Private rented sector figures have welcomed a commitment from housing minister Eddie Hughes that the government is not considering rent controls in England.
In a written reply to a question from Labour MP Rachael Maskell, the Minister agreed with Propertymark’s position that there was enough evidence available to show they would discourage investment in the private rented sector and lead to declining property standards.
But the announcement, which was prompted by commentary within the notes published alongside the recent Queen’s Speech suggesting the government would consider rent controls ‘via the back door’, doesn’t let agent and landlords outside England off the hook.
Rent controls
Ministers in Scotland, Wales and Northern Ireland are pursuing their own provisions for rent controls.
Hughes’ announcement is also a rebuff to London mayor Sadiq Khan, who on multiple occasions has asked for powers to introduce rent controls in the capital.
“Only last month we urged the Minister to study closely his department’s own statistics that show tenants are 40 times more likely to be made homeless because their landlord has become so disillusioned with the tax and legislative burden and wants to sell their property, than because they can’t afford the rent,” says Timothy Douglas (pictured), Head of Policy and Campaigns at Propertymark.
“His decision to publicly rule out rent controls in England suggests that he has taken our advice.
“The policy of rent controls may be popular among those looking for a short-term solution to rising market rents amid the cost-of-living crisis, but they will not solve the root cause of the problem, which is an undersupply of homes across all tenures.
“In a free market, where rents are allowed to flex in line with demand, investment in the private rented sector is incentivised. This provides a far more effective solution to the issue of affordability and encourages the long-term supply of good quality housing.”
Credit: Source link
