A senior Conservative has made a surprise plea for a two year rent freeze in the private rental sector with no re-letting at a higher rent.
Natalie Elphicke - in an article on the Conservative Home website, which could be seen by some as a pitch for a job in the new government arriving next week - says she wants to see “a newly shaped Department for Housing and Households” which would “robustly challenge the total costs of household bills.”
It is a lengthy article covering a range of housing cost related issues.
But Elphicke - formerly chief executive of the Housing & Finance Institute, co-chair of a government housing review and founding chair of the New Homes Quality Board - reserves special criticism for landlords and rent rises.
She calls for the “freezing all rents at their current rates for up to two years. In addition, no property could be re-let at a higher price during that period. This would ensure that the rent freeze cannot be circumvented by re-letting.”
She claims this would save around £2,000 for the average renter, and up to £4,000 in London.
Then she goes on to say: “While landlords would, no doubt, protest, this would not be so problematic for landlords as might first appear. It is not landlords who are facing paying for the extraordinary energy rises in the homes they let out, but their tenants. Buy-to-let finance costs are still low, with two-year fixed rates available at less than 2.5 per cent.
“So there is, and has been, no justification for the excessive rent hikes in recent times. Rents don’t reflect the costs of being a landlord. Rent levels are simply opportunistic and a result of lack of effective policy oversight in that market for far too many years.
“Indeed, controlling inflation will help keep interest rates lower for everyone as well as stabilise the value of housing. Extended inflationary spikes eat away at the value of all capital assets, including housing. High levels of repossessions and evictions put negative pressure on house prices. Early action to control rent rises is in the interests of landlords as well as tenants.
“The measures to freeze rents will help the public finances too. Of the nine million renters, 5.8 million tenanted households receive housing welfare support. Spending on housing welfare in 2021/22 is forecast to be over £30 billion. These measures could help to save billions on the benefits bill.”
It’s a lengthy and controversial article, delivered just days before a new Prime Minister is announced by Elphicke’s party, and you can read it in full here.
Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.
.jpg)
%20(002).png)
.png)
Join the conversation
Jump to latest comment and add your reply
Proof that when it comes down to it , labour and tories are two sides of the same coin
Voting - the illusion of freedom , puppet a or puppet b
You couldn't really make this "stuff" up. The economic illiteracy evident in Ms Elphicke's reported statements are just breathtaking.
Christ almighty. I've heard it all now. We're totally fked.
I bet she is also suggesting a two yeas freeze on MP's salaries.
My rental income is my only income. How am I supposed to afford higher energy costs?
Yet another mp out of touch with reality who has never worked in the real World
Every political comment on landlords and calls for different measures always forget one fundamental detail. The property belongs to us and as investors we can sell at any time. Regardless of conditions, tenants, legislation we can sell as long as the price is right. The only ones that really suffer are the tenants
'The property belongs to us and as investors we can sell at any time'
At the moment Michael yes. But how long before there is legislation preventing us selling?
In answer to johns point below…… would he sell if they increased CGT to 50%?….. that’s how they can control our decision making
the worry is they will increase CGT to deter selling.....
Note that she has lined up a business to take advantage of landlords ie the new homes quality board.
Nice little earner 💰💰 I am sure.
Are they going to ban insurers and lenders putting rates up in that time too? Uneducated idiots making the housing shortage worse by even mentioning this nonsense - because we will walk away!
And are they going to force tradespeople to charge no more than they do now? How about building materials? Council tax? Motor fuel? And the list goes on.
As the Song in Phantom of the Opera says...
'Time to say goodbye'
Our most recent remortgage wasn't possible at 2.5%, no where near. And what about S24, insurance going up, maintenance costs going up etc etc? Total idiocy!
Another MP, out to make a name for themselves spouting rubbish without considering all the facts. I really wonder what the private rental sector has done to make these clowns come out with the comments they do?
These properties belong to us, we have ever increasing bills to pay, partially because our MP’s were not clever or quick enough to react to the cost of living crisis early enough by authorising the alternatives such as open cast mining etc.
It is our right to obtain as much rental income for our properties as someone is prepared to pay.
Just goes to show that nothing can screw things up like a politician can.
I usually only put rents up on change of tenant. Consequently many of mine are paying below market rates. This would encourage me to put all the rents up immediately and sell on change of tenant.
Worth doing that. It’s your business but keeping rents low cause problems later on….. keeping them below market value is fair but gentle increase are sensible…… that’s where I went wrong
I used to hold rents for long term tenants, then I realised, no other business does this. Now I let them lag around 10% below market rate for long term tenants, but they don’t just spend years paying the same rent. So they get annual increases now but still are getting a great deal and paying 10% less than if they went to the open market.
I’m the same. This would force me to put a lot of my rents up before such a policy comes in putting real pressure on some lovely tenants that have been with me for years.
I did exactly the same Alison, plus we had the government requesting Landlord's to keep increases to a minimum due to Covid etc etc. Meanwhile the Government is working out ways to take more and more money from said Landlord's.
We tend not to put up rent for existing tenants, but we have recently realised a long standing tenant is paying about £250 pm below market, even so given the current situation we are going to delay an increase until all the major headlines and doom and gloom pass. We are already selling one house per year to get out of renting. Reports like this one do make us think we should be increasing rents more often. Again the tenants will be the losers.
No situation is so bad that government intervention cannot make it worse
G. R. Steele
16 June 2011
Can we demand an energy price freeze then? This is part of the free market and supply and demand sets the price!
Simple enough…. A 2 year ban on rent rises, work out you would increase the rent in that period, and add it on in one go ! 💰💰. This government would make even Labour proud.
Correct my tenants would receive a £75-100 increase immediately as they are significantly below market rent now, this would leave them slightly below market.
Another great deal for tenants!
Another Liberal pretending to be a Tory.
Dear Lord! My places are in.lower rent areas and I always aim to keep around the LHA rates for obvious reasons. My mortgages are out if fixed and have gone up 7 times this year and I've not put the rents up...yet, trying to help my tenants BUT with rising prices and costs, my arm is being twisted ..I'm not a charity, it's my retirement plan at the end of the day and it's going to force me, a good landlord, who responds immediately to any problem or repair needed, to just sell up now...ridiculous, they should be HELPING us to maintain housing, not forcing us to reduce the stock by selling up.
Jesus F Christ! The Tories are asking for rent freezes. What happened to them? Why do we only have a choice of Labour these days. The government has driven the rent up with all their unnecessary red tape and taxation.
I’m scared to be a landlord and I am selling. You house them government!
We don't have a choice Nick, it's labour or labour, there is no conservative party
2 year Fixed Rates at less than 2.5%? Where are these? Any feedback appreciated
Even if they did exist the mortgage product fee would be around 2% of the total loan added to the amount you borrow plus there would be brokers fees to pay.
Elphicke unusual name is she lrish ?
??
in a roundabout way , landlords should be paying the tenant for the energy price increase and also paying the councils in terms of lower rents.
Saying this I dont think landlords should think about increasing their tenants' rents until at least 2 years have past they should set a rent in beginning that they would be comfortable for this period.
I just put a first increase after 5 years
Don’t be ridiculous complete nonsense
2 year rent freeze on the horizon will cause so much disturbance. I thought these politicians were supposed to be educated. So now we can't vote for Tories or for Labour.
Haven't been able to vote since Osbourne introduced Sec.24
Tories, Labour, LibDems are all anti-Landlord.
If I was on £80k + p.a. and £80k expenses plus loads of freebies as are MPs, then I could dispense charitable thoughts to be paid for by others. This is the typical tabloid stuff of any MP. Thry are all the same, sadly. How come that MPS have gotten themselves generous pay increases along with the most generous final salary pension scheme in the public sector ?
AND as subsidised restaurant in the HoC!
They pay less for a three course lunch than the general public pay for a hamburger. I believe that all the alcohol is tax free.
If I was on £80k + p.a. and £80k expenses plus loads of freebies as are MPs, then I could dispense charitable thoughts to be paid for by others. This is the typical tabloid stuff of any MP. Thry are all the same, sadly. How come that MPS have gotten themselves generous pay increases along with the most generous final salary pension scheme in the public sector ?
They did not stand up for landlords when rents plummeted during the last 2 years in cities and many properties were heard to even let....meanwhile the landlords exodus will just accelerate ......in the end there will be queue of tenants looking for housing.
As there is in Scotland
And in Ireland. At least the Irish Government is starting to wake up to the damage that been caused by the war on landlords. Trouble is it's too little, too late. Landlords have sold up and are supping a cold beer by the pool in Portugal or similar. Certainly not going to be coming back to start all over again.
You reap what you sow - never a truer expression
Have they not done enough? Spineless politicians have capitulated to the likes of Shelter and Generation rent - with the inevitable result we all predicted - higher rents, and shortage of rental properties with renters significantly impacted. And yet they are blind to the damage they have done and refuse to take responsibility for actually causing this. Instead politicians with vested interests go ahead suggesting policies to make things even worse for renters.
At some point I hope the renters too, will wake up to who their real enemies are. Sadly those who have caused this will just move on - can’t remember any instance, ever, when a politician has been held accountable for their lies and ineptitude.
What fresh liberal hell is this?!?! Another supposed Tory proving they’re left of Stalin. Absolutely moronic. Landlords have got no reason for raising rent?!?! Blimey love, learn something about Section 24 before you comment again, eh?!
It’s quite plausible what she is suggesting considering the controls they had over us during covid and let’s be honest here, it will be popular with the tenant voters. I’m more concerned about them raising CGT as a means to control our decision making whether to exit the market.
My Goodness another clueless MP in charge of us making decisions that’s destroying our Business, a top Tory MP indeed, why is She in this job, could She not get a job stacking shelves, She really walked into the hornets nest what 35 comments responses before 9.00 o’clock am, must be a Record on Landlord Today that’s saying something.
Does She not know what she’s looking for she had it already my Rents haven’t gone up in years and many LL’s have taken a big hit and just bailed out Tenants during Covid
I include utilities in the rent so would my tenants not be expected to pay any of the increased utility costs? Across 8 houses housing 35 people at August 2021 prices the total utility bill cost would have been £7068 plus Standing Charges of about £1000. (About £230 per person per year). At October 2022 prices the same quantity of gas and electric will cost £32880 plus Standing Charges of £2336.
So an increase of £27148. Further increases are forecast for January and April.
I've never increased rents previously for existing HMO tenants but with such completely out of control energy prices there's no choice now.
Jo, can you change the system you are using?
Give the tenants credit up to the previous cost of gas and electricity (£8068), and install new pre-payment meters where they have to top up with a card, perhaps so they have to pay the additional cost?
Ellie - no, not really. For rooms in the style of HMOs I do it would be incredibly difficult. All of mine are let to very similar tenants and have good communal areas which most of them use a lot. Existing tenants are part of the interview process for potential new tenants so they tend to become friends and live in the houses as a group rather than random strangers locking themselves away in their own room. I've even had some who have met as random housemates and then gone on to marry eachother.
The tenancy agreements are worded that utilities are included up to a fair usage kWh limit (exact amount varies from house to house).
I can't see high quality graduate professionals taking well to prepayment meters. It's simply not what they have been brought up to do.
So I was up until 3am last night sending an email explaining the increased utility costs and that for the first time ever I need to increase rents for existing tenants who have had their tenancies for over 12 months. Some of the houses have reduced usage over the last year so I want the increases to reflect their energy saving efforts and not just make them think there's no point in trying.
A CPI calculator indicates they should go up by between £43 and £96 per room per month (some haven't had an increase for over 5 years). I spoke to several tenants over the weekend and they were all expecting an increase. Most were very relieved it would be below inflation and certainly not the £100 the media seem obsessed with. It will probably range between £25 and £70 per room, so well below CPI and nowhere close to the real cost increase. Student houses had already had a certain amount of the increased cost factored in. Recently let other rooms had also had some factored in but not to the degree it's turning out to be. The change from 6 month price caps to 3 month ones is especially hard when rents can only be increased annually.
I've got solar panels and batteries on order for 2 houses, I've just installed HMO heating programmers in 2 houses and I think a job lot of electric throws is next on my list. I just hope they'll use them!
You sound as though you are dealing with a difficult problem very well, Jo.
Hi Jo, I have multiple Student HMO's the difference for me is that they all arrive & depart at the same time, so my AST's have utilities included up to a fair usage cap per month and then at the end of the tenancy if they are over that they split the excess equally between them, that allows me to provide utilities, but protects me from significant over spend (in days of old it used to be heating on, window open etc now it just seems to be excessive rate hikes)
She’s an idiot … plain and simple!
Over the last couple of years I have had several properties relet to new tenants, all have increased by between £150 & £200 per month, this is the easiest time to do it, I cannot increase existing tenant's rent by anything like that amount, just one example a 3 bed house £565 a month retired couple mid 70s and the lady has the big C , how can I increase their rent ? market rent would be closer to £900 a month.
Perfect example of those hateful, money grabbing landlords shelter always seem to come across!!! 😉😂👍🏻
Edwin my friend I have a bit of Gaelic but I haven’t come across any Biddy with a name like that.
Career politicians = career fraudsters ( what's in it for me brigade )
Yes Micheal, it was a tad of sarcasm. Ahem !
No wonder the country is in such a mess when we have such clueless ignorant MPs such as this.
They put out a headline grabbing statement to win a few votes without any idea of the short, medium or long term damage & suffering that it would inflict.
As someone else has posted "there's no bad situation that Government intereference cannot make worse".
Of course, now the Tories have stolen the Labour mantle. Labour will have to come up with something even more extreme anti-Landlord to out do them.
Sell now while you can.....before they increase the capital gains tax again to make selling your own property an unsavoury proposition...they control us no matter which way we turn. We buy the properties and then they have full control of them...not quite the 'business' I thought I was investing in when I started over 20 years ago
Already doing it!
Same as us Shane - providing quality homes for 20 + years. Just sold two 3 bed houses and Just served 2 good families with S21s this afternoon - feel like sh*% but we have had enough of this crap.
What planet is this person living on and where does she get such outrageous information...Shelter?. Like another member, this is also my only source of income. We have held our rents for 4 years now, during the entire Covid period. To state "Rents don’t reflect the costs of being a landlord. Rent levels are simply opportunistic", is not only factually incorrect to make such a sweeping statement, but downright insulting to the majority of landlords. Sorry, but firstly I was under the impression all the years I have been renting out a property, that you cannot 'just 'excessively increase' your rent anyway' . During a Fixed period tenancy, it cannot happen unless you agree and even after that, if you think it is not 'fair and reasonable', you are able to contest this or move on. Oh and sorry, forgot, many landlords do actually have mortgages on their properties, but it is OK for them to struggle to make these mortgage payments for their rental properties which have increased excessively over the past few months, as well as their own mortgage and bills !
Government regulators cap energy prices, why would not it not cap rents in the same way? An example of living in a free market until the market goes out of balance.
Energy prices are capped at something like 5 times the normal rate. I would be more than happy for the rent I charge to be capped at five times the present rent.
Mark why not cap Mortgage’s I can’t understand why not . Oh that would never do they would go bust but it’s ok to cap landlords.
Utility companies recently went bankrupt because of changes in the market. Being a landlord comes with risks, as does any business. Buy to let is not in political favour, and that is how it is, expect no allowances. Mum and pop set ups, exit via the gift shop.
Jo. I have have had a few marriages of couples that met in my Lettings as well they even knew what gender they were. All subsequently bought their own places. 2 are now landlords themselves we are like a marriage matchmaker all part of the service
Well Guys you have said it all, but two words sum it up “dilutional fool”
I just been reading up on this lady born in Welwyn Garden City. 5-11-70 Natalie Cecilia Ross (I knew she was too stupid to be Irish). Educated in Kent University must have very poor standards. MP for Dover & Deal when my good friend ran his multi million Construction Business from. Cecilia followed on from her husband Charlie Elphicke hence the name.
MP for Dover & Deal, how secure is that seat? hopefully she'll lose it at the next GE.
Just in case anyone has forgotten Charlie Elphicke was the MP convicted of 3 counts of sexual assault and Natalie Elphicke And four other MPs were obliged to apologise or be suspended from the Commons for improperly trying to influence a judge, when they had signed a letter on parliamentary notepaper to the Lord Chief Justice pressing Mrs Justice Whipple not to disclose character statements in his trial at Southwark.
And these are the decent trustworthy people (not) dictating how the prs should operate - unbelievable!
Andrew. I hope you are right but she has a big Majority but seems to be on the back of her husband if I understood it correctly.
Just out of interest, and whilst i love a little rant on the echo chamber that is landlord today - have any of you written to her with your views?
natalie.elphicke.mp@parliament.uk
I know several who have but I consider it to be a waste of (electronic) ink.
Please login to comment