Housing charity, Shelter, has previously been very much in favour of rent controls, but according to a story in the Guardian newspaper, it has now changed its mind.
Shelter Commissions Research
Research commissioned by Shelter and carried out by the University of Cambridge indicates that “hard rent controls” would discourage landlord investment and lead to tenants having poorer choices in the private rental sector. 31% of landlords surveyed said they would sell their buy to let properties if rents were frozen and the researchers warned that this could lead to the development of a housing “black market”.
“In practice, hard rent controls tend to create a two tier system in which some homes are subject to rent caps, while a formal or informal unregulated sector emerges that houses those in most need who do not benefit from the caps,” researchers said.
More Stability for Tenants
The report suggests that rather than hard rent controls, the introduction of five-year tenancies where rent rises are limited to inflation could provide a much greater level of security for tenants:
“As the charity for people experiencing bad housing or homelessness, our first priority is tenants. That’s why although many have called for rent caps as the solution, we have found that this could add fuel to the fire by pushing landlords out of the market and making it even harder for renters to find a home they can afford.
“This research is further proof that the government should give renters the stability they need to put down roots and save for their future by introducing longer-term tenancies with rent increases that can’t go above inflation.”
