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Diane Abbott MP is calling for rent controls in the private rental sector.The prospective London Mayor proposes a calculation for her rent control, restricting monthly rents to no more than half of a properties annual council tax bill.
Abbott says that those landlords who wish to opt out of her rent control scheme can, as long as they pay a surcharge on any rental amounts that are in excess of her proposed rental cap formula.
The money from these surcharges would then be fed into a newly created fund controlled by the Mayor of London and used to fund the building of new social housing.
Abbott argues : “A major international city without measures to stabilise rent runs the risk of rents spiralling out of people’s reach. It is no coincidence that New York, Paris and Berlin all have some version of rent control. For too long politicians have rejected any form of rent controls but it is time to look at the issue again.”
She has sent these proposals to the Prime Minister and Ed Miliband, including demands for
these powers to be granted to other local authorities across the country, if their local public want it.
The revolution is upon us....
The Standard report on Abbott's rent controls
Channel 4 interview Abbott about rent control proposal
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16 comments:
She's mad! Most Landlords are Private Individuals who would be broke by such a stupid scheme.
Definately politicians have gone potty and think landlords have deep pockets.
They should do a survey on the damage the cil levy has done to deter property developers refurbishing and adding value to properties ,creating new homes for tenants.
I for one have shelved projects as I don't want to pay into their coffers.
There is a presumption that all landlords are multi-millionaires who quaff champagne whilst bathing in asses' milk.... well that's my Friday evening planned.
I am a landlord in the north east. My rents would all go up if this was the case! Pretty much like the last time Labour meddled with the rent system. All rents rose dramatically.
Presume she has thought this through and will be able to find accommodation for all those tenants that are left homeless after the landlords sell up? There is no problem that a socalist political cannot make a lot worse. Have they really leaned nothing from the days of rent control and regulation that killed the rental market - clearly they have not.
Hear hear... I thought all landlords did this on a Friday night!
Wow! Someone with such short-sighted visions is actually allowed to run for Mayor of London?
65 - 75% of the total yearly council tax bill would be more reasonable and workable. This would mean rents couldn't get any higher, and might have to be lowered, but not by so much it puts landlords out of business.
As her proposal stands it is unreasonable and unworkable - for an educated, responsible top politician to suggest such a thing to the public is nothing short of ridiculous - either she dreams up policies scribbled on the proverbial paperbag, without bothering to research them, or she is driven so much by socialist ideology that she doesn't care. Neither of these characteristics should be demonstrated by any serious politician from a mainstream party - let alone one of Diane's standing! Perhaps next week she can try to put the supermarkets out of business, for charging poor people too much for their food!
Diane talks about rent spiraling out of people's reach. If that happened we'd have voids and no tenants; of course rents can't rise beyond people's ability to pay. Typical politician's comment away from the real world.
I am old enough to remember domestic rates which were based on perceived rental income. Have we come full circle?
This really did make me lol!
How about limiting Council Tax to the same as rent?
That would put a spoke in the wheels of all these tax & spend politcians!
Ian Price, Landlord
Its a free market! trying to control rents will not work!
if this does happen,they will need to control ALL costs landlords suffer,like interest rates,vat on repairs etc insurance,The idiots that run this country into the ground ! and tax us to death !
Well guess she is looking for votes from the renters because the landlords will not vote for her and she will not get a second term as the evicted homeless tenants will not vote for her. Never heard anything so silly. It is a free market.
Please do not let this woman become a candidate! If she is publishing this rubbish what is she thinking privately? and planning to put into action in the future. This woman is reckless and dangerous. As a woman I am all for women in business and politics but not this one! with thoughts and possible policies like this. I am not greedy just want to have the money to maintain my properties when tenants damage them and I have no recourse as everything now seems to be in the tenants favour so how will it be if she is voted in as Mayor. Please nip this madness in the bud now before it goes any further. I would actively campaign against her being a candidate!
I am not going to sign this as anonymous as many others have done I will put my name to my comment and be ready to defend it!
Insanity in all its glory
This just doesn't make sense. I must be missing something. The example I will use is the house I rent:
Council tax = £180 per month for a 4 bedroom detached house. Current rent is £860 which is below market vale.
Surely she cannot be saying the rent would become £90 per month?
or is she saying monthly rent should be 50% of the annual rent council tax liability so in my case £1080 (£180 x 12 x 50%)?
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