More people than ever before are renting privately. The Government needs to take notice

Housing policy has been slow to respond to the dramatic growth in private renting. That has to change.

"Generation Rent" seems to be increasingly difficult to ignore. Before the global financial crisis we used to have Phil and Kirsty from Location, Location, Location looking for the perfect house in the perfect place. Now we have Cherry Healey’s Property Virgins looking to find anything they can afford. The recent growth of the private rented sector seems to have reached the national consciousness. Recently, the communities and local government select committee has published a major new report looking at how we can respond to this trend.

The growth of private renting in England is not a recent phenomenon. After seventy years of decline private renting began to stabilise in the 1980s and grew slowly during the 1990s. Then from around 2001 onwards it began to grow rapidly, almost doubling in size in a decade. Private renting now accounts for 17 per cent of households and has just overtaken social housing.

Figure 1: Households in the private rented sector, England, 1990 to 2011/12

Pattison fig 1

Source: Department for Communities and Local Government (2013) English Housing Survey: Headline Report

Housing policy has been slow to respond to this major change. The previous Labour government commissioned the Rugg and Rhodes review of private renting but never implemented the substantive recommendations. Since coming to power, the coalition government has been positive about the growth of private renting. Recently, the housing minister stated that “we want a bigger and better private rented sector”. The government has expressed its satisfaction with the regulatory framework for private renting. Instead, they are seeking to improve quality by committing £1 billion in guarantees to encourage investment in the sector from institutions such as pension funds. In contrast, the government is committing just £3 million to tackling ‘rogue landlords’.

The devolved administrations in Scotland and Wales are using their powers to take a much more active approach to managing private renting. A new strategy for the private rented sector in Scotland was launched in May and it included plans to strengthen landlord registration. The Welsh government is consulting on the introduction of a new legal framework for all rented accommodation.

This is the context for a major report from the communities and local government select committee on private renting in England. It outlines a set of proposals that would represent a much more active approach to managing the sector than is currently the case in England. The select committee favours a localist approach as a means to respond to the diversity of the private renting. The range of households accommodated by the sector is increasing and there is considerable geographic variation. For example, in some areas the growth in private renting is dominated by students whilst in other areas it is families that predominate. Each different group will have different needs and experience different problems with private renting.

Local authorities are at the heart of the select committee’s proposals. It is suggested that local authorities should be given greater powers to implement landlord licensing and generate revenue to enforce standards. Other measures being recommended include greater regulation of letting agents with a particular emphasis on removing unfair fees. Possibly the most substantive recommendation is that the government should introduce “a much simpler, more straightforward regulatory framework”. Finally, the committee assess the relationship between private renting and the on-going crisis in housing supply.

The growth of private renting in England can no longer be ignored. It is time for the government to carefully consider this sensible set of proposals from the select committee to ensure that the private rented sector provides decent accommodation for a growing number of tenants.

This piece was originally posted on the LSE's Politics and Policy blog and is reposted here with permission.

Ben Pattison is a postgraduate researcher at the University of Birmingham investigating the private rented sector in England.

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How can Labour break the Osborne supremacy?

The Conservative hegemony is deeply embedded - but it can be broken, says Ken Spours.

The Conservative Party commands a majority not just in the House of Commons, but also in the wider political landscape. It holds the political loyalty of expanding and powerful voting constituencies, such as the retired population and private sector businesses and their workers. It is dominant in English politics outside the largest urban centres, and it has ambitions to consolidate its position in the South West and to move into the “Northern Powerhouse”. Most ambitiously, it aims to detach irreversibly the skilled working classes from allegiance to the Labour Party, something that was attempted by Thatcher in the 1980s. Its goal is the building of new political hegemonic bloc that might be termed the Osborne supremacy, after its chief strategist.

The new Conservative hegemony is not simply based on stealing Labour’s political clothes or co-opting the odd political figure, such as Andrew Adonis; it runs much deeper and has been more than a decade the making. While leading conservative thinkers have not seriously engaged with the work of Antonio Gramsci, they act as if they have done. They do this instinctively, although they also work hard at enacting political domination.

 Adaptiveness through a conservative ‘double shuffle’

A major source of the new Conservative hegemony has been its fundamental intellectual political thinking and its adaptive nature. The intellectual foundations were laid in the decades of Keysianism when free market thinkers, notably Hayak and Friedman, pioneered neo-liberal thinking that would burst onto the political scene in Reagan/Thatcher era.  Despite setbacks, following the exhaustion of the Thatcherite political project in the 1990s, it has sprung back to life again in a more malleable form. Its strengths lie not only in its roots in a neo-liberal economy and state, but in a conservative ‘double shuffle’: the combining of neo-Thatcherite economics and social and civil liberalism, represented by a highly flexible and cordial relationship between Osborne and Cameron.  

 Right intellectual and political resources

The Conservative Party has also mobilised an integrated set of highly effective political and intellectual resources that are constantly seeking new avenues of economic, technological, political and social development, able to appropriate the language of the Left and to summon and frame popular common sense. These include well-resourced Right think tanks such as Policy Exchange; campaigning attack organisations, notably, the Taxpayers Alliance; a stratum of websites (e.g. ConservativeHome) and bloggers linked to the more established rightwing press that provide easy outlets for key ideas and stories. Moreover, a modernized Conservative Parliamentary Party provides essential political leadership and is highly receptive to new ideas.

 Very Machiavellian - conservative coercion and consensus

No longer restrained by the Liberal Democrats, the Conservatives have also opted for a strategy of coercion to erode the remaining political bastions of the Left with proposed legislation against trade unions, attacks on charities with social missions, reform of the Human Rights Act, and measures to make it more difficult for trade unionists to affiliate to the Labour Party. Coupled with proposed boundary changes and English Votes for English Laws (Evel) in the House of Commons, these are aimed at crippling the organisational capacity of Labour and the wider Left.  It is these twin strategies of consensus and coercion that they anticipate will cohere and expand the Conservative political bloc – a set of economic, political and social alliances underpinned by new institutional ‘facts on the ground’ that aims to irrevocably shift the centre of political gravity.

The strengths and limits of the Conservative political bloc

In 2015 the conservative political bloc constitutes an extensive and well-organised array of ‘ramparts and earthworks’ geared to fighting successful political and ideological ‘wars of position’ and occasional “wars of manoeuvre”. This contrasts sharply with the ramshackle political and ideological trenches of Labour and the Left, which could be characterised as fragmented and in a state of serious disrepair.

The terrain of the Conservative bloc is not impregnable, however, having potential fault lines and weaknesses that might be exploited by a committed and skillful adversary. These include an ideological approach to austerity and shrinking the state that will hit their voting blocs; Europe; a social ‘holding pattern’ and dependence on the older voter that fails to tap into the dynamism of a younger and increasingly estranged generation and, crucially, vulnerability to a new economic crisis because the underlying systemic issues remain unresolved.

 Is the Left capable of building an alternative political bloc?

The answer is not straightforward.  On the one hand, Corbynism is focused on building and energizing a committed core and historically may be recognized as having saved the Labour Party from collapse after a catastrophic defeat in May. The Core may be the foundation of an effective counter bloc, but cannot represent it.  A counter-hegemony will need to be built by reaching out around new vision of a productive economy; a more democratic state that balances national leadership and local discretion (a more democratic version of the Northern Powerhouse); a new social alliance that really articulates the idea of ‘one nation’ and an ability to represent these ideas and visions in everyday, common-sense language. 

 If the Conservatives instinctively understand political hegemony Labour politicians, with one or two notable exceptions, behave as though they have little or no understanding of what is actually going on.  If they hope to win in future this has to change and a good start would be a collective sober analysis of the Conservative’s political and ideological achievements.

This is an extract from The Osborne Supremacy, a new pamphlet by Compass.

Ken Spours is a Professor at the IoE and was Convener of the Compass Education Inquiry. The final report of the Compass Education Inquiry, Big Education can be downloaded here.