Rent control threat returns as new campaign launches
Summary
A new report from the UCL Institute for Innovation and Public Purpose and the New Economics Foundation argues that rent controls could reduce private renters’ costs while leaving most landlords profitable. It models scenarios for a 10% and 20% rent reduction and claims the policy could also lower housing benefit spending, though it may prompt some landlords to sell.
Why it matters
Any move toward rent controls would affect the private rented sector, landlord behaviour and rental market dynamics, all of which can influence valuation assumptions, investment appetite and portfolio risk. Surveyors working in residential valuation and landlord-related work should monitor the policy debate because it may affect yields, affordability and stock turnover.
Key points
- The report models a 10% rent reduction and a 20% rent reduction using HMRC data.
- It claims a 10% reduction would save the average renting household about £1,300 a year.
- The authors say only a small share of landlords would become unprofitable under the scenarios.
- The report argues rent controls could reduce government housing benefit spending.
- It suggests some homes could transfer from the private rented sector to councils, housing associations or community-led ownership.
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