Investigations
have been initiated by the Government to find out the
extent of the 'buy to leave' phenomenon
that some commentators have claimed is blighting the
London and other property markets, Housing Minister Yvette
Cooper has told a Communities and Local Government enquiry
into the supply of rented housing.
'Like
you, we also, obviously, are aware of anecdotes and
people raising concerns about this, and I have to
say I am very concerned about the idea of buy to leave',
said Cooper.
Certainly
there was have been high levels of new build properties
sold in London to the private
rented sector
but there is no evidence of the new build homes being
left vacant, she said. However, in Leeds, there is currently
a 30 per cent vacancy rate in city centre apartments
compared with the city average of 4.3 per cent. 'And
that causes us some considerable concern. There is obviously
further investigation needed to be clear precisely why
that is happening, whether that is simply a cyclical
issue or a timing issue, whether it is to do with over
supply of particular kinds of properties or whether there
are deliberate decisions being made by investors'.
Cooper
also said she had 'some concern about property
investment clubs in Leeds'.
The
private rented sector had grown from 9 per cent of
households to 12 per cent over the last
15 to 20 years,
the minister told the committee. 'We do, clearly,
see the private sector as extremely important for not
simply providing much needed housing but also facilitating
a flexible labour market, for helping people to move
rapidly and easily from one part of the country and another
for work', she said. 'The private rented
sector is particularly important for younger people,
for those under 30, and often for students as well in
terms of providing accommodation'.
However, the minister said more should be done to monitor
impact of the buy to let market on the kinds of properties
that are built in particular areas. Demand from investors
for flats, for example, could easily influence decisions
on the type of properties developers plan to build, and
could, potentially, crowd out family accommodation. But
as yet there was no evidence of this, she said.
Asked
about the energy performance of rented accommodation
she said that introduction of
energy performance certificates
would be particularly important. The private rented sector
raised 'challenges' when it came to energy
efficiency measures since it would be tenants rather
than landlords who would be likely to benefit most.
'It
is an area we have been looking at as part of the work
across government around improving energy
efficiency of homes and we would see the role of energy
performance certificates as an important part of that
process. I think the important thing to recognise about
energy performance certificates and energy improvements
to homes is that they can substantially cut people's
fuel bills; so they can make a difference, they are beneficial
to residents and so can have a worthwhile impact financially
as well as in terms of cutting carbon emissions'.
Asked
if Housing Act reforms to the private rented sector
had started to restrict the supply of
private rented
accommodation in some areas, Cooper said she was 'not
aware of any such evidence at all'.
