Newsnight covered a discussion on rent controls a few weeks ago. The Director of Generation Rent, Alicia Kennedy, explained that property prices were so high that it was denying a generation of renters the chance to get onto the property ladder. She explained that security of tenure and having the possibility of a forever home somewhere where they can put down roots in the community and build a family were being denied to tenants in the private rental sector because they have to move every 6 months which might cost them £1700 each time. Ms Kennedy is seeking a temporary freeze on rents and a pause on evictions to help tenants survive the winter.
Ben Beadle, Chief Executive, National Residential Landlords Association, didn’t disagree with Baroness Kennedy but suggested that the reason why 260,000 homes have exited the private rented sector in the last 5 years was because of onerous regulation and changes to legislation making it less attractive to own rental property. Taxing landlords heavily makes rents less affordable. NRLA argues that rent controls would lead to further properties leaving the sector. He believes that landlords are leaving the sector because of increase taxation; increased costs and increased regulation. He suggests reversing s24 changes to make it more attractive to invest and reverse the local housing allowance freeze introduced a couple of years ago. Ms Kennedy agreed with Ben but suggested more affordable housing needs to be built. Ben agreed but said that we need an effective PRS for people to go into their own homes from.
Personally, I think that rent controls would encourage landlords to leave the sector. I certainly agree that we need more quality homes and a more effective planning system to deliver them.
What do you think?
