Labour Would Cap Landlords On Rent

Labour Would Cap Landlords On Rent.

Labour leader, Ed Milliband last week reaffirmed his party’s position with regard to landlords, tenants and the buy to let market.

Labour on Buy to Let

Assured Short-hold Tenancy could be extended to 3 years – giving tenants the opportunity to secure property for a longer period and have security of known rents and known rent increases.

Cap rents and rent rises.  Labour legislate to restrict rents to the market average for the area as well as capping rent rises.

Comment

Yet again this is note chasing.  The property market is a free market dictated by supply and demand economics.  If demand for a desirable area is high, rents will of course go up.

If the housing shortage continues and the population continues to increase, again demand exceeds supply and rents will rise.

We have already seen reports that if the housing shortage is not solved, some economic commentators are suggesting that property values could quadruple in the next 10 years or so.