Department for Communities and Local Government — Private Rented Sector

Part of Estimates 2013-14 — Ministry of Defence – in the House of Commons at 4:46 pm on 4 March 2014.

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Photo of Clive Betts Clive Betts Chair, Levelling Up, Housing and Communities Committee, Chair, Levelling Up, Housing and Communities Committee 4:46, 4 March 2014

Yes. On letting agents, the Committee is pleased to see a lot of demand for regulation. We are pleased that the Government are introducing a redress scheme, but are disappointed that the code of practice backing it up will not be mandatory. There ought to be more Government action on the lack of transparency in relation to fees charged by letting agents. They should not leave it to the current legislation, which needs tightening.

Finally, on rents—this point has already been made—the Committee are not in favour of rent control. We believe that introducing rent controls is a blunt instrument that is more likely to curtail investment in the sector. Things should probably be done on local housing allowances, which could sometimes artificially inflate rents. There was evidence from Blackpool on that.

To summarise, the Committee is pleased with many of the Government’s responses. We have concerns on the points I have made and are looking forward to Government action. The Committee will monitor that and look to the Government’s proposals to stimulate extra building in the private rented sector and other sectors to deal with the real problem in housing: the shortage of supply.