Rent controls - a warning from Scotland

This piece in the Scotsman by Dr John Boyle warns about the unforeseen consequences of rent controls.

He argues as we do at Property Hawk is what we need is more housing for everybody not arbitrary controls on price that distorts markets and fail everybody in the long run.

Germany is often cited as a modern economy where rent controls and restrictions are used to combat fast rising rent increases.  However, here there are other tax incentives in place to stimulate investment in the PRS.  This is the opposite to the UK where the Chancellor is planning to remove one of the few tax breaks for landlord by limiting mortgage interest relief for higher rate tax payers.

Tellingly a recent survey of Scottish tenants reveals that only 86% of tenants received a request for a rent increase during their tenancy. Hardly an indication of rocketing rents.

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