Labour's rent cap policy

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    Labour's rent cap policy

    Just looking into things if Labour win as trying to decide if I try to ride things out or sell up quick. As well as now being double-licensed in the way of landlord license and HMO (specific to my area) a rent cap in proportion to local wages could result in me making serious losses. I'm about 50-60% geared across 7 rentals and with current low interest rates the rental income has been good, but now the loss of mortgage interest relief is taking effect and a rent cap could decrease income by a few hundred pounds a month. Could they really cap rents for private rentals, or is this an unrealistic policy?

    #2
    Originally posted by Parchester View Post
    Could they really cap rents for private rentals, or is this an unrealistic policy?
    Its like trying to ask whether Stalin (JC's friend) could really execute 353,074 people in 1937 and 328,612 people in 1938, or whether Mao Zedong (another friend) with his little red book could have slaughtered and starved millions of people.

    Yes, idealogues with little red books and with despicable friends and policies and who wave those books in the House of Commons could do pretty much anything. And with an initially compliant, ignorant completely thick electorate -- a rent cap is hardly an unrealistic start. These are evil people - don't think your money or your children really matter that much to them.

    Comment


      #3
      Rent caps are likely to freeze rents and limit increases rather than reduce existing arrangements.
      Depending on how it's done, it can often increase rents for new tenancies (as landlord's hedge against long term tenants).

      I wouldn't worry about a future labour government executing people, that's a little unlikely.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        Originally posted by jpkeates View Post
        I wouldn't worry about a future labour government executing people, that's a little unlikely.
        Maybe not in the first few months anyway.

        But with murderous friends and policies (of which they are proud) that derive from the greatest evils of our time -- anything is possible, even probable in the longer run.

        Comment


          #5
          I think you need to compare it with the alternative Andrew, and perhaps don't believe all the hype! As with all parties, there are good and bad for all.

          Having looked into it a bit more now it's not quite as bad as I first thought - not an immediate cap, but in fact a rise limited by inflation. The fact that most of my rents are already below market rent and only increase on change of tenancy, or a few years, means it could actually work in my favour. Put them up to market rent quickly and then possibly increase with inflation if I wanted. I'm still uncertain how this would work practically though because landlords could still increase rent to whatever they wanted on change of tenancy and only then be locked into the inflation linked rise. Perhaps it is only there to protect long-term tenants dealing with unexpected increases during their tenancy. As long as interest rates don't rise above inflation it should be ok.

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