All-Party Parliamentary Group on the Private Rented Sector calls for more support for young renters

According to a new report by the All-Party Parliamentary Group on the Private Rented Sector, the Government should look at whether more can be done to help young people who want to rent.

The Group carried out an inquiry into private rented housing for under-35s. It heard that the private rented sector is growing - and it has the highest proportion of young people of any housing tenure. Some 18 of all English households now rent privately and more than half of those private tenants are under 35.

But the members of the Group heard concerns that a range of issues - including council powers to prevent properties being turned into shared homes to rent, and housing benefit restrictions for the under-35s - could be making it more difficult for young people to rent in the private sector.

The Group’s report calls for:

•  The Government and local authorities to look at whether planning powers, known as Article 4 Directions, are unduly restricting the supply of new private homes for rent. It says the powers can be a useful tool - but it should be easier for landlords to rent out shared homes to families, and then turn them back into use as a house in multiple occupation.
• A full review of the Shared Accommodation Rate rules, which means single people under 35 can now only claim housing benefit equivalent to a room in a shared house, to see whether the changes mean not enough housing is available at the right rent for those who need it.
• Investigating paying housing benefit directly to private landlords to encourage more to rent their homes to those on benefits.
• An increase in the ‘rent-a-room’ tax allowance to encourage more homeowners to let rooms to lodgers.
• A ban on council tax being charged for bedsit rooms, or the introduction of a lower band for bedsits, to ensure rented rooms aren’t made unaffordable by more councils charging separate council tax on them.
• A review of VAT rules to encourage more properties to be converted for housing use.