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Monday, February 09, 2015

Rent controls are not the answer

We all know that rent controls are not the answer to spiralling rents. Although they are only spiralling if you live in the South East. 

Any landlord outside this hallowed region will be asking - 'what rent increases?'

But regardless of the reality,  politicians seek to make hay out the disatisfaction of South Eastern renters caught up in  'generation rent'. 

The truth is, successive waves of politicians have not been able to crack the real problem - the fact that not enough houses are being built thanks to our restrictive planning rules. 

Planning rules are good in that they protect the interest of existing property owners, but not so good if you can't afford to be part of the homeowner club. 

Politicians have very carefully shied away from a straight up battle with the 'property owning classes', but Labour politicians in particular seem like they see votes in making a scape-goat out of the private rented sector and not face up to the real problem - that all politicians have been spineless to act in a more fundamental way through the relaxation of planning controls.

Have a look at this recent piece in Moneyweek for an examination of why rent controls may not solve the problems of the high costs of renting.

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