'Labour's plans will push up rents'
Published by Max Salsbury for 24dash.com in Housing and also in Central Government, Regulation
Westminster negotiates lower private rents on former council flats
The Labour Party's plans to introduce an annual indexation of rents will serve only to push up rental costs, the National Landlords Association has warned.
The NLA has produced research findings which reveal that many landlords are choosing not to raise their rents despite local market rates increasing over the past year.
With 45% of landlords claiming that rents have risen in their local area over the past 12 months, only a third say they have raised rents during that period. And just 28% say they plan to raise rents over the coming months.
Furthermore, the NLA says its findings show that the majority of landlords raise rents between tenancies rather than on existing tenants. Of those landlords that increased their rents in the past year, six in ten did so when letting to new tenants, rather than on existing tenancies, and fewer than three in ten said they raise their rents regularly or as part of a scheduled annual increase.
Carolyn Uphill, NLA chairman, said: “Our findings show that the majority of landlords don’t plan to raise rents and don’t simply just increase rents as a matter of course. Our primary concern is that a system of rent indexations – as proposed by Labour – will only serve to encourage a culture of regular rental increases by providing the basis to legitimately escalate rents on a regular and sustainable basis.
“Labour has targeted the UK’s nine million or so renters as they recognise that they will play a major part in deciding outcome of next year’s general election. However, it’s painfully evident that they’ve given no thought to the potential impact of their proposals and tenants should be aware that, sadly, this particular aspect will only leave them worse off.”