Private Rented Sector

Debate between Grahame Morris and Mark Prisk

Wednesday 23rd January 2013 Commons Chamber

[Mr Prisk]

It is a mixed picture. I appreciate that in the hon. Gentleman’s part of north London the pressures might be different from those in the rest of the country. If we look at the official Valuation Office Agency numbers, we find that the figures are recorded as static. It is, as I say, a varied picture across the country, and we need to be alert to that important point.

[Grahame M. Morris (Easington) (Lab)]

The Minister points out that some people do not wish to buy and are happy to rent. Does he recognise the term “generation rent”, whereby 1 million families want to have their own home but cannot because they are trapped in a rented property?

[Mr Prisk]

I recognise that we have had a dysfunctional housing market, whether it be owner occupied or rented, for 15 or 20 years. Indeed, we saw the rate of house building drop substantially under the last Administration. This is something that has crossed Governments of both political persuasions; it then shows itself when some people are unable to transfer from one part of the market to the other. I take the point, but we need to recognise that this is a long-term challenge.

I said we wanted this to be a bigger sector, but we also want it to be a better sector, providing tenants with a good choice of decent, reasonably priced accommodation. It is true that the majority of privately rented homes fit that bill today, but it is not true of all of them. As constituency Members of Parliament, I am sure that we will all have come across individual, sometimes appalling, cases involving unfair charges, poor quality accommodation or, frankly, just shoddy service. I think we can agree on the need to improve the sector; the question is how.

As a Government, we believe that many of the current problems are a consequence of years of under-supply. Over the last 15 years, that gap between supply and demand has grown, especially after the crash of 2008. In some areas, as I said to the hon. Member for Easington (Grahame M. Morris), rates will have risen because there are not enough homes to meet the demand. The quality of accommodation, let alone the service, will have suffered when landlords who face little competition rent out their properties. Expanding the supply of rented homes lies at the heart of our strategy. That is why we have taken the radical step of establishing a debt guarantee scheme of up to £10 billion specifically to encourage institutional investment in the sector. Alongside that, we are putting in place a £200 million build to rent fund to kick-start innovative projects.

The new investment will not only boost supply but bring a different type of institutional landlord into the marketplace. This will bring much greater choice for tenants with regard to the type of property and facilities and indeed the terms of the tenancy. These institutional landlords will also bring a longer-term perspective, often of 25 or 30 years. That brings the opportunity for greater stability for tenants, and it also means that we as policy makers need to ensure that what we set is clear and consistent over that time frame.

Employment Law (Beecroft Report)

Debate between Grahame Morris and Mark Prisk

Monday 21st May 2012 Commons Chamber

[Mr Prisk]

Absolutely, and by making sure we revert to the position where someone has to work for an employer for two years and not one year before unfair dismissal procedures apply, we have already started down that positive path.

[Grahame M. Morris (Easington) (Lab)]

Does the Minister recognise that one of the fundamental problems with lack of growth is the lack of domestic demand caused by lack of confidence and the unwillingness of employers to invest because of that lack of confidence? Does he think that introducing this fire-at-will concept will do anything to boost domestic consumer confidence?

Oral Answers to Questions

Debate between Grahame Morris and Mark Prisk

Thursday 14th July 2011 Commons Chamber

[Grahame M. Morris (Easington) (Lab)]

The Minister is aware that private and public sector have been working together to try to deliver 1,200 new jobs and training opportunities to east Durham through the film studio and centre for creative excellence. Has he given any further consideration to some sector-specific measures to encourage this development?

[Mr Prisk]

My Department and, of course, the Department for Culture, Media and Sport will want to look at this together. I am aware of the proposal, as the hon. Gentleman knows, and I will look at it on that basis.

Oral Answers to Questions

Debate between Grahame Morris and Mark Prisk

Thursday 13th January 2011 Commons Chamber

[Grahame M. Morris (Easington) (Lab)]

6. What assessment he has made of the prospects of establishing a single local enterprise partnership in the north-east; and if he will make a statement.

[The Minister of State, Department for Business, Innovation and Skills (Mr Mark Prisk)]

We have received two proposals for establishing local enterprise partnerships in the north-east—one to cover the Tees Valley, which was cleared to proceed last October, and a second that was received recently for one to cover the remaining local authority areas. I can tell the House today that the second proposal meets the Government’s expectations, and we are today writing to the partners to confirm that. This means that just 16 weeks after we sought applications, there is complete coverage in the north-east.

[Grahame M. Morris]

I welcome that announcement and thank the Minister for that information. The Business Secretary controversially abolished our regional development agency, One NorthEast, and the Government parties have cut funding for regional development by two thirds. I welcome the good news for my area, but there are concerns among Opposition Members that in the transition period between the RDAs going out and the LEPs coming in, there will be a problem or a vacuum, and we will not be able to encourage investment or secure the regeneration jobs that we require.

[Mr Prisk]

Let me assure the hon. Gentleman that we are working very closely both with the outgoing RDA teams, to whom I am grateful for their co-operation and collaboration, and with the incoming local enterprise partnerships. There might be stumbles along the way, because this is a complex path, but I am determined to ensure that we do our best to encourage growth and remove the barriers to growth, especially in the north-east.