Report on rent regulation and calls for unrestricted tenancies in the PRS
- 06 Jan
Civitas, an independent right-of-centre think tank has noted that it is necessary to ban ‘inflation-busting' rent rises.
Also, tenancies in the private rented sector (PRS) should become unlimited and unrestricted.
In a recent report, Civitas also mentioned that Ed Miliband's controversial proposals for reform of the PRS ‘do not go far enough', Inside Housing reports.
It advised that the obtainability of housing benefit is creating a cycle of increased prices as landlords are able to fix ‘artificially high' rents at the lower end of the market.
The report stated that rent should not be allowed to increase once set at the start of the tenancy. Also, it was stated that tenants should be allowed to remain in the property for as long as they need and desire to make the lease appropriate for families.
It was stated, ‘In the context of this vicious circle a system of rent regulation would be justified, to curb further inflation in the cost of private renting and so limit the numbers of additional people dragged into housing benefit dependency.'
This report came along with campaign group Generation Rent's revelation that the majority of people support the return of some sort of rent control. Furthermore, rent controls would not damage housing supply as landlords were usually more encouraged by rising housing priced over the ability to charge higher rents.
Labour leader Ed Miliband stated last year that a future Labour government would introduce obligatory three-year tenancies with limited rent increases within them.
The Civitas report stated, ‘Three years is not enough. The scale of the challenge in the housing market requires more ambitious solutions'.
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