Kris Hopkins
Main Page: Kris Hopkins (Conservative - Keighley)
The Parliamentary Under-Secretary of State for Communities and Local Government (Kris Hopkins)
I am grateful to the hon. Member for Sheffield South East (Mr Betts) and to the Communities and Local Government Committee for securing this debate. I welcome this opportunity for the Government to set out what they are doing in relation to private rented supply. I agree with the hon. Member for City of Durham (Roberta Blackman-Woods) that this has been an extremely interesting debate. The content was thoughtful and the tone, right across the House, was completely appropriate. I know that members of the Committee have spent a long time deliberating on the issue.
We are pleased that the Select Committee produced this thoughtful and well-balanced report following its inquiry, and we agree with a considerable number of the recommendations. I am aware that there was a slight hint from some Members that we did not appreciate the work of the Committee, but let me say that I did appreciate the content of the report. I know that the Committee spent a long time taking evidence, and thinking about the report before reaching its conclusion.
The Government recognise that the private rented sector is playing an increasingly important role in the housing market. There are now just short of 4 million households out there, accommodating some 8.5 million individuals. Moreover, there is, increasingly, a diverse range of people living in the sector.
Overall, the sector is performing well. As the hon. Member for Sheffield South East said, it is the one part of the market that grew even in the darkest times of the recession. Supply is now beginning to respond to the growth in demand. I recognise that many of the actions that I will talk about later on specifically relate to the Government’s intervention in increasing that supply.
Rents are increasing more slowly than inflation. Let me say to the hon. Member for Islington North that I live on this planet, and that I cited a figure of 1.6%, not 1.4%. I recognise that the figures across London are higher, but overall, the Office for National Statistics is confident that the figure is 1.6%. Across the whole of England, the figure is 1%, which is significantly below inflation at this moment in time.
Overall, the quality of private rented sector accommodation is improving and satisfaction levels are high. In fact, 83% of the people who live in the PRS say that the accommodation is good. The vast majority of people—some 80%—move of their own choice; some 10% move by agreement with their landlord and some 9% by the landlord’s activities or actions.
We recognise that there are challenges that we need to address. For example, a lack of supply has led to a problem of affordability and a limited choice as a consequence, especially in hot spots around parts of London. The lack of professional landlords and the need to improve management practices in some parts of the sector are important. Legislation is in place—there is the Housing Act 2004—and we are taking action in certain areas. There is a need to change the balance. At the moment, some 78% of landlords are individuals who own one place, which they rent. We need to change that balance in favour of larger-scale providers.
Tackling rogue landlords is an extremely important part of our work. I recognise the enormous amount that local councils do, and the Government have allocated £6.5 million to addressing beds in sheds and poor-quality provision by enabling individuals to carry out not only raids and inspections but, importantly, prosecutions. There is growing demand for longer tenancies, especially among people with families, and we want to support them.
The Government want a bigger and better PRS, which is why we want to make private renting more positive. Although we have heard negative comments in the debate, private renting is an extremely important part of the housing sector. As we heard, the PRS is now bigger than the social sector, so it is important that politicians, practitioners and professionals challenge the behaviour of the small minority of individuals who, owing to the poor-quality provision that their tenants receive, undermine not only the sector, but other people’s businesses.
Through the schemes that we have introduced, we are trying to bring new entrants into the sector and to attract more institutional investment. We want to drive forward more larger-scale, professionally managed, high-quality and well-designed accommodation. We want to stimulate the construction of more housing. We want to empower and inform tenants by driving up standards and promoting choice. We want to increase the effectiveness of existing regulation, but when supplementary regulation is needed, we should act judiciously so that we neither deter investment nor add costs, thus putting pressure on rents. While we want to crack down on rogue landlords, we do not want to put extra burdens on ordinary landlords who are providing a decent service.
The Government have put forward the £1 billion Build to Rent fund. Round 1 was over-subscribed, and three contracts have been signed, while further ones are going through due diligence. Round 2, on which an announcement will be made soon, was significantly over-subscribed, with 126 applications worth £2.8 billion being received for a fund of only £721 million. Our guarantee scheme, which is worth £3.5 billion, will also secure new building in the sector. We want to introduce a redress scheme, a tenants charter and a model tenancy, as well as to crack down on the landlords I have mentioned.
I want to talk about Members’ contributions, and I must start with that of the hon. Member for Wythenshawe and Sale East (Mike Kane). It is a convention in the House that one is gracious and welcoming to a new Member, regardless of our politics, and despite the fact that he is from Lancashire, I intend to comply with that protocol. He made a great speech. When I made my maiden speech only a few years ago, I was absolutely terrified, but he made a thoughtful speech and it was completely appropriate that he paid tribute to one of our former colleagues, Paul Goggins, who is greatly missed by Members on both sides of the House. I wish the hon. Gentleman a successful time representing the people of Wythenshawe and Sale East.
We heard thoughtful contributions from Members on both sides of the House, and the hon. Member for Sheffield South East covered many points. I want to maintain a positive relationship with the Communities and Local Government Committee. I served on the Northern Ireland Affairs Committee, so I know the immense work that a Committee does during its deliberations. The vast majority of the time, regardless of party, members of a Committee come together to discuss the issues thoughtfully, which is completely appropriate.
This Government are absolutely committed to making sure that the private rented sector grows bigger and better—