Private Rented Sector
Debate between Robert Neill and Mark Prisk
Robert Neill
Although I agree with the hon. Gentleman about rents rising in London, I do not agree with his conclusion. I do not believe that trying to manipulate the market in the way that he suggests can be a long-term solution to the problem.
Mr Prisk
My hon. Friend has rightly drawn attention to the role of individual landlords, but the key element of the Government’s present strategy is encouraging institutional investors, not dissimilar to those in Germany. Does he agree that that is the best way in which we could increase supply, choice, quality and indeed the longevity of terms in the manner he has described?
Robert Neill
My hon. Friend is entirely right. That is the main point that I wanted to make in my speech. It is precisely because there have not been funding models to attract institutional investment that money has not been invested for long enough periods to underwrite the longer-term, more stable tenancy arrangements that we would all like to see. I think that what has been done so far is an important step forward, but it is ironic that under Governments of both political persuasions we have lagged somewhat behind other countries when it comes to leveraging institutional money into the private rented sector. REITs—real estate investment trusts—have never taken off in this country as they have in many others, and I think that that is a shame. Some adjustments to the fiscal treatment of those vehicles would be helpful.
Oral Answers to Questions
Debate between Robert Neill and Mark Prisk
Mr Prisk
The hon. Gentleman is absolutely right that we can always learn from problems that have occurred in the past. The Prime Minister’s statement will make clear the whole Government’s approach, but this Department is absolutely committed to ensuring that we have genuinely inclusive communities.
Robert Neill (Bromley and Chislehurst) (Con)
Will my hon. Friend look again at how inflated claims for compensation in the case of article 4 directions can deter their proper use by local authorities, as in the case of the Porcupine pub in Mottingham, in my constituency?