Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 17
17
Acknowledged
Paragraph: 105
The data suggests that the reduction in the size of the PRS, which the Minister...
Conclusion
The data suggests that the reduction in the size of the PRS, which the Minister partly attributed to the covid pandemic, began three years before the pandemic, in 2016–17. For this reason, we see little reason to believe the decline is short term, although the pandemic may have exacerbated the trend. The only certainty is that the Government does not know what is happening in the PRS and has not said what role it wants it to play in the wider housing mix. In particular, it is difficult not to suspect, given the changes to how the buy-to-let sector is taxed, that the Government would like landlords with smaller portfolios to leave the sector. Whatever the Government’s ultimate intentions, however, there can be no doubt that landlords with small portfolios are currently critical to the provision of private rented accommodation, and the impact of any measures that could make the sector less attractive to them should be carefully thought through.
Government Response Summary
The government acknowledges the importance of the private rented sector and values the involvement of all responsible landlords, regardless of portfolio size, and states that it wants a thriving private rented sector that helps to accommodate people's housing needs.
Paragraph Reference:
105
Government Response
Acknowledged
HM Government
Acknowledged
Our ambition is to provide safe, secure, and decent homes for everyone regardless of which tenure they occupy. The private rented sector plays an important role in the housing market, and data published on 23 May 2023 continues to show that the sector remains stable in size.3 We value the involvement of all responsible landlords in the sector, regardless of their portfolio size or their specific business model. While the government wants to support those who aspire to be homeowners, we appreciate that home ownership is not right for everyone and that there are many people for whom renting a home is either more practical or more affordable. We need a thriving private rented sector that helps to accommodate these people’s housing needs. Given that 43% of landlords own one property and over 80% of landlords own one to five properties, we understand that the reforms contained in the Renters (Reform) Bill must work for smaller landlords as well as larger businesses.