Housing Minister Brandon Lewis today (24 October 2014) welcomed a fall in the cost of rent in real terms for the nation’s hard working tenants.
Official figures from the Office for National Statistics show that private rental increases remain below the rate of inflation.
The private rented sector plays a vital role in the housing market, providing a flexible option for millions of people. Under this government rents have fallen in real terms every year across the country.
The government is working to build a bigger, better private rented sector, increasing supply and giving tenants more choice, without strangling the sector in red tape which would slow down investment and push up rents.
The £1 billion Build to Rent scheme, is set to deliver up to 10,000 newly-built homes specifically for private rent and, as part of the second round of the scheme, bidders are encouraged to offer longer-term, family friendly tenancies.
Housing Minister Brandon Lewis said:
Under this government rents have fallen every year in real terms across the country.
We’re working to build a bigger, better private rented sector. By boosting supply, through a £1 billion Build to Rent fund which will deliver up to 10,000 new homes for rent and through a model tenancy agreement we are giving tenants the confidence and choice to get a fair deal.
This is being done without the need to wrap the industry in red tape which would only force up rents and slow down investment.
Giving tenants a better deal
In addition to boosting investment in the sector the government is helping tenants to get a fairer deal. New measures are ensuring that people looking to rent a home are better informed and have more confidence they will be treated fairly. These include:
- a new model tenancy agreement, which landlords can use to offer longer tenancies of 3 years or more, providing extra security and stability for families
- new regulations meaning all letting and property management agents have to join a compulsory redress scheme
- a new code of practice, backed by the sector, helping to maintain and improve standards for the management of property in the sector
In addition to this the government published a new how to rent guide in June that provides clarity on what people should be able expect from their rental deal. The government is also bringing forward legislation through the Consumer Rights Bill to require all lettings agents’ fees to be published prominently in their offices and on websites to prevent agents introducing hidden fees.
See Office of National Statistics figures out today on the private rented sector.
In addition to the £1 billion Build to Rent Fund the government is offering up to £10 billion in housing guarantees which are already starting to attract institutional investment in the sector.