黑洞社区

Labour鈥檚 rent control proposals could 鈥渞isk undermining鈥� or even be 鈥渃atastrophic鈥� for the UK鈥檚 fledgling private rented sector, housing experts have warned.

Labour leader Ed Miliband this week announced his party would cap rents at the rate of inflation and make three-year fixed tenancies standard, as the party put housing at the heart of its election campaign.

But Labour鈥檚 rent controls policy has alarmed housing experts. The RICS warned the proposals were ill-considered and 鈥渞isk undermining鈥� investment in the private rented sector (PRS).

Jeremy Blackburn, head of policy at the RICS, criticised Labour鈥檚 policy for 鈥渇ailing to take a holistic look at inflation, market value and the living wage across the whole of the UK鈥�.

Blackburn added: 鈥淐apping rent inflation through three-year fixed tenancies is likely to impact investment into the existing quality of homes in the PRS and could force smaller landlords to exit the market - limiting supply at a time when the UK faces a chronic shortage of homes across all tenures.鈥�

Mark Farmer, head of residential at EC Harris, warned the rent control proposals could be 鈥減otentially catastrophic鈥� for PRS and large-scale investors 鈥渄o not want to be pegged on their investment鈥�.

Farmer said he believed some PRS investors were already 鈥渟eriously questioning their investment plans鈥� for the sector.

Miliband鈥檚 rent controls announcement was followed with a further Labour housing policy, with the party pledging to exempt first-time buyers from stamp duty on properties worth up to 拢300,000.

Housing experts told 黑洞社区 they felt Labour鈥檚 policies - which also include giving councils powers to compulsory purchase land that developers do not build on quickly enough and giving locals priority access to new homes - did not go far enough to address the chronic under-supply of homes in the UK.

Clarissa Corbisiero, head of policy at the National Housing Federation, said she was 鈥渄isappointed with the ambition鈥� shown by Labour鈥檚 housing announcements and believed the party would fall 鈥渁t least 40,000 homes a year鈥� short of their 200,000 homes a year target.