Plans to introduce rent controls in London along with a bid to reform the capital's lettings sector have been criticised by leading organisations.
The Residential Landlords' Association (RLA) says that London Mayor Sadiq Khan's plans for powers to reduce rents and carry out a thorough overhaul of the private rental sector are 'meaningless'.
That's the verdict from the RLA's policy director, David Smith, who said that the plans for rent controls would be meaningless if Londoners cannot find a home to live in.
He also warns that such a move would lead to a drop in investment from landlords while boosting rental home supply which should be the top priority for the Mayor.
Mr Smith added: "Localised rent controls would have a big impact on surrounding areas and with demand outstripping supply, residents would move out of the city and rents would increase with increasing demand."
Rent controls divide renters
He also pointed to research from the Centre for Cities which highlights that rent controls divide renters into those who are 'privileged' and 'outside' and damages social mobility.
Mr Smith said: "London rent rises are well below inflation and are increasing at just at 0.9% in the 12 months to June.
"We do welcome some of the Mayor's proposals for improving the rental sector in London, including the establishment of a dedicated housing court and reforming the process for a landlord to regain possession of a property in legitimate circumstances."
The British Property Federation (BPF) also says that it is opposing rent control plans and they say having different tenancy models operating in London compared to the rest of England 'makes no sense'.
The BPF's policy director, Ian Fletcher, said: "Proposals to introduce rent controls must consider the effect these could have on the build to rent sector's investment. If investment in new homes is deterred this would take London away from resolving its underlying housing issues - mainly a lack of supply."
Regeneration sees rental growth
Meanwhile, it has been revealed that of those English cities that have undergone major regeneration, the investment has led to strong rental growth and demand from tenants.
One lettings platform says that the average rent has risen by 21% over the past five years, compared to an average of 16% across England.
Leading the charge is Manchester with a 38% rise since 2014 in rents, followed by Cambridge where landlords have seen a 38% rise.
A spokesman said: "Transformations are positive in terms of the quality and level of housing stock and there's still an appetite for the development of housing in areas that see big improvements."
