Call for rent controls and ‘indefinite’ tenancies

Tenants should be able to stay in rented properties “indefinitely” with landlords subject to rent controls, a leading think tank has argued.

Civitas published its report into the future of private renting earlier this month. It notes the private rented sector is booming as house prices continue to rise and social housing falls into decline. The think tank says the cost of private renting continues to increase, partly driven by housing benefit, and it predicts the amount of housing benefit claimed by private tenants is set to jump from £9.5bn to over £10bn by 2019.

The report suggests new regulation should be in put in place to stop the growth in what is says are unaffordable rents, and give tenants greater security. It is calling for indefinite tenancies where rents are only allowed to rise in line with the cost of living.

Under the plans, new-build homes would be exempt though landlords would be able to agree voluntary longer term tenancies.

The report’s author Daniel Bentley argues politicians and policymakers need a “change in mindset” about the role of private landlords in housing supply.

He says the housing benefit bill is pushing up rents, particularly at the lower end of the market, with some landlords setting rent at artificially high levels because they know payments will be covered by housing benefit.

Bentley says: “Having grown so large, it is not possible simply to remove housing benefit subsidies without leaving tenants high and dry.

“Indefinite leases, coupled with in-tenancy rent regulation, would go some way towards limiting further rent rises and housing benefit dependency.”

He adds: “If the private rented sector is to take up a much larger role in the housing market, then we need to ensure it offers the kind of standards and security people need to make a home in it. This may require a shift in outlook from landlords too.”

Natalie Holt