Rents in the Jungle
The elementary economic rule that, when demand outruns supply, prices tend to rise, has always seemed more than usually shocking when the commodity in question is that basic necessity, house-room. Consequently a whole jungle of measures, in which the Landlord and Tenant (Rent Control) Bill is the latest growth, has been called into existence to obscure the unpleasant truth. First rents were controlled for certain classes of accommodation. Then desperate house-hunters, hard-hearted landlords, and tenants on the look-out for easy money (a remarkably numerous class) found ingenious ways of dodging the law. Then tribunals were set up to protect their victims. Then ways were found of dodging the tribunals. And so the process went on until this week the House of Commons found itself discussing a Bill to protect four apparently narrow classes of tenants. These are persons who have previously appealed to rent tribunals and now need protection against vindictive land- lords ; tenants who are being charged an excessive rent for accom- modation shared with the landlord ; persons who have rented accommodation let for the first time since V-J Day ; and persons who have had to pay excessive premiums for such accommodation. Certain Members of Parliament found it difficult to penetrate this overgrowth. And yet the truth remains as simple as ever. Accom- modation is scarce, and so, by one means or another, its price goes up. The trouble is that the means have become so complex that the law cannot keep track of them. And so the answer of the Minister of Health is the old one—make the jungle a little thicker. No doubt he will have his way. But would it not be wiser to concentrate on increasing the supply of accommodation, so that the price can be brought down in the old crude way ?
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