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THE EFFECTS OF RENT CONTROL IN EGYPT-PART III* Betsy Birns McCall-† Alternatives Although rent control was originally intended as a measure to enable low and middle income tenants to better afford their rental housing, the controls in Egypt do not attain this goal and in fact bring about the opposite situation. Rent controls have not helped tenants since the key money payments they must pay offset to a great degree any decrease in rent-at least for recent movers-and the consequent lack of mainten- ance has resulted in deteriorating apartments and buildings for all tenants. Rent con- trols have in fact worsened the situation because of the consequent lack of private investment in the formal rental sector resulting in a housing shortage affecting both middle income groups who do not wish to settle for informal style housing and low income groups. Government built housing has not been successful in alleviating the housing shortage for these income groups. The rent controls have also hurt the devel- opment of the country as a whole, by, for example, contributing to the traffic prob- lems in large urban areas and by encouraging building in the informal sector which decreases available agricultural land. These
Arab Law Quarterly – Brill
Published: Jan 1, 1988
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