Labour leader Ed Miliband will today pledge to cap rents and introduce three-year rents in a bid to create stability for landlords and tenants.
Speaking at the launch of Labour’s local and European election campaign in Redbridge later today, Miliband will renew his promise to build 200,000 new homes if elected in May next year.
Labour is also planning to legislate to make three-year tenancies the “standard” in the UK.
In addition, Labour would place an upper ceiling on any rent increases to prevent “excessive” price hikes. Labour says this would be based on a benchmark such as average market rents.
Miliband will say: “We need to deal with the terrible insecurity of Britain’s private rental market as well. Many tenancies last just six months with families at risk of being thrown out after that with just two months’ notice with no reason.
“Some are told to accept huge rent rises or face eviction. It breeds instability and that is bad for tenants, bad for families, bad for landlords, and bad for our society.
“The next Labour government will legislate to make three-year tenancies the standard in the British private rented sector to giving people who rent the certainty they need.
“These new longer-term tenancies will limit the amount that rents can rise by each year too – so landlords know what they can expect each year and tenants can’t be surprised by rents that go through the roof.”