Christopher Pincher has comprehensively dismissed calls from activists, the Mayor of London, lobbyists and fellow MPs to consider a rent increase ban or cap.

Housing minister Christopher Pincher has confirmed that the government will not be introducing legislation to ban or cap rent increases during the Coronavirus crisis.

The comments were made within a written parliamentary statement from Labour MP Barry Sheerman, who asked if the Ministry of Housing was assessing whether a rent cap was necessary during the pandemic.

Sheerman’s question is believed to have been prompted both by Sadiq Khan’s call for a rent cap in the capital, and the looming introduction of rent caps in Scotland.

Pincher also said that the government believes its measures to protect tenants within the private rented sector are adequate including its move last month to delay all new eviction proceedings until June.

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He also said the decision by the Master of the Rolls to suspend all ongoing housing possession cases for 90 days from 27 March also offered tenants additional protection.

“All tenants remain liable for their rent and those who can afford to should continue to pay it,” he said. “At the end of this period, if arrears have built up, landlords and tenants will be expected to work together to establish an affordable repayment plan, taking into account the tenants’ individual circumstances.”

Pincher also claimed that the government’s measures to boost the welfare safety-net with a £7 billion funding increase to Universal Credit, income tax and VAT deferrals would help tenants pay their rent.

“And we’ve increased Local Housing Allowance (LHA) rates so that they are set at the 30th percentile of market rents in each area,” he said.

“These significant financial measures will help to support tenants to continue to pay their living costs, including rental payments.”

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3 COMMENTS

  1. Hi all

    I have left a few messeges now, and gratefully I’ve had calls back, which ive been able to expand on legally/ideas. I have enjoyed my talks with you

    I would like to discuss the future.
    What happens ?

    Many took the buy to let industry as their personnel business to earn a living.

    The government are now being to anti this industry, that many are not earning what they worked for, and where they try to escape, the government screw them tax,etc wise.

    From a law side the government need to be taken to court. As it’s the government, it’s the house of lord I assume need to address and reverse the governments action.

    No other industry is restricted from claiming interest, and many other expenses. The people I feel for, is the couple who board a 2nd home in the 80s/90s for a pension. Look at this case. Due to expenses restrictions of interest, they have no choice, but to sell; why ? If the rent is £500, and their interest is £500, they earn “”0″” !!. This excludes all their other expenses like repairs, plus all the other expenses government have introduced. To pay the tax they have to try and pay from their wages, that barely support them, and pay their mortgage,taxes,etc. Only choice is to sell and then pay massive taxes etc, and loose thousands.

    All other industries when they started in the 80s/90s, are very must the same when it comes to taxation etc now.

    The government even admitted that with the changes, so many million houses would be released on the market. This is a form of bullying to get people to sell.

    I can speak alot more on this area, but we need to look forward.

    Ok once lockdown is finished.

    Back to your comments, landlords and tenants have to plan how arears are paid.

    After lockdown the government will have to put in place emergency taxes. This may cause a temporary vat/tax increase ?

    If this occurs earnings go down, and expenses go up.

    At the moment we can.only sit and wait what happens.

    You also mentioned issues with rent freeze. If it did happen, and interest etc did go up, then this could cause repossessions.

    House prices are going to decrease,and it’s going to be a while before they will recover. This again will cause issues to many landlords.

    Landlords are in an unstable business; whatelse is the government going to introduce that costs money, and what else are they going to ban on claiming as an expense.

    There is not enough council rental properties, less private land lords entering the industry. As land lord of course we want higher rents.

    Me personally it is most important to get long term tenants who are reliable, and look after the houses. This means a middle pitched rent.

    If the government want to help tenants, then the government should award land lords who do this, rather than sky high rents. They have tax brackets, but they should consider rent brackets. It needs a bit more thought but a tenant/landlord relationship needs help. The tenant has too many rights now; since july I have lost 12000 in rent arears where tenant do a bunk. They know if they have arears of around 3k, it will cost the land lord that again to try and retrieve it, so they dont go after.

    For now I hope these views help

    Hope to catch up

    Many thanks

    Shaun carter

  2. Shaun
    Everything you state is correct
    Mortgaged LL need to be aware that Govt seeks their eradication.
    There is no mistaking this is Govt policy though they will never admit it.

    Bizarrely they seem to believe that when LL sell up that their properties will be bought by tenants or FTB.

    There is already plenty of properties for sale but few are being bought by former tenants of FTB.
    Bringing more supply to the market doesn’t make it affordable.
    Lenders will tend to downvalue in a distressed market.
    So buyers will suddenly find they need an even larger deposit which they won’t have and which would take years to save up.
    Properties will not be sold for less than market value prior to CV19.
    Owners will simply wait out things and get rid of tenants and take on lodgers where normal tenancy regulations don’t apply.

    Rent control will never work as LL will be offering black market rents.
    LL and tenants will EVADE rent controls.
    HMRC will find a massive reduction in rent being received and so taxes will reduce massively.

    There will be no new LL as mortgage advances would only be possible on alleged controlled rent.
    This would mean far larger LL deposits

    Rent control would result in a massive black market as most LL would evade such controls.
    Tenants will go along with this fraud as they know they won’t stand a chance of sourcing a LL at controlled rent.
    LA would notice a massive decline in their business as LL self-managed.
    You can hardly expect LA to engage in fraud by collecting the actual rent in brown envelopes.
    LL will be buying safes to store their rent cash.

    Rent controls would have devastating effects on tenants.
    They won’t find any properties at controlled rents and as LL will be collecting cash nobody will know what is being paid.
    The AST will just show the controlled rent amount.
    Govt is stupid if it thinks LL won’t evade rent controls.

    I for one would actively engage in evading rent controls.
    Just means once a month I will have to devote to rent collection.
    No way will I have any rents paid to a bank account.
    Strictly cash only and no receipt apart from the controlled rent amount.

    Just as with Prohibition rent control evasion will be SOP for tenants and LL.
    No way will any tenant be able to prove they have paid more than the controlled rent to a LL

  3. What a well thought out letter. Totally correct. My feeling is that the various organizations that support landlords, their members, together with local MP’s and letting agents should be communicating the facts with government and local authorities to get some decent plans in place to control the letting market and remove some of the punitive measures that are increasingly dogging landlords. We see that the local authorities are also jumping on the bandwagon of squeezing landlords with their selective licensing schemes and reducing/removing council tax for empty properties during void perionds.

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