Ed Miliband and the Labour Party want to provide greater protection to tenants against rent rises and rogue landlords if they win the next election.
Labour intend to compel landlords to offer three year tenancies in order to provide individuals, couples and families with more stability. The party also plans to limit how much rents can rise each year.
If buy to let landlords wish to end a tenancy, with a two-month notice period, they will face stringent requirements.
Caps would be based on “average market rents”, with “an appropriate benchmark” set by the Royal Institute of Chartered Surveyors.
Average rents have increased by 13 per cent since 2010, causing many tenants to complain of hardship.
Living standards are to be a key focus of the Labour Party’s election manifesto, but critics argue that such measures could deter landlords from renting out properties, or dissuade them from carrying out maintenance and re-decorating.
The new policy has been welcomed by some, however, such as Generation Rent’s Alex Hilton, who is quoted in the Telegraph as saying: “Short tenancies and eviction-on-demand give landlords a brutal grip over their tenants’ lives.”
However, the Conservatives and some economists maintain that what are seen by some as “rent controls” will make fewer properties available.
Are you one of our let property insurance customers? What do you think of Ed Miliband’s plans to change the way tenancies function? As always, leave your thoughts below