A cross-party group of politicians has said that more needs to be done to support younger people in rented housing.

A new report by the All-Party Parliamentary Group on the Private Rented Sector is calling on the Government to review housing benefit and tax rules.

The group of MPs and peers carried out an inquiry into private rented housing for under-35s.

Some 18% of all English households now rent privately and more than half of those private tenants are under 35.

But members of the Group heard concerns that a range of issues are making it more difficult for younger people to rent in the private sector.

The problems included housing benefit restrictions for single people under 35, meaning that they receive enough for shared accommodation but not a self-contained home.

In addition, local authorities can use Article 4 directions. These can prevent homes being turned into accommodation for sharing by enabling the council to demand a planning application and then refuse it.

The Group’s report calls for:

• The Government and local authorities to look at whether Article 4 directions are unduly restricting the supply of new private homes for rent.
• A full review of the Shared Accommodation Rate rules.
• 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 home owners to let rooms to lodgers.
• A ban on council tax being charged for bedsit rooms, or the introduction of a lower band for bedsits.
• A review of VAT rules to encourage more properties to be converted for housing use.

Group chairman Oliver Colvile, who is Conservative MP for Plymouth Sutton and Devonport, said: “Growing numbers of young people rely on the private rented sector for homes.

“We need to make sure that the benefits, tax and planning framework we have in place allows them to find the homes they need, at a price they can afford.”