Reporting around Rent Controls
Ministry of Housing, Communities & Local Government (MHCLG) in the Media is run by the Press Office.
It has been reported in the media that the Government is planning to give the Mayor of London powers to impose rent controls.
This is not true. Fixing Britain’s housing crisis is one of our top priorities, and giving struggling renters more rights and security is an important issue for this Government, but there have been no conversations with the Mayor of London about introducing rent controls.
In the King’s Speech, the Prime Minister announced our Renters’ Rights Bill, that will put an end to rental bidding wars. This will stop renters being pitted against each other and forced to pay more than the original asking price of the property when trying to secure a home.
ONS - Index of Private Housing Rental Prices, UK: February 2023
Over the last 12 months there has been a lot of discussion surrounding rent increases on the private rented sector. Many landlords took the decision not to increase rent during the Pandemic or post Pandemic, however, due to the cost living crisis, the cost of energy and increases in interest rates, landlords took the decision to increase rents.
Landlords are permitted to increase rent at the end of every 12-month term. This can be done by relying on the rent review clause found in the tenancy agreement. If the tenancy is periodic and the tenancy is silent on rent increases, the landlord must serve a Section 13(2) notice (Form 4).
Importantly, a discussion with the tenant before increasing rent would be sensible as this allows both landlrod and tenant to negotiate on an increase which suits both parties.