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Rent Control “could make tenants worse off” says Residents Landlords Association
The Residential Landlords Association says controls which pegged private sector rents to the cost of living could make tenants worse off, not better.
The RLA claims that latest figures from the Office for National Statistics show that even in London, where properties are in high demand, rents rose by an average of 1.4 per cent in the 12 months to March. This compares to a consumer prices index rate of 1.7 per cent and a retail prices index rate of 2.5 per cent over the same period.
The RLA, which represents private landlords across the UK, says the figures show that pegging rents to inflation would leave many tenants worse off.
“Rents in the private sector are continuing to rise by less than inflation. The sector offers a good and flexible option for many tenants in the face of much steeper house price rises. It’s important that people who talk about controlling rents through linking them to inflation realise that this could in fact hit many tenants,” insists Chris Town, vice-chair of the RLA.
He says the private sector is keen to expand to meet the need for homes which pushes rents up in areas of the country where demand is most acute.
Private sector rents have risen by 9.5 per cent across England over the past nine years and in London by 12.5 per cent. This compares with a Retail Price Index increase of 33.8 per cent and a CPI increase of 13.3 per cent over the same period.
By contrast, council rents rose by 42.5 per cent and housing association rents by 43.8 per cent over the eight years between 2005 and 2013.
