Registered social landlords should be encouraged to get into the private letting market, an expert commission has urged.
The commission was set up by Shelter and the Joseph Rowntree Foundation to look for ways to boost investment to halt the long-term decline in private renting.

It pointed out that private renting has only a 10 per cent share of the housing market, and requires a £1.4bn annual investment just to maintain this position.

The housing management skills and financial position of registered social landlords could be used in private renting, where barriers hamper individual and institutional investors, it said.

Individuals suffer from an adverse tax position, which treats rent as investment rather than business income, and financial institutions face a dearth of housing management skills and often find better returns from other investments.

The commission called for tax reforms and consideration of subsidies or tax credits to encourage institutional investors. It demanded an overhaul of the housing benefit system, which it condemned as "in chaos".

It called for a 14-day deadline for processing claims, benefits paid in advance and pilots of shopping incentives before these are introduced nationally.

But the commission set its face against major changes to the Housing Act 1988, which regulates private landlord and tenant relations.

Private renting: a new settlement. Tel: 020 7505 4699.