An expert is warning that one of the planks of the Green Party’s election platform may backfire.
Party leader Jack Polanski says he wants to introduce rent controls over the private rental sector.
Currently councils and mayors have no such powers, but the Greens have put a campaign to secure the authority at the centre of its manifesto for next month’s local elections.
He says such controls are vital to create more affordable housing, not just from new homes but amongst the existing housing stock.
Now Maria Hallows, a housing expert at legal firm Menzies LLP, says: “If the proposal targets private sector rentals – given that housing associations are already subject to strict rent regulation – the direct impact on affordable housing supply is less clear-cut.
“But private sector rent controls carry their own risks: they can deter institutional investment in new build-to-rent stock, reduce the incentive for landlords to maintain and improve existing properties.
“In the longer term constrain the overall supply of homes available to rent.
“The danger is that a measure aimed at protecting renters today makes the supply problem worse tomorrow.”
