Rent Controls: A Well-Intentioned Disaster? | Foundation for Economic Education

Reem Ibrahim writes for the Foundation for Economic Education

Both economic theory and empirical evidence demonstrate that rent controls are a bad idea.

Housing is expensive. As a London renter myself, I feel the pain. The UK is suffering a chronic housing shortage, and the Government’s refusal to meaningfully reform the planning system means that we are terrible at building new homes.

In 1995, a homebuyer earning the median salary would have to spend between 3.2 and 4.4 times his or her annual salary on a house, depending on their location. Currently, the average house in the UK costs more than 9 times the average income.

Read the full article at the FEE here