Rents: Inflation
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of recent trends in the level of rent inflation on economic growth.
Answered by Emma Reynolds
Rental prices are ultimately determined by the total supply of housing, relative to demand. Affordability of housing has fallen drastically, particularly in major cities, as too few homes have been built.
This Government is taking meaningful steps to reform the planning system and make it easier to build. Changes to the National Planning Policy Framework, published in December, will reintroduce mandatory housing targets and bring low quality Green Belt land in scope of development.
Building houses in the right places is vital to long-term economic growth, allowing prosperous places to grow, and providing the homes people want near good jobs.
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