Camden: Council proposes to cap rent rises

Local authorities across London are drawing up plans to make renting more affordable for residents, it has been revealed.

Camden Council is just one of the organisations that are considering introducing a form of ‘rent control’ to help it manage the cost of private housing in the borough.

This would cap the amount a landlord can charge for a property. The North London council has also commissioned the London School of Economics (LSE) to examine how the authority could help stabilise rent in the private sector.

The council is considering proposals to offer financial incentives to private landlords that agree to cap rent increases in line with inflation.

Julian Fulbrook, Camden’s cabinet member for housing, said this is part of a 'carrot and stick' approach where landlords would potentially be rewarded for cooperating with the scheme, and penalised for refusing to do so.

He added that the council was interested in experimenting with the idea of rent stabilisation in collaboration with private landlords.

One of the proposals it is considering is a scheme whereby private landlords would be offered loans for capital repairs to encourage them to sign up to its rent stabilisation scheme.

The LSE report is set to be published in the autumn and will examine ways to encourage landlords to offer longer-term lets to give families and older tenants more security in the private sector.

However, Camden is not the only organisation that is considering introducing this type of initiative.

Similar proposals are being put forward by other local authorities with talks being planned with the umbrella organisation London Councils about Camden’s plans.

Earlier this year, labour leader Ed Miliband said that the party may introduce caps on rent increases and introduce mandatory three-year tenancies in the private sector.

However, not everybody is in favour of the proposals.

Alan Ward, chair of the Residential Landlord Association, said the proposals would lead to fewer rented homes and damage the property sector.

Published 3rd July, 2014

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