Private rented sector regulation

Meeting: 
MQT on 2015-01-21
Session date: 
January 21, 2015
Reference: 
2015/0143
Question By: 
Tom Copley
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

A recent report by Civitas made a number of recommendations as to how the private rented sector should be reformed, including:

        Making indefinite tenancies the norm, with tenants allowed to stay as long as they like provided they observe the terms of the lease.

        Restricting in-tenancy rent increases to a ceiling linked to inflation or earnings.

        Greater incentives for private landlords to invest long term, for example through capital gains tax exemptions and depreciation allowances.

        Exempting new-build homes from the requirements on indefinite tenancies and rent restrictions to encourage landlords to invest in new stock.

What is your response to each of these recommendations, in respect of how they might apply to London?

Answer

Answer for Private rented sector regulation

Answer for Private rented sector regulation

Answered By: 
The Mayor

I support landlords providing longer tenancies within the existing regulatory framework and recent schemes such as Get London Living at East Village demonstrate that this is achievable without introducing additional regulation. I have also supported government initiatives such as model tenancy agreements designed to encourage longer tenancies.

Rent controls would be disastrous for the sector and I strongly oppose them.

Through my planning policies and my disposal of public land, I am already encouraging private landlords to invest in the long term. Recent examples of this include my projects at Silvertown Way, where a third of the 1,000 homes will be for long-term PRS, Pontoon Dock and Newington Butts.