RENT CONTROL_ Sadiq Khan’s Horrific 2021 Plan for London…
Hey! I am Samuel Leeds. Today, in this video I will tell you the terrible idea of Sadiq Khan for proposing rental control. He is the current mayor of London. I will also discuss these issues and share what I think how this will mean to investors. So, lets begin.
What Rent Control Is?
Rent control is where landlords are not allowed to take high rents. They cannot put rent too high and take advantage from the tenants. This is ridiculous from every aspect. Also, Sadiq stated that: “The arguments for rent control are overwhelming and Londoners overwhelmingly wanted to happen.” I mean what are the arguments? Who people are overwhelming I really wanted to know like how they are overwhelming. They are just playing with the emotions of poor people who can’t afford it. The Londoners who overwhelmingly wanted to happen is because they don’t know the effects of this.
Effects of Rental Control
Let’s say if there is a limit of five grand and no tenant is allowed to pay more than that and the tenant like me wants to pay more than five grand for a better living and good place then what? And maybe some tenants can’t afford to pay five grand then they will switch to another place which will be cheaper for them. This will create competition among tenants and that;s totally wrong. Because there will be less properties or accommodation for rent as only few people can afford it. The people only going to pay rent high if your house is worth it to pay. What if your house is not up to the condition and you are charging too high rent? Of Course nobody is going to rent it out.
Another reason is many people are coming towards property investment in London and renting out their property. But if this rental control happens in London then there will be less or no investors in London instead they will move to another area or city to invest in. That means there will be less supply and the prices would go high. There will be no accommodation to rent when people show interest to rent out their property.
Next is about the developers. Builders will no more build property in the area where the rent is capped. Why would they waste their money if there is rent control? And if in case builders developed in those areas, they will build a little unwanted type of apartments because they know that rent is going to be capped anyway. Or they might build porch apartments that can be sold to rich people.
Sadiq should know that when the rent control happens in New York, it turns out the worst idea. The landlords are not getting much rent so they didn’t fix anything in the house because they thought that why would the money spend on the property if the tenant is living on so cheap rates then why do they get everything perfect. Tenants also cannot afford to fix. It created an awful situation. I have seen New York when I went there for the Financial Freedom Challenge and on a second thought I realized it's not gonna happen because the whole economy was distorted there. There were no affordable properties on rent. That was really disturbing.
Well I don’t agree to this rent control thing. It is totally a failure in the property business. What we need is a free market where things can happen in everyone's favour. If the mayor is doing for his votes then he should re-think as this will create a distorted situation in London if he brings this thing. I hope this will not happen. This is it! For more informational videos, subscribe to my YouTube channel. Bye!
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