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Rent controls would discourage pension fund investment in housing

Jonathan Seager, head of housing policy at London First, which is campaigning to double housebuilding in the capital, said:

“This is an example of another policy that ducks the central issue – we need to build more houses.

“One of the key ways of driving this is to attract big institutional investors, such as pension funds, to invest in the construction of large-scale, high-quality private rented developments. This would increase both supply and standards in the private rented sector.

“At the moment there just isn’t the incentive for them to do this and history has shown in the UK that rent controls are likely to lessen their desire to get involved.”

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