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Proved - rent controls linked to inflation would cost tenants more

The Residential Landlords Association says Labour’s proposals to link rent increases to inflation would leave tenants worse off according to official data.

This week the Office for National Statistics’ index of private sector rents showed that rents across Britain increased by 1.1 per cent in the year to January 2018. 

In London they grew by just 0.2 per cent.


However over the same period, inflation as measured by the Consumer Price Index was 2.7 per cent; when measured by the Retail Price Index it was 4.0 per cent. 

The RLA says the figures show that calls by many in the Labour Party and elsewhere for rents to be linked to inflation would leave many tenants worse off.

It adds that the figures further highlight that social sector rent increases, currently based on CPI plus one per cent, are growing proportionally more than those in the private sector.

“Rent controls are unnecessary and would act against the interests of tenants by making them worse off” claims RLA policy director David Smith. 

“Rent rises would be even lower if it was not for the punitive tax increases which the government has imposed on the sector and which will begin to bite far more over the coming years.”


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