Rent controls in E14 a possibility as Mayor considers measures to stabilise London rental market

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Rent controls could be on the horizon as the Mayor of London argues in favour of rent stabilisation and is proposing changes to the system as it stands. Our letting agents in Canary Wharf look at why this could be good news for landlords in E14 and for the rental system as a whole.

Sadiq Khan considering an overhaul of the rental market in London

The mayor of London said that London ‘needs a strategic approach to rent stabilisation and control.’ He has also said ‘reforms could give renters the right to longer-term tenancies and predictable rents.’

Mayor Khan wishes to strengthen the rental sector with longer tenancies and more predictable rents

Khan’s London Model is due to be published in the spring of 2019 and will list all of the measures he would like to take to provide a more secure and fair system for renters in London and the UK as a whole. He wishes to strengthen renters rights and give them more power and a bigger voice within the sector.

Rent caps and an end to ‘no fault’ evictions proposed

The changes that the mayor is proposing include the capping of rents. This idea of rent control in London is not a new one and is one he has been advocating since 2013. It would mean that the councils would assume more power over rent inflation. This would give tenants more predictable rents and the knowledge that they can afford to pay.

Another proposal is the end to section 21 ‘no fault’ evictions. A section 21 is the process whereby a landlord can give the tenant notice that they shall take possession of their property back. In these instances the tenant is given no reason for the eviction. The housing campaign group Generation Rent has claimed that section 21 evictions have been the leading cause of statutory homelessness since 2012.

Open-ended tenancies could encourage longer tenancies in London

The mayor would also like to see open ended tenancies to replace the current typical tenancy. Assured short-hold tenancies are the industry standard at present. A short fixed term of six months to one year is generally put in place and landlords or tenants can end the tenancy without reason after this period of time is up.

The new changes would make sure renters rights were observed. For landlords it would also increase stability and leave less space for periods of vacancy in between tenancies.

Are you a London landlord with property to let in Canary Wharf?

If you have a property you are considering letting in E14 or surrounding areas or you would like to see what we have on our books today, give our team in Canary Wharf a call. We will be happy to advise you.

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