Linking future rent increases to inflation would cost tenants more than the current system, the Residential Landlords Association (RLA) has claimed.
Linking future rent increases to inflation would cost tenants more than the current system, the Residential Landlords Association (RLA) has claimed.
Last year the Labour Party announced it would look to implement rent controls to limit future rises. While details have been scarce since, in the party’s election manifesto it committed to an inflation cap on rent rises.
However, the RLA argues that the latest data demonstrates that such a move would leave tenants worse off.
The latest rent index from the Office for National Statistics, published this week, revealed that private sector rents across Britain increased by 1.1% in the year to January 2018, while London saw an increase of just 0.2%.
But over the same period, the Consumer Prices Index measurement of inflation reached 2.7%, while the Retails Prices Index measurement increased to 4%.
The RLA added that these figures further highlight that social sector rent increases, which are based on CPI plus 1%, are increasing proportionally more than private sector rents.
David Smith, policy director at the RLA, said that rent controls are not only unnecessary but would act against the interests of tenants by making them worse off.
He continued: “Rent rises would be even lower if it was not for the punitive tax increases which the Government has imposed on the sector and which will begin to bite far more over the coming years.”
