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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Will Euroscepticism prove an unbeatable advantage in the Conservative leadership race?

Conservative members who are eager for Brexit are still searching for a heavyweight champion - and they could yet inherit the earth.

Put your money on Liam Fox? The former Defence Secretary has been given a boost by the news that ConservativeHome’s rolling survey of party members preferences for the next Conservative leader. Jeremy Wilson at BusinessInsider and James Millar at the Sunday Post have both tipped Fox for the top job.

Are they right? The expectation among Conservative MPs is that there will be several candidates from the Tory right: Dominic Raab, Priti Patel and potentially Owen Paterson could all be candidates, while Boris Johnson, in the words of one: “rides both horses – is he the candidate of the left, of the right, or both?”

MPs will whittle down the field of candidates to a top two, who will then be voted on by the membership.  (As Graham Brady, chair of the 1922 Committee, notes in his interview with my colleague George Eaton, Conservative MPs could choose to offer a wider field if they so desired, but would be unlikely to surrender more power to party activists.)

The extreme likelihood is that that contest will be between two candidates: George Osborne and not-George Osborne.  “We know that the Chancellor has a bye to the final,” one minister observes, “But once you’re in the final – well, then it’s anyone’s game.”

Could “not-George Osborne” be Liam Fox? Well, the difficulty, as one MP observes, is we don’t really know what the Conservative leadership election is about:

“We don’t even know what the questions are to which the candidates will attempt to present themselves as the answer. Usually, that question would be: who can win us the election? But now that Labour have Corbyn, that question is taken care of.”

So what’s the question that MPs will be asking? We simply don’t know – and it may be that they come to a very different conclusion to their members, just as in 2001, when Ken Clarke won among MPs – before being defeated in a landslide by Conservative activists.

Much depends not only on the outcome of the European referendum, but also on its conduct. If the contest is particularly bruising, it may be that MPs are looking for a candidate who will “heal and settle”, in the words of one. That would disadvantage Fox, who will likely be a combative presence in the European referendum, and could benefit Boris Johnson, who, as one MP put it, “rides both horses” and will be less intimately linked with the referendum and its outcome than Osborne.

But equally, it could be that Euroscepticism proves to be a less powerful card than we currently expect. Ignoring the not inconsiderable organisational hurdles that have to be cleared to beat Theresa May, Boris Johnson, and potentially any or all of the “next generation” of Sajid Javid, Nicky Morgan or Stephen Crabb, we simply don’t know what the reaction of Conservative members to the In-Out referendum will be.

Firstly, there’s a non-trivial possibility that Leave could still win, despite its difficulties at centre-forward. The incentive to “reward” an Outer will be smaller. But if Britain votes to Remain – and if that vote is seen by Conservative members as the result of “dirty tricks” by the Conservative leadership – it could be that many members, far from sticking around for another three to four years to vote in the election, simply decide to leave. The last time that Cameron went against the dearest instincts of many of his party grassroots, the result was victory for the Prime Minister – and an activist base that, as the result of defections to Ukip and cancelled membership fees, is more socially liberal and more sympathetic to Cameron than it was before. Don’t forget that, for all the worry about “entryism” in the Labour leadership, it was “exitism” – of Labour members who supported David Miliband and liked the New Labour years  - that shifted that party towards Jeremy Corbyn.

It could be that if – as Brady predicts in this week’s New Statesman – the final two is an Inner and an Outer, the Eurosceptic candidate finds that the members who might have backed them are simply no longer around.

It comes back to the biggest known unknown in the race to succeed Cameron: Conservative members. For the first time in British political history, a Prime Minister will be chosen, not by MPs with an electoral mandate of their own or by voters at a general election but by an entirelyself-selecting group: party members. And we simply don't know enough about what they feel - yet. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog. He usually writes about politics.