Date Published 27 February 2018
A trade body states that Labour`s campaign to keep rent increases in line with inflation, will end up costing tenants more and its claim is backed up by official data.
The ONS(Office of National Statistics) latest index of private sector rents shows that in the last twelve months till the end of January, UK`s tenants` rent increased by 1.1%.
The Capital`s rental increase was a paltry 0.2%.
The Consumer Price Index for the last twelve months measured inflation at 2.7%; however the Retail Price Index states inflation was 4%.
The body states that the Labour Party`s continual fight to link rent increases (cap) with inflation is a nonsense as both the CPI and RPI`s inflation rise is considerably higher than average 1.1% rent increase; ultimately tenants would be much worse off.
It also found that social housing tenants have had rent increases linked to the CP1`s 2.7% inflation measure plus 1%.
A spokesperson for the body said: `Rent controls are unnecessary and would act against the interests of tenants by making them worse off.
`Rent rises would be even lower if it was not for the punitive tax increases which the government has imposed on the sector and which will begin to bite far more over the coming years.`