Rent controls affect tenants by drying up the supply of homes to rent and in some cases increase rental prices, The Residential Landlords Association (RLA) has found.
The RLA looked at cases of rent control globally, with the research following a senior academic warning from Greater London Assembly that the Mayor’s proposals for rent controls would have “really dramatic unintended consequences.”
Addressing the Assembly’s Budget and Performance committee Kath Scanlon, assistant professorial research fellow at the London School of Economics, said: “Landlords would simply decide they were no longer going to rent their properties.”
The Centre for Cities also warned earlier this year that “rather than helping make London open to everyone, strict rent control would close off London to new residents and divide the city’s renters into winners and losers”.
David Smith, policy director for the Residential Landlords Association, added: “This research shows clearly that rent controls are not a panacea for tenants.
“Far from making renting cheaper, experience around the world shows it can make it more expensive and more difficult for those looking for a home to rent.
“Rather than resorting to simplistic and populist ideas which have shown themselves to fail, the Mayor should instead work with the vast majority of private landlords doing a good job to see what is needed to stimulate the delivery of more homes to rent.
“Increasing supply is by far the most effective way of keeping rents down.”