Westminster MPs are to be asked once again to ban letting agents’ fees to tenants and bring in rent controls.
In an opposition debate, Labour is proposing:
“That this House recognises the private rented sector’s growing role in meeting housing need; notes that there are nine million people, including more than one million families with more than two million children, now renting privately; notes with concern the lack of stability and certainty that the sector provides to those who rent privately; further notes the increasing cost of renting and the unreasonable letting agent fees levied on tenants; calls on the Government to bring forward legislative proposals to reform the sector by banning letting agent fees being charged to tenants and making three year tenancies the standard for those who rent their homes in the private sector; and further calls on the Government to act on unpredictable rent rises by prohibiting excessive rent rises during longer-term tenancies.”
Green MP Caroline Lucas has tabled an amendment which calls for five-year tenancies to be the standard, and for the introduction of “smart” rent controls.
Meanwhile, a possibly more crucial debate on rent controls is taking place today in the Scottish parliament.
Scottish MPs (MSPs) have been flooded with emails and letters from letting agents in advance of the debate on the Housing Bill.
Agents are concerned that Labour’s proposed amendments, to bring in longer mandatory tenancies and rent controls, will get through.
Both the Council of Letting Agents and Letscotland have expressed serious concerns.
Kathleen Gell, convener of the CLA, said: “The proposals will only serve to drive landlords and letting agents out of the market and restrict future investment and lending at a time when there is a greater need than ever for new housing stock to be brought into the sector.
“We are really concerned about proposals to introduce longer tenancies. There is little evidence to support claims that tenants are being unfairly evicted: 90% of tenancies are ended by tenants themselves.
“And in a time of increasing costs and regulation on the letting industry, there is no evidence that rent controls are desirable or necessary.
“We have sent hundreds of letters and emails outlining these concerns in advance of today’s debate and received a number of supportive responses.”
Letscotland chairman Malcolm Warrack said: “The market is working well, and an attempt to interfere through rent controls and tenure reform will create significant uncertainty and discourage investment.
“This will inevitably lead to a reduction in the supply of rental homes, which will push up the price of renting.
“Labour’s amendments, in other words, could cause precisely the problem they are trying to solve.”
What starts out north of the border is destined to come south (viz agents' fees for tenants). Roll on September and (possible) independence then we can ignore all this nonsense.
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