Rent Control: its Costly Repercussions.

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 UK. Our opposition to rent and eviction controls is unequivocal. We shall show that wherever 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 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 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 mobility of labour. The encouragement to immobility can lead to the perpetuation structural imbalances in an economy prompting rigidities which can have considerable economic and social costs. [ABSTRACT FROM AUTHOR]