Private Rented Sector

Debate between Jack Dromey and Lilian Greenwood

Wednesday 25th June 2014 Commons Chamber

[Lilian Greenwood (Nottingham South) (Lab)]

Millions of people across the country are struggling to cope in a sector that is clearly not fit for purpose, leaving tenants and responsible landlords fending for themselves in an unregulated lettings market. That experience is all too familiar to many people in Nottingham, which has a large and growing private rented sector. There are now more privately renting households in the city than there are households renting from the local authority or housing associations.

In Nottingham, the growth in private renting has been seen across all age groups, but most markedly among the young. Over the past 10 years, home ownership among 16 to 34-year-olds has fallen significantly. Back in 2001, 39% of the city’s homeowners were in that age group, but by 2011 that had declined to 27%, and those figures exclude students. People renting privately in my constituency tell me that they desperately need security so that they can build their lives in one place, become part of a community and live without the threat of eviction if they make a complaint about conditions or the management of their home.

In Nottingham, substantially fewer homes have been developed since this Government came to power, despite new affordable homes being built by our councils arm’s length management organisation, Nottingham City Homes. According to the Department for Communities and Local Government’s own figures, in the last three full years 630 homes have been built in Nottingham by a mixture of private and housing association builders. That compares with 1,520 in the preceding three years and 3,680 in the three years before that.

Demand for housing in the city is increasing, but Ministers are doing nothing to address local supply, and the banks continue to withhold finance from the smaller construction companies that know the market and could make a huge difference. The Government seem to be passively reliant on developers to bring forward planning proposals, even in inappropriate locations, when too many brownfield sites lie empty. It beggars belief that for all the talk of localism, under this Government a developer is able to ride roughshod over the views of many hundreds of local residents in Wollaton and the local authority, who all oppose plans to build new houses on local allotments.

[Jack Dromey]

My hon. Friend made a very compelling point about the banks not lending to small and medium-sized builders. Does she share my concern that two thirds of homes used to be built by small and medium-sized builders, but that has declined to one third? That is at the heart of a chronic problem of capacity in the industry. If we are to build on the scale at which we intend to build—200,000 homes a year—their role will be key, and that includes the banks lending to them.

[Lilian Greenwood]

My hon. Friend is exactly right. We do of course need to unlock the ability for small and medium-sized enterprises to get access to finance and to be building the houses that we want.

Many of my constituents, particularly those under the age of 35, would love to buy their own home, but they simply cannot get a foot on the property ladder. Young people who manage to buy often do so only with help from their parents, but in cities such as mine most parents simply do not have the level of savings that would be needed to help their children in that way. The Government’s failure on housing means that an entire generation in Nottingham could be locked out of home ownership entirely, left to cope with the insecurity offered by the private rented sector and facing rents that are expected to soar by an average of 39% by 2020. The Opposition are clear: if the private rented sector continues to make up an ever-increasing proportion of the market, we must ensure that it is fit for purpose, provides good quality, affordable homes and offers tenants the security they so desperately need.