The properties have been sold and that provides for a mix of tenure among that housing. I do not see any difficulty with that. It is a perfectly sensible right.
The hon. Gentleman moves us on to the private rented sector. The Committee’s report says that the Government should focus on helping small private landlords to
“expand their portfolios and invest in new build housing.”
The Chairman of the Committee reminded the House that we have just started our inquiry into the private rented sector, and I look forward to a similar debate on that report in the coming months and years.
It is important to note that the private rented sector should no longer be seen as the poor cousin to home ownership. For many people, renting privately has become a preferred choice, because they want the flexibility the sector can provide. In many instances, private renting is becoming a new norm. More than 8 million people in England now rent from a private landlord, an increase of more than 69% over the past 10 years, as the sector has moved from accounting for 9% of housing to 18%. Interestingly, the Chartered Institute of Housing has suggested in its presentations that that figure could rise to 25%. I accept that, in many instances, renters would prefer to be in other tenure—they would prefer to be an owner-occupier or in social rented accommodation—but private renting has its benefits, particularly for those who want flexibility and do not want the responsibility of maintaining the fabric of a building through owner-occupation.
The Committee looked at institutional investment in the private rented sector, and I am pleased that the Government commissioned the Montague report, which shows their commitment to dealing with housing issues. The report’s key recommendation—it was also a key recommendation of the Committee report—was the need to attract institutional investment into the system.
One of the issues we discovered when taking evidence is that institutions are not keen to invest directly in the residential sector because of the amount of management and administration that looking after residential property entails. It is striking that institutions invest in commercial buildings because of the lower management costs involved. They send out a rent demand once a quarter, for example, and are able to pass on repair obligations to occupiers. A tie-up between housing associations and institutional investors might be possible. Housing associations are very good and have demonstrated over many years a strong track record in managing social rented accommodation. I do not see why they cannot offer their services to institutional investors, whereby the investor owns a stock of private rented accommodation and tells the housing association, “You’ve got the skills and the experience to manage it.” That is a business opportunity for the housing association sector, if it wishes to take it up. I would be interested in hearing any thoughts the Minister may have on that issue.
The Select Committee talked about the need to make it easier for landlords to let homes, and about build-to-let developments built specifically for the private rented sector. Sir Adrian’s report highlighted the potential for investment and said the Government should consider providing incentives to encourage the development of build-to-let business models. I am pleased the Government have made a commitment to that sector. A press release from the Minister for Housing launched a £200 million fund to boost the construction of new homes specifically for private rent.
Any remarks on the social housing sector need to have regard to the changes to the Government’s welfare system, which were referred to by the right hon. Member for Greenwich and Woolwich. I will draw attention to some striking figures. There are currently 2 million households in England on housing waiting lists and
250,000 families living in overcrowded accommodation. Under the last Government, local authority housing waiting lists rose from 1 million in April 1997 to 1.8 million in April 2010. However, nearly a third of working-age social tenants on housing benefits are living in accommodation that is too big for their needs. That equates to nearly 1 million spare rooms that are being paid for by the taxpayer, denying many hundreds of thousands of people the chance to house their family adequately. I am sure we all agree that every family deserves the chance to be housed comfortably. Hard-working taxpayers, many of whom face tough choices of their own, will have a view about these properties.