Residential Landlords Association (RLA)
Sadiq Khan’s rent control plans would be a disaster for aspiring tenants
Rent controls in London would be a disaster for aspiring tenants say landlords.
The warning is being made by the RLA and NLA as the Mayor of London, Sadiq Khan, puts calls to introduce them at the heart of his re-election bid.
His proposals come despite experts warning of 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.
John Stewart, policy manager for the RLA, and Chris Norris, policy director for the NLA yesterday 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.”
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.
She yesterday said:
“The Mayor’s proposals as I understand them are not simply to cap rents at existing levels, or to regulate rises of rents within leases, but to reduce rents from their current levels.
“I’ve done several studies of international rent regulation and I’ve never seen that policy anywhere.
“That would be a level of regulation unseen in any developed country I think and would have really dramatic unintended consequences.
“Landlords would simply decide they were no longer going to rent their properties.”
Latest News from
Residential Landlords Association (RLA)
Private rents falling in real terms says new data15/07/2021 14:15:00
RENTS paid by private tenants across the UK are falling in real terms according to official data published yesterday.
Over 80% of private renters happy with accommodation12/07/2021 14:15:00
OVER 80 per cent of private renters in England are satisfied with their accommodation according to new data released last week.
NRLA welcomes arrival of Welsh Tenancy Hardship Grant01/07/2021 09:15:00
Further to the announcement of the new Tenancy Hardship Grant (THG) by the Welsh Government, the National Residential Landlords Association (NRLA) welcomes the introduction of this new scheme.
Report Shows Need for Reform of Housing Benefit System says NRLA25/06/2021 09:15:00
a spokesperson for the National Residential Landlords Association yesterday responded to a new report by the University of York on the supply of private rented housing to tenants in receipt of benefits.
New NRLA report shows continued fall in pandemic possession claims24/06/2021 11:15:00
A continued fall in landlord possession claims took place between April 2020 and March 2021, according to new research produced by the National Residential Landlords Association (NRLA).
Landlords Made Scapegoats for COVID Rent Debt Crisis18/06/2021 16:48:00
The Chancellor is making landlords the scapegoats for the COVID rent debt crisis as he turns his back on the support the sector needs, says the body representing private sector landlords.
Covid arrears leave renters struggling to find a new home01/06/2021 09:15:00
Thousands of private renters who have built arrears during the pandemic face problems finding an alternative home because of damage to their credit scores according to a new survey.
NRLA Welsh Enforcement Index Reveals Licensing Postcode Lottery24/05/2021 09:15:00
The National Residential Landlords Association’s (NRLA) Welsh Enforcement Index, reveals an enforcement postcode lottery across Wales.
Landlords back call for reform to CGT payment rules21/05/2021 16:05:00
Chris Norris, Policy Director for the National Residential Landlords Association yesterday responded to a report published by the Office for Tax Simplification (OTS) which recommends that the Government should extend the deadline for the payment of Capital Gains Tax from 30 to 60 days following disposal of a residential property.