In addition to these 'unreasonable rent' rules, since 1996 rent ceilings have existed which limit the maximum amount of rent that is eligible for benefit.
It has been estimated that about 70% of private tenants claiming housing benefit under these rules have their eligible rent restricted to a lower amount than their actual rent as a result of either the unreasonable rent rules or the rent ceilings or both (Kemp et al, 2002).
It has been recommended to the government for increase in house rent ceiling
of public sector employees and hopefully sixty five percent would be finalised from the next financial year, he added.
Among other wasteful consequences of rent control, Bourne points to a deadweight cost that is largely overlooked: "With tenancy rent control inevitably comes an expansion of bureaucracy too--and this will also have a vested interest in more regulation." Like other kinds of regulation, rent ceilings
spawn officials who will seek to enlarge their budgets and scope of authority--a cost to all taxpayers.
Civitas' proposal for rent ceilings
to be introduced to tackle an "affordability crisis" has received an enthusiastic welcome from Plaid Cymru.
The government also decided to put in place price and rent ceilings
as a measure to control the increasing prices and rents.
This dichotomy is perhaps most apparent in relation to their opposition to the policy of rent ceilings
. Friedman and Stigler published 'Roofs or Ceilings?', criticising rent control on the grounds that it would ultimately generate a reduction of the number of units for rent, especially for the poor who were intended to be the beneficiaries of the rent control.
But, for several years, the CHA has had rent ceilings
in place that were far lower than market rate prices.
Anti-inflation measures, such as rent ceilings
and wage and price freezes, were put into effect as the nation settled down to the grim business of war.
Second blow came in the housing market in June 1985, in terms of rents and prices, when maximum rent ceilings
were raised, for example, from Rs.
Although continued rent controls imposed a brake on the rate of increase in shelter costs, periodic relaxation of rent ceilings
clearly intensified rent burdens.
Capped rent ceilings
coupled with stratified new resident admission preference will protect all segments of the low income spectrum and will give public housing the income its needs to reach its financial goals.