‘There is an imperfect market in the housing sector’.
These are the comments of Commerce Commission Chairman Dr Mahendra Reddy while responding to the National Federation Party's statement that the commission's requirement for landlords to register with them is ill conceived.
Dr Reddy said they want the landlords to register with them because they want to free up the market as at the moment there is more demands from the tenants but less flats available.
Dr Reddy said this is why they want the landlords to register so that they can have a price control order.
The NFP said the commission is saying that it is an attempt towards price control based on individual house or apartment characteristics.
NFP Leader, Doctor Biman Prasad said if the price is controlled, the landlords will discriminate on other characteristics making price control useless and can result in further exploitation of tenants and the policy can make new housing less profitable to invest with fewer investments in the long run.
Dr Mahendra Reddy said the NFP does not understand what is going on and he has invited the NFP leader for talks.
With the price control the landlords can apply for an increase in rent but they will need to have previous and past data on rent level and renovations.
We will have more later this afternoon.
Story by: Akuila Cama
