The RLA Slams The NHF Chief Executive's Call For Rental Controls
- 23 Sep
David Orr said the government would be "incomprehensibly stupid" not to consider capping private sector rents.
He said this at the NHF's conference in Birmingham last week according to reports by 24 dash.
Nevertheless, the RLA has claimed that costs rose by just 1.3% between May 2013 and May 2013, well below inflation.
Research by the Organisation for Economic Co-operation and Development (OECD) suggested that rent controls lead to "greatly reduced quality and quantity of new homes".
Alan Ward, chairman of the RLA, expressed his concerns:
"I am disappointed by David Orr's refusal to accept basic housing economics.
"His calls for rent controls are based largely on a select few areas of London Boroughs that have seen rents rise as a result of an acute housing shortage across all tenures. Private sector landlords would no doubt be able to keep costs down if they too enjoyed the kind of public subsidies enjoyed by Housing Associations.
"Rent controls are the same as using a sticking plaster to treat the flu. The problem David Orr highlights is one of supply which would be critically undermined by capping rents. The RLA has produced its manifesto for growth in the sector; it is a shame that Mr Orr has not done the same.
"I would be very pleased to welcome Mr Orr to the RLA's Labour conference fringe event next week to contribute to the debate on this."
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