During Question Time in the Lord’s Chamber, Baroness Grender (LD) asked what the government’s plans were to ‘ensure that rents in the private rented sector are affordable?’
In response Housing Minister Baroness Taylor of Stevenage (Lab) stated: “The Government entirely understand concerns about the affordability of rents. We have inherited a private rented sector that is failing many low-income renters. The Renters’ Rights Bill will empower tenants to challenge unreasonable rent increases, as well as taking practical steps to end the practice of rental bidding and prohibiting landlords from demanding large amounts of upfront rent.”
Baroness Grender replied: “Private rents increased by more than 8% last year and market rates are already out of reach for so many. The First-tier Tribunal will not resolve any of these issues. Are the Government considering any form of rent stabilisation?”
Baroness Taylor in reply said: “We have discussed this in the Chamber before, and the Government have been clear: we do not support rent controls. Heavy-handed rent controls tend to mean higher rents at the start of a tenancy, and they can make it much harder for prospective tenants to find a home. They also encourage the growth of unregulated sub-letting, which can leave the most vulnerable tenants very exposed to higher costs and minimal protections. Those rent controls always come at a cost, often in reduced investment in housing supply and quality standards.”
Lord Young of Cookham (Con), said: “Further to the Question from Baroness, Lady Grender, rents in the private sector are rising because supply is falling as many smaller landlords decide to sell up. While there is much of value in the Renters’ Rights Bill, there is nothing in it to increase supply, which is what tenants want. Will the Minister turbocharge the discussions between her department, the Treasury and the pension funds and insurance companies in order to get serious, long-term institutional finance into good quality accommodation for rent and to redress the imbalance between supply and demand?”
Baroness Taylor said: “A few weeks ago, I attended an investors’ summit in the City of London where there was great enthusiasm about investment in the housing market. We welcome those institutional investors and recognise the crucial role that the build-to-rent sector in particular is playing in building those 1.5 million homes. Last year, we announced a £700 million extension to the home building fund to support housebuilders and to catalyse that institutional investment. This should support the construction of 12,000 more homes, including build-to-rent. We also announced a £3 billion guarantee for SME and build-to-rent housebuilders through the reopening of guarantee schemes, which should deliver the construction of around 20,000 new homes.”
