A new research conducted showed results that about 60 percent of the landlords in London will reduce the size of their property portfolios whenever a rent freeze will take place.
The report was commissioned by the London Assembly Housing Committer and was carried out into completion by the Cambridge Center for Housing and Planning Research (CCHPR). The team surveyed amateur landlords with few properties and also commercial build to rent investors and landlords. CCHPR included six potential scenarios in the rental segment stabilization from a one off rent freeze within three years and also linking rent rises with increase in wages. The study revealed that most of the landlords will continue with their business if the rental would also be increased in line with the inflation. There were about 40 percent who expressed their sentiments that they will sell some or even all of their properties if the rent freeze will be introduced in the market.
The report also found out that on the whole, landlords are not actively taking part in offering loner tenancies to clients by about 52 percent said that they will be spurred to do so if they had available tax incentives for doing so. The chairman of the committee for the London Assembly Housing said that there has been much debates from both sides about rental control but significantly lacked the facts to back it up. The study was supplementing the theories of people. It was clear that the choice is not simply between regulating and not regulating rents. There is not one size which fits the entire system of rent control where a lot of cities across the world have been adopting varied models. Every system has its upside and downside. Many contend though that authorities should draw a line between two opposing sides in the market.
The study will also be useful for different businesses directly related with the property market like those engaged in painting and decorating. This will give an insight to painters & decorators Northampton of what they should expect from their clients coming from this certain sector of the market.