Housing: Private Rented Sector

Lord Carrington Excerpts

Thursday 12th January 2023 Lords Chamber

Asked by

[Lord Carrington]

To ask His Majesty’s Government what assessment they have made of the demand and supply of housing in the private rented sector in the implementation of their housing policy.

[Lord Carrington (CB)]

My Lords, I declare my interests in rural rental properties as set out in the register, and I beg leave to ask the Question standing in my name on the Order Paper.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

Our priority is to ensure that everyone lives in a decent and secure home. The proportion of private rented sector households has remained relatively stable for nearly a decade, currently accounting for 19% of households. At present, demand for PRS properties is greater than the available supply due to a range of factors, and we continue to monitor the market. We will publish a full impact assessment, setting out the costs and benefits, of our planned private rented sector reforms.

[Lord Carrington (CB)]

I thank the Minister for her response. Clearly, the supply of houses for rent is an increasing problem. I want to focus on the methodology of energy performance certificates used by the Government for upgrading efficiency. By an early date yet to be confirmed, all rental properties must have an EPC rating of C, which is likely to be both very expensive and unachievable for many properties. EPCs were introduced in 2007 to measure the efficiency of a house based on average energy consumption. While there have been adjustments, the relevant standards still take little account of the age and character of the house, or the carbon embodied in it, so all houses are assessed on the same basis. Therefore, EPC remedies are often based on inappropriate standard assumptions. Please could the Minister tell us how and when this blunt tool will be replaced by a measurement that is fit for purpose?

[Baroness Scott of Bybrook (Con)]

My Lords, I do not agree that it is a blunt tool. We propose to apply to new tenancies a requirement for an EPC rating of C and raise the maximum spend that landlords are required to invest to £10,000 from April 2025, and to all tenancies by April 2028—the noble Lord is right. If we are going to meet our net-zero strategy, we have to commit even further to consulting on phasing in even higher minimum performance standards. That will take place through the social housing sector but also through the private rented sector.