3 ms·
Price-control (which is what a rent freeze is) distorts market values badly. The biggest drawback is that when the price-freeze is lifted, prices revert extreme
by simonblack 7y ago
Price-control (which is what a rent freeze is) distorts market values badly. The biggest drawback is that when the price-freeze is lifted, prices revert extremely quickly to where the market would have been without the freeze. i.e a sudden huge jump in prices instead of a slower gentle rise which is more able to be accommodated to.
There is no good side to rent freezes. It's very bad for business. When imposed, property prices are depressed and nobody want to invest in rentals leading to a shortage of available properties for rent. When lifted, tenants can be squeezed to oblivion and forced to close down in order to move out, away from unaffordable expenses.