Labour proposes B2L rent caps
In a speech later today Labour leader Ed Miliband will lay out his plans to provide a “fairer deal” to tenants.
He will call for an end to “excessive” rent rises and an “upper limit” on rises based on average market rates.
Rental caps have been used in Europe with some success with inflation-linked rent controls having become a popular part of German housing policy.
However when caps were used in Britain in the 1960’s and 1970’s there was considerable damage to the property sector.
And The Conservatives said evidence from other countries suggested rent controls lead to “poorer quality accommodation, fewer homes being rented and ultimately higher rents”.
The new plans are part of a populist manifesto announced by Labour in the build up to the Local and European Elections.
Plans have already announced controversial plans to freeze energy prices and introduce land grabs against developers who fail to build houses.