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News: Rent controls help turn Berlin into “mini Venezuela” - claim

Wed, 14 Apr 21

An economist at a right-leaning think tank says Berlin - often regarded as a model for state-regulated private renting - has become a “mini-Venezuela”.

In a written debate on the City AM website, Dr Kristian Niemietz - head of political economy at the Institute of Economic Affairs - says: “Berlin (Germany’s very own miniature Venezuela), where, after the introduction of a rent cap, the supply of rental properties coming on the market fell by almost half, at a time when it increased in comparable German cities.”

He says the way out of what some people see as the current high rent problem is to build more homes for rent.

On the other side of the debate is Sarah Arnold - senior economist at the left-leaning New Economist Foundation.

 

She writes: “Private renters are among the worst hit by this pandemic, with 840,000 behind on payments nationally as many tenants saw their incomes fall. The long-term impact of the pandemic on the housing market is far from clear but having affordable rents in London should remain a priority.”


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