Private Rented Sector: Affordable Rents

Baroness Grender Excerpts

Thursday 27th February 2025 Lords Chamber

Asked by

[Baroness Grender]

To ask His Majesty’s Government what plans they have to ensure that rents in the private rented sector are affordable.

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[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, 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. In addition, the Government are committed to building 1.5 million safe and decent homes in England over this Parliament. This boost to supply is critical to improving housing affordability.

[Baroness Grender (LD)]

I thank the Minister for her response, but current rents remain unaffordable for the 34% of renters in poverty—a figure likely to rise with the freeze of local housing allowance. 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 of Stevenage (Lab)]

I thank the noble Baroness for her question. 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. We prefer to use this mechanism to strengthen tenants’ rights.