Rent Controls Not The Answer

‘Allister Heath, writing in the Telegraph, says that the average rent in England and Wales is now 3.9% higher than it was this time last year yet the average wage in the private sector hasn’t gone up at all.

He points out that the squeeze is most acute in London where rents are 7.6% higher and the cost of renting is now over half the average wage in two-thirds of London boroughs.

But, Mr Heath says, rent controls, which are being called for, would be complete madness based on the fact that if prices are going up, that means that there is a scarcity of available homes to let.

The only way to tackle the issue is either to reduce demand or to increase supply. Rent controls would increase demand by keeping rents low, and reduce supply by making it less worthwhile for landlords to let out homes.

He concludes that the answer to the housing crisis can be found in the laws of supply and demand.’

Source:   The Daily Telegraph

NICOLA HALL

BILSHAN MENSAH

Sam Inkersole

In 2022, Sam won the Taxation’s Rising Star award at the Taxation Awards in and was named in the Accountancy Age 35 Under 35.

Jon Wedge

While Jon’s client work focuses on the financial services sector, he also oversees the firm’s assurance service, as well as supporting the trainees following in his footsteps.

ELANA DIMMER

Elana joined us in 2017 as an ACA trainee, after graduating from Durham University where she had studied languages. She is now a manager in our assurance team.

ENQUIRY FORM

By submitting this form, the data provided will be used to perform your request according to our privacy policy.