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Assess the impact of re-introducing rent control on the market for housing - Essay Example

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The United Kingdom’s housing private has multiple divisions with houses and apartments owned by the private sector and the local authorities; additionally, with developments in the market, housing associations have also become prevalent. Significantly, rent regulation has been…
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Assess the impact of re-introducing rent control on the market for housing
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Download file to see previous pages However, these challenges did not last for long as the abolishment of the controls and execution of short-hold tenancy resulted to a rejuvenation of the private rented sector that continues to develop even today.
Essentially, critics such as George Osborne and Assar have a rational foundation to their arguments, as most people would agree that setting prices lower than those the property owners would charge could make the economy less appealing, especially for the investors (Sloman&Garrat, 2012). However, the are other influences of rent control different from the common observation and conception that elimination of the controls is more efficient as it could provide a more desirable housing market for potential investors. Rent controls and any adjustments to the tenure legislations could influence the housing market in multiple ways but there is always a risk of overlooking other essential aspects that also have considerable effects on the development of the economy. Relative to a glance on history, instigated rent controls in the United Kingdom varied from a straightforward freeze during the world wars to fair rents regimes in the sixties aimed at removing the impact of scarcity in the rental market. The initial step was an increase of Rent and Mortgage Interest Act of 1915 limiting rents for unfurnished homes (for the working class) to specific levels at the beginning of the war in 1914(Glaeser&Luttmer, 2003).
Typically, the regulation of rent in the United Kingdom has had vast challenges in the past even with the main objective revolving around ideas such as advocating for affordability. Moreover, the short-range act introduced prior to the World War 1, mysteriously managed to be in place up to the late 1980s making people more alert of proposals such as the one by the Labor Party. Resolutely, this essay focuses on explicating effects of re-introducing rent control on the market for housing based ...Download file to see next pagesRead More
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