Taylor Scott International News
Some 60% of London landlords would reduce the size of their property portfolios in the event of a rent freeze, new research has found. The report commissioned by the London Assembly Housing Committee carried out by the Cambridge Centre for Housing and Planning Research (CCHPR), surveyed amateur landlords with just a few properties as well as commercial build to rent landlords and investors. CCHPR put forward six potential scenarios of rent stabilisation, from a one off rent freeze for three years, through to linking rent rises to wage rises. The study found that the majority of landlords would continue as they are if rents could only be increased in line with inflation, although 40% of participants stated that they would sell some or all of their properties if this measure was introduced. What's more, the report claims that on the whole landlords taking part are not keen to offer longer tenancies but 52% said they would be more inclined to do so if tax incentives were available for doing so. ‘Much has been said from all sides about rent controls but the debate has been sorely lacking in facts, so it's incredibly useful to have these set out in this report,’ said Tom Copley, chair of the London Assembly Housing Committee. ‘The choice is not simply between regulating rents and not regulating rents. There is no one size fits all system of rent control, with many cities around the world adopting different models. Each system has upsides and downsides,’ he explained. ‘In terms of what would work for London we need solutions that work for the millions of Londoners, especially families, in the rental sector. For families, the prospect of having to up sticks with very little notice often means disruption to many aspects of their lives, including schooling and employment,’ he added. According to David Smith, policy director for the Residential Landlords Association, it is clear that the country will need more homes to rent, if it is to address the housing crisis. ‘This report reminds us of the dangers of rent controls which would in fact reduce supply, thereby increasing rents. Rent controls would also severely reduce standards in rented housing as investment dries up,’ he said. Taylor Scott International
Taylor Scott International, Taylor Scott
