DJ Alexander has warned that new Labour proposals to introduce rent control may limit housing availability for tenants.
The agency warned that rent control could discourage future investment in the private rented sector, and encourage existing landlords to leave the sector. Combined with a predicted rise in population, it says this would leave a shortage of availability within the market.
David Alexander, managing director of Apropos by DJ Alexander Ltd, said: “Labour have correctly identified the need for greater social housing to counter the rising waiting lists for homes in the UK.
“However, they seem to believe that an improved social housing policy must be predicated on attacking the PRS when the truth is that both are required to meet the rising demands of renters in the UK.”
He added: “The problem with rent controls is that it is a crude measure of limiting charging which does not take into account the fluctuating market. Demand rises and falls, as some cities become more expensive others appear more attractive, so the idea of fixing rent rises linked to a centralised policy actually results in a less fair market.
“I think that the Labour party needs to end its confrontational approach to the PRS and work with the sector to ensure that we have a steady flow of homes both in the private sector and in social housing to meet demand from the UK’s growing population.
“Any sudden changes to the way in which the sector is regulated or controlled would cause major disruption with individuals suffering seriously reduced availability of rental homes in the future. The majority of good landlords and forward-thinking agents understand that greater security of tenure, the ending of no-fault evictions, and transparency and fairness in all relations with tenants is the future.”