A new report has suggested that the Conservative Party should build their election manifesto around rent controls, in order to kick-start a seaside town renaissance.
The Housing and Finance Institute believe that dysfunctional housing markets are driving decline in many coastal communities.
Trio
The report suggests that a ‘toxic trio’ of substandard housing, high volume of renters and a lack of new jobs are leaving tenants and taxpayers overpaying for properties that are not worth the rent.
As such, the Housing and Finance Institute wants to see the introduction of new time-limited and more localised rent controls in the more less-off coastal communities.
It has called for a locally assessed ‘fair value rent regime’ that would reflect a property’s location and overall quality. The Institute is additionally calling for more support from central Government for councils with communities feeling the effects of failed housebuilding markets.
Could rent controls kick-start a seaside town property revival?
Skills
In addition, it wants to see more financial and skillset support from central Government for deprived locations-where housebuilders, developers and investors do not want to purchase.
Natalie Elphicke, chief executive of The Housing & Finance Institute, noted: ‘There is a toxic trio of abnormally high proportions of rented housing, for that rented housing to be of poor quality, and a lack of job creation. Dysfunctional housing markets are proving fundamental to the spiral of decline in many of Britain’s coastal communities – and something radical must be done to turn the tide.’[1]
‘The proposals in this paper can help to break up the concentration of housing poverty and attract new high quality building and investment. Housing can be pivotal to securing jobs, growth and reversing entrenched deprivation. In particular, a new fair rents regime would significantly speed up the renewal of the most deprived areas, drive a fairer deal for tenants and taxpayers – and kick-start much needed regeneration,’ she added.[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2017/5/tories-urged-to-back-rent-controls-to-kick-start-a-seaside-town-renaissance