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Private Rented Sector

Volume 583: debated on Monday 30 June 2014

17. What steps he is taking to give greater certainty of tenure and to improve affordability in the private rented sector. (904520)

We are supporting investment to develop a high-quality, professionally managed private rented sector. Our £1 billion Build to Rent fund is on track to deliver up to 10,000 houses for rent. We are committed to promoting a sustainable private rented sector, which is why this summer we will publish a model tenancy agreement, giving landlords and tenants the choice to agree longer-term fixed tenancies.

What is the Minister doing specifically to stop tenants being ripped off by letting agencies? The model tenancy agreement was meant to have been published last October, so when can we expect to see it?

The model tenancy agreement will be published shortly. I am grateful for the opportunity to say what we will do, including a document on how to rent and a redress scheme to protect landlords and tenants, in addition to the Consumer Rights Bill, which insists on forcing agents to publish their fees on websites and to put them on display. We also want to make sure that individuals who fail to look after the needs of others face not a maximum fine of £5,000, but a limitless fine. We want to protect the rights of tenants and we are putting in place the opportunities to do so.

I know that the Minister is working on the model tenancy agreement and, in particular, the tenants charter, to set out clearly rights for those in private rented accommodation. Last week I met agents and landlords in my constituency of Rossendale and Darwen who are looking forward to and welcome that change, but will the Minister confirm that it will not include rent controls, which would mean that landlords would be unable to invest in their property?

I know that my hon. Friend takes much interest in this subject and I can confirm that there will be no rent controls. This is about encouraging the growth of the private rented sector, to make sure that we have very high standards, the checks in place to protect tenants and the opportunity to expand the length of a tenancy through a voluntary process. An agreement between a landlord and a tenant is the right way forward.

Does my hon. Friend agree that we need to bear down on malpractice in the private rented sector? The Hackney Gazette reports that a councillor who has set up a charity for the homeless refers them to his own estate agency and then places them in properties that he owns in my constituency. Is that not an abuse of our housing system?

I know the details involved, because my hon. Friend has written to me, and we have forwarded them to the appropriate authorities. The Charity Commission is now examining what my hon. Friend has alleged, and I will not comment any further until after the investigation.