A Member of the Legislative Assembly (MLA) in Northern Ireland has called for the introduction of rent controls to address rapidly rising rents. Gerry Carroll MLA criticised the current approach to the housing crisis and outlined plans for a Member’s Bill aimed at protecting tenants.

Calls for Rent Controls and No-Fault Eviction Ban

During a recent session in the Northern Ireland Assembly, Gerry Carroll MLA highlighted the significant increase in private rents, which have reportedly risen by 50% over the past five years. He condemned this rise as “shocking and appalling” and criticised the Executive parties for failing to challenge private landlords effectively.

Mr Carroll is preparing a Member’s Bill that seeks to freeze rents for a number of years, introduce a ban on no-fault evictions, and eventually implement rent reductions. He emphasised the need to confront the power and wealth of private landlords, suggesting that current political parties have been reluctant to do so.

Rent Controls: A Tenant-Focused Solution

Carroll argued that rent controls benefit tenants by reducing their monthly rental payments and increasing disposable income. He pointed out that despite opposition from the Minister for Communities, who has expressed concerns that rent controls might be counterproductive, such measures are common in several European countries including Denmark, Malta, Sweden, the Netherlands, Spain, Germany, and France.

He stated: “Rent controls do not work for landlords, but they clearly work for private renters by reducing the money that comes out of their account every month and, obviously, putting more money in their pocket.” This, he suggested, is a necessary step to alleviate pressure on tenants in Northern Ireland’s private rented sector.

Contrasting Views on Rent Controls

However, the debate over rent controls is far from settled. Previous analysis by the Institute of Economic Affairs (IEA) and reports from Property118 have argued that rent controls can cause more harm than good. While they may initially lower rents for existing tenants, they often lead to higher rents in uncontrolled sectors and reduce both the supply and quality of housing.

Evidence from Scotland, where rent caps have been implemented, shows rents have increased by 11.6%, with landlords raising rents faster than elsewhere in Great Britain. Data from Hamptons indicates that rent controls have reshaped the Scottish rental market, prompting landlords to increase rents regularly to the maximum allowed.

David Fell, lead analyst at Hamptons, commented: “The evidence from Scotland suggests that rent controls rarely work as intended. At best, they delay rent increases; at worst, they set a new benchmark where landlords feel compelled to increase their rents every year by the maximum allowed.”

What this means for landlords

If rent controls and no-fault eviction bans are introduced in Northern Ireland, landlords could face restrictions on rent increases and limitations on their ability to regain possession of properties without cause. This may impact rental income and property management strategies. The experience in Scotland suggests landlords might respond by adjusting rents more frequently or seeking alternative ways to manage risks associated with regulatory uncertainty.

Landlords should stay informed about potential legislative changes and consider how these might affect their portfolios, tenant relationships, and long-term investment plans.

Source: Based on reporting from Property118

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