News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the February / March 1999 issue RPI news archive

One sided rules on rent capping - February / March 1999

There is little sign of fairness to landlords in Government action taken last month to restrict the working of 'fair rent' legislation.

Applying to most private tenancies entered into before 15 January 1989, fair rent rules require rent officers to set rents for regulated tenancies based on comparable market values. But, said housing minister Hilary Armstrong, the result had been that tenants, including elderly people and those on fixed incomes have been facing exceptionally high fair rent increases.

Her solution, put forward in a consultative paper last year and now adopted by Government, is that fair rent increases be capped at the rate of inflation as measured by the Retail Price Index plus 5 per cent (plus 7.5 per cent in the first re-registration).

'There was overwhelming support for this from individuals tenants and tenants organisations', said the minister. She did not mention comments on the consultative paper from landlords known to oppose the proposal. The British Property Federation immediately spoke out against the latest move. We can only condemn ministers determination to interfere in the market, said its director general William McKee. The order capping fair rent increases will apply as of 1 February - although applications for registration already being processed at that date will not be affected. Increases due to improvements where these alone would justify an increase of 15 per cent or more are also exempted. A DETR leaflet explaining the changes, A change to fair rent rules, can be obtained by ringing 0870 1226 236.
 

other artilces from the February / March 1999 issue

• Business rate assessments
• Fast route to price realism
• One sided rules on rent capping
• Tennancy validate by bank action
• When acceleration takes longer
• New crackdown on benefit fraud