RLA response to Khan’s rent controls

by Property 118

11:19 AM, 28th January 2019
About 2 years ago

RLA response to Khan’s rent controls

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RLA response to Khan’s rent controls

London Mayor Sadiq Khan, has once again pledged to fight for rent controls in the capital – with the campaign set to be a key part of his bid for re-election next year. The mayor does not have the power to introduce such controls within his remit, however he will be asking the government to allow him – or his successor – to bring in the changes.

Khan is reported to have told the Guardian newspaper that the arguments for rent control are “overwhelming and Londoners overwhelmingly want it to happen”.

However the RLA has warned that rent controls have been proved to have a detrimental effect on renters and rented housing. The association has also pointed out that rents in London are actually falling.

John Stewart, RLA policy manager said: “It is curious that the Mayor is considering introducing rent controls at a time when rents in London are falling in real terms according to official data.

“The Labour Party in Wales has previously rejected rent controls arguing that they reduce incentives to invest in new property when we need more and lead to a reduction in the quality of housing. The same would be the case in London.

“All evidence around the world shows that where forms of rent control are in place, decoupling prices from the value of properties hurts both tenants and landlords.

“In the end what is needed is a relentless focus on boosting the supply of housing.”

The most recent data from the Office for National Statistics shows that in the year to December 2018, rents in London increased by 0.2%, well below inflation.”



Comments

Martin Thomas

15:03 PM, 29th January 2019
About 2 years ago

Don't let the facts get in the way of election propaganda!
The Swedish economist, Assar Lindbeck said that rent control "appears to be the most efficient technique presently known to destroy a city — except for bombing."

Chris @ Possession Friend

20:51 PM, 29th January 2019
About 2 years ago

... closely followed by, a Labour government ( who would destroy the whole country )

HardworkingLandlord

14:37 PM, 2nd February 2019
About 2 years ago

This is a scary prospect and one that is very likely to land as Sadiq is very likely to be re-elected and his people are saying 68% of Londoners want rent controls - even though rent is flat in London or falling slightly with RPI then this would be a populist campaign theme that surely all parties would have to back?

Already, as each year goes by, my margins are being cut as rents fall and regulation and tax pushes costs upwards and I have less to invest in upgrading property and now I see myself sliding downmarket when I started out in the premium end and at some point soon, I will be loss making.

These populist attacks on landlords are not going to stop. The problem as I see it is that us landlords are not giving up - we should be selling in our droves and pushing down prices thus hurting the general home owning population and scare the lenders who, only then, will sit-up and take note that maybe its time to stop attacking landlords. In Germany, I notice that rent controls also stop property price rises over time.

I did try to sell when things were good a few years but have all sorts of complications with leases, neighbour dispute etc. so I have to sit it out before selling up. Surely we are not all in similar boat - some of us must be sitting on fantastic gains that could be realised? Usually the rest of the country lags London so if London is falling then the rest of the country will so while we are heading for a stuffing in London, those regional landlords who are not serious, should consider getting out now?

Monty Bodkin

9:19 AM, 3rd February 2019
About 2 years ago

Reply to the comment left by HardworkingLandlord at 02/02/2019 - 14:37
"In Germany, I notice that rent controls also stop property price rises over time."

https://www.theguardian.com/world/2018/apr/10/berlin-world-fastest-rising-property-prices

Prices in Berlin jumped by 20.5% in 2017


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