Possible introduction of controls for the private rented sector
A Labour MP, Jeremy Corbyn spoke at an adjournment debate in the House of Commons yesterday and stated that he has plans to introduce controls to the private rented sector.
Mr Corbyn has named his plan to regulate the letting industry the ‘Private Member’s Bill’ where rent controls would be the main focus of the plan. He spoke about the number of people on the waiting list for social housing, which currently stands at 2.8 million and then compared that figure to the amount of people who are living in the private rented sector, which is at an all time high of 3 million.
He continued by declaring that the private rented sector is the fastest growing sector and the rents have risen at double the rate of wages over the past ten years. The Labour MP then described Germany’s controls over the their private rented sector. 60% of Germany’s housing is privately rented and Germany has permanent tenancies with rent control provided along with a tax regime that encourages good management. He added that Germany has a much more stable society and community as a result of these controls.
Jeremy Corbyn compared Germany to the UK which highlighted the gaping gap between the two countries private rented sector. The UK’s private rented sector only offers short term tenancies of around 6 months and a two months notice period as standard. This causes the movement of tenants and the lack of a permanent home can cause constant worry, especially for a family with children who may have to change their childs school each time they move.
Mr Corbyn is hoping to introduce his Private Member’s Bill to provide security and regulation for those in the private rented sector.
Are you currently living in privately rented accommodation and do you think you would benefit from Jeremy Corbyn’s Private Member’s Bill? If your're a landlord, what are your thoughts on the scheme and how do you think it will affect you and the sector in general?(0) Comments
- Family forced to turn their home into a shed after losing appeal!
- Invitation to Conveyancing Webinar on Commercial Reports
- First ever digital mortgage deed accepted by the Land Registry!
- Invitation for webinar on Agricultural Risks in Property Transaction
- Pali Backed Charity Event Surpasses Target
Subscribe to receive a weekly update of our blog posts