The jury is still out on the effect of rent controls
APRIL 1, 2024

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The jury is still out on the effect of rent controls

by Marek Handzel

In the global landscape of residential real estate, one puzzle looms large: rent regulations, writes Chris Anderson.

Nations grapple with the delicate balance between tenant protection and investor incentives, with none seemingly finding a solution to appease both sides. Rent control laws protect tenants against sudden price spikes, but critics caution against this, highlighting stifled investment as a result of lower returns, and diminished housing quality, with landlords less inclined to maintain their properties.

On the other side of the coin, rent regulation over the long term does not mean giving up performance, it simply means managing it better over time, according to CBRE Investment Management.

In a report on the residential build-to-rent sector, the manager compares rental performance

of different European markets to make its point. Cumulative rent growth since 2015 in the United Kingdom and the "Big 4" markets in Germany, has been 45 percent and

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