The property rental sector of UK includes apartments and flats with complete compact vanity units. In the recently reported findings from an interim report, rent controls and other policies associated with these which are being implemented well in other countries cannot be replicated easily in the private rent sector of UK.
The interim report
The London School of Economics and Political Science (LSE) made the interim report and which was commissioned by the NLA (National Landlords Association). The interim report looked into the evidences provided by countries which had strong regulatory policies like Ireland, Netherlands and Germany as well as in the United Kingdom.
In Ireland where it generally influenced or provided the model for the proposal of the Labour Party’s campaign in the general election which was held last month, the report suggests that controls that were introduced within the last few years had only limited effect on the system of governance. The country is currently experiencing a crisis in the housing sector. There is a rapid increase in rentals and a stagnant housing production.
Germany has often been cited as one of the perfect example of a nation that has a stable private property sector in the rental industry. It is also deemed by many to have the system of limitless security and a system of in-tenancy rent stabilization. These scenarios have been cushioned in the past by the low prices in housing programs and low demands. The initial rents in the country are above the current market price especially in areas of high demand.
The interim report also highlighted that in New York and San Francisco, the main beneficiaries of rental policies are those belonging to the middle class houses while the younger generation hardly participates.
The chairman of the NLA pointed out that the interim report should be read by those in the leadership position in the Labour party as well as the London Mayor hopefuls. According to the chairman, the people in these organizations seem to ignore the academic evidences and the rejection of rental policies by the electorate last May.
There are plenty of private sectors in other countries facing massive problems in areas where there is high demand.