The Green Party has unveiled plans to cap rent rises at 2% or less. However, Propertymark warns the proposals could drive landlords out of the market.
Party leader Zack Polanski announced the measures at the Greens’ conference in Brighton today.
The party wants a three-year emergency cap on private rent increases. Annual rises would be limited to inflation, wage growth or 2%, whichever is lowest.
The proposals would restrict landlords’ ability to increase rents, even where their costs are rising.
Polanski said the party wanted to end sudden rent increases. He also pledged to stop landlords using higher rents to force tenants out of their homes.
The Greens would introduce a national fair rents guarantee, which Polanski claimed would keep rents affordable in the long term.
He criticised Labour’s approach to rental reform, arguing that its existing measures do not go far enough.
Polanski also accused ministers of dismissing rent controls. He suggested the government would not introduce stronger protections unless it came under pressure to do so.
The Green leader also called for an end to the leasehold system and a substantial increase in council housebuilding.
Propertymark warns rent caps could backfire
Propertymark has challenged the proposals. It warns that rent controls could discourage investment and further reduce the supply of rental homes.
Timothy Douglas, Propertymark’s head of policy and campaigns, said: “Tenants are facing genuine affordability pressures but rent caps do not address the underlying shortage of homes or the rising costs of providing and maintaining them.
“If policymakers want to make renting more affordable in the long term, the priority must be increasing housing supply and creating the conditions for responsible investment in the private rented sector.
“Propertymark has consistently warned against rent controls because they can have unintended consequences. In Scotland, our members have reported rent increases between tenancies, stalled investment and landlords leaving the market following temporary rent caps. Evidence from rent-control schemes internationally also suggests they can reduce investment and the supply of rental homes.
“Any policy to support tenants must therefore consider both the immediate impact on renters and the longer-term need to maintain and increase the supply of homes in an already constrained market.”
The Greens have yet to explain how their national fair rents guarantee would operate or how the proposed cap would be enforced.
Comments (3)
I own two rental properties and have never increased the rent for tenants in-situ. Instead, I use the opportunity of the inevitable void periods to re-evaluate market value rent and increase at this point. This carries a slight risk for me if a tenant stays put for many years, but so far it’s worked out ok for me and is appreciated by my tenants. If controls like the loony Greens are promoting were to become reality, I would increase by the maximum percentage each year to reduce risk which would clearly have a negative effect on my tenants. Do these politicians not understand “unintended consequence”
It is amazing how political parties completely forget history. The Greens’ forerunners – Loony Left Labour – brought in rent controls under the Rent Act 1974. That and tenant family succession (wait for Polanski to bring that up next!) led to virtually no private rentals for a decade and a half, except for student and holiday lets. At least we had loads of council houses for rent then. Now the streets will be full of more homeless. Great socialist policy!
In the extremely unlikely event that the Party of Nutters is ever in a position to introduce this, landlords will just sell up and tell Zack/Dave to far cough.