The government has repeated its rejection of “heavy handed” rent controls despite pressure from peers in the House of Lords.

Liberal Democrat Baroness Grender said the first-tier tribunal wouldn’t resolve the issue of unaffordable rents for those already in poverty and asked whether the government was considering any form of rent 'stabilisation'.

Housing Minister, Baroness Taylor of Stevenage (main image) said heavy-handed rent controls tended to mean higher rents at the start of a tenancy and could make it much harder for perspective tenants to find a home.

“They also encourage the growth of unregulated subletting which can leave the most vulnerable tenants very exposed to higher costs and minimal protections, so those rent controls always come at a cost often in reduced investment in housing supply and quality standards, so we prefer to strengthen tenants’ rights,” she explained.

Affordable

Liberal Democrat Baroness Thornhill (pictured) said in a system where supply significantly outstripped demand, a tribunal decision that the rent was a fair rent did not make it affordable.

The Minister said both landlords and tenants would have the opportunity to submit evidence, while a tribunal would not be able to determine a rent increase higher than that the landlord had already originally proposed.

“We do think we’re improving the position for tenants and also for landlords who will be able to make their case at the tribunal,” she added.

Conservative peer Lord Young of Cookham said there was nothing in the Renters’ Rights Bill to increase supply and urged the Minister to turbocharge discussions between her department, the Treasury, pension funds and insurance companies to get serious long-term institutional finance into good quality accommodation to rent.

The Minister said the government welcomed institutional investors who were playing a crucial role, particularly in the build-to-rent sector, towards building 1.5 million homes. However, she could not say what proportion would be affordable to those on or below average incomes.