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DEBATE: Should London have rent controls? - CityAM : CityAM


Sarah Arnold is a senior economist at the New Economist Foundation
(Photo by Peter Summers/Getty Images)
Dr Kristian Niemietz, head of political economy at the Institute of Economic Affair says No
Rent controls are a lot like socialism. Both have been tried dozens of times. Both have ended in failure every single time. And both remain insanely popular nonetheless. In both cases, supporters will insist that, far from having failed, the idea has just never “really” been tried.
The latest example is 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. But, needless to say: the cap remains. ....

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