Landlords charging England's average rent could see a reduction of £2,186 in income over three years under the Green Party's proposed rent cap. This calculation assumes annual rent increases are restricted to 2%, rather than continuing at a 4% rate.
The Green Party leader, Zack Polanski, proposed limiting private rent increases to the lowest of CPI inflation, wage growth, or 2% for a three-year period. Property118's analysis, using an average monthly private rent of £1,459 in England from August, illustrates this potential impact.
If the cap resulted in a three-year rent freeze, the income difference for a landlord could extend to £4,315 per property, compared to annual increases of 4%. However, these figures are illustrative and depend on future rent growth and the final policy details, which are yet to be set out.
The analysis also highlights that landlords' expenses, such as insurance, service charges, repairs, and mortgage payments, would not automatically be subject to the same ceiling. This could lead to a greater squeeze on the cash remaining after expenses for some properties.