The boss of a leading free-market think tank has launched a blistering attack on the Government’s Renters Reform Bill, warning it will drive landlords out of the market and make London’s housing crisis even worse.
Emma Revell, spokesperson for the Centre for Policy Studies, told City AM that the recent humiliation of former housing minister Rumanasha Ali “exposes the irrationality” of the Government’s approach. Ali’s behaviour, she argued, was perfectly logical by the standards of a landlord – but hypocritical for a government minister.
“The Bill is packed with anti-landlord measures,” Revell said. “It should be obvious even to our politicians that if we make it harder to make money out of renting a property, we will get fewer people renting out their properties. And the Bill definitely makes it harder. The more difficult it is to do something, the fewer people will do it – but legislators seem to think this rule won’t apply to landlords.”
She warned that landlords, already spooked by the threat of further red tape – including a possible return of mandatory C-grade EPC rules – are pulling out of the rental market in droves. “What does the Government think having fewer properties available to rent does to the cost, I wonder?” she added.
Revell was scathing about London’s political leadership, accusing Mayor Sadiq Khan of obsessing over rent controls while presiding over a near-collapse in housebuilding. “Khan has been campaigning for rent control powers for years – despite countless cities worldwide proving it’s a phenomenally stupid idea,” she said. “Meanwhile, the city he’s run for almost a decade has seen construction grind to a halt.”
According to CPS analysis, London now has just 427 homes for every 1,000 residents. Matching the housing stock levels of comparable European nations such as Italy, Denmark, France, and Finland would require an extra 1.1 million homes – a shortfall Revell blames squarely on years of failure to build.
Her verdict: the problem isn’t landlords – it’s politicians choking off supply.