Jump to content
House Price Crash Forum

Rent controls in London on the agenda


Recommended Posts

Sadiq Khan is going all in for rent controls in this year’s mayoral election, making it a central part of his campaign for re-election. 
 

Now, putting aside for a moment whether you think rent controls are a good idea or not, I think it would be very difficult for the government to refuse if Londoners give him a specific mandate to introduce them.

Remember, London is younger than most of the rest of the UK demographically. It’s going to be interesting to see if the electoral balance of power has shifted enough to radically change housing policy in the capital like this. This along with the abolition of S21 would result in a very different landscape for LLs in the capital. 

Link to post
Share on other sites
3 minutes ago, Si1 said:

I wonder what the housing benefit bill in London is like?

Dunno about London, but national HB stats are on the OBR website: https://obr.uk/forecasts-in-depth/tax-by-tax-spend-by-spend/welfare-spending-housing-benefit/

Some interesting insights there:

Quote

Housing benefit spending increased from 0.8 per cent of GDP in 1983-84 to 1.5 per cent of GDP in 2013-14

Given that defence spending is only 2.1% of GDP, that's a helluva subsidy for LLs.

Link to post
Share on other sites
16 minutes ago, Bear Goggles said:

Dunno about London, but national HB stats are on the OBR website: https://obr.uk/forecasts-in-depth/tax-by-tax-spend-by-spend/welfare-spending-housing-benefit/

Some interesting insights there:

Given that defence spending is only 2.1% of GDP, that's a helluva subsidy for LLs.

So the tenant of last resort now pays probably more than double (considering GDP rises above inflation) what it used to underpinning yields on real estate.

Link to post
Share on other sites
1 minute ago, Si1 said:

So the tenant of last resort now pays probably more than double (considering GDP rises above inflation) what it used to underpinning yields on real estate.

Yes, although it's worth remembering that in 1984 there was still a significant amount of council housing, and who knows how much of GDP spending on that represented.

Link to post
Share on other sites
2 minutes ago, bear.getting.old said:

Luckliy for us. Saddo Khan is NOT the government and his party were wiped out, so he has a cat in hells chance of getting that through the commons. Bloody idiot socialist.

Yeah. Those bloody socialist Londoners with their bloody socialism, if only all they'd just move out to the shires and practice capitalism from beyond the green belt like "us". :)

 

Link to post
Share on other sites
2 hours ago, Bear Goggles said:

I think it would be very difficult for the government to refuse if Londoners give him a specific mandate to introduce them.

I don't think it would be difficult at all. Day 1 of re-elected Sadiq Khan's term:

SK: Can I have rent controls?

BJ: No.

SK: (shrugs)

Link to post
Share on other sites
7 minutes ago, Dorkins said:

I don't think it would be difficult at all. Day 1 of re-elected Sadiq Khan's term:

SK: Can I have rent controls?

BJ: No.

SK: (shrugs)

Day 1, yes. But a specific mandate would create sustained pressure over time.  BJ doesn't give a toss about ideology, he just wants to be in power, so he's likely to do what's popular if it doesn't adversely affect his re-electability. If rent controls work out he can take credit for allowing them, if they don't he can blame SK. What's not to like?

Link to post
Share on other sites
2 hours ago, bear.getting.old said:

Luckliy for us. Saddo Khan is NOT the government and his party were wiped out, so he has a cat in hells chance of getting that through the commons. Bloody idiot socialist.

Well, they have rent controls in bloody idiotic New York. Austria has some of the tightest rent controls in Europe, not a country known for its rampant socialism.

Link to post
Share on other sites
35 minutes ago, Bear Goggles said:

Day 1, yes. But a specific mandate would create sustained pressure over time.  BJ doesn't give a toss about ideology, he just wants to be in power, so he's likely to do what's popular if it doesn't adversely affect his re-electability. If rent controls work out he can take credit for allowing them, if they don't he can blame SK. What's not to like?

I can remember when a BBC question time was being hosted in London and Johnson was on the panel as he was London mayor at the time. On a discussion about housing a woman in the audience said "You've got to do something about rents Boris..." Johnson replied with a muttering of "..nothing we can do about it.." but it was the indignant look on his face that gave him away as an ideologue. You're probably right though the ideology is as vacuous as "self". 

Link to post
Share on other sites
3 hours ago, Bear Goggles said:

Yes, although it's worth remembering that in 1984 there was still a significant amount of council housing, and who knows how much of GDP spending on that represented.

Housing benefits still get paid to social housing providers like councils though?

Link to post
Share on other sites
1 hour ago, smash said:

I can remember when a BBC question time was being hosted in London and Johnson was on the panel as he was London mayor at the time. On a discussion about housing a woman in the audience said "You've got to do something about rents Boris..." Johnson replied with a muttering of "..nothing we can do about it.." but it was the indignant look on his face that gave him away as an ideologue. You're probably right though the ideology is as vacuous as "self". 

It was probably advantageous for him to say that back then, that’s all. What Boris Johnson says and what he does don’t really correlate in any meaningful way. I switch off / scroll away whenever I see him speak. Partly because I find his mumbling posho act intensely irritating and repulsive, but mainly because you don’t actually gain any useful insights by listening to the words that come out of his mouth. 

Link to post
Share on other sites
4 hours ago, bear.getting.old said:

Luckliy for us. Saddo Khan is NOT the government and his party were wiped out, so he has a cat in hells chance of getting that through the commons. Bloody idiot socialist.

I am and always have been to the right and running my own business for thirty years by definition a capitalist 

But capitalism is totally out of control no thinking person would argue that the increasing disparity between the top 5-10% and the rest of society isn’t anything other than totally destructive to society ( I am comfortably in the  5% by asset and income before you fire the old envy line back )

Housing is a human right and it’s monetisation has been obscene ( I don’t buy the alternative pension ****** either my retirement assets without a single brick of BTL is better than most )

He might be a socialist but he is not an idiot because he recognises something has to be done about housing apartheid 

The rental sector is woefully under regulated and the result is no fault evictions , short term let’s a swamp of a***hole landlords - time to drain the swamp 

Edited by GregBowman
Link to post
Share on other sites
2 hours ago, smash said:

Well, they have rent controls in bloody idiotic New York. Austria has some of the tightest rent controls in Europe, not a country known for its rampant socialism.

Think I read that Berlin has recently introduced them.

It might be worth taking a look to see how there getting on with them.

Link to post
Share on other sites
1 hour ago, GregBowman said:

I am and always have been to the right and running my own business for thirty years by definition a capitalist 

But capitalism is totally out of control no thinking person would argue that the increasing disparity between the top 5-10% and the rest of society isn’t anything other than totally destructive to society ( I am comfortably in the  5% by asset and income before you fire the old envy line back )

Housing is a human right and it’s monetisation has been obscene ( I don’t buy the alternative pension ****** either my retirement assets without a single brick of BTL is better than most )

He might be a socialist but he is not an idiot because he recognises something has to be done about housing apartheid 

The rental sector is woefully under regulated and the result is no fault evictions , short term let’s a swamp of a***hole landlords - time to drain the swamp 

Hmm, I think this is the first time I agree with you. 

It is better than it was 10 years ago, landlords have to comply with more regulations but it is still not ideal.  It is harder to repossess, less chances to get ripped off by an agency, your deposit is safer.  

 

Link to post
Share on other sites
52 minutes ago, slawek said:

Hmm, I think this is the first time I agree with you. 

It is better than it was 10 years ago, landlords have to comply with more regulations but it is still not ideal.  It is harder to repossess, less chances to get ripped off by an agency, your deposit is safer.  

 

I'm still not convinced that abolishing S21 is such a good idea, from the consultation it looked like they are planning to add so many new grounds to S8 that landlords are likely to find a de facto loophole e.g. evicting "to sell" and then not actually selling it. A better alternative might be to keep S21 but add a provision that if the landlord exercises it they must compensate the tenant e.g. 1 month's rent for every year the tenant has lived in the property.

I did say all this in response to the consultation but no doubt it has gone in the circular file.

Edited by Dorkins
Link to post
Share on other sites
5 minutes ago, Dorkins said:

I'm still not convinced that abolishing S21 is such a good idea, from the consultation it looked like they are planning to add so many new grounds to S8 that landlords are likely to find a de facto loophole e.g. evicting "to sell" and then not actually selling it. A better alternative might be to keep S21 but add a provision that if the landlord exercises it they must compensate the tenant e.g. 1 month's rent for every year the tenant has lived in the property.

I did say all this in response to the consultation but no doubt it has gone in the circular file.

I don't like Section 21 but if it's to be kept the notice period should be extended to four to six months after the end of the fixed term. 

Link to post
Share on other sites
3 minutes ago, Dorkins said:

I'm still not convinced that abolishing S21 is such a good idea, from the consultation it looked like they are planning to add so many new grounds to S8 that landlords are likely to find a de facto loophole e.g. evicting "to sell" and then not actually selling it. A better alternative might be to keep S21 but add a provision that if the landlord exercises it they must compensate the tenant e.g. 1 month's rent for every year the tenant has lived in the property.

I agree the proposal to abolish S21 doesn't change much, it could even make the situation worse. Why can't they sell a property with tenants and assign a tenancy contract to a new owner?   

Link to post
Share on other sites
5 hours ago, slawek said:

Hmm, I think this is the first time I agree with you. 

It is better than it was 10 years ago, landlords have to comply with more regulations but it is still not ideal.  It is harder to repossess, less chances to get ripped off by an agency, your deposit is safer.  

 

If we met in real life we probably would agree on plenty - anonymous forums seem to accentuate the differences 

For all our words not great for communication - us apes have too many other senses that enable cooperation 

Link to post
Share on other sites
13 hours ago, GregBowman said:

I am and always have been to the right and running my own business for thirty years by definition a capitalist 

But capitalism is totally out of control no thinking person would argue that the increasing disparity between the top 5-10% and the rest of society isn’t anything other than totally destructive to society ( I am comfortably in the  5% by asset and income before you fire the old envy line back )

Housing is a human right and it’s monetisation has been obscene ( I don’t buy the alternative pension ****** either my retirement assets without a single brick of BTL is better than most )

He might be a socialist but he is not an idiot because he recognises something has to be done about housing apartheid 

The rental sector is woefully under regulated and the result is no fault evictions , short term let’s a swamp of a***hole landlords - time to drain the swamp 

There does need something to be done about housing, but if people can get off a plane from Spain and get free housing in Camden because they are a single mum - there will never be enough housing.

We need to stop paying people to live in London who never have worked there and probably never will.

Link to post
Share on other sites
12 minutes ago, iamnumerate said:

There does need something to be done about housing, but if people can get off a plane from Spain and get free housing in Camden because they are a single mum - there will never be enough housing.

We need to stop paying people to live in London who never have worked there and probably never will.

Totally agree - I think the current beer virus will give scope for some draconian measures mixed up in the legislation hopefully  

Edited by GregBowman
Link to post
Share on other sites
43 minutes ago, iamnumerate said:

There does need something to be done about housing, but if people can get off a plane from Spain and get free housing in Camden because they are a single mum - there will never be enough housing.

We need to stop paying people to live in London who never have worked there and probably never will.

How many single mums get off a plane and get free housing in Camden? None.

It's a complete fabrication.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 415 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.