Landlords have criticised proposed new price controls on the monthly rents they can charge tenants.
Eric Pickles on Thursday said that landlords yearly rent rise between 2014-18 should not be more than the retail price index (RPI).
But the Association of Residential Landlords said this could restrict investment and have major consequences for tenants and construction workers.Landlords charge tenants for use of local facilities, including the labor market, emergency services and the use of schools and hospitals.ARLA had submitted a plan, rejected by the coalition, seeking to guarantee 15% of buy-to-let mortgages and raise housing benefit payments by 4.6% above RPI inflation.Pickles, Minister for Local Government and Communities, said in a statement "The proposals will put an end to over a decade of rents rising faster than inflation or wages."Tackling the upward drift in rent is essential to safeguard the UK's globally competitive position. The challenge for communities is to maintain high levels of local service while reducing rent. We are confident this is possible and that our proposals create a positive climate for further capital investment, in the residents interest."But a spokesman for ARLA said: "This proposal is the toughest our members have ever faced. The coalitions settlement could have serious and far-reaching consequences."We want to continue to improve things for tenants. Instead, these proposals risk not only our member's balance sheets but the attractiveness of the UK as a center for international property speculation. We will now carefully consider our political donation and lobbying plans before responding fully to Mr Pickles."
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