OpenRent Community

Rent Control in London: What's Happening?

Originally published at: https://blog.openrent.co.uk/rent-control-in-london-whats-happening/

Sadiq Khan, Mayor of London, has published a report demanding he gain the ability to impose rent controls on the London rental market.  The report also asked for powers to: Scrap section 21 (which 90% of landlords oppose)Scrap break clauses Increase the notice periods landlords must serve to four monthsImproving access to tenant-landlord dispute resolution It…

I was wondering, would the rent controls apply to larger Limited Companies or only to small and private landlords?

Limited companies can claim for various things improving reducing their taxes and improving their profits, whereas the private landlord is hit more and more by the taxman.
If the rules are not equal for both, then all it will do is get rid of the private landlords and increase the portfolio of the larger investment companies. This will not have much effect on house prices as the companies will continue to buy and maintain high prices. Any la should be the same for all and not favour the larger richer companies, as all laws seem to do.

Kemal

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We don’t know the details yet unfortunately. I imagine it would apply to any lets, regardless of who the landlord is (company or private landlord).

I think this is the result of a deliberate change in Government policy to ‘professionalise’ the sector.

I fully support the scrapping of disgusting section 1 notices and the mayors plans and I will leave open rent if you officially oppose them. I do not want open rent to get involved in the politics and supporting the tories and right wing policies.

Are you a Tenant or landlord?

I’m a landlord that doesnt believe we should be free to do what we want that no fault evictions are immoral and that I’m not just an investor but supporting people in a house and that gives me responsibilities to the person and to ensure that the person can live in a safe secure and affordable accommodation. I think it’s wrong to make large profits, rents should covers costs and support the proposals which will stop rouge and dodgy landlords which large numbers of us are.

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Lloyd2 Then no doubt mr Landlord you will GIVE all your properties AWAY. to a charity that looks after the homeless. Will you let us know when you have done this? It is truely refreshing to meet a LANDLORD of principle. If only I were like that >But I want to make money to live a good life on. Will you please let us know when you have given them away .so we can worship at your tomb?

I believe in living a fair life, in making a good profit, in being about to live well, to go on holiday a few times a year and treat others well too. If you are making more than that, then well you can afford a bit more regulation cant you and should really just shut up and accept regulation that treat your tenants like human beings. Until then thank god I’m not your tenants Mr Rachman,

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The real issue is supply and demand, increase the number of affordable housing to rent or buy, this would bring down prices. Unfortunately successive governments have sold affordable housing which has lead to a housing crisis. If rent controls are implemented you can guarantee that rents will not go down and it will become common practice to increase then each year by the full amount allowed which will not help the average tenant.

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Holidays a few times a year. so you are not a landlord you are a tenant!!! Funny how some people just resort to insults to make themselves feel better

Section 21 notices are not ‘no fault’ eviction notices. That is a complete misnomer spread by anti-landlord groups. It is explained in this article here:

https://www.conservativehome.com/localgovernment/2019/07/rosalind-beck-the-governments-war-on-landlords-will-only-make-the-housing-crisis-worse-for-the-lowest-paid.html

In addition, rent controls in London will be hugely damaging. Already yields are extremely low in London. Many landlords must be operating at a loss because of this and because of the invidious Section 24 which has turned many operations into loss-makers. To then try and push rents down, regardless of landlords’ costs, including the huge new tax levy on turnover will mean bankruptcies, a shrinking of the PRS in London and increased homelessness. And I speak as someone who lives in South Wales and on a personal level has nothing to fear from rent controls

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I cant get my head around the fact that in London you can pay up to 40% of your income in rent… compared to 17% elsewhere

Yeah it’s really crap Colin :frowning:

Oh and that income is taxed :upside_down_face:

Yes I get that there must be a lot of people struggling if they dont own their own home.