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Saturday, May 07, 2016

How will new Mayor impact London landlords?

How will the election of Sadiq Khan to the position of London Mayor impact on landlords?

Research into cap on London rents

According to research featured by Property Week the new Mayors policy of obtaining the power to freeze rents will potentially impact to the tune of £11,000 per property for some top landlords in the most expensive areas such as Kensington.  Research by property consultancy Daniel Watney indicates that London landlords stand to lose an average of £5,500 over 5 years.  Rents in London are currently projected to increase by 4.1% over the next 5 years according to the Royal Institute of Chartered Surveyors (RICS).  We at Property Hawk have highlighted the research that show that rent controls will only have the impact of forcing landlords out of the industry, restricting supply further.   In the short term whilst rents remain controlled their is a temporary halt in rises but as soon as market condition return rents will rise faster.

New London Mayor's proposals for Landlords

The other brilliant ideas on offer from the new London Mayor is a website that names and shames rogue landlords based on an idea imported from New York. No problem with that, bad landlords need a good kicking.

Khan also wants to work with London Boroughs to promote their landlord licensing schemes.  I've written at length about what I think of any kind of landlord licensing scheme and how licensing has clearly failed in Scotland.

Most hilariously he wants to set up a London wide letting agency for 'good' landlords.  Great ...a whole new bureaucracy for London providing a service already provided by hundreds of private letting agents.

Again it's a politician sidestepping the real issue which is that we need more homes.  This is far less easy to deliver and the results more difficult to measure than these headline grabbing and easy to deliver tokenistic steps proposed by Khan.

NLA challenges the new London Mayor to put his money where his mouth is.

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