The Renters’ Rights Act is allowing rent controls to creep in
Recently a landlord, Mr Cao, attempted to increase the rent on his central Manchester flat by £50 a month from £1,650 to £1,700. The tenant, Ms Nau, brought the increase to a tribunal under the Renters' Rights Act, which only allows rent increases once a year and only in line with the open market rent. Ultimately, the tribunal decided to cut the rent by £200, as they believed it had already exceeded the open market rent. This is rent control by the backdoor; shortages and reduced quality of housing will inevitably follow. Tribunals have no place in second-guessing the true open market rent, nor, even were they omniscient economic planners, would justice warrant stripping landlords of the freedom to set the rent on their private properties anyway.