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Plans for rent controls, open-ended tenancies and property MOTs could close down the PRS, the RLA has warned.

Labour has pledged to put bad landlords out of business with new charter of renters’ rights.

However, the RLA believes changes would drive thousands of landlords out of the sector, leading to a massive shortage of properties driving rents up and increasing homelessness.

Rental housing crisis

David Smith, Policy Director for the Residential Landlords Association (RLA), yesterday said:

“These proposals have not been thought through. 

“We have been at the forefront of wanting to drive criminal landlords out of the market, but to place such ill-thought out burdens on the majority of good landlords would lead to a serious rental housing crisis, which would only hurt tenants as they struggle to find a place to live. 

“The sector does not need new obligations, but better enforcement of those that already exist. 

“We hope that should Labour come to power they will work with us to bring in proposals that would better protect tenants against criminal landlords whilst still encouraging good landlords to invest in the supply that is needed to meet demand.”

Labour leader Jeremy Corbyn and Shadow Housing Secretary, John Healey will set out plans to deal with what they describe as ‘the problem of squalid private renting housing’ and ‘dodgy landlords’ today (Monday, November 25).

Property MOT

Under the plans a national ‘property MOT’,  would introduce a legal requirement for landlords to complete an independent annual inspection. Failing inspections or ignoring the rules would lead to what the party describes as ‘tough’ fines and forced repayment of rent to tenants.

And its new Private Renters’ Charter promises tenants:

• rents capped at inflation nationally, powers for further controls for areas facing ‘run-away rents’ and Local Housing Allowance increased 
• open-ended tenancies
• new minimum standards, backed by a new annual property MOT and new local enforcement powers.

Jeremy Corbyn yesterday said:

“Labour will be on the side of tenants and take on dodgy landlords who have been given free rein for too long.

“Real change means taking on those who exploit the housing crisis to charge eye-watering rents for substandard accommodation.”

John Healey, Labour’s Shadow Housing Secretary, yesterday said:

“Many landlords provide decent homes that tenants are happy with, but the Conservatives have gifted rogue landlords the freedom to flourish. Labour will put bad landlords out of business.”

Should Labour be successful on December 12 it has vowed to introduce legislation covering the private rented sector in the first Queen’s Speech of a new Labour Government, and pass legislation within a year to enshrine the new charter of renters’ rights.

More information

• The RLA has published its own six-point election manifesto highlighting the changes it believes are needed to create a PRS that works for all. You can read it here.
• A recent research report from the RLA has shown that, far from making renting cheaper, rent controls can make it more expensive and more difficult for those looking for a home to rent. Read more here.