This week’s Labour conference has kicked off with the party reaffirming controversial reforms to the private sector.
Speaking at the conference in Manchester, Hilary Benn MP vowed to mend the broken housing market. He called for three-year tenancy agreements as standard, a ban on excessive rent increase, and a ban on letting agents’ fees to tenants.
He said: “Young people doing all they can to save, but knowing that their dream of owning a home is moving further and further out of reach. So they end up renting, and often find themselves paying off someone else’s mortgage, rather than one on a home of their own.
“They probably have a short term tenancy and worry that the rent may jump up, even if they get a new contract.
“And if their children are about to start primary school, what kind of security and stability is there if they may be forced to move away from friends and neighbours next year?
“We all hear these stories, but this government doesn’t get it. Well we do – and that’s why we are determined to introduce three year tenancies; to put a ceiling on rent increases; to scrap lettings agent fees for tenants; and to build at least 200,000 homes a year by the end of the next Parliament.”
Benn went on to say that if it came to power, Labour would work with councils so that they can build more council houses.
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Comments
Another load of labour rubbish. These people truly live in lala land.
As a landlord of 25 years there is absolutely no way I will give a tenant a 3 year contract. It is hard enough to get bad tenants out after 6 months. With 3 years, the added risk is simply not worth it.
In the last 10 years we have seen a flurry of regulations for landlords. All of which increase the cost of renting a property. Add to this the time required to manage it and soon it will not be worth doing.
Good job house prices are rising. If labour get in next year, I'll be selling up.
@ GB
Agree with all you say but can you explain the contradiction in third para?
First you say rents will rise, then you say they won't because market value dictates rents and adding artificial amounts to the rent to cover fees would push it beyond market rent and lead to voids.
Not if all agents/Landlords did it of course, though the FTT/RPTS might have something to say at appeals.
The biggest danger here, and the one no-one ever seems to comment on, is that such moves would strengthen the hand of self managing Landlords who already avoid such costs and can thus undercut agents slightly on asking rents. That advantage would increase if agent rents artificially increased further to pay fees the Landlord should simply pay - as in Scotland
Meanwhile back in the real world...............
The vast majority of landlords are good hardworking people who have to put up with tenants who do not pay the rent and treat the property like a toilet. Are you going to do something about them Mr Benn?
How can you honestly say that the landlord is tied to a 3 year contract whereas the tenant can walk away at any time? All that will happen is rogue tenants will behave and pay their rent for 6 months and then stop paying thereafter knowing that it will be difficult to be evicted. Most periodic tenancies last for years without any problem and we do not need interference from the government. (Let's hope Millipede & co never get in).
Does he not realise either that if letting agents cannot charge the tenants a fee then it will have to be paid by the landlord. As a consequence the rents will rise and ultimately the tenants will pay more. Contrary to popular belief landlords are not running round increasing rents left right and centre either. Market value dictates rents and any landlord attempting to over charge will be left with a void period.
If the housing market is broken and I don't believe it is, it is not the fault of the private sector landlord!
Mr Benn then visits a fancy-dress costume shop and leaves the through a magic door at the back of the changing room