Housing Minister Eddie Hughes has emphatically shut down suggestions that rent controls could be part of PRS reform.
Following the publication of the White Paper – A Fairer Private Rented Sector – some rent campaigners had voiced hopes that it would usher in tougher rent rules, but Hughes told the Commons: “I have to be blunt and say, ‘Under no circumstances’ – that is simply not a Conservative policy and it is not something we are going to pursue.”
Instead, it appears that the less radical option suggested in the White Paper will attempt to curb rises.
Namely, the government is proposing to only allow rent increases once a year (replicating existing mechanisms) and will increase the minimum notice landlords must give of any change in rent to two months.
The use of rent review clauses would also come to an end, preventing tenants being locked into automatic rent increases that are vague or may not reflect changes in the market price.
The White Paper goes on to say: “Most landlords do not increase rents by an unreasonable amount but in cases where increases are disproportionate, we will make sure that tenants have the confidence to challenge unjustified rent increases through the First-tier Tribunal.
“We will prevent the tribunal increasing rent beyond the amount landlords initially asked for when they proposed a rent increase.”
Commentary within the notes published alongside the Queen’s Speech had also suggested the government would consider rent controls ‘via the back door’.
But not all Conservatives agree with him. A letter in The Telegraph from Devon-based Tory supported John Dodwell, in response to a column within the paper yesterday criticising the rent reform White Paper, said: “I believe in the Conservative principles of self-reliance and independence, but it is obvious that a “free market” in property – whether buying or renting – is no longer tenable.
“For such a market to exist and operate fairly, it requires a reasonable equilibrium between supply and demand, and there is little chance of that happening.”
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