Housing: Leaseholder Redress Schemes

Baroness McIntosh of Hudnall Excerpts

Thursday 7th November 2013 Lords Chamber

[Baroness Stowell of Beeston]

As I understand it, in the rental sector—I am focusing now on the rental sector as opposed to leasehold properties—two redress schemes are already operating, and we certainly expect those two schemes to come forward for statutory approval. The new redress scheme was part of a wider package of measures that we announced a couple of weeks ago and that will provide greater support for those living in rented accommodation. We will certainly ensure, as part of that, that there is more support for local authorities, so that they can be even more effective in their responsibility to ensure that the accommodation provided in their area is of a high standard.

[Baroness McIntosh of Hudnall (Lab)]

My Lords, since the noble Baroness has raised the issue of the private rented sector, I am sure she will be aware that for most people who are obliged to use that sector—which, of course, includes a number of Members of your Lordships’ House—the big issue is the enormous increase in rents over the past few years and the concomitant rise in payments to letting agents. Does she agree that it might be beneficial for the Government to investigate this market to see whether it really is operating in the consumer interest? At the moment, it is very much rampaging in the interests of those who let rather than of those who rent.

[Baroness Stowell of Beeston]

As I said in response to another question, the most important action we can take to ensure that rents are kept at a sensible rate is to ensure that an increasing supply of rented accommodation is accessible to people. We are very much behind that. One way in which we are doing that is with a £1 billion fund called Build to Rent, which is about creating new residences that are purpose built as rented accommodation. These new schemes—new blocks or estates—are designed to meet that fundamental purpose in the way they are constructed. Overall, however, although I understand the noble Baroness’s point, I think that average rent rises are running below inflation at the moment, certainly outside London.