Housing minister comes under attack after making first major speech – 93 days after appointment

Housing minister Alok Sharma has come under attack after making his first major speech since his appointment.

Speaking at yesterday’s Resi conference, Sharma – who is also planning minister – said that in the last five years there had been five planning ministers.

However, he did not mention how many housing ministers have in recent years gone through the revolving door.

In his speech, he referred to the terrible start his own tenure had, with the Grenfell Tower fire the day after he took office.

He said that more homes needed to be built faster, whether to buy or rent, with an improvement in design and quality. A new consultation is being launched.

He referred to rent controls, pledging: “Let me be absolutely clear, under this Government rent controls are not going to happen.”

On the lettings fee ban, he made it clear that this will happen, saying: “The Government also wants to see all tenants receiving a good, fair and affordable service from landlords and letting agents.

“So we will publish a Bill to ban letting fees paid by tenants in England. I know many of you in the build to rent sector do not charge upfront fees to your customers.

“But a ban will help to deliver a more competitive, more affordable and more transparent lettings market across the rest of the sector.

“We are also committed to improving standards. In April we brought in tougher measures targeting rogue landlords, including civil penalties of up to £30,000 and an extension of rent repayment orders.

“These powers give authorities the tools to crack down on the minority of landlords who disregard the law and take advantage of tenants.”

However, north London agent Simon Gerrard, of Martyn Gerrard, accused Sharma of soundbites.

Gerrard, a former NAEA President, said: “The new housing minister’s much awaited first speech, after 93 days of appointment, has sadly failed to impress.

“The fact that Mr Sharma is the 15th housing minister in the last 20 years is testament to the fact that the UK government, despite heralding the housing market as a priority policy area, is failing to take housing seriously.

“The lack of continuity does not bode well for those who are keen to deliver real change.

“Our government and opposition have become accomplished in delivering papers and speeches on how to fix the housing market, but continue to fall short in delivering effective policy.

“Whilst Mr Sharma’s announcement this morning of another housing consultation is welcomed, I am concerned that this is just another delaying tactic and am sceptical as to whether he will enforce any change following the White Paper six months ago.

“The pledge to increase the number and quality of homes for the PRS is a good soundbite, but where are the details? Where is the meat on the bones?

“There are currently no incentives in the planning process that benefit developers and those hoping to succeed in the private rented sector, and recent policies have done nothing to increase supply; instead they hamper home-building, increase rents and prevent people from moving on to or up the ladder.

“There are two policies I think could be transformative that Mr Sharma failed to address. Firstly, a time restricted Capital Gains Tax moratorium to encourage landowners to sell parcels of land will enable much more needed new housing to be built than putting pressure on local authorities to release land.

“Secondly, a Stamp Duty rethink that would maintain income to the Treasury but would also encourage more people to move by making it payable by those selling, not buying. This would enable both first-time buyers and those aspiring to move up the ladder.

“Both government and industry must work together to initiate reform in a radical way or the rhetoric is nothing more than soundbites, which the public are quickly becoming bored with.”

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2 Comments

  1. Will

    Stamp duty on sellers?  surely there is already criticism of the older people not moving/down sizing?  Stamp duty should just be abolished or significantly reduced. It is a tax on mobility of labour.

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  2. Deltic2130

    I find it staggering that virtually no one in govt or the media generally sees the link between the idiotic Section 24 and rising rents/homelessness. If the housing minister wants to see homelessness falling he should announce policies that massively increase supply of privately available houses. Maybe this way Croydon council wouldn’t have to put out a NATIONWIDE call for properties for their 736 families on the homeless list, families that landlords might otherwise flock to support. Not any more!

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