While roaming You Tube, I found this British TV show about evicting tenants. It was a shocking show to me, I was a landlady much of my life. In England now, it is nearly impossible to evict anyone so a huge part of the population, rich or poor, don’t pay any rent at all sometimes for several years! This is destroying the economic systems. Why? Well…if people don’t pay rent, landlords must evict and when they do, they have to raise rents much higher to make up for losing so much money for huge lengths of time. It also eats up any money for repairs.
When a community artificially restrains rents by adopting rent control, it sends the market what may be a false message. It tells builders not to make new investments and it tells current providers to reduce their investments in existing housing. Under such circumstances, rent control has the perverse consequence of reducing, rather than expanding, the supply of housing in time of shortage.
Three additional factors must be considered in the economic implications of rent control. First, the longer rent control remains in place, the more substantial the gap between controlled rents and true market rents is likely to be. Second, the costs of rent controls are not confined to the political boundaries of those communities that adopt them, but often impose significant costs throughout regional housing markets. Third, while the distortions induced by rent control depend on their stringency, any application of rent control leads to inequities and inefficiencies in the housing market.
New York City did this for many years. Rent controls were imposed during WWII and afterwards due to the ‘housing shortage’. Out West, where I grew up, there was no long ‘housing shortage’ due to everyone eager to build. In NYC it was nearly impossible to upgrade or build anything for generations.
I fought tooth and nail with the city over renovating dying buildings. The city tried its best to make that impossible not to mention the wild bribery going on: everyone had a hand out for money under the desk! Corruption flourished, housing didn’t get upgraded or built and the city was literally going bankrupt.
It was epic battles to stop all this! Huge hunks of rent controlled buildings that were perfectly useful went up in flames under the DNC regime of rent controls. I watched in horror and amazement as entire neighborhoods looked like Dresden after the WWII bombing raids. Or like Hiroshima.
Today, all of Britain is under this sort of misrule. It is very, very hard to evict tenants. Everyone knows you can get away with not paying rent for several years so more and more people refuse to pay up. What is interesting to me is the growing solution to this destructive socialism: there are two court systems.
The corrupt one is local and the judges won’t let anyone be turned out of these houses they are living in for free. But now landlords have won the right to go to the High Court which is national, not local. There, they can get a writ that gives tenants ONE HOUR to vacate!
It is interesting watching the reaction of tenants in this show above, there are many episodes of this nonsense, when they learn they can’t live somewhere for free, forever. If evictions were quick, landlords would not live in perpetual fear their tenants will cheat on them. The good tenants who pay regularly will see much lower rents and the freeloaders will have to be more careful.
Many of the freeloaders in this show and I watched quite a few episodes to see who is doing this scam, are foreigners. They come into Britain, demand to be housed and then don’t bother paying rent. If things get totally out of hand, they move off into another EU country and continue to mooch like this.
Thanks to the new law systems set up behind the scenes, evictions are now rising. Over a quarter of renters are people who haven’t paid rent in at least three months or more (most often, for years). But with the new system in place, it moves much faster than even I would expect.
The people who are taken to court, if they lose and the landlords can evict them, are given a short time span to find a new place to rip off and if they are still there, are given just one hour to pack some bags and leave, they can return within a week to get the rest of their stuff.
But the agencies advising tenants on how to hang on forever to their apartments for free are told by the staff to do nothing to look for alternative housing because if they are ‘homeless’ they get free housing very quickly. I used to be very poor when I had to leave school, had a baby, lost my home due to it being taken for a parking lot, and we had a major recession with huge inflation.
I lived in one room for a while, got a job working for my landlord and then moved onto a better landlord than a better one, got a reputation for being good at this work and ended up a landlady, myself, all in less than six years. It was hard work!
I know everything about bad landlords, bad tenants, bad cities! This is all very toxic but I must say, whenever cities or states or countries back property owning tactics that reward people for running things properly, everyone profits in the long run. NYC has public housing run by the city and is very political and is the most horrible place on earth a person who is law abiding and sane can live.
That is, these places are pure hell. Anything nearby struggles to survive while a tsunami of crime, filth and anti-social behavior floods over everything. You couldn’t pay me to live there. Or anywhere nearby, for that matter. Good tenants are punished by bad tenants. Stopping the bad tenants from exploiting everyone and all systems is required if one wishes to protect the good tenants!
A good tenant is a treasure. A bad one is a nightmare. Bad ones burn down homes, I watched NYC go up in flames thanks to out of control, raging tenants running riot. England’s solution to the problems created by a legal system that allows people to steal property via refusing to pay rent for years and years is a destructive system for everyone. In the end, it can destroy entire cities and entire countries.