Government rental review could be a lifeline for housing

Housing minister Yvette Cooper is today expected to announce a review of the private rented sector by an academic at York University. It is thought that the review would be similar to the Hills Review of social housing, published earlier in the year.

The news comes as the Citizens Advice Bureau reveals the scale of home owners saddled with mortgages they cannot afford, while the MoD admits spending £11m renting army homes from private landlords because of a lack of supply.

The property industry believes that a professional rented sector akin to that of Germany or the USA could solve supply issues and ensure stability in the market, as well as flexibility and choice for those seeking quality, professionally managed accommodation.

The industry wants the government to remove barriers to the growth of commercial investment in the professional rented sector, while increasing the flexibility of affordable housing policy and standardising regulation.

Ian Fletcher, director for residential policy, said: "We are very supportive of this welcome move by the government, which raises the profile of the professional rented sector and we hope reflects recognition of its important contribution to housing provision. A really helpful outcome would be a cross-departmental strategy for the sector, which promotes its professionalisation. Such a strategy must encompass planning, tax and, benefit policy and not just how the sector is regulated.

"It should not be forgotten that it is only 20 years ago that the modern private rented sector was born, with the deregulation measures in the 1988 Housing Act. Up until then, accessing private rented h ousing was nigh impossible. In 20 years, the sector has made huge strides and generally deregulation has been good for consumers and Government. Now, however, is probably a good juncture to be considering how we can build on this legacy and ensure the sector continues to deliver a quality product for a broadening set of clients. We look forward to making our contributions to this important project."