Labour has announced plans to shake up private renting and save the average rented £624 if it comes to power.
The opposition’s policies include banning “rip-off” letting agent fees for tenants, legislation for three-year tenancies, and an end to “excessive rent rises” by putting a ceiling on rent increases during the new three-year tenancies.
Labour leader Ed Miliband MP said Generation Rent has been ignored and let down by the current government.
“The amount needed for a deposit on a home has risen beyond the reach of millions of young people and families starting out. As well as building more houses and helping people get on the property ladder, a Labour government will take action immediately to make life better for all those renting their home.
“Too often people having to pay hundreds of pounds in letting fees and other upfront costs when they move into their new home. It doesn’t happen when you buy a house – the estate agents’ fees are paid by the person selling – so why are people renting a home having to pay?
“Moving house is an expensive time anyway and there is no reason why Generation Rent should be ripped by rules which don’t apply to property owners. The first Queen’s Speech of the next Labour government will set out legislation to ban letting agent fees charged to tenants. It will save Generation Rent £2.5 billion over the next parliament. And it will save the typical renter £624.”
On a visit to Hampstead & Kilburn Emma Reynolds MP, Labour’s shadow housing minister, called on Generation Rent to make its voice heard in the election.
She said: “Nine million people, including over one million families with children, rent from a private landlord, but the truth is they’re getting a raw deal.
“Renters have to work two days a week – the equivalent of working every day until the 28th May this year – before they pay the rent. But in return they get no stability, poor standards and they have to pay hundreds of pounds in rip-off letting agent fees.
“Under David Cameron house building has fallen to the lowest levels in peacetime since the 1920s and the Tories have refused to stand-up for Generation Rent.
“Labour is pledging to give private renters a fairer deal. A Labour Government will introduce three year stable tenancies, put a ceiling on rent rises over the course of the contracts, ban letting agent fees on tenants, drive up standards and tackle poor energy efficiency. We are also committed to tackling the root causes of this crisis by getting at least 200,000 homes built a year by 2020.
“From now until the General Election I will be in key seats talking to voters about our plans for housing. And as part of voter registration week, I will be encouraging private renters, who are one of the most under-registered groups, to get registered so that their voice can be heard in May.
“Generation rent deserves a fairer deal. Only a Labour government is set on delivering it.”
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Comments
9 million private renters?
I see now that Labour are blatantly trying to buy votes!
Do they not understand that if Letting Agents cannot charge for an application fee then it will have to be paid for by the landlord. What do you think the landlord will do? Put the rent up of course.
These Labour chappies are quite clearly not very clever!
“Too often people having to pay hundreds of pounds in letting fees and other upfront costs when they move into their new home. It doesn’t happen when you buy a house"
I can only assume Mr Millipede has never had to dirty his hands with the mechanics of buying a house. What about the cost of a survey? The cost for solicitors? The cost for mortgage arrangement fees? The last time I bought a house these upfront fees amounted to over £2,500.
Totally agree with Michella and W Woods....
Its suddenly a landlords fault that it costs so much for a deposit to buy a property. I think there are other more urgent issues to tackle than another dig at landlords.
Many will simply leave the sector as a result.
I see they want to improve energy efficiency for the tree huggers, so by telling a landlord they are getting less, how can this be done? How will it be paid for?
Trying to please everyone never works, just hope people see through this rubbish proposal which seems to be their "flagship" one too....
Another load of twaddle from labour.
As if anyone needed another reason NOT to vote for them.
Another 'Bash The Landlord' scheme proposed by Labour. Good landlords look after their tenants and their properties.
This scheme will only punish the good landlords, the ones they want to get at operate under the radar anyway.
What it does mean is that if this legislation ever came into force every tenant would get a rent rise every year irrespective of circumstances.
Its a bit like the proposed controls on utility prices, all it's done is to make sure that current prices are kept as high as possible 'Just in Case'