Solution stalemate

It’s good to see politicians responding to the harsh reality that neither owner-occupation, nor social housing, is available or affordable enough.

The high cost of housing, compared to salaries, is no joke. As homeownership becomes increasingly unaffordable to many, and social housing is in short supply, the private rented sector has become the only option for 4 million households.

Ed Miliband proposes three-year tenancies, annual (rather than six-monthly) rent reviews, a cap on ‘above-market’ rents, and no tenant agency fees.

Labour activists have reacted with excitement; however, there is no hint of the reintroduction of security of tenure or rent control.

Private landlords have reacted with disdain. They claim that costs will increase and they will sell up. This is possible - current markets do favour sales, and if disreputable landlords sell up, that is probably a good thing.

And some say that, just as institutional investment in the PRS is taking off, this will have a dampening effect. Who knows, but long-term investors are unlikely to be concerned. So what do I think?

Notting Hill has a large PRS portfolio and these changes are fine with us. But I am disappointed that a major party can do no more than offer small-scale, technical tinkering. It won’t do any harm, but it won’t do a lot of good.

There are huge issues for politicians - how to make housing affordable, how to contain the costs of caring for older people, and how to ensure that families have somewhere safe and decent to live.

In this context Labour’s proposals seem modest and unlikely to have any real effect on the housing shortages that blight so many lives.

Kate Davies is chief executive of Notting Hill Housing Trust

To read more about the private rented sector click here.