Housing: Private Rented Sector (Hansard, 7 June 1993)

§ The Parliamentary Under-Secretary of State, Department of the Environment (Lord Strathclyde)
My Lords, our plans to increase the private rented sector are based on making renting a more attractive option for landlords. We have already taken a number of steps to expand the private rented sector, including the deregulation measures in the Housing Act 1988 and a number of specific initiatives to tackle the problem of empty properties. Our aim is that that sector will make a significant additional contribution to the total housing supply.

§ Lord Beaumont of Whitley
My Lords, although I thank the noble Lord for the first part of his reply, which is very welcome, perhaps I may press him on the second part of my Question, which I do not think he addressed. How large a private rented sector do the Government wish to see, has the department any estimates and, if not, why not?

§ Lord Strathclyde
My Lords, the current proportion of the housing supply which is devoted to privately rented property is some 8 per cent. We do not set a target for the private rented sector. All that I can tell the noble Lord is that we wish it to increase.

Lord Bruce of Donington
My Lords, is the noble Lord aware that at present in the United Kingdom there are more than 1.5 million houses which are unfit for human habitation?

§ Lord Strathclyde
My Lords, I suspect that the noble Lord may have muddled the statistics covering houses which are unfit for human habitation with those relating to houses which are currently unlet. Very often individuals in the private sector choose not to let their houses. The purpose of government policy is to find out why that should be so. I agree with the noble Lord that those houses could potentially be let to tenants. That is the direction which housing policy will take.

§ Baroness Fisher of Rednal
My Lords, will the noble Lord give the House the figures regarding Government policy on provision of accommodation above shops?

§ Lord Strathclyde
My Lords, I am delighted to tell the noble Baroness that some £25 million is being made available to local authorities over three years 543 under the flats-over-shops scheme to bring flats over shops back into residential use. It is a valuable initiative which is showing some signs of success.

§ Baroness Fisher of Rednal
My Lords, will the noble Lord give the number of properties? That is the question that I asked.

§ Lord Strathclyde
My Lords, I cannot tell the noble Baroness how many properties the scheme has affected yet. We have the total sum of £25 million which has not yet been fully subscribed to.

§ Lord Molloy
My Lords, is it possible for the Government to evolve a scheme to assist people when the breadwinner suddenly becomes unemployed and cannot meet the weekly payments on the house that is being purchased? Such a scheme would save people from being turfed out of their houses. It would also enable them to seek work in order to pay off what they owed the Government. They would not therefore lose their house.

§ Lord Strathclyde
My Lords, we are straying from the Question on the Order Paper. However, where applicable, housing benefit applies.

§ Earl Russell
My Lords, is the Minister aware that most of the population of this country, unlike this House, cannot work without sleep and that therefore a greater provision of low-cost rented housing could have the effect of reducing the burden of unemployment on the public sector borrowing requirement?

§ Lord Strathclyde
My Lords, I am sure that the noble Earl made an intelligent point and asked an intelligent question. I am not sure that I understood the pertinence of it. The point is that the Government are interested in increasing the overall supply of the private rented sector; and that will benefit everyone in this country.

§ Baroness Hollis of Heigham
My Lords, the Minister referred to empty property. Will he confirm that nearly 14 per cent. of government-owned property is currently standing empty?

§ Lord Strathclyde
My Lords, it is true that a substantial amount of government property is currently empty. However, I can tell the noble Baroness that my honourable friend the Minister for Housing has a special committee looking at precisely that problem.

§ Lord Beaumont of Whitley
My Lords, is it true that figures with regard to the demand for rented accommodation are now being sought by the Government from local authorities? If that is so, can the total figure be released to the nation?

§ Lord Strathclyde
My Lords, there is a considerable amount of research ongoing within the department at present about future policy on the private rented sector and on the other rented sector. When we have collated all the information, the Government will make an announcement as to the direction of new policy.