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Saturday, October 24, 2015

Rent control - a sign of Government failure

It notice that Ireland is the latest place where rent control is on the agenda.

The one thing that hits me is that rent control smacks of failure.  Failure not by landlords.  We are merely the messangers,  No, it's failure of Governments to create a housing environment that doesn't leave rental demand in some kind of equilibrium with demand.

Where rents are rising strongly, this means that clearly demand is outstripping supply.  This is normally as much about lack of housing of all tenures. This is something outside the control of individual landlords.  It solution lies at the national level and clearly is a function in most countries of individual Government policy.  Most of them have been inept at creating the policy environment to produce enough housing quickly enough.  Hence, too often they are then forced by political expedency to deal with the symptons of under supply of housing by caving in to Generation Rent and opting for rent controls.

Governments if you are listening.....more housing ....not rent controls

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Rent controls on the agenda in London 
London candidate wants rent controls 
Rent control warning from Scotland 
Report on London rent controls
Rent controls German warning

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