Cape Town Mayor Geordin Hill-Lewis rejects rent control as housing costs spiral

The debate over rent control in Cape Town is intensifying, but Mayor Geordin Hill-Lewis argues the policy would do more harm than good.

Hill-Lewis says introducing rent controls in the Mother City would be a 'really bad idea'.

In a recent piece for GroundUp, Geordin Hill Lewis wrote: “The proposal to cap rental prices is an emotionally satisfying argument. But it is also wrong. And not just theoretically wrong, but demonstrably, repeatedly, historically wrong."

The Mayor says it doesn't work and, in fact, makes the problem even worse.

"If you chase the people who provide additional housing out of the market by capping rent, what happens is, you get even less housing supply over time."

The cap might work for a short time, concedes Hill-Lewis, but ultimately, he says it impacts housing supply and the maintenance of existing stock.

"And so you get this kind of slumification of buildings, which is a really bad idea.

"It will not solve the problem. All it does is help those few people who are already in rental units," he says.

Hill-Lewis contests the fact that certain people are being unfairly excluded from living in the centre of the City.

"In the sense that it's very expensive to live in the most desirable areas, I suppose there's an element of inequality, but there are so many people in the City from every ethnic background who cannot afford to live on the Atlantic Seaboard."

There are many places in the suburbs where people can find a property at a reasonable rent, he adds.

"And I encourage people to look to the suburbs, where I and so many others live."

To listen to Hill-Lewis in conversation with CapeTalk's Lester Kiewit, click below: