Rents are falling, in real terms. So why does Ed Miliband want state intervention?

In recent weeks, I have found myself defending Ed Miliband as much as attacking him. I do believe that his election would be a calamity for Britain, but that doesn’t mean I think he is an idiot pursuing a stupid strategy. On the contrary, I think what he is doing is bold, coherent, radical and chimes with the emerging populist mood. I also think that it is working – as things stand, he is on course to become the next Prime Minister. I look at this in my Telegraph column today.

The rent control policy announced yesterday embodies this bold populism. Britain has a problem with buying houses – one created, in my view, by government policy to keep interest rates nailed to the floor during an economic boom. But low rates also make favourable terms for buy-to-let, and rents have been falling in real terms even in London. The below graph gives some idea of how things have been getting better:-

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