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Labour plans to cap rent rises in crackdown on landlords

Private landlords would be banned from above-inflation rent rises if Labour wins power after the next general election, according to a new report. 

The proposed draconian restrictions on buy-to-let property owners would aim to help ‘generation rent’ by restricting rent rises at the rate of inflation or growth in earnings.

It is reported that Labour would also seek to gain greater control on landlords and their ability to evict renters ‘on spurious grounds’. This could include ending a landlord’s automatic right to sell


The new proposals feature in a radical report, commissioned by the party, which calls on Labour to try to stabilise residential property prices.

The report, Land for the Many, calls for measures to be introduced to end what it referred to as the ‘buy-to-let frenzy’.

The Land for the Many report said: ‘Tenancies should be open-ended, and landlords should lose their power to evict a tenant who has not broken the terms of the tenancy agreement for the first three years of the tenancy agreement, and should have to provide grounds for eviction after that point.

‘There should be a cap on annual permissible rent increases, at no more than the rate of wage inflation or consumer price inflation (whichever is lower). Buy-to-let mortgages should be more firmly regulated and restricted.’

Many leading commentators agree that rent controls would ultimately destroy much needed investment in housing, which is clearly Labour’s aim.

The report said the restrictions on private rent were needed to ‘discourage the use of homes for speculation and rent extraction’ and to ‘reduce the amount of unearned windfall gains that are privately captured’.

Rent controls and an end to no-fault evictions are already party policy.

A spokesman for Labour said: “We welcome this independent report by a group of experts. As the report makes clear, Britain is a deeply unequal country and we need to start addressing that.

“Rent controls and tighter restrictions on the ability of landlords to evict renters on spurious grounds are essential to rebalance a rental market which often leaves tenants powerless. House price stabilisation is not Labour policy, but with home ownership at a 30-year low, it is clear there is a desperate need to tackle runaway house prices.”

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  • James B

    Heading towards bringing back sitting tenancies again.. wonder where they plan to house all the people when landlords move out

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    Not allowing property to be used for financial gain is ridiculous. This should also mean that anyone making their living from property - including employees of councils and Housing Associations should also not be allowed to receive a salary for it; as the profit of private landlords, as with all business people, sole traders, the self-employed (whatever you want to call it) is what pays their salary.

    The idea that money should not be made out of a necessity is also ludicrous. This logically means that there should be no shops or supermarkets or even farmers - as they make their money from charging for a necessity.

    The fact that the authors also want to provoke a housing crash - what they euphemistically call 'stabilisation' - shows their true colours. The additional fact that they think the State can manipulate and then keep a handle on house prices in the open market is fantasy economics.

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    Great please keep coming out with the ideas and plans Labour and you will guarantee never ever forming a government.


    I do so hope that you are right Steve?

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    IF they did get into power, and IF they got a big enough majority to get this through parliament, all IFS, would house prices fall enough for the snow flakes to buy a property? i doubt it, most will rent for life unless they are lucky enough to be given a property.

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    Next he will be shaking hands with terrorist! Oops, he's already done that.


    And so has the Queen, I remember her shaking hands with that murdering scum from the IRA, what sort of country are we becoming ?

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    This could include ending the automatic right for a landlord to sell?
    So I have to own a property for as long as a tenant wants to live there? Against my will?

    It’s a report written with the aim of appealing to the extreme left with Marxist themes. Part of me wishes to see these people live in the cesspools of what they wish for. It should be mandatory for them to understand and use a calculator before writing any report.

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    Do they seriously think that landlords provide housing out of moral duty? Of course not. Landlords buy houses to make a profit and to supplement their pension in retirement. Take away the profits and you take away the landlord. What you are left with is a lack of housing for the people these left wing nutters are supposedly representing.


    This is a perfect answer - temperate and concise

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    • 02 July 2019 10:12 AM

    Amazing that Labour describes exactly why I became a LL..
    To extract rent and speculate.
    It I am prevented from doing this I simply won't be a LL.
    There are simply not the lenders prepared to lend sufficient funds to enable tenants to buy.
    So someone will have to provide accommodation for those unable or unwilling to buy.
    The ONLY way to achieve this is to close the borders and get building millions of homes of all types of tenure.
    This won't occur.
    Therefore the PRS is desperately needed.
    Govt needs to wake up and realise that LL simply respond to market demand.
    It is not the fault of LL that this market demand occurs.


    Often 'building homes' is a phrase used in relation to 'the Government', specifically, either doing or paying for the building, when in reality it is building companies, who will only do so if conditions are right and it is profitable (which requires LLs doing things like buying off-plan to fund the project). Very rarely does 'Government' build houses.

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    If landlords lose financial freedom to unlock cash as required, certain tenant types will bear the brunt. Families, the retired... those who look like they want to set up home for the long term will find it harder to get a tenancy. Or are we going to be obliged to accept the first offer at a rental price set by the government?

  • David Lester

    If they are elected we will sell immediately!

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    Think who we as LL house. The people who haven’t saved a deposit to buy. The couple seeing how they get on before buying. The people who were more interested in partying than saving for a house. The people who got into trouble financially and lost their house. The people that don’t work and take the Hb (taxpayer money) to fund the rent. Then there’s the people that just wish to rent than buy. When we are forced to exit the market where will these people live. Who is going to house them? Does Labour or anybody agreeing with these policies have any idea the disruption and upheaval to these tenants coming

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    If governments want to introduce more houses and flats into the system, then why don't they give landlords the means to get out. Maybe if they got rid of CGT to landlords, we could get out, like they all seem to want us to do. I have been doing this for over 25 years now and with all the current and upcoming legislation coming up i think i would get out if i had a window of opportunity to do so.

    • 02 July 2019 13:04 PM

    If CGT was stopped there would be a mass sell off by LL many of whom are desperate to leave the PRS in light of all the bonkers anti-LL regulations.
    The problem would be that so many LL would want to sell up the market would be flooded which would reduce prices.
    A better idea would be to offer 1st refusal to the Council with a 75% reduction in CGT.
    That would instantly increase numbers of social homes.
    It would also make many neighbours very fed up knowing they now have council housing next to them!
    But at least there would be instant social housing provision.
    Nothing like a single mum and 4 screaming kids on welfare to reduce the value of your property!
    But social homes are needed now.
    The feckless have to live somewhere.


    I think that most of us would Simon if we had means of replacing the income lost with something else.
    If Labour get in, (god forbid) any type of investment would be a huge risk.
    Their idea is to punish those who have worked hard all their lives and saved for retirement, only for them to give it all away to the feckless and work shy.


    I hear what you are saying Simon but I'm staying and fighting until such time that I have no option but to get out.

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    Lets think this one through.
    All landlords are unable to profit from renting.
    The contribution to income from rent saves all landlords from becoming the feckless hanger on scum we all so despise.
    We will then be reliant on state handouts to be able to live a half decent existence.
    Wonder how will all this state handout get paid for? Certainly not by tax paying landlords that's for sure. And with so many more hangers on the UK then becomes a third world country. Time to emigrate perhaps?


    Totally get what your saying Paul but us LL took a risk. We saved. We committed ourselves. I’m sure most on here did their first houses up by themselves after working a full time job. We then offer to rent at our risk not supported properly under law. We put up with some outrageous abuse from some tenants and as I’m sure you will agree they are often in the wrong. The tenants can decide
    not to pay and never be dealt with criminally BUT I will never let this government or future Labour gov defeat me. I will make my money doing other things in other places and I won’t be asking for a handout


    I'm totally with Jahan above, I've never taken a hand out and never will, I pay my way and am proud to do so, I hold my head up high.

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    • 02 July 2019 16:06 PM

    Your indefatigable attitude is to be lauded.
    But why should LL have to be put to so much unnecessary trouble!?
    Good LL don't ask for much.
    Just pay the contractual rent on time and in FULL for the service provided.
    If you can't pay then offer the LL to vacate.
    Let the LL decide if he wishes to work with a tenant.
    The system as it is set up facilitates free rental accommodation for tenants until legally removed.
    I know of no other business that has to suffer giving away its services for free except perhaps utilities for a time.
    Very few LL are aware of the dysfunctional eviction process.
    Had I been I would most certainly have adjusted the way I invested.
    Ignorance is of course no defence but so many LL invest WITHOUT understanding how pathetic the eviction process is.
    I have been nearly bankrupted 5 times by rent defaulting tenants.
    This is a very risky business if you are mortgaged.
    You may turn to other things to earn a crust but many LL like me are simply not interested in doing other things.
    That is why most are AST LL cos it is a relatively simple business.
    Well the Tories have made it an unviable business with Labour wishing to grind LL into the dust!!!!


    You are not wrong Paul, but I'm not mortgaged so I do have a bit of an advantage.

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    • 03 July 2019 00:30 AM

    Yep there is certainly a difference in perceptions if you are an unmortgaged LL.
    Being so gives you tremendous resilience.
    It is the mortgaged LL that is at most risk especially the sole trader LL.
    I can see many sole traders being forced to throw in the towel.


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