1st
Nov 2019
A trade body argues that if Manchester sets up rent controls it will result in a major reduction in rentable homes which will further exacerbate the homelessness crisis.
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The Royal Society for the encouragement of Arts, Manufactures and Commerce and One Manchester have jointly published a report, which in effect is demanding the government to allow the Combined Authority to introduce rent pressure zones to cap higher rents.
Past evidence illustrates that rent controls simply causes a reduction in rentable homes thereby offering tenants a smaller choice, in some cases lower quality housing and higher rents.
The Mayor of London has made a similar proposal and the Centre for Cities has sent out a stark warning saying that rent controls would split the city’s renters into “winners and losers.”
A spokesperson for the trade body, said: “Rent controls are on the face of it an attractive but simplistic and populist approach to the increased cost of housing.
“In reality they make the situation for tenants worse. All the evidence from around the world where they have been introduced shows that they reduce supply and drive up the cost of housing.
“Having controls on rent is not much help to a person who cannot find somewhere to live because of the cut in the number of properties available. “Instead, the Mayor of Greater Manchester needs to work with the private rented sector on how to boost the supply of homes for rent to meet ever growing demand.”
The Times recently featured an article about San Francisco's rent controls and how it has instead of helping tenants has caused further homelessness throughout the city: “because they discourage people from letting out property and thus reduce supply, pushing house prices up further.”
Richard Merrick of PIMS, said: "It is in all probability that Liverpool will not be far behind in jumping on the bandwagon to introduce rent pressure zones. It is beyond belief that politicians try to 'court' voters with measures that for many renters seem to be fantastic proposals, but in reality will make them worse off."
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