Private Rented Sector

Bob Blackman Excerpts

Wednesday 25th June 2014 Commons Chamber

[John Stevenson]

I am a landlord, Mr Deputy Speaker.

I will start with two general points on housing policy. First, the United Kingdom has three distinctive housing sectors: home ownership, social housing and the private rented sector. In many respects we have Government policies for each sector. I acknowledge that they are different, but they are often seen in isolation, rather than as part of an overall housing strategy with policies that help all three sectors and create greater consistency and overlap between them.

Secondly, we have housing policies for the whole country. I accept that we need a national framework, but I believe that we need greater flexibility so that different parts of the country can adopt slightly different policies to reflect their particular circumstances. The reality is that we have many different local housing markets, and not just in the private rented sector, but in the social housing sector and, indeed, in home ownership. Compare my constituency of Carlisle with London, for example. Even within Cumbria, the lake district market is incredibly different from that of Carlisle. Prices in London and Carlisle are so different. The social housing requirements in Carlisle are very different from those of Manchester, and the same is true of the private rented sector.

I will turn now to the private rented sector. The Communities and Local Government Committee’s report on the private rented sector states:

“The market is a developing one which we need to help edge its way towards maturity. This requires a careful balancing act which does not upset the market developing naturally.”

It is a balanced report that drew support from both sides of the House. It was endorsed by Opposition and Government Members. It recognised that the market is relatively young and effectively immature, but that it has been and is developing. It acknowledged the rapid growth there has been in the market and the creation of a large number of accidental landlords, which brings its own problems. I commend the report to the House. I am delighted that the Government’s response accepted many of its recommendations.

[Bob Blackman (Harrow East) (Con)]

Does my hon. Friend and Select Committee colleague agree that when we were considering the evidence and constructing the report, we discussed in detail the suggestion that rent controls should be introduced, and our cross-party Committee agreed that they would be a disaster for that emerging market?

[John Stevenson]

I completely agree with my hon. Friend that that was the Committee’s conclusion. We recommended model tenancy agreements—I am delighted that the Government will be introducing them over the summer, after a consultation—a redress scheme and transparency in letting fees.

Addressing the specific issues raised in the motion is remarkably easy. I believe that the Opposition are misguided in their approach to that market. In fact, their motion does not even mention the critical issue: the need for more housing of all types. It mentions stability and certainty, but there is actually a remarkable amount of certainty, combined with a large degree of flexibility. Leases can be for six months, which is the default position, but we often forget that they can be for any length thereafter. It could be five years, 10 years or 18 months; it depends on the relationship between the landlord and tenant and the requirements of both. Indeed, many tenants do not want a three-year tenancy. They might want six months because they are moving into an area to see whether it is the right place for them to live or because they are looking to buy a property or to rent long term.

The same applies to the landlord. The accidental landlord might not want to grant a three-year tenancy. They might want a six-month tenancy, with a view to putting the property on the market afterwards. The existing arrangements create a great deal of flexibility. It is also interesting to note that a large number of tenancies are brought to an end by the tenant, not the landlord.