Labour plan to cap rental increases

Ed Miliband has announced that private landlords would be banned from above-inflation rent rises over a three-year period if Labour wins power after the May 7 General Election.

The move forms part of a plan to help the growing number of people – known as Generation Rent – who are stuck in rented accommodation as home ownership falls to its lowest level for 30 years.

Landlords and letting agents would be required to disclose the rent paid by previous tenants, to allow renters to negotiate the best possible deal at the start of a contract.

And rogue landlords would lose buy-to-let tax relief if properties do not meet basic standards.

Speaking ahead of an address today in which he will spell out details of the plans, Mr Miliband described Labour’s blueprint as “a plan for a stable, decent, prosperous private rental market where landlords and tenants can succeed together”.

The move was welcomed by homelessness charity Shelter, which said that the current rental market was “not fit for purpose” because of short-term contracts, sudden rent rises, and huge lettings fees.