Labour pledges to reform rental sector - what will this mean for Southampton Landlords!!

Ed Miliband has announced plans for longer tenancy agreements and rent increase cap if the Labour Party wins the General Election next year.

In a policy designed to be one of the most eye-catching elements in his campaign to tackle the "cost of living crisis", the Labour leader has pledged to make it more difficult for landlords to evict tenants or raise rents.

Miliband’s policy has three main points:

1. There will be three-year tenancy agreements beginning with a six-month probationary period allowing landlords to evict a tenant if they are in breach of their contract. This would then be followed by a two-and-a half-year term in which tenants would be able, as they are now, to terminate contracts after the first six months with one month's notice.

2. There will be a ban on what Miliband will today call "excessive rental increases". Labour says it will be guided by the Royal Institute of Chartered Surveyors, which is examining options for a new rent benchmark. This could be linked to average rent rises or inflation or a combination of the two.

3. Labour will ban letting agents from charging tenants fees for low level services, such as simply signing a tenancy agreement. They will instead have to ask landlords for fees.

http://www.landlordtoday.co.uk/news_features/Labour-pledges-to-reform-rental-sector