Private Rented Sector

Part of Opposition Day — [2nd Allotted Day] – in the House of Commons at 12:37 pm on 25th June 2014.

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Photo of Emma Reynolds Emma Reynolds Shadow Minister (Housing) 12:37 pm, 25th June 2014

I agree with the hon. Gentleman’s first point, and Sir Michael Lyons and his housing commission are looking into that. We absolutely need institutional investment in the private rented sector— I agree on that point—but what we are suggesting, as I shall explain in more detail in my speech, is not to go back to 1970s rent control. In fact, what we are suggesting is not that different from what the Secretary of State suggested back in October, which was to have predictability in respect of rent increases. That is not to say that the market should not set the rent up-front—the agreement on rent would obviously happen between the tenant and the landlord at the start of the tenancy—but at the end of years one and two, there would be an agreement—a benchmark and a ceiling—which is what happens in countries such as Ireland, Spain and elsewhere. That actually looks pretty similar to the press release put out by the Secretary of State in October, and we do not think that that would have a negative impact on supply.