2 thoughts on “Rent controls – a red herring in the cost of living debate”

  1. Posted 09/09/2014 at 21:40 | Permalink

    The only bit of this nonsense I’d agree with, is rent controls cause a deadweight loss. But, then again so does owner occupation for exactly the same reasons, only more so. I don’t notice Bourne bitching about that. Quite the opposite. Instead of identifying we have an overconsumption of property resources in the UK (one million empty homes, 25 million empty spare bedrooms) he says we are 2 million short. Lol! Yes, rent controls are a suboptimal solution. But they are better than nothing.

  2. Posted 09/09/2014 at 22:04 | Permalink

    “Advocates of these sorts of controls like to point to the fact that something similar operates in Germany, where the market is regarded as tenant friendly. But the overwhelming difference between our property market and Germany’s is the fact that they have a much more sensible planning regime which has allowed substantial development of new dwellings. As a result, house prices have actually fallen over the past 30 years there”

    That’s not true. HP’s have tracked real wages in every Country in Europe. Germany included, whose real wages fell over this period. Planning has little or nothing to do with it. Even so, due to their high starting point in the late 70s, land prices for residential building in Germany is very similar to here in the UK.

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