Landlords in the UK would face a national cap on rental hikes and a requirement to provide three-year tenancies if the Labour party wins the 2015 election.
The proposed measures were announced by the opposition leader, who said that his party would introduce new laws to make sure renting is affordable and tenants are adequately protected against landlords.
According to the plans, landlords will provide accommodation to tenants at initial rates based on average market values, which will then be reviewed annually. Landlords will still be allowed to increase rents if there are changes in market conditions, yet any rise would be cap-restricted. Property owners would be still liable to charges just like sellers pay fees to estate agents. However, estate agents would be banned from charging letting fees to tenants for renting out properties.
The Labour party also foresees certain amendments to rules on tenancy agreements. They would need to provide tenancy for a three-year term, with a six-month probation period that will allow landlords to evict tenants violating terms of the agreement. During the remaining two and a half years, tenants will be given the right to cancel a rental contract by sending a one month’s notice. Landlords, on the other hand, will be able to terminate contracts with two months’ notice in cases where a tenant falls behind in payments or acts in a seemingly anti-social way. Property owners will be also allowed to take advantage of the two months’ notice if they want to sell the property or use it for the needs of their family.
What do you make of these proposed changes? Do you think they would make a positive impact on property standards?