Housing Bill statement clarifies rent control mechanism but leaves many challenges unaddressed

Housing Bill statement clarifies rent control mechanism but leaves many challenges unaddressed

‘Today’s statement by the Housing Minister offers a welcome clarification on the amendment to the rent control measures in the Housing Bill. The index-related measure with a cap aligns closely with the suggestions made by us and several other organisations in May. However, the ongoing extension of rent controls to vacant properties between tenancies poses a significant risk of undermining the benefits of this amendment. Investors remain cautious about entering a market where their properties could be subjected to rent controls simply because they are located in a controlled area.’

‘Furthermore, we are concerned that the consultation on exemptions will not take place until Spring 2025, likely after the first two stages of the Bill. This delay creates uncertainty for investors in new Build-to-Rent developments, privately led mid-market investments, and individual landlords who typically view vacant tenancies as opportunities to update their properties and return them to market rents.’

‘It is essential that today’s statement is seen as part of a process aimed at enhancing the Bill. Without this, we risk losing the potential for thousands of new homes, at least £3 billion in investment interest, and we may remain trapped in a cycle of insufficient properties to meet tenant demand.’