In the UK greed is good.

Years of Tory misrule have made this mantra commonplace and their arrogance and penny pinching meanness is staggeringly appalling.

The rich get richer and use the mainstream media to sneer and berate the poor. One of their favourite assaults is to attack the so called ‘benefit scroungers’ – people who have to make ends meet by getting money from the state to cover their rent.

The rich like to paint these people as  a burden on the state forgetting that it is the rents that the poverty owners fix at such staggeringly high prices that is causing this problem. Rent is out of control in the UK- a pile of bricks or shoe cupboard in london is getting out of the reach of people who are not spoiled.

The arrogance of the landlords is staggering and it about time rents were capped otherwise a city like London and to a certain extent Manchester and other UK cities will become unliveable and just playgrounds for the wealthy.

Please sign the petition for the capping of rents here

 

Why is this important?

To reduce the housing benefit bill drastically
So families don't have to choose between food or rent
So people can afford to live in the city with the most jobs in the UK
So there is less incentive to become a buy to let landlord, thus allowing first time buyers more opportunities to buy properties

Most young people who work in London know that they will have to move far out of London if they want to have a family as rents for family size properties are so high e.g. £350 a week for a three bedroom property. 

London should not only be affordable to the rich or to those who are lucky enough to own homes.

I would suggest a rent cap which is much closer to Council housing rents. For example:

1 COMMENT

  1. The rental market behaves just like any other market – in a correctly running market (i.e. no external influences such as government-funded schemes to prop up the housing market or QE pumping money into the stock market), prices find their own equilibrium and the old adage of ‘supply and demand’ comes into play. If houses are too expensive, demand reduces. If they’re too cheap, then demand increases. If housing rental costs are too expensive – then people can choose to live somewhere else. In this scenario, landlords would much rather accept less rental for a property than accept extended periods when the property sits vacant (called a ‘void’).

    Clearly the rental market is also influenced by changes in the housing market (particularly during the present time whereby changes introduced under the MMR scheme to ensure that purchasers undergo affordability checks but don’t apply to landlords purchasing properties for buy-to-let).

    In the case of London with its 7 million inhabitants, a buoyant job market and a never-ending list of people clambering to live there, employers don’t need to increase salaries offered for new vacancies as there are always ‘plenty more fish in the sea’. In any way, if salaries increased then rentals would also likely increase as a tussle for better quality/better located properties ensues.

    If salaries were increased in the public sector, trust me – they’d be overrun with job applications. If housing rental costs were capped for public sector workers then there’s no guarantee that workers would let their landlords know if they’ve subsequently taken a higher-paid job in the private sector (pretty much the same as it is presently with some council house tenants earning £100,000+ but paying way below market rental for their property). The whole thing would need a body to oversee it – something that no doubt would be required to be funded by landlords – ensuring that rental costs increase further as they seek to recharge this fee to tenants.

    You have to trust the market to find its own equilibrium. It’s not always fair – but the market is always right.

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