Very interesting analysis. Not meaning to wind you up, but the other Russell (Napier) has talked about rent controls as a potential tool of financial repression. You elegantly map out the political dimensions, Napier includes a government debt dimension, namely
"Rent controls- to strip property of some of its inflation proofing
and make it less attractive relative to government debt "
I don't know about the UK but in the US there have just been "revelations"? (not sure if true), that Landlord software company Realpage might be inflating rents by creating a pricing cartel between landlords:
But yes, to your point this does point towards "fuck landlords", but probably there are some inbetween steps before full rent-controls. NYC is looking at banning landlords from seeing tenant's criminal convictions, California cities like SF, LA and SD are all extending COVID eviction moritoriums (forms of rent control).
The only question about your thesis which I agree with, is that a lot of the political class in places like San Francisco have a lot of their money in property. I would imagine London/UK would be similar. I guess if the Pelosis get pushed out of power by a more populist political part of the Democratic party maybe rent controls are in play?
Very interesting analysis. Not meaning to wind you up, but the other Russell (Napier) has talked about rent controls as a potential tool of financial repression. You elegantly map out the political dimensions, Napier includes a government debt dimension, namely
"Rent controls- to strip property of some of its inflation proofing
and make it less attractive relative to government debt "
In Ireland there is a 4% annual cap on residential rent increases. https://www.rtb.ie/
Also Gov have indicated that the REITS will be levied high transactional stamp duty and ongoing Local Property Tax for Build to Rent only schemes.
F@&K Landlords started a while ago.
I don't know about the UK but in the US there have just been "revelations"? (not sure if true), that Landlord software company Realpage might be inflating rents by creating a pricing cartel between landlords:
https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent
But yes, to your point this does point towards "fuck landlords", but probably there are some inbetween steps before full rent-controls. NYC is looking at banning landlords from seeing tenant's criminal convictions, California cities like SF, LA and SD are all extending COVID eviction moritoriums (forms of rent control).
The only question about your thesis which I agree with, is that a lot of the political class in places like San Francisco have a lot of their money in property. I would imagine London/UK would be similar. I guess if the Pelosis get pushed out of power by a more populist political part of the Democratic party maybe rent controls are in play?
And then, for no reason at all, the supply of rental housing falls off a cliff...