CAPPING rents would lead to a “stampede” of landlords quitting the sector, a leading property association has warned.
A move to cap rents has long been discussed as a way to tackle the spiralling cost many tenants now face to rent a home.
But the National Association of Property Buyers said it would be a disastrous move.
Instead, they are urging the Government to look at increasing Local Housing Allowances to ease pressure in the sector.
Spokesman Jonathan Rolande said: “Capping rents isn’t the silver bullet some think it is – many landlords are already quitting the sector as they are finding it hard to turn a profit. Capping rents on a large scale would lead to a stampede to sell, reducing the supply even further.
“An immediate increase in the Local Housing Allowance, frozen for the last three years, would help tenants meet their rental commitments in the short term. However, given that the rental sector is a free market, any increase in the money available could inevitably lead to further increases in rent demanded. So it should also be seen as what it is – a double edged sword.”
Outlining the wider problems in the rental sector, Mr Rolande continued: “In simple terms, property is just a question of supply and demand. Landlords are able to push up rent as there are too many tenants chasing too few properties. So what is the solution? Unfortunately, like so many of the major problems affecting the UK, this has been a long time in the making – low wage growth, a lack of social housing and an undersupply of newly built homes for decades will, in turn, take decades to put right. Only a mass-building project that includes vast numbers of social homes will solve the problem.”
His comments come as it emerged people living in the most deprived areas of Britain have seen their rents increase by 52% over the past four years.
While for tenants in the wealthiest regions, rents have risen by only 29%, according to new figures
The countrywide data analysed by the estate agent Hamptons reveals how, in 2019, renters in the most deprived regions were paying an average of £499 a calendar month – by 2023, that had shot up to £759. In contrast, those renting a property in Britain’s most affluent districts were paying an average monthly rent of £1,078 in 2019, going up to £1,387 this year.
