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Rent controls “will force 60% of landlords to quit”
The introduction of rent controls, as suggested by some political parties and pressure groups, will force about 60 per cent of landlords to quit the private rental sector, it is being claimed.
The Residential Landlords Association claims that over 75 per cent of 1,000-plus RLA members questioned froze or actually cut their rents in 2014 anyway – and 65 per cent of members intend to do so again this year.
“These results blow a hole through the myth that rent controls would be good for tenants. At a time when tenants need more choice over where they live, state-controlled rents would choke off supply, increase rents and reduce quality. It would be history repeating itself” according to Alan Ward, the association’s chairman.
Data in the most recent English Housing Survey show that between 2008/09 and 2012/13, social sector rents increased by over 25 per cent. In comparison, private sector rents increased over the same period increased by 6.5 per cent.
This is despite the fact that inflation as measured by both the official CPI and RPI indices over this period was around 16 per cent.
“The reality is that rent controls would leave many tenants paying more than they do at the moment. Rather than coming up with ideologically-driven ideas, proponents of rent controls need to address the root issues, namely the need to boost the supply of homes to rent” says Ward.
