Covid-19: Housing Market

Clive Betts Excerpts

Wednesday 13th May 2020 Commons Chamber

[Mr Speaker]

We now go over to Sheffield to the Chair of the Housing, Communities and Local Government Committee.

[Mr Clive Betts (Sheffield South East) (Lab) [V]]

I welcome much of what the Government have proposed, particularly the help for private tenants. However, we should recognise that many tenants’ rent arrears will grow over time, causing problems not merely for them, but for small private landlords. Will the Secretary of State consider a scheme like the Spanish Government’s, which offers low-interest loans to tenants to help them to pay the rent and the landlords to receive it? As for the market for new housing, if demand for new homes falls, will he consider increasing grants to housing associations and councils so that they can help the construction industry keep going by building more social homes for rent?

[Robert Jenrick]

With respect to supporting the industry, today is too soon to judge with confidence the state of the housing market because there have been so few transactions in recent weeks. However, we stand ready to work with the industry and to help to guide it through what will undoubtedly be an extremely challenging period. We have announced some measures today—for example, enabling councils to defer CIL and section 106 payments. That does not mean that there will be an impact on social infrastructure or affordable homes in the longer term, but it does mean that small and medium-sized enterprise builders in particular can have a bit of breathing space in the weeks and months ahead, which is a critical lesson learnt from the last downturn in the market.

We are thinking carefully about what more we can do to protect renters. Of course, there are other Government schemes, such as the furlough scheme, which is now paying a proportion of millions of working people’s wages and helping to support them through this difficult period. The moratorium on evictions prevents possession proceedings in court at the present time, but we will need to think carefully about what to do when that comes to an end in June.