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Rent controls would be ineffective in the UK
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
With the Conservatives winning the general election in such a convincing manner, the chance of rent controls being introduced in the UK was eradicated.
However, the National Landlords Association have still presented findings which suggest that if the policy were to be implemented, it would be derogatory to the private rented sector in Britain.
Ineffective
The NLA commissioned report, undertaken by the London School of Economics and Political Science, found that rent controls that have worked well in other nations would be ineffective in the UK. Germany for example is a country with effective rental controls, but this is supported by low house prices and a small demand. Additionally, the report states that rents are substantially above average levels in high-demand areas of Germany.
This represents the complete opposite of the problem facing Britain at present.
Furthermore, the report showed that the regulation of the private rented sector in cities such as San Francisco and New York has been detrimental to young people. In Ireland meanwhile, tighter controls have led to a housing crisis, with soaring rents and a decline in the availability of new homes.
Rent controls would be ineffective in the UK
Evidence
Chairman of the NLA, Carolyn Uphill said that the report was, ‘required reading for Labour leadership and London Mayor hopefuls, who seem to be ignoring both academic evidence and the overwhelming rejection of similar policies by the electorate last month.’[1]
‘Private rented sectors in many countries, regulated or not, are facing major problems in high demand areas. Market fundamentals cannot be just regulated away,’ she added.
[1] http://www.rman.co.uk/latest-news/article/rent-controls-would-not-work-in-the-uk
