Rent Linked to Inflation would leave Tenants Worse Off, RLA Warns
By |Published On: 14th February 2018|

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Rent Linked to Inflation would leave Tenants Worse Off, RLA Warns

By |Published On: 14th February 2018|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

Proposals to link rent price increases to the rate of inflation would actually leave tenants worse off, the Residential Landlords Association (RLA) has warned in response to new, official data.

According to the latest rent price index from the Office for National Statistics (ONS), private sector rent prices across Great Britain rose by an average of 1.1% in the year to January 2018. In London, they increased by an average of just 0.2% over the same period.

During the same timeframe, inflation, as measured by the Consumer Prices Index (CPI), was 2.7% and was 4% as measured by the Retail Price Index (RPI).

Following the announcement of these figures, the RLA is arguing that the data shows that calls by many in the Labour Party and elsewhere for rent prices to be linked to inflation (or controlled), would actually leave many tenants worse off.

The statistics further highlight that social sector rent increases, currently based on CPI plus 1%, are growing proportionally more than those in the private rental sector.

The Policy Director of the RLA, David Smith, comments: “Today’s figures show that rent controls are unnecessary and would act against the interests of tenants by making them worse off.

“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.”

Landlords, what are your opinions on linking rent price growth to the rate of inflation, which is designed to control increases for tenants and keep prices at a comfortable level?

Furthermore, how do you currently set your rent prices and decide when to increase them for your tenants? Do you believe that linking rent rises to the rate of inflation is a good idea, or would it make matters worse for tenants?

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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