The National Residential Landlords Association (NRLA) has warned legislators against introducing rent controls, following research showing that a third of private sector landlords would sell properties they let if such measures were introduced.
The data, compiled by the research consultancy Pegasus Insight, found that 33% of landlords said implementation of rent controls would lead them to sell some, or all, of their rental properties.
Despite strong demand, landlords were two times more likely to have sold properties over the previous year than to have purchased rental homes. According to the data, 8% had bought properties to rent out, compared with 17% who had sold.
This follows analysis by Rightmove suggesting that, based on current levels of demand, around 120,000 more rental properties are needed to bring rent growth back to more normal levels of 2% a year.
With more renters looking for a place to live than there are homes available, the NRLA said rent controls would be “a disaster for tenants”.
Ben Beadle, chief executive of the NRLA, said: “All [rent controls] would do is choke off supply further, undermining what little choice tenants currently have when looking for somewhere to live.
“Housing is expensive because we don’t have enough of every type of property, be it for owner occupation, social rent or private rent. The only way to solve this crisis is to boost supply right across the board.”
Vote winning headlines, poorly thought through. The Laws of unintended consequences kick in. It’s simple. Supply and demand dictate price. If you fix a price lower than the market would support you simply reduce supply.
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Tell anyone working at the coal face something we all don’t already know. Housing Ministers need to have experience at the coal face of housing issues so that they can make informed, well thought out decisions about housing matters without the political lobbying!
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Do politicians not realise harming landlords means they will sell. Less stock equals higher rents .
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