe a useful feature which justifies the 500 quid/month rent?

The 'kitchen' consisted of a mini kitchen unit, similar to the one below. There were cupboards placed above this unit (very close) with space for a microwave. I believe this set up is effectively illegal as it's a fire hazard but I know this is not the only flat the landlord has kitted out this way this way, and he owns tonnes.

summit_c39_up.jpg

Sadly the landlord couldn't be bothered to install a microwave, however constricted by the room dimensions, my friend placed the microwave on the rear hob. After all there's no worktop space and barely even space in the room to put a desk. Upon the microwave he placed a kettle and a toaster. This is a huge fire risk.

If the room wasn't small enough, the landlord thought it appropriate to place a double bed in the room, anxious to ensure he can cash in on a couple in case my friend moves out. Moreover, there was no space for a warddrobe either and sadly the landlord delayed sorting out a dodgy smoke alarm in the room for over a week.

Moreover, the landlord is require under the Housing Act, 2004 to have a fire safety order on the block to ensure it doesn't go up in smoke. So why then, was there no smoke alarm in the tiny corridor of this converted house? I may be wrong but I thought not only is a alarm system required but smoke alarms should be wired. The one in the room.. sorry... I mean flat... had a battery in it (which incidentally my friend had to buy himself from poundland).

Now, clearly what's needed is a properly regulated private rented sector, with a strict landlord licencing scheme defined in primary legislation. A good quality system.

Anyway, I met the landlord and he seemed like a nice guy so I'm sure he'd be more than happy to co-operate lol. He certainly drove a nice car anyway, so he likes good quality things. :-)

Edited by moedo12

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OK - so this is an interesting move.

My understanding is that BTL relate rents back to mortgage payments. If BTL are driving up the bottom rung presumably this is a genuinely anti-HPI move ?

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Twitter:

Eric Pickles- Rent control appears to be the most efficient technique presently known to destroy a city except for bombing

Tory election campaign going from strength to strength I see, last week they were defending non-doms and now it's the 3% of UK adults who are private landlords. It's an interesting strategy, perhaps they've forgotten that the UK has universal suffrage now. Let's see if the non-dom + landlord vote can deliver them a Commons majority.

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"the Labour leader said he wanted to do more to stop the estimated 4.5 million households renting privately from being "ripped off". He is pledging to cap rents during the course of the standard three-year tenancies so they cannot rise by more than the CPI measure of inflation, which is currently 0%"

http://www.bbc.co.uk/news/election-2015-32468997

Currently 0%, isn't usually, and what drives CPI? It's incoherent.

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An annual rise in line with CPI is more than no rise.

Also, a rent cap for three years would probably result in our landlord putting up our rent at the next renewal, which he probably would not have done otherwise.

Daft suggestion.

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It is not a BTL tax relief it is a business expense as BTL is a business. Define 'basic standards' .... is it the same 'basic standard' as those beds in sheds that have been in Slough (and other places) for the last 10 years.

Do amateur landlords benefit from this "business expense"?

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Anyway, I met the landlord and he seemed like a nice guy so I'm sure he'd be more than happy to co-operate lol. He certainly drove a nice car anyway, so he likes good quality things. :-)

Sort of reminds me of this joke:

..."Wow! that's a really nice car boss!"

"Lemme tell you something. If you set goals, work hard, and act determined, I can get an even better one next year."

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Maybe not a great idea on its own without additional reforms to the housing market but it could be just the thing to establish the rental vote as a block 'special interest' on the political landscape which all parties in future will need to address in some way or another.

Miliband appears to be leading the agenda again, as he did over energy prices.

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Labour also plan to block all those excessive agent fees - £200 for a credit check and the like.

Labour say.

Tory say.

But still the banker support continues.

Still the tax payers money is thrown into sub prime mortgages.

Why is it people are taken in time and time again by the same bunch of people?

Edited by TheCountOfNowhere

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Tory election campaign going from strength to strength I see, last week they were defending non-doms and now it's the 3% of UK adults who are private landlords. It's an interesting strategy, perhaps they've forgotten that the UK has universal suffrage now. Let's see if the non-dom + landlord vote can deliver them a Commons majority.

Boris Johnson - the new white hope - on Andrew Marr today decrying rent controls, espousing his London landlord scheme which requires landlords to fix your boiler instead.

Got to protect his billionaires after all.

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This is dynamite! Miliband has played his ace card.

Those 4.5m crosses are going in the Labour box on May 7th.

The sheer brilliance of it is the Tories have no comeback no comeback at all as those 4.5m renters know they're all about the props and HPI

Would this lead to a Labour majority?

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Yet more bureaucracy, overpaid Labour-type jobs to police it,

Its worse than that. For Labour, its not just about more state jobs, every piece of legislation is a vehicle for giving a state employee more discretionary power over other people.

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Labour say.

Tory say.

But still the banker support continues.

Still the tax payers money is thrown into sub prime mortgages.

Why is it people are taken in time and time again by the same bunch of people?

Because their brains can only process sound bites?

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