Andrew Dismore

Andrew Dismore, Labour London Assembly member and parliamentary candidate for Hendon today welcomed the announcement by Labour leader Ed Miliband, that the next Labour Government would act to give greater protection to tenants renting in the private sector. (Policy details set out below).

Mr Dismore said:

“In the 10 years between the 2001 and 2011 censuses, the numbers of households renting privately in Barnet rocketed by 55% to reach 26% of all households, that is 34,854 households in total. And even since then, the numbers have gone up even more as a result of the huge development we are seeing in the borough, especially in Colindale where there has been a major influx of people privately renting from “buy to let” landlords in Beaufort Park and the Pulse.

“Good landlords have nothing to fear, as appropriate safeguards are built into Labour’s policies, but this programme will tackle rogue landlords, like the one  I have heard about on the Adastral estate who jacked up the rents to unaffordable levels and then evicted people when the impact of the housing benefit cap meant they could  no longer afford to pay the higher charges.

“It is now clear that the Conservatives have abandoned “Generation Rent”. They promised to improve private renting but they’ve turned their back on reform.

“They used to say that families who rent deserve stability for their children – but they’ve done nothing to make it happen. Now they are attacking plans they previously supported.

“Hendon’s Conservative MP has nothing to say to help those in the private rented sector. He should be ashamed of himself, when so many Hendon residents are trapped by the insecurity of 6 month short hold tenancies and the uncontrolled and unpredictable escalation of the rent they have to find each month. Even moving to somewhere else is fraught with additional unfair charges from letting agents who have profited from both ends.

“Labour recognises the need to act and will do so, when we win the next election”.

 

 

Policy Details

 

Introduce long term three-year tenancies:

 

Tenancies would start with a 6 month probation period at the end of which the landlord would be able to terminate the contract if tenant failed the probation (e.g. if there are rent arrears or anti-social behaviour). After the 6 months, the tenancy would automatically run for a further 2.5 years

 

Tenants would be able to terminate contracts after the first 6 months with one month notice as they can now.

 

But landlords would be able to terminate contracts with 2 months’ notice only if they can have good reason:

 

• The tenant falls into rent arrears, is guilty of anti-social behaviour or breaches their tenancy agreement
• The landlord wants to sell the property, needs the property for their own or family use
• The landlord plans to refurbish or change the use of the property.

 

Landlords would not be able to terminate tenancies simply to put rents up.

 

There would be a provision that allowed landlords to enter into shorter contracts where they are contractually obliged to do so as part of a buy to let mortgage entered into before the start of this new legislation.

 

There would also be provision for new tenants like students or business people on temporary contracts to request shorter-term tenancies subject to the landlord’s agreement.

 

Predictable rents: 

 

Landlords and tenants will set initial rents based on market value and conduct a rent review no more often than once a year. 

 

Rents could still be reviewed upwards, downwards or stay the same, subject to market conditions.

 

But the legislation would place an upper ceiling on any rent increases to prevent excessive rises. This would be based on a benchmark such as average market rents. The Royal Institute of Chartered Surveyors is already examining what an appropriate benchmark might be.

 

Ban letting agents’ fees for tenants:

 

Landlords would continue to pay charges just as people selling houses pay fees to estate agents. But letting agents would be banned from charging fees of up to £500 to tenants.

 

This will save people entering into a new tenancy an average of £350.