Yvette Cooper, the Government’s housing minister, is to launch a review of the private rented housing sector as part of a package of proposals to improve social housing services.

Plans include extra investment aimed at making social housing fairer, more effective and more suited to the occupiers.

As part of these plans, a review of the private rented sector is expected to be led by Julie Rugg, an academic at York University. It will examine areas such as how renting can help those unable to afford houses. More details are to be announced next year.

The British Property Federationsaid a professional rented sector similar to the US’s could solve supply issues and ensure stability in the housing market. It called on the Government to remove barriers to the growth of commercial investment in the sector.

Cooper told the Housing Corporation and Chartered Institute of Housing there would be a major crackdown on cramped housing.

The National Landlords Association (NLA) has welcomed the Government’s announcement. David Salusbury, chairman of NLA, said: “ The NLA hopes this review will further enhance the critical importance of the private rented sector in providing high standard and affordable housing to those who choose to rent. In a market where home ownership continues to elude many people, having appropriate residential accommodation is of the highest priority. With so many changes in the sector, a strategic review offers the chance to explore the impact of recent developments. “Naturally, any review of the sector must include the opinions and views of the nation’s landlords and the NLA looks forward to having the opportunity to contribute to this review. Furthermore, we look forward to having early sight of the terms of reference.”