8:35 AM, 3rd March 2020, About A year ago 2
The Residential Landlords Association and the National Landlords Association is warning rent controls in London would be a disaster for aspiring tenants as the Mayor of London, Sadiq Khan, puts calls to introduce them at the heart of his re-election bid.
Khan’s proposals come despite experts reporting the danger rent controls would cause at a time when the demand for private rented homes in the capital is outstripping supply. Research by Knight Frank has shown that last year in the capital there were 6.1 prospective tenants for every rental listing, up from 4.7 in 2018.
The Centre for Cities has warned that strict rent control “would close off London to new residents” and the Resolution Foundation commented that holding down the true market price of private housing via rent controls rather than increasing housing supply is unlikely to succeed.
Professor Kath Scanlon, a housing expert at the London School of Economics last year warned that the Mayor’s rent control proposals would result in landlords simply deciding that they were no longer going to rent their properties.
John Stewart, Policy Manager for the Residential Landlords Association, and Chris Norris, Policy Director for the National Landlords Association, said:
“Rent controls might appear attractive to those already renting but they would be a disaster for anyone looking for somewhere to rent. All they would achieve, as history and experience elsewhere tells us, is to drive landlords out of the market exacerbating an already serious shortage of homes available. Instead of putting out simplistic and superficially appealing proposals in attempt to win votes, the Mayor should focus on boosting the supply of available housing using the powers he already has. Only then will he make any discernible impact on improving the affordability of housing across the capital.”
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