Housing and Planning

IEA: Sadiq Khan wrong to push failed rent control agenda in London

Responding to Sadiq Khan’s claim the London mayoral election will be a referendum on rent controls, Dr Kristian Niemietz, Head of Political Economy at the Institute of Economic Affairs, said:

“Rent controls have never worked anywhere. They do not just fail to solve the problem they are intended to solve; they also create new ones of their own.

“This is one of the very few issues on which economists of all stripes – including stridently left-wing economists such as Paul Krugman – are in complete agreement. This is not a matter of neoliberal economics vs left-wing economics. It is a matter of economics vs Trump-style knee-jerk populism.

“If Sadiq Khan had any interest in solving London’s housing crisis, he would focus on the supply side. He could, for example, push for a review of Green Belt boundaries, and a relaxation of height and density restrictions.”


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For further reading on rent controls, click here and here.

The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems and seeks to provide analysis in order to improve the public understanding of economics.

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