FT Columnist makes strong case for opposing rent controls

Financial Times columnist and radio presenter James Max has made a strong case for opposing rent controls.

Appearing on the Jeremy Vine Show on Channel 5, Max - who is a regular contributor to the FT Weekend newspaper - says that the rental market works less efficiently the more it is interfered with.

He says: “You increase supply by encouraging landlords, local authorities and house builders to create more homes … But if you take away that return, either by capping rent or by taxing … then you’re either going to put up the cost or reduce supply, so exacerbating the problem.”

Max claims rent caps in the UK back in the 1970s and earlier periods did not work.

He adds: “They caused a catastrophic problem in the market. People look at rent caps and think that’s only fair, but it’s the unintended long term consequences that people don’t understand given the complexity of the market.” 

The programme, first broadcast on June 6, is available to watch on Channel 5’s catch-up hub.

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