Propertymark has welcomed the decision by the UK Government not to introduce rent controls. The organisation believes such controls can discourage investment and aren’t effective in regulating rent levels.
The introduction of rent controls could also lead to a smaller private rented sector, potentially harming vulnerable tenants.
Recent rent increases can be attributed to rising costs that landlords are currently facing, due to new legislative requirements and various tax changes.
These have added significant financial burdens on them. Propertymark has therefore urged the government to reconsider these decisions.
They recommend reintroducing tax relief for landlords and reducing the three per cent levy on buy-to-let purchases. This, they believe, will bring more rental properties into the market.
During the Second Reading debate of the Renters (Reform) Bill, discussions highlighted the need for the government to review all taxes that affect private landlords. With any new legislation, the aim should be to establish policies that support growth and address the current demand crisis.
Michael Gove, Housing Secretary, has communicated to the Select Committee on Housing about his decision against making Valuation Office Agency data public. He mentioned: “Rents in the private rented sector should be agreed between landlords and tenants, and it is not for government to intervene in this. We are clear that landlords must be able to raise rents in line with market prices, but that rent increases which are significantly above this should not be used as a means of backdoor eviction.”
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Propertymark sees no advantages in restricting rent increases or introducing any rent stabilisation measures. Flexible tenancies and rent prices driven by market forces have led to the success of the private rented sector across the UK.
“It is vital that landlords are not deterred from the market and have finances to invest and improve property standards. Increasing the supply of properties, rather than capping rents will ensure rents fall and agents and their landlords stay in the market.”
