Outcry over fair rent limits

By FW staff

A NEW limit on fair rent increases introduced by the government this month amounts
to arbitrary, counterproductive, state control and should be kept under close review, according to rural
business adviser Strutt and Parker.

Fair rent tenants are already protected from unjustified rent increases
by an existing rule which prevents landlords charging a premium for such properties in sought-after
locations, says the firms Leo Hickish.

As a result, fair rents remain on average 50% lower than open
market rents.

“We believe few properties are currently registered at the true fair rent. Yet the minister
has just announced that the first re-registration of a rent will be limited to a maximum increase of RPI plus
7.5%. Thereafter, future rent reviews will be limited to a maximum of RPI plus 5%.”

The fact that over
60% of tenants in fair rent houses are retired, and a significant number receive housing benefit, suggests
why the revision has occurred, says Mr Hickish.

“The government has stated its intention to reduce the
burden on the state caused by steadily increasing housing benefit claims. Any attempt to effectively pass on
this liability to the private landlord is blatantly unfair.”