Private Rented Sector: Affordable Rents

Lord Young of Cookham Excerpts

Thursday 27th February 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend for his question. Of course, I am always happy to meet with trade union colleagues, particularly on important issues such as this. I thank him too for his reminder of the information in that UNISON report. Many of the issues raised in it are being tackled in the Renters’ Rights Bill, and in the leasehold and commonhold reform Bill which we will be bringing forward later in the year. On the right to buy, we have already taken significant steps to make sure that the funds from the sale of social housing go back to those councils to enable them to build more social housing.

[Lord Young of Cookham (Con)]

My Lords, further to the Question from the noble 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 of Stevenage (Lab)]

I thank the noble Lord for his question and for all his expertise on this subject. 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.