London landlords would 'sell up rather than cut rents'

London landlords oppose any form of rent control on principle

London landlords are opposed to rent controls and many would sell up if they were forced to cut or cap their rents, according to a report commissioned by the London Assembly.

Others warned they would have no incentive to invest in maintenance if the government tried to stabilise rent.

The cost of a new tenancy in London jumped 11.9% between 2013 and 2014.

The survey of 174 landlords analysed six proposals for cutting, capping or freezing private sector rents.

It was carried out by the Cambridge Centre for Housing and Planning Research.

Longer tenancies

Most London properties are currently let out on six- or twelve-month assured shorthold tenancies, the research said.

They have been criticised for offering little security to families who rent, and more than half of the landlords surveyed said they would be interested in offering a three-year tenancy if there were tax incentives to do so.

"With the right safeguards in place, it would seem likely that longer tenancies could become more normal in the UK without causing any negative impacts on housing supply," the report concluded.

"There was suspicion that such measures could constitute a step towards the kind of rent controls that they perceived had undermined investment in the private rented sector in the period before 1988."

Some warned they would not offer longer tenancies to "risky" tenants, such as those receiving housing benefit or families.

Selling up

And three-quarters said they would sell some or all of their properties if they were forced to cut their rents to two-thirds of current levels.

The researchers warn that while a sudden flow of properties onto the market would lower prices, not all of the evicted tenants would be able to afford to buy a home, and would struggle to find another let.

The London Assembly's Housing Committee will discuss the report on Thursday 8 October.