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Abbot calls for rent controls at 50% of annual council tax bill
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Published by Landlord Today on Wednesday, 10 December 2014
Labour Mayoral hopeful Diane Abbott MP has called for a system of private sector rent controls in a paper published today with renter rights campaign Generation Rent.
Under the proposals, monthly rents could be no more than 50% of the local annual council tax bill. On a typical Band A London bedsit, this maximum rent could equate to about £390 per month, which is 35% of the London Living Wage and would be considered a truly affordable proportion of wages.
Landlords could opt out of the rent control system in return for a surcharge on the rent they charge above the cap. This money would go to the Mayor of London to fund new social housing, which, in turn, would reduce housing demand and lower the market rents.
