Landlords: York Rental Market "Decimated" If Rent Caps Brought In
7:29am 20th January 2014
Landlords say the rental market in York would be "decimated" if limits on how much rent can be charged, known as rent capping, are brought in.
York Council leader James Alexander has called for a debate on the issue to tackle the city's £45 million housing benefit bill. James Alexander called for a debate saying:
“York’s housing benefit bill topped £45m for the first time last year supporting over 11,000 people. This is largely taxpayer’s money being given over to landlords to pay for high rents in York.
“Since the general election, the bill has increased by £5m whilst the number of people requiring this support has increased by 1,000. York is the most difficult place in the north of England to get onto property ladder with some of the highest rents."
“Surely it is about time we had a sensible debate about introducing rent capping to get this benefit bill down rather than attacking the recipients of housing benefit. The housing market is broken and a better use of this money would be to pump prime housing construction.”
We don't know at what level rents in the city could be capped at but James Alexander has highlighted figures which show council tenants pay £75.35 a week compared to £177.46 a week when renting privately.
The National Landlords Association has come out strongly against the suggestion, saying it would decimate York's rental market, leading to fewer homes available to rent and higher costs for tenants. The organisation also criticised the city council saying it's policy of limiting the number of shared homes was allowing students to outbid poorer local people searching for a home.
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