Rent controls - good or bad?

[salou4]

labour arent restricting a landlord from increasing rents. Rent increases will be capped at a more favourable level to protect renters.

 

Ahh, so rent is increased at the beginning of the tenancy to allow for any unforeseen circumstances a couple of years down the line.

Is that good for the tenant.

 

---------- Post added 05-05-2015 at 15:14 ----------

 

You should be able to absorb that eventuality. That's part of the risk of being in business...

 

OK. And most people with money assess a risk before investing it. So some may now decide, (under Labour), that its not worth the risk as they don't want to risk being out of pocket so instead they invest their pension in something else like shares, resulting in a smaller rented sector and less choice for tenants..

 

That does seem an odd thing for a government to try and encourage considering the shortage of good rental properties.

Edited May 5, 2015 by salou4

[GerryBooth]

Yes you found the number of people in receipt of HB and it did in fact confirm that approximately 1/5th of all households are in receipt of HB.

 

How many of this 1/5 is in social housing? The rate the tenant is entitled to is the same whether Social or private landlord so I cant see the problem.

 

I have a tenant on full HB because she is on disability and claims it. Fortunate for me she has it paid direct. I have another tenant who pays her full rent on time but she gets some HB paid to her. As far as I am concerned that is her business not mine.

 

As for the rent I charge well £50 a month under the going rate as I dont have any fees to pay so I discount the rent. My choice. But these properties are in Hillsborough and are much in demand. The tenants want Hillsborough and Social housing is almost non existing in Hillsborough.

 

But thats their choice, they could always live in S4 where the rents are cheaper but then so is the purchase price of the house.

[loraward]

No, I didn't say anything about households, I asked you for your source.

 

No it didn't say anything about households but it does in fact confirm that aprox 1/5th of households are in receipt of HB.

[Hippogriff]

OK. And most people with money assess a risk before investing it. So some may now decide, (under Labour), that its not worth the risk as they don't want to risk being out of pocket so instead they invest their pension in something else like shares, resulting in a smaller rented sector and less choice for tenants..

 

Indeed, but Labour probably isn't that concerned about Landlords not getting in on the game (the gravy train as they'll see it) but rather more concerned about Tenants currently perceived to be getting a raw deal from existing Landlords. It remains to be seen whether Labour getting into power and introducing these kinds of measures would instigate an exodus of Landlords from the private rental sector... but, then again, do they care? Would it really result in a reduction in available rental properties... the properties don't just disappear into thin air.

 

Someone else will be along to buy them for letting... and, if not, to live in and, if not, the price will drop and drop... and drop and then either a) or b) again.

[I1L2T3]

Indeed, but Labour probably isn't that concerned about Landlords not getting in on the game (the gravy train as they'll see it) but rather more concerned about Tenants currently perceived to be getting a raw deal from existing Landlords. It remains to be seen whether Labour getting into power and introducing these kinds of measures would instigate an exodus of Landlords from the private rental sector... but, then again, do they care? Would it really result in a reduction in available rental properties... the properties don't just disappear into thin air.

 

Someone else will be along to buy them for letting... and, if not, to live in and, if not, the price will drop and drop... and drop and then either a) or b) again.

 

amateur landlords with thin margins would probably exit, but only if house prices fell. The prospect of capital gains might tempt many of them to stick with it.

 

Can't remember the exact numbers but wasn't 15-20% of Labour MPs and peers involved in buy to let. Labour won't change anything. Turkeys don't vote for Christmas.

[Cyclone]

No it didn't say anything about households but it does in fact confirm that aprox 1/5th of households are in receipt of HB.

 

No it didn't. It confirmed that 10% of the population, half the number you're claiming are in receipt.

 

Do you have a source for your number or did you just make it up?

 

---------- Post added 05-05-2015 at 21:58 ----------

 

Indeed, but Labour probably isn't that concerned about Landlords not getting in on the game (the gravy train as they'll see it) but rather more concerned about Tenants currently perceived to be getting a raw deal from existing Landlords. It remains to be seen whether Labour getting into power and introducing these kinds of measures would instigate an exodus of Landlords from the private rental sector... but, then again, do they care? Would it really result in a reduction in available rental properties... the properties don't just disappear into thin air.

 

Someone else will be along to buy them for letting... and, if not, to live in and, if not, the price will drop and drop... and drop and then either a) or b) again.

 

A mass of landlords exiting would cause a house price crash and destabilise the entire economy.

[I1L2T3]

 

A mass of landlords exiting would cause a house price crash and destabilise the entire economy.

 

Unlikely. There is pent-up demand for properties to purchase. A modest reduction in prices of 10-20% could actually be economically beneficial. It would allow landlords to exit without too much of a loss and get people on the housing ladder, reversing the trend towards renting.

[loraward]

No it didn't. It confirmed that 10% of the population, half the number you're claiming are in receipt.

 

Do you have a source for your number or did you just make it up?

 

---------- Post added 05-05-2015 at 21:58 ----------

 

 

A mass of landlords exiting would cause a house price crash and destabilise the entire economy.

 

I didn't make a claim about the number or personage of people in receipt of HB. My claim was about the number of households, aprox 26 million households in the UK, you claim 5 million people are in receipt of HB and that equates to aprox 1/5th of households in reciept of HB.

 

An economy based on house prices deserves to crash, but I doubt that it would, it would simply slow down to a more sustainable level.

[psynuk]

Wheres chem1st ? I would have thought this would be right up his street.

[Guest sibon]

 

A mass of landlords exiting would cause a house price crash and destabilise the entire economy.

 

A house price crash might well be good for the economy.

 

I can't see the problem with rent control anyway. It works perfectly well in New York. It worked perfectly well here until Mrs Thatcher dispensed with it. Ensuring that tenants have decent housing at a decent price is a laudable aim. It does need some thought, because landlords need the capacity to make a decent return too. At the moment, the market seems to favour the landlord over the tenant. Maybe a shift would be good for us all.