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James Walker
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I'm certainly not saying everything is rosy. My point is that well meaning intentions to improve the lot of the private renter in London through rent controls will actually make it worse. This has been shown to be the case before. Look at what happened to the supply of rented housing in the 50s and 60s. Rent controls completely destroyed the private rental market. It is true that rent controls work in other parts of Europe, but only where there is no imbalance of supply and demand. In Germany they haven't had any significant house price or rent inflation since the 60s. That's because they build enough houses. As it happens I do have a solution. It is to encourage new supply by making the provision of private rented housing attractive to very big financial institutions who can build to rent on a very large scale. Yes with professional, regulated landlords and guaranteed 5 year tenancies. This would need subsidy from somewhere. That could come from flexibility over other planning obligations and payments. Sadly I doubt any politicians will ever deliver this which is why demand will continue to outstrip supply indefinitely.
From:
James Walker
18 May 2015 17:04 PM
Oh dear! The trouble with these extreme left wing policies on rent control and taxing landlords is that they don't work. In fact they will have exactly the opposite effect. It's simple economics. How ironic that someone who wants to reform education is so poorly educated in economics. Actually maybe that's not ironic at all. It's just proof that the education system is indeed failing.
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18 May 2015 10:08 AM
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From: James Walker
18 May 2015 17:04 PM
From: James Walker
18 May 2015 10:08 AM