§ Mr. SpellarTo ask the Secretary of State for the Environment what estimate he has made of the growth of assured shorthold tenancy rents over the next five years. [40299]
§ Mr. ClappisonNone. Landlords are free to charge market rents. Research commissioned by my Department last year suggested that assured shorthold tenancy rents have reached a stage where rental yields are in equilibrium with the first-time buyer market. This would imply that such rents are likely to move broadly in line with house prices over the medium term. Recent projections of house price movements do not suggest substantial increases in assured shorthold tenancy rents.