The Labour party have set out the restrictions they wish to place on the private rental sector. They include:
– cap rents so they cannot rise by more than the rate of inflation during secure three-year tenancies;
– require landlords and letting agents to disclose the rent levels charged to previous tenants so that householders can negotiate the best possible deal at the start of their contract;
– penalise rogue landlords by reducing buy-to-let tax relief for those who own properties which do not meet basic standards;
– restrict tax relief – the so-called “wear and tear allowance” – available to such landlords. This currently allows landlords to offset 10 per cent of annual rental income – sometimes worth thousands of pounds – on the basis of capital depreciation of furniture and appliances. It can be claimed even when they have not incurred any real costs.
– secure three-year tenancies for all people who want them “so landlords will no longer be able to terminate rental agreements simply to put rents up”;
– a ban on letting agent fees charged to tenants, which Labour claims will save the average renting household £625 over the next parliament;
– setting up a national register of landlords which will enable rogue landlords to be identified and judge whether their proper meet basic standards.
Labour feel that the private rental sector is in some way responsible for the lack of home ownership. If this is their purpose why are they not also looking at the even higher fees charged by mortgage lenders? Surely this is not helping the would be first time buyer get on the housing ladder?