Residential Landlords Association (RLA)
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Rent controls would hurt London tenants

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 recently 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.”

 

Channel website: https://www.rla.org.uk?ref=wg

Original article link: https://news.rla.org.uk/rent-controls-would-hurt-london-tenants/

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