Today we would like to ask the government this:
Can you categorically rule out a national rent cap?
[ UPDATE ]
So now we ask the question:
How will you bridge the gap between an improving economy and rising rents
a lack of housing stock and capped benefits? ? ?
At Landlord Referencing Services we seriously wonder whether the coalition are priming the entire Private Rented Sector, in order to introduce a legislative cap on rental properties, at a national level.
CASTING ASPERSIONS! we hear you cry…
At Landlord Referencing we believe that a bit of speculation is needed in these times of constant government U-turns; to avoid more. So please read on as to why and how Landlord Referencing Services wonder whether national rent caps could be just around the corner; after-all, we were not wrong about:
Under the Conservative/LibDem coalition the PRS has recently undergone a revolution of data gathering processes, e.g.
- Impending welfare reform changes have meant re-calculation of every single benefit received in the UK.
- April 2012 :Every rental property, commercial or residential, must have an EPC commissioned before marketing to let.
- May 2012 : Deposit Protection – All tenants deposits must be protected within 60 days of a tenancy starting.
(England & Wales)
- Newham council introduce first mandatory licensing scheme, to go live in January 2013.
- Welsh landlords face compulsory accreditation, expected to go live within 12 months…
Clearly this data gathering process by the government is identifying every landlord in the country, every rented property in the country, along with the areas and streets with which they are located in.
Therefore once all the required data is gathered; is the Private Rented Sector looking at its final nail in the coffin AKA rent capping ?
A rent cap could easily be introduced in a similar fashion to council tax rate bands, e.g.
A one bedroom flat, in a marginally depressed area, in Band A ; annual council tax payable = £800.
50% of this could then represent the monthly rent via the rent cap = £92.30 a week/£400 a month for a one bedroom flat.
Basically meaning that rent would be proportionate to the council tax band area.
The recurrent trend indicates that the government is looking to accredit every single landlord in the country, register every single rent in the county and register every single property in the country – why is this?
Furthermore, how will the government continue to support welfare payments as rents rise without a long term view to capping all rents?
With benefits continually being cut and the shortage of P.R.S stock and housing stock in general, the government have no option but to look to the P.R.S to house people. But as our economy grows rental property prices will inevitably increase, creating a greater divide between rising rents and capped benefits.
The government openly admit that by reducing benefits their aim was to bring private rental prices down but they have either remained stable or risen, and as the economy returns they will inevitably rise again.
Which leads us back to the only answer; national rent capping or homelessness…?
Are we being unduly paranoid OR are we seeing through the governments smoke and mirrors?