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Rent Control: its Costly Repercussions
Author(s) -
Albon Robert,
Stafford David C.
Publication year - 1988
Publication title -
social policy and administration
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.972
H-Index - 63
eISSN - 1467-9515
pISSN - 0144-5596
DOI - 10.1111/j.1467-9515.1988.tb00287.x
Subject(s) - eviction , renting , economics , rental housing , opposition (politics) , control (management) , stock (firearms) , economic rent , order (exchange) , public economics , labour economics , market economy , finance , politics , political science , law , mechanical engineering , management , engineering
This article examines the theory and practice of rent control in the UK and elsewhere in order to contribute to the important debate on the future of the private rental sector in the UK. Our opposition to rent and eviction controls is unequivocal. We shall show that wherever rent control has been imposed the effects have been, at best, adverse and at worst, appalling. The effects on the quantity and quality of a housing stock can be so devastating that one Swedish socialist economist, Assar Lindbeck (1967) concluded: “In many cases rent control appears to be the most efficient technique presently known to destroy a city — except for bombing.” Controls which lead to an excess demand for housing foster unfortunate practices such a discrimination on various grounds other than willingness and ability to pay rent, and the creation of a black market. Rent and eviction controls also have a major impact on the mobility of labour. The encouragement to immobility can lead to the perpetuation of structural imbalances in an economy prompting rigidities which can have considerable economic and social costs.