30/12/2011
Category: Landlords' insurance
The government is launching a review of the private rented housing sector to try and encourage greater investment.
Housing Minister Grant Shapps has confirmed that Sir Adrian Montague will lead the review, as the government seeks to support the rapid growth of the private rented sector by increasing supply of private properties.
It wants to knock down some of the barriers that existing landlords' insurance holders may have experienced when trying to expand their portfolios, which could include lack of access to finance or a lack of suitable properties.
However, Mr Shappps also wants to make sure that rental prices are kept under control. He claims that in some areas of the country, rents are beginning to exceed what the average tenant can afford.
He continued: "The sector has seen several years of strong growth and increasing standards, but in some areas rents have begun to rise faster than wages.
"Over three million households live in privately rented homes, so it's vital that we take steps to ensure the sector's continuing growth and affordability."
Liam Bailey, head of residential research at Knight Frank, recently suggested that London rental prices are already at the upper limit of what people can manage each month, and they will start to move more in line with earnings growth in 2012.
Mr Shapps went on to say that Sir Adrian is an "excellent choice" to lead the review, bringing a wealth of experience in the housing market and its policy, as well as in investment infrastructure.
Sir Adrian said he was "honoured" to have been handed the important role.
"The private rental sector has gone through a period of rapid growth, and it's crucial that the Government does all it can to ensure that demand continues to be met," he said.
"I aim to help remove barriers to investment, contributing to the continuing health of a sector that millions of people rely on."
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