Yesterday, members of the House of Lords debated the Renters’ Rights Bill, which recently cleared the Commons.
This was a general debate. During debates, members put their experience to good use to discuss current issues and draw the government’s attention to concerns.
Lord Best (crossbench), a former chair of Hanover Housing Association, was among those to offer his views.
He argued that private landlords selling up and leaving the sector “could be positive” in terms of freeing up homes for owner-occupiers and social renting.
The independent crossbench peer suggested that social landlords could purchase the properties, improving provision for those on low incomes and reducing the burden of housing benefits on the taxpayer.
He said: “Private renting is seldom the best option for those needing low rents, good quality and long-term security, nor does the enlarged private rented sector suit the taxpayer. The sector’s higher market rates has propelled more renters into housing benefit at escalating costs to the Exchequer.
“The private rented sector has found itself performing a role in place of councils and housing associations which suits neither the tenants nor the public purse. This Bill could help achieve some rebalancing between the private sector and the social sector.”
Lord Best added that, to incentivise such sales, the government should consider an exemption from capital gains tax on the sale of properties from private landlords to social landlords.
Such a move would undoubtedly appeal to some buy-to-let investors, but would estate agents really be be needed as part of any potential price negotiations? It remains to be seen if the government will consider Lord Best’s proposal.
Rental reforms are ‘counter productive’ and will drive out landlords, politicians warned
