Concerns have been raised regarding the Government's proposed rent control policy, which may create significant financial incentives for landlords to withhold properties until 2024. A government-commissioned review suggests that adjusting rent pressure zones could take up to four years to influence rent stabilization. Furthermore, global trade dynamics and rising interest rates could deter necessary investments in housing construction. Although the Housing Agency emphasizes the need for reforms to attract investment, it also cautions that without additional measures, supply boosts may be insufficient to alleviate rent pressures.
The recent review indicates that the new system of rent controls may incentivize landlords to refrain from entering the market until rent rates can be set higher.
It will take at least three to four years for investment in construction to translate into new housing supply, which is essential to stabilize rent prices.
Global factors, including potential interest rate rises and geopolitical tensions, could severely hinder the desired investment levels needed to meet housing targets.
The Housing Agency’s review expresses concern that any boost to construction may be negated by external economic pressures and changing global dynamics.
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