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ARLA makes the case against rent controls and rent freezes

The Association of Residential Letting Agents has made a detailed case against so-called 'rent stabilisation' measures advocated by some on the London Assembly and by some candidates for the capital's mayoral election next year. 

The London Assembly Housing Committee asked for comments from across the industry and consumer organisations in response to a number of questions, including ‘Which rent stabilisation measures do you think operate effectively in other countries?’ and ‘What more can the Mayor do to support the development of build-to-let and commercial landlords?’   

ARLA's managing director David Cox has sent a 36-point response, but a summary from the association's website summarises the case this way:


“Fundamentally ARLA is not in favour of introducing rent stabilisation measures in London. In March we surveyed our members and nearly three quarters of them said that rent control, longer tenancies and less freedom to evict tenants will not benefit tenants in reality.

“We’ve looked at Germany which is often viewed as one of the best examples of rent stabilisation in the world, but there are large costs involved for tenants as most properties are let bare without a kitchen or bathroom. In addition, in Belgium they have longer minimum tenancies lasting between three to five years which simply wouldn’t work in London where the fluidity of people coming and going for short periods is a common occurrence.     

“The challenge in London remains to find new, imaginative and additional ways of delivering good homes in safe and friendly neighbourhoods for prices people can afford. We think that the stamp duty raised from London property sales should be kept in London to invest in more housing and we would like to see the London Rental Standard become mandatory across the Private Rented Sector.”


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