Rent controls ‘would be disaster for tenants’
In a recent warning to legislators, the National Residential Landlords Association (NRLA) has voiced strong opposition to the introduction of rent controls, citing new research that suggests such measures could lead to a significant reduction in the rental property market. The data, gathered by research consultancy Pegasus Insight, reveals a concerning trend: one-third of private sector landlords have indicated they would sell their rental properties if rent controls were enacted.
This potential exodus from the rental market comes at a time when demand for rental properties remains high. According to the latest figures, landlords have been far more likely to sell their properties than to acquire new ones. Specifically, 17% of landlords sold rental homes over the past year, while only 8% purchased new properties to rent out. This imbalance highlights a growing concern about the availability of rental accommodations.
Rightmove's recent analysis underscores the urgency of addressing the rental property shortage. Their findings suggest that an additional 120,000 rental properties are needed to stabilise rent growth and bring it down to a more manageable rate of 2% per year. This shortfall in supply contributes to the rising cost of rents and exacerbates the challenges faced by renters in finding affordable housing.
In light of these developments, Ben Beadle, chief executive of the NRLA, has emphasised the potential negative impact of rent controls on the rental market. He argues that implementing such measures would only worsen the current crisis by further constricting the supply of rental properties. According to Beadle, "All [rent controls] would do is choke off supply further, undermining what little choice tenants currently have when looking for somewhere to live."
The NRLA's stance highlights a broader issue within the housing sector: the need for increased housing supply across all types, including owner-occupied, social rent, and private rental properties. The association contends that addressing the housing crisis requires a comprehensive approach that focusses on expanding the availability of homes rather than imposing restrictions that could drive landlords away from the market.
As the debate over rent controls continues, the NRLA's warning serves as a critical reminder of the complex dynamics at play in the rental housing market. With rental property supply already under strain, the introduction of rent controls could potentially lead to even greater challenges for tenants seeking affordable housing solutions.
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