Three-year tenancy agreements, rental caps, and banning letting agents from charging tenants fees for “low level services”, have been announced as Labour Party policy, to be implemented if they win the General Election next year. Most in the lettings industry have not taken the news well.
ARLA managing director Ian Potter, said, “I am deeply concerned that Labour has today announced a series of ill-thought through proposals which will have an adverse effect on tenants in the private rental sector. The proposals show a real lack of understanding of the rental market. Under their pledge, people struggling with the cost of living will be under even greater pressure.”
These sentiments were echoed by National Landlords Association CEO Richard Lambert, who described the proposal for a default three-year tenancy as “poorly thought through and likely to be completely unworkable.” He also raised concern that the changes risk “putting landlords in a position of conflict with their tenants and leaves future housing provision on a knife edge.”
The British Property Federation’s director of policy, Ian Fletcher, voiced worries that the plans could drive away investment in new housing, thus deepening the housing shortage. He described the rental cap aspect of the proposals as making “no sense.”
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