CLG has put forward proposals in an effort to create an environment in which small private landlords are encouraged to expand their portfolios and invest in new build housing.
It said investment by large financial institutions and pension funds offered a potential source of finance for new housing in the private rented sector.
However it acknowledges that many considered that the sector would continue to be dominated by smaller landlords.
Nigel Terrington, chief executive of Paragon, provided evidence to the committee on the importance of the private landlord.
He said that Paragon was broadly pleased with the recommendations in the report.
And he added: “That said there is not enough recognition of the essential role played by the private landlord and the contribution they make in providing homes for millions of people in the UK.”
Terrington said there was a great deal of effort which went into policy development around expanding the scale of corporate and institutional investment.
He however said: “Not enough thought has been given to how we expand and motivate the model which already works in terms of the private landlord.
“There is a need for a larger and more diverse private rented sector to accommodate the growing demand from tenants. Private landlords have demonstrated over many years their willingness to expand the supply of rented property.
“We need policy developments that work with private landlords, not ones that get in their way.”
