Deputy Director of the Adam Smith Institute Sam Bowman was quoted by The Associated Press criticising Labour’s pledge to cap rents from rising above-inflation for the next three years.
The quote has featured in over 90 local print outlets.
But any rent control was called ” a stunningly bad idea that could clobber renters” and “devastate” cities, by the free-market Adam Smith Institute think tank.
Deputy director Sam Bowman said the Labour proposals were “less harmful” than those criticised by Lindbeck “but shift risks from landlords to tenants.
“They incentivise landlords to price in expected rent rises at the beginning of the tenancy, so if rents fail to rise as quickly as expected, the tenant is left paying more than they would need to.
“Labour has unwittingly announced a policy that could devastate Britain’s cities and exacerbate the housing crisis.
“If Labour want to reduce housing costs for renters, it should advocate planning reform to increase supply so that the price of housing drops in real terms.”