Hayley Miller was initially shocked when she received a letter to say the rent on her London flat was to increase by £1,000 a month. But this soon turned to resignation when she accepted that the unaffordable hike would mean she had to move to another flat – her eighth move in eight years.
“The contract was coming up for renewal and we were told the rent was increasing to £2,800 a month [from £1,800],” says the 34-year-old, who shares a two-bedroom flat in Camden with a couple. “It’s really sad as I loved it, and the landlord let us get two cats only a few months ago. I’ve only been there around a year, and the last rise was only about £70, so this was a total shock.”
There are pitfalls to hardline caps, according to commentators. “Rent caps are the most onerous of regulations,” says Bibby. “Concerns include landlords withdrawing from the market, and this could trigger evictions.” Property analyst Kate Faulkner says rent controls may actually penalise some tenants. “The biggest problem is they haven’t been proven to work anywhere,” she says. “It risks landlords selling up, and doesn’t tackle the main problem – a lack of stock.” She says landlords often have an interest in keeping good tenants and rents fixed. “Contractually, landlords may be more likely to put rents up in line with whatever the cap allows – penalising the very people they are designed to protect.”
Germany is often held up as the model of stabilisation, with many people living in the same property for life. Kath Scanlon, a researcher at the London School of Economics, authored a 2011 report entitled Towards a sustainable private rented sector, and said it would be difficult to replicate the system in the UK
