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Graham Awards


Rent controls help turn Berlin into “mini Venezuela” - claim

An economist at a right-leaning think tank says Berlin - often regarded as a model for state-regulated private renting - has become a “mini-Venezuela”.

In a written debate on the City AM website, Dr Kristian Niemietz - head of political economy at the Institute of Economic Affairs - says: “Berlin (Germany’s very own miniature Venezuela), where, after the introduction of a rent cap, the supply of rental properties coming on the market fell by almost half, at a time when it increased in comparable German cities.”

He says the way out of what some people see as the current high rent problem is to build more homes for rent.


On the other side of the debate is Sarah Arnold - senior economist at the left-leaning New Economist Foundation.


She writes: “Private renters are among the worst hit by this pandemic, with 840,000 behind on payments nationally as many tenants saw their incomes fall. The long-term impact of the pandemic on the housing market is far from clear but having affordable rents in London should remain a priority.”

You can see the full, but relatively brief, debate here.

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    Hope London's mayor takes note of the huge reduction in availability of rental property after this interference from Government!

    Market forces will always prevail!

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    So if they want affordable rent it’s very easy to achieve, just reverse the cause. Scrap The John Prescott 2004 Act that doubled the cost to supply rental and on going.
    Mr Sadiq Khan if he needs something to cap he can cap & reverse the unfair Council Tax hike this year that he is a big beneficiary of for him to waste, (in Brent this year 5.9% increase).


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