Dianne Abbott moots rent control

Potential London Mayoral candidate Dianne Abbott has said she would want to introduce rent controls across London.

She feels that introducing a local cap at half the council tax – above which any landlord would pay a 50% tax – would push down rents across the capital. She says business would welcome the move as it would make accomodation more affordable.

Critics say that rent control mechanisms such as this tend to inflate rents as landlords seek to recoup revenue lost to tax, and that without increasing the supply of homes available for rent, tthe move would have no effect.

Ms Abbot suggests in the Evening Standard that the money raised would be used to increase the supply of affordable housing.

 

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