Home seekers would face higher rents and restricted
choice if tenancy rent controls were introduced in the UK. New research argues
that policymakers should instead look to radically shake up planning laws in
order to facilitate more private rented accommodation and improve individual
wellbeing through increased affordability. The
Flaws in Rent Ceilings looks at the Labour Party’s proposal to bring down
the cost of renting and improve tenant security through the introduction of
tenancy rent controls. The paper finds that instead of achieving its desired
aims, such constraints on the market would result in higher initial rents, a
misallocation of housing and a reduction in the supply of homes to rent –
without improving affordability. The
study also calls into question claims that individuals suffer from a lack of
security of tenure in the private rented sector. Secure tenancies are provided
by the market for those willing to pay for them. Download a copy of the report from the
Institute of Economic Affairs website.
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