Government Tightens Rental Market Controls
In a recent statement, the Beijing Municipal Commission of Housing and Urban-rural Development announced that it had held talks with top rental companies and that it will be clamping down on market “irregularities”. The announcement comes after recent reports of spiking rental prices.
The rental housing sector has received a significant amount of support from the government since last year. With President Xi Jinping pledging to reduce speculation and balance out the housing market, policymakers have pushed banks and insurers to support projects that will facilitate the development of the rental market.
A number of rental companies have moved to capitalize on the government’s support. However, the sudden spike in rental prices has incited the housing authorities to crackdown on market irregularities.
Rental companies have been warned not to take on units that are listed above market prices using funds procured through banks or other channels. They have also been told not to encourage landlords to terminate leasing contracts early in a bid to increase the rent.
The Beijing Municipal Commission of Housing and Urban-rural Development has partnered with the Beijing banking, finance, and tax authorities in a joint inspection to crack down on any suspicious market behavior.
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