"Freezing" of rents by Government

[Gordon Gekko]

Any State interference in the free market concerns me. This seems like electioneering of the worst kind. Karl Deeter was very good on the radio earlier. What about "good" tenants (the kind I have myself)? I don't want to increase their rent. Will I be forced to now in line with inflation as is proposed?

 

[facetious]

I wouldn't think that you have to increase rents but if you do it cannot be more than in line with inflation. That's my take on it until there is more information on the matter.

 

[Gordon Gekko]

I wouldn't think that you have to increase rents but if you do it cannot be more than in line with inflation. That's my take on it until there is more information on the matter.

One would think so, but Karl Deeter seemed to be saying otherwise.

Interestingly, there will also (apparently) be measures to "reward" landlords who grant longer "Continental" style leases.

 

[odyssey06]

How would this be constitutional for existing tenants when banning upward only rent reviews was not?

What happens if a landlord doesn't increase rent in a year, does that 'allowance' carry over until the following year or is it lost forever?
How is the rent for a new or renovated property established? Does
this remove any incentive for landlords to improve properties?

How will inflation be measured given that one of the inputs to the CPI is rants? So we're going to say that you can't increase the price of X by more than Y when X is an input to Y? Therefore Y will in fact now be Y - X?
So overnight you're cutting the rate of inflation and saying you can't increase rents by more than that?

 

[Butter]

Is the idea of rent control not a bit like cartels deciding on price fixing in a market? I though we lived in a supply & demand free market.
I don't remember any talk of rent control when landlords were having to reduce rents during the downturn.

 

[Dermot]

So a Landlord who was decent enough to a Tenant for maybe 2 years could find themselves renting a property for a lot less than the property next door under the new system.
Looks like they are going to remove the right to be able to sell a property with vacant possession. Can politicians ever resist doing populist things which invariably in the long term make things worse.

 

[Agent 47]

What I worry about is that my tenants will see it as an opportunity to ask for x, y and z to be done knowing the Landlord cannot jack up the rent to compensate. Mine are in situ 4 years +, I don't have either the time or money at the moment for a renovation project, however if my tenants start asking for x, y and z I believe it would be best to give them the 112 days notice to get sufficient access and time to do what I need and get it back onto the market. Where am I fixed to to do this if required?
My other option is to give the property over to the auctioneer who found the tenants and let them look after the rent increases (which are below market ) and run the process that way.