Housing Minister Grant Shapps has ruled out rent controls in response to questioning from Labour MP Jeremy Corbyn.Rightly in our view rent controls would just result in a shrinking rental sector and more shortages in rental accommodation. Shapps argued that the rental controls introduced by previous Labour governments resulted in a contraction of the private renal sector by 47%.
Some people just don't learn the lessons of history though. It seems amongst them is Ken Livingstone (Red Ken) who has set out as one of his key policies in his attempt to be re-elected as London Mayor in 2013 a pledge to introduce rent controls in London.
Some would see this policy as proof that Leopards just don't change their spots!
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All landlords that are heavily leveraged would if interest rates went up be bankrupted as most are only keeping going due to low interest rates.
ReplyDeleteRent contols take no account of the landldord's loan commitments.
It wouldn't bemefit the tenant as they would be booted out whilst the property is repossessed.
Rent controls are always propsed who have no idea about how BTL properties are funded.
They all seem to think that landlords have vast amounts of financial resiurces and are always profiteering.
They couln't be more wrong.
For example at the height of the peoperty boom in 2009 I was having to pay and additional £125 on top of the monthly rent to pay ther mortgage.
Only low interest rates have saved me being bankrupted.
Rent controls would just prcipitate this making less rental property available as none can afford to buy anyway.
There is no point in having rent controls if it results in less property being available which was the case pre 1997