Renters (Reform) Bill

Karen Buck Excerpts

2nd reading
Monday 23rd October 2023 Commons Chamber

[Ms Karen Buck (Westminster North) (Lab)]

It is genuinely hard to overstate the scale of the housing crisis that we are in, in 2023. Every element of this crisis interacts with every other element, and they all feed off each other, driven—I agree with the right hon. Member for Calder Valley (Craig Whittaker) on this one point—by the failure to build enough homes, as well as: the decline in home ownership, particularly among the young; the shrinking of the social rented sector; the growth of the private rented sector, especially, as has been pointed out, given the many different housing markets within the private sector; the growth of the private rented sector for those who are least able to afford that; the growth of homelessness; the pressures of housing costs, driven particularly by the shortfall between the housing element of the social security budget and actual housing costs; the collapse in legal aid and the advice sector; and the pressures on local authorities across the board. That has led to a perfect storm, at the sharp end of which is homelessness.

It is a relief to have this Bill with at least the promise that section 21 will end, because the section 21 powers are used for the most vulnerable and poorest and drive people directly into the homelessness sector. As an MP whose borough has the largest proportion in the private rented sector anywhere in the country, I feel strongly about that. It is profoundly worrying to hear that the Government have backtracked four years after they first promised to abolish section 21. The caveat we now have before us will mean in effect that there will be no progress on protecting tenants over the coming years.

It will be years before those powers are brought into effect, because one of the other elements of this omni-crisis is the shambles that is the courts system. We know that the Ministry of Justice took the single largest proportion of all spending cuts in the post-2010 austerity budget, and it is struggling to cope with the current system. The sector has no plans and no provision to make the changes that the Secretary of State is relying on as a preliminary for abolishing section 21. Every day that goes by means that more people—many highly vulnerable—will face eviction.

On average, 290 London renters a week have faced no-fault evictions since the Government promised to bring an end to them in 2019. Citizens Advice said that it has helped 10,600 households with section 21 cases since this Bill had its First Reading. A six-month delay would mean almost 15,000 more Londoners facing no-fault evictions, and a third of all no-fault evictions in England in recent years have been in the capital. It is London—the most expensive place and the place with the greatest homelessness crisis—that will bear the heaviest burden as a result of further delays by the Secretary of State.

At the heart of all this is the tenants themselves. For many people, insecure tenancies are a nuisance—often an expensive one—that keep them in a state of permanent instability. High levels of population turnover are not good for strong communities. They are linked to low levels of participation at every level of civic society, and they place a particular strain on public services such as GPs and schools. For the most vulnerable, the private sector is a living nightmare, damaging their physical and mental health. All too often, insecurity, unaffordability and poor standards of accommodation come as a single package, placing the greatest strain on those who can cope with it least.

My casework—like that of many other Members, I am sure—is full of examples like these. One constituent wrote to me:

“We have been issued with a section 21 eviction letter by the landlord. I suffer from severe depression and recently had a cornea eye transplant and am still undergoing treatments. My son has autism, asthma, is non-verbal with severe sensory needs and also struggles with change, and we have both suffered serious mental health breakdowns due to our current living conditions.”

These constituents have to wait until the court issues a bailiff warrant for them to be moved into alternative accommodation, but due to the high level of backlog that the courts are experiencing, that will not be any time soon. As she writes:

“This whole process has been severely detrimental to my mental health… My concern is that our current property isn’t safe as the kitchen ceiling is about to collapse in on us”.

Another constituent wrote:

“This miscreant of a landlord sent me a section 21 notice for possession of my apartment. I have been a tenant there in good standing for three years. Rent is always paid on the due date. Rent is £850 for a tiny room…with a shared toilet and shower with 17 other tenants. The landlord informs me today that he wants to raise the rent to £1,516…an 80% rent increase out of the clear blue sky!”

A third constituent wrote:

“Today my wife and I were served with a no-fault eviction…principally for refusing to agree to an almost 20% rent increase. This was particularly galling, because in February we had already had an increase of almost 10%. We now have just eight weeks to find a place to live, but as you…know, there is a dearth of properties…not just in this area but other parts of London.”

They think it highly unlikely they will be able to find somewhere to live. They continue:

“I am utterly disheartened that we live in a country where this is possible. It is nothing short of an outrage.”

There is much in this Bill that is good. There are elements promised for this Bill that are not here and that we will want to press on, and there are a number of concerns we will want to press on in Committee to probe the Government. The central point is this: tenant insecurity is extremely damaging. It is bad for mental and physical health, it is expensive and it places pressure on local authorities. The longer that measures are delayed, the worse it will be. The Government have broken their promise, and we will be holding them to account for that failure.

Oral Answers to Questions

Karen Buck Excerpts

Monday 16th October 2023 Commons Chamber

[Jacob Young]

I look forward to meeting my hon. Friend and visiting her constituency.

[Ms Karen Buck (Westminster North) (Lab)]

T6. Some 4,240 households in London alone were evicted last year using the no-fault possession grounds that the Government first promised to scrap four years ago. How many more households will be evicted before the Government meet their promise?

[Michael Gove]

We are committed to introducing our Renters (Reform) Bill, which will end section 21—something that, when Labour were in government, it did not do.

Voter Identification

Karen Buck Excerpts

Tuesday 21st February 2023 Commons Chamber

[Lee Rowley]

The hon. Lady takes a keen interest in this area, and she will be aware that we are making changes to encourage blind and partially sighted people to get more involved in the electoral process and at the ballot box in May, which is one of the reasons I met the Royal National Institute of Blind People on 8 February. I will continue to meet all organisations representing these areas to ensure that this works as well as it is able to in May.

[Ms Karen Buck (Westminster North) (Lab)]

Many people who do not carry ID tend to be in already marginalised demographics, and now they will be disenfranchised. The Tories are “trying to gerrymander”. I do not always agree with the editor of The Spectator, but he is right on this occasion, is he not?

[Lee Rowley]

No, he is not, for the reasons I have provided. Many countries around the world have voter ID to ensure the integrity of the ballot box, and I encourage the Labour party and the hon. Lady to encourage their constituents to get involved. It will be happening.

Social Housing Standards

Karen Buck Excerpts

Wednesday 16th November 2022 Commons Chamber

[Michael Gove]

I am very sorry to hear about that individual case. I would be grateful if the hon. Lady let me and my office know about that and the landlord responsible, and we will seek to follow it up. On her broader point, I hope that the regulator and the ombudsman together can help to ensure that individuals like her constituent have their concerns addressed. However, if more needs to be done, my Department will do what we can to review that.

[Ms Karen Buck (Westminster North) (Lab)]

When the Government backed my Homes (Fitness for Human Habitation) Act 2018, I knew that the law would not be enough. That will prove to be the case again. We have heard about enforcement against social landlords and against private landlords—who are twice as bad—as well as commissioned temporary accommodation and exempt accommodation, which is often the worst. We know that we need more enforcement capacity. Will the Minister and the Government commission a study of local authorities’ enforcement capacity—particularly the use of environmental health officers—to enable councils to identify the problems in accommodation? Will he also commission a study of the use of the legal powers already available to local authorities, which varies so much between providers? Will that inform the urgent introduction of further legislation to protect renters?

[Michael Gove]

I am grateful to the hon. Lady. The Bill that she introduced became an Act in 2018, and it is landmark legislation. She is right to say, as she warned at the time, that legislation on its own is not enough and enforcement is required. The number of people who have used her legislation for the purpose for which it was intended has been fewer than any of us would have wanted, given the scale of the problem. I commit to looking at the recommendations that she just made to see whether that is genuinely the best way, and I hope that we can come to an appropriate conclusion to ensure that appropriate enforcement is in place.

Private Rented Sector White Paper

Karen Buck Excerpts

Thursday 3rd November 2022 Commons Chamber

[Ms Karen Buck (Westminster North) (Lab)]

I congratulate my hon. Friend the Member for Brighton, Kemptown (Lloyd Russell-Moyle) and the hon. Member for Dover (Mrs Elphicke) on securing this debate, but I must be honest: I find it disappointing that we are having a general debate on the private rented sector yet again, three years after we were promised legislation. The time is overdue for us to get beyond discussing policy in the round and on to discussing the substance of legislation and amending it.

Having said that, we have had some really strong speeches. I was struck by the speeches of Conservative Back Benchers, who sounded—well—like us, really. I am pleased that it seems to be appreciated that there are limits to deregulation and we have hit the bumpers in that regard—particularly in respect of short-term lets, which have had a devastating effect on lettings in a number of towns and coastal communities and, of course, in inner London, notably my own constituency, which has the largest private rented sector in the country.

In the years during which we have been waiting for the Government to enact the promised legislation, we have been plunged into a deepening affordability crisis for renters, who are facing an increasing squeeze on their incomes. London rents are now averaging £2,000 a month, and since last year have increased by 20% in inner London and just over 15% in London as a whole. Nationally, one in five renters have faced an increase of £100 a month. As 45% of renters have no savings at all, the fact that they have managed to survive for this long is a miracle. However, as we go into the winter with a cost of living crisis, there is a real risk that a catastrophic number of people will be tipped into homelessness, and certainly into poverty. Even more than any other tenure group, these people will face a choice between keeping a roof over the heads, eating and heating.

It needs to be said that there is an inequalities dimension to this. My hon. Friend the Member for Brighton, Kemptown was right to say that there are three different rental markets. We are most concerned with the average renters, people who would otherwise be buying but are deferring buying because of the cost of rents, but we must also consider the third or so who constitute the poorer renters. Of those, a disproportionate number are women-led households and black and minority ethnic communities. It is members of black and minority ethnic communities who are least likely to have mortgages, and who are therefore most likely—especially given the squeeze on social housing—to find themselves trapped in the poorest-quality private rented accommodation and the most expensive in proportion to income, with all the consequences that will have for those communities. It is important for the Government to understand the inequalities dimension, and to frame the legislation accordingly.

The Evening Standard, which has rightly had a continuing focus on the private rented market, recently ran a piece headed “London’s renting crisis: brutal choices, heartbreak and escalating costs faced by renters at breaking point”. That is absolutely accurate. The competition for rental properties is unprecedented. We hear stories of auctions with people having to bid against each other, and of deposits and other up-front costs. Every time someone has to move, not only do they have to deal with a deposit, but the moving costs are piled on top of that. It is no wonder that younger renters cannot afford to buy, and are locked out of the housing market that most wish to join, as a result of that combination of rents and recurring one-off costs which eat into their incomes.

Today’s interest rate rises will feed into mortgages, which is entirely due to the Government’s mishandling of the economy, and which means that people will be trapped even deeper and for even longer. Those at the lower end of the market who, in any normal and healthy system, would have been enjoying the security and the fair rents of social housing appropriate to their circumstances and their income are locked out as well, because the number of lettings in social housing has plummeted by more than 100,000 in the last 10 years alone.

Why is that? It is because over the past 12 years the Government have deliberately chosen not to build social housing. One of the first acts of the 2010 Government was to halve the housing investment grant, making it impossible for local authorities to build. But it is also because—this has not been understood by successive Ministers—there always used to be a flow out of social housing and into home ownership, and that has effectively stopped.

People end up trapped in the social housing that we do have. They are unable to move into the home ownership that they aspire to, and that they would have been able to afford a decade or 15 years ago. They are keeping those social housing properties and tenures for longer, so there is not a flow into them from other households, and that of course bleeds into increasing homelessness.

We have an affordability crisis and a security crisis—a section 21 notice is issued every seven minutes. We also have a standards crisis and a decent housing crisis, particularly at the bottom end of the market. Close to 1 million households are in substandard accommodation. The private rented sector is the tenure with the worst standards; more than 500,000 premises have category 1 hazards, which represent serious threats to health or life. We have a growing crisis for older renters, who are trapped in the private rented sector. They never expected to be without the means to improve their accommodation.

Hon. Members have cited case studies, and I too want to read one into the record. This is the kind of story that we hear in our surgeries about people in inappropriate and substandard accommodation:

“I have a special needs boy. He has hypoxia, ischaemic brain injury, epilepsy, global development delay, hepatitis… my flat in the last two months was flooded with rainfall bcz the roof has a big leak. We sleep on the floor, so mattress, furniture, clothes get wet… Recently the ceiling light exploded, so now there’s no power in the property. Our flat is only electric supply, no gas. So now there’s no food, no heater, nothing I can do. We are struggling financially bcz my child needs 24-hour support and he has lots of appointments so that’s why”

my constituent

“can’t go to work… So it’s difficult to survive like this…no one will understand my pain.”

I am afraid that that is not uncommon. This kind of case comes before us time and again. People with no power, and no purchasing power in the private rented sector, get stuck in properties, and landlords—I do not call them rogue, because there are far too many of them for us to regard them as exceptions—will exploit that for their own purposes.

We need the promised legislation, but we need more than that. I want to flag up two other issues that need to be seriously addressed. We have heard reference to enforcement; it should not be an empty word. Enforcement requires resources. If the Government do not resource a policy change, and do not give local authorities the resources to take enforcement action against bad landlords in cases of substandard accommodation, that will be exploited. When a landlord is seeking an eviction under section 8 rather than section 21, it is even more important that the tenants have power, or somebody who is on their side and can support and assist them.

Local authorities prosecute in only 1% of cases in which poor-quality accommodation is brought to their attention. Why is that? Sometimes it is because local authorities do not focus on the issue, but it is also a question of resources; councils in London in particular have lost 20% of their resources in the last 10 years. The Government must address the issue of capacity to deal with environmental health matters, and capacity in legal aid on housing, because once again we see evidence of advice deserts, and of people being unable to access housing lawyers.

I want to raise one more issue, which I do not think the Government have addressed. In a post-section 21 environment, if we get there, there will be even more risk of illegal evictions. I come across illegal evictions in my casework; people ring my office to tell me that a landlord is inside their property illegally, and is driving them out. Unfortunately, we have very little data on this, because the Government do not collect data on the extent of illegal evictions. The Greater London Authority and the Mayor of London are doing very good work teaching the police how to handle illegal evictions, and teaching them not to step back and regard an illegal eviction as a civil matter between two parties. However, that work is not done nationally, and a great deal more needs to be done about that.

There is a lot that we can do. If we ever get the legislation, we would look to amend it to improve protection of tenants from illegal eviction; I hope that the Government can address that.

Renters deserve security, affordability and decency. At the moment, far too many do not have any of these things. They all have to be addressed together and in a wider context that includes advice, representation and enforcement. Above all, they all have to be addressed now.

Grenfell Tower: Fifth Anniversary

Karen Buck Excerpts

Thursday 16th June 2022 Commons Chamber

[Ms Karen Buck (Westminster North) (Lab)]

I congratulate my hon. Friend the Member for Leeds East (Richard Burgon) on securing this debate. It is a pleasure to follow the hon. Member for Kensington (Felicity Buchan), whose constituency includes the area of Grenfell Tower. Of course, for 13 years I represented the constituency of Regent’s Park and Kensington North, including Grenfell Tower, and I knew it and the people living in it well. When the phone calls began in the middle of that fateful night five years ago, it was a personal horror to me as well.

The inferno engulfed Grenfell Tower just days after the 2017 general election. Parliament had not reconvened, but Ministers and MPs gathered in Westminster Hall for a special meeting, for which an official parliamentary record could not be provided. The newly elected Member for Kensington in 2017, Emma Dent Coad, was plunged into probably the most challenging set of circumstances that almost any newly elected Member of Parliament has had to face outside of wartime. She went on to make the case over the following two years, and she continues to do so outside this House. We should commend her for coping so well with that extraordinary challenge.

[Sarah Jones]

I believe that Emma Dent Coad is with us today, watching from the Public Gallery. I also came to Parliament in 2017, and this has absolutely been the defining issue of my entire five years. What happened was such a huge thing for those of us who were new, and I can only imagine how she managed to cope with the challenges she faced.

[Ms Buck]

I thank my hon. Friend and agree very strongly with her.

That gathering of parliamentarians, which is not on the parliamentary record, was very intense indeed. We pressed Ministers very hard for answers. In addition to the obvious shock that everybody was still feeling, there was an absolutely overwhelming demand for urgency not only in response to the catastrophe that happened in north Kensington but in relation to the wider lessons, which I will come to in a moment.

In the days that followed, including the day on which we gathered, it became immediately obvious that there was a failure of epic proportions on the part of the state, and particularly the local council in Kensington, and those of us who went to the Grenfell area to offer support in the immediate aftermath could see that. During that parliamentary debate, I asked what we were going to do, immediately and urgently, to deal with the homelessness crisis faced by hundreds of people. That quickly became a larger number, because over the following days there was an evacuation of residents from the Lancaster West estate surrounding Grenfell Tower. Having been the Member of Parliament for that area, I knew well the sheer scale of the homelessness diaspora resulting from Kensington council’s behaviour, and indeed of the wider homelessness problems in London.

In the immediate aftermath of the fire, people were sleeping rough. How was that allowed to happen? We discussed the issue, yet it was allowed to happen. It is important that we remember that five years on, because the way in which the institutions of the state failed the survivors, the relatives and the wider community set a tone for the whole of the following five years. Understandably, that fed into a deep and profound sense that they could not rely on the institutions of the state to offer them support and justice. One of the things that we have to do today is recognise that epic failure and collectively apologise for it. I am ashamed. Anybody who went down to north Kensington over those following days could not believe their eyes in seeing a failure on that scale.

Homelessness was one of the first issues raised, but it took months—it took years—for the housing needs of Grenfell survivors, relatives and the community to be dealt with, even though they were recognised within hours of the fire. The second immediate issue raised in Parliament on that day was the need for justice—the need for those responsible to be held to account for what had happened. We did not immediately know exactly who was responsible—which components of the system, from building design and maintenance to the emergency response—but people knew that there was a need for justice.

I do not think anybody would now say that the passage of five years means that justice has been served. That is not in any way a criticism of the inquiry, which has been profoundly rigorous in going about its work, but justice delayed is justice denied. Five years is far too long for the community to wait for justice. Urgency was the prevailing tone in the immediate aftermath of the fire, but five years on, the promise of urgency and the commitment to urgency have been denied. The community has been let down profoundly as a consequence.

Building safety has been a dominant theme in Parliament in the intervening five years, but we need to reflect again on emergency planning. The fact that it failed so catastrophically in Kensington tells us something quite profound, which we continue to raise in other contexts: there is an institutional belief that these kinds of things cannot happen here. There is a complacency about risks that should have been shattered comprehensively, forever, by what happened five years ago, but it has not. Again and again, we see the expectation that we should drive towards a deregulatory approach to services and a de minimis public sector, even though the capacity of the public sector, which failed so badly on that day, is so essential to ensuring that such things cannot happen again.

Within days and weeks of Grenfell, it became quickly apparent that hundreds of thousands of people across the country were living in buildings where such things could happen again—in some cases, they still are. That possibility has dominated our discussions in this Chamber. Ten days after Grenfell, I had to attend a meeting of desperate and frightened residents of a six-block, 22-storey estate in north Westminster that overlooked Grenfell Tower and had been covered with the same form of cladding. In many ways, they have been the fortunate ones: they went through terminal upheaval as the cladding was removed over the following winter. However, 10,000 buildings continue to be covered with some form of cladding. The people in them live with that risk. In many cases, they also live with the reality that they face financial ruin and are trapped, unable to move.

I completely recognise that the Government have taken some steps in their legislative programme to implement proposals on fire safety and building safety, but so little has been done compared with what is needed.

[Marsha De Cordova (Battersea) (Lab)]

My hon. Friend is making an excellent speech. I have been in this place for only five years; the Grenfell fire and its aftermath have been a defining part of my term. A number of buildings in my constituency are still wrapped in unsafe cladding. Despite many years of promises that leaseholders would never have to foot the bill for fire safety and remediation work, and despite the Fire Safety Act and the Building Safety Act, leaseholders are still being burdened with thousands of pounds of debt to pay for all the fire safety and remediation work to be completed.

[Ms Buck]

I totally agree. So many people still live with the fear, the risk and the stress of having to contribute financially. As we have said again and again, so many of the people who bear the burden of cost and risk are the very last people in the chain of responsibility to have had anything to do with the circumstances in which they are trapped.

Five years on, as the inquiry continues its work, the Home Office’s decision not to implement the inquiry’s recommendation

“that the owner…of every high-rise residential building be required…to prepare personal emergency evacuation plans”

sends out the worst possible signal, particularly to survivors and to the north Kensington community, who are looking to the inquiry for answers on the long road to justice.

This is the fifth anniversary of an avoidable tragedy of epic proportions—a tale of corporate malfeasance, incompetence, indifference and institutional inertia, even after the Lakanal House fire had given us all the signals that Government action was needed. Like my hon. Friend the Member for Leeds East, I pay tribute to Peter Apps and Inside Housing for years of painstaking work in following the inquiry, reporting on it and giving us the information that we need to follow what would otherwise be a very complex story.

The chains of reporting by Peter Apps make salutary reading for every Member of this House, because they lay so bare what has gone wrong. For example, contractors and developers knew that the cladding system would fail. As Peter Apps has reported:

“In an email exchange…designers of the tower’s cladding system wrote: ‘There is no point in “fire stopping”. As we all know; the ACM will be gone rather quickly in a fire!’”

It is worth reading the dozens of reports that have been put on record in the inquiry, which give us revelations of that kind.

Five years on, I pay tribute to the survivors, the relatives, their representatives, the mosques, the churches, the community and Grenfell United, who have done such extraordinary work, in the aftermath of this tragedy, to hold the community together and support people, their dignity and their campaign for justice. But five years on, there is not yet justice.

Sharing Economy: Short-term Letting

Karen Buck Excerpts

Thursday 16th June 2022 Commons Chamber

[Ms Karen Buck (Westminster North) (Lab)]

I congratulate the hon. Member for Cities of London and Westminster (Nickie Aiken). As the Member for the other part of the borough of Westminster, I apologise for covering some of the same ground in respect of locality.

Having set up the all-party parliamentary group on the short lets sector, I am conscious that the issues that the hon. Member describes are having an increasing impact on cities, coastal communities and popular tourist areas across the country. Although it is always deeply unedifying to stand up in Parliament and say “I told you so,” I have to say that we told the Government so. During the passage of the Deregulation Act 2015, we warned that the changes allowing the 90-day limit in London would be likely to lead to an explosion in short lets and a very detrimental impact on communities—and that is exactly what has happened.

I remember saying in debates on the Deregulation Bill and on two subsequent ten-minute rule Bills—the Short and Holiday-Let Accommodation (Notification of Local Authorities) Bill and the Short and Holiday-Let Accommodation (Registration) Bill—that residential communities are being turned into unlicensed and unmanaged branches of the hospitality industry. The hon. Member has made many of the same points; I will not repeat them, but let me very briefly reinforce them.

As the hon. Member says, nobody is proposing any kind of ban. The sharing economy concept is a strong one. It is a smart and popular idea for people to let out a spare room or let out their home for a couple of weeks when they go on holiday or work abroad: it generates money in communities, generates money for the people who let the properties, and is clearly popular with the people who rent them. The digital economy has created enormous opportunities, and that is one of them.

However, the implementation has changed fundamentally since the original concept: it is now a highly commercial enterprise, as the figures show. A report in 2020—I have cited it previously, but I cite it again—found that just one sixth of the revenue of Airbnb, which is a major player in the field, came from the kind of home-sharing let that was its original concept. As the hon. Member says, we can track the huge shift to whole-property rentals, which has been very significant in London and across the whole country. Research by Tom Simcock of Edge Hill University has found a 423% increase in lettings by “multi-hosts”, owners of multiple properties. That gives an indication of how deeply and increasingly commercialised the sector is.

The impact is felt in the loss of residential property; the hon. Member made that point, and I endorse it. The clear indication is that it is financially advantageous to landlords to move out of the lettings market and into the short-let market, where they can make substantially more income and enjoy significant tax advantages in doing so. All over our borough of Westminster, properties where people could once live are being used just for the holiday industry. That has all kinds of impacts on people in housing need, and on communities.

There is also an impact on the management of antisocial behaviour and nuisance, ranging from noise to rubbish. If people were staying in hotels or in registered hospitality, there would be commercial arrangements for waste collection and they would be making a contribution. None of that applies in this instance.

This morning, entirely by coincidence, I received an email from a constituent on Harrow Road—not the heart of the west end, but the very north of my constituency, at the poorer end. I was told that five identified properties were now being let as short lets; people were coming and going with their luggage all through the day and night, and it was causing concerns about security. It is not necessarily that people choose to behave badly, or that they are acting in an especially antisocial way, but when people are on holiday they act differently. They do not have the same constraints as residents on the hours they keep or the way they act, and they certainly do not have the same sense of responsibility for security. It causes a great deal of anxiety.

It has been said, and I will repeat, that local authorities have their hands tied behind their back when it comes to enforcing against short lettings. Finding properties that are legally let under the short let arrangements but have to be acted on when they breach the 90-day rule is asking local authorities—cash-strapped local authorities—to do the almost impossible. They do not know who is letting. They would have to monitor everything to find that out and then be able to prove that the letting exceeded the 90-day limit. It is completely unreasonable to ask them to do that.

Landlords, particularly the commercial landlords that see the advantages of short let arrangements, are driving a coach and horses through the legislation. This is leading to enormous strains in local communities and a great deal of anger among neighbours, who turn to the local authority to help with enforcement but find that the local authority does not have the capacity to do so. Also, not unreasonably, the hospitality industry, which has had a terrible couple of years with covid, feels that there is not a level playing field, given its members’ responsibilities in terms of health and safety and taxation. They are being undercut, not by individuals letting out a spare room, but by major players in the corporate hospitality sector exploiting a loophole.

It is essential that the Government wake up to this problem. It is spreading across the country and the implications are profound. The Government can act very quickly, without excessive regulation, just to make sure that people who let out these properties are licensed to do so and that we know who they are. If we know who they are, we are in a better position to act when they breach the rules. We have been asking for this for seven years. It is a cross-party issue—cross-party in the local authority, Westminster, and cross-party in Parliament. The Minister must wake up and act to protect communities and to protect us against the loss of valuable residential property before it is too late.

[Rachael Maskell (York Central) (Lab/Co-op)]

I congratulate the hon. Member for Cities of London and Westminster (Nickie Aiken) and my hon. Friend the Member for Westminster North (Ms Buck) on their speeches today. I want to take the debate outside Westminster and highlight the impact this issue is having elsewhere in the country.

Members in all parts of the House know that this industry is growing at a rapid pace in tourist destinations. York, the most visited place outside London, is certainly experiencing many of the problems that have been described this afternoon, and on a matching scale, although our city is slightly smaller. We know that in York there are about 2,000 Airbnbs already, predominantly in my constituency, but they are increasingly becoming an issue on the outskirts of the city and in the more rural villages. In the city centre, we often find streets—family streets—where there are five or six Airbnbs, and it is having a serious impact. Everywhere I go across my constituency, I have constituents come up to me to talk about Airbnbs and holiday lets—or, as they are increasingly being called, party houses. They are not in keeping with the character of our city. There is a clash of cultures between families, who just want to get on with everyday living, and the predominantly weekend culture of parties, which in the summer never stops.

We are not seeing this just in existing properties in the city. Increasingly, we are seeing it in new developments in York. Developers are putting predominantly luxury accommodation in the city, but many of the properties are being bought as investment assets. That is an issue we all have with what is happening in parts of the property market. Of course, if they are vacant, suddenly the lights go on and people think, “Why don’t we turn this into a short-term holiday let?” We are seeing an increase in that in the new estates.

I certainly had concerns about this in relation to proposals for the York Central development. It is an incredible development, with 2,500 homes proposed for the site. In my discussions with Homes England, there was a recognition that this could become a party city right in the middle of York, because local people will not be able to afford to live in those luxury homes. They will therefore end up just going straight into the hands of the companies that are running the Airbnbs. Also, the numbers in the new developments go into the Government’s housing numbers, so the Government are ticking off their lists and saying they are achieving their housing targets, but those houses are actually just switching over to become Airbnbs. They are part of what I call the extraction economy—not the shared economy—because people are taking that property and wealth out of our city, and nobody gains. In fact, everybody loses. That is why it is important that the Government get a grip of this now and bring forward the legislation that is needed to regulate this area.

Ultimately, these are homes that we desperately need. We have all spoken about the shortage of housing in our constituencies, the fact that social housing waiting lists are rising sharply and the availability of property to buy is just not there. Every single time a property comes on to the housing market, in come these owners of Airbnb, cash in hand, hoovering up the properties ahead of people who have saved meticulously for their mortgage. And they are offering over the market price for those properties. I heard of one incident in York where they offered £70,000 more than the market price for the property. As a result, local people were not able to move in. I speak to young couples and families—as we know, people are now much older before they can even think about purchasing a home—and they are saying that they save and save and try to enter the market, but every time they are beaten to the post by people who then turn the properties into Airbnbs.

[Ms Buck]

My hon. Friend has probably seen the advertising—for a while there was advertising on the London underground—saying how much more money people could get by taking advantage of short-term lets. This is creating a powerful incentive to do exactly what she is describing.

[Rachael Maskell]

My hon. Friend is absolutely right.

The average rental price in York is extortionate—not compared with London but certainly compared with elsewhere in the north—at £945 a month for private rented accommodation. On Airbnb, that same property could go for £700 for a weekend. As a result we are seeing a frenzy among landlords who are saying, “Actually, I could get a lot more money out of an Airbnb property, so I’m going to issue a section 21 notice, evict my current tenants and then turn the property over to an Airbnb.” As a student city, we have more than 40,000 students in York, but many of the homes in the student areas are also turning themselves over to Airbnb. This means that we have a shortage of student accommodation as well as local people not being able to get into housing. The impact on the housing in the city is escalating.

Some of these places are being marketed not just as holiday lets; they are deliberately being marketed for stage and hen parties. This is becoming an issue that impacts not only on our city centre, because those parties are being taken out into the community. I have one cul-de-sac in the Groves in York where there are three of these Airbnbs in a little courtyard, and they advertise for 30 people to go and spend their weekend there. It is at the end of a family residential street, and people in my community have told me that the noise goes on all night. These are working people; they are working shifts and have jobs to do. Their children are going to school and perhaps sitting exams at this time of year, but they are having sleepless nights. On top of that, they are trying to shelter their children from the profane language. People are half-clad in the streets. Women do not feel safe down some of the back alleys in the Groves, where a lot of children play. It is turning these wonderful little communities in York into nightmares.

People do not feel safe in their own home anymore. In fact, I heard from one family who put their house on the market and moved out of the city, which was the only way they could escape the party houses that were increasingly in their area. They wrote to me about the impact it was having.

With the increase in Airbnbs, we are seeing the disappearance of York’s ability to house its own local community, which is having a severe impact on the local economy. We have heard about the tourism sector, but traditional B&Bs are losing out because they follow all the rules, pay their duty, follow health and safety and all the other things. They are in direct competition and, of course, they are covering their costs, so they are being pushed out. Guest houses are the same.

We are therefore seeing deregulation of the whole visitor economy, which does not benefit the location and has serious implications for local businesses. I challenge those who say this is good for the economy, because what we are seeing is an extraction economy. Many people purchasing houses in York are not from York. They are from London and the south-east predominantly, so they are seeing the opportunity as a holiday destination. They have no connection to those communities, so they are taking out of those communities, not feeding into them.

When I hear the expectation that there is going to be a 30% a year rise in the number of Airbnb properties over the next decade, according to Airbnb’s own research, it fills me with terror, so it is important that we get on top of this issue now. That increase is going to make it far worse, year by year, across our communities, and it will fuel our housing crisis even more, which will give the Minister the biggest headache of all. We are standing up to say we need this to be addressed.

I know the Minister has an interest in social housing, but we are seeing these people go cash in hand, along the same line as right to buy, and say, “If you buy your home and go through that process, we will be back to give you even more money in exchange for your property.” That is why it needs to be regulated, and regulated tightly.

Airbnb is having a profound impact on our community and services in the city. This is not particularly thought about, but our economy is now struggling to recruit the people it needs. Airbnb is escalating and fuelling the housing crisis, which is impacting on care workers and NHS staff being able to find property in the city. It is impacting on the hospitality sector. Of course, the people coming to our city often use those services and want hospitality venues to be open, but the sector cannot recruit staff. The people who would have been in those properties cannot afford to live in the city anymore, so they are being pushed out. Airbnb is having a negative impact not just on the housing environment but on the local economy. The deregulated system is not working.

We have heard about the impact on children and the community. When section 21 notices are issued, children have to leave their school and go elsewhere. That is having a negative impact across the area.

We have heard about people’s weekends of misery. When Friday comes, they do not know who will come off the train with their trolley bags and wander up the street. They do not know whether they are going to have a peaceful weekend or a party to endure and, of course, the other antisocial behaviour that goes with it. Some of the things I have heard are quite horrific. This is not what our city is about and it is not what my local people want our city to be about in the future. That is why we need to address this.

As the hon. Member for Cities of London and Westminster mentioned, there is also a loss of local revenue involved here. York is losing about £2 million in council tax, and many of these escape under the bar in terms of being a “small business” so they are not paying small business rates. Across the country we do not have the 90-day limit either, so we are talking about this loss throughout the year, along with the implications it is having. This has escalated in York during the pandemic. York has been seen as this fantastic place, two hours away from London and an amazing city to live in, with good schools and all the rest of it, but people have then realised, “Ah, but it is also a really good destination for staycation.” That has been incredible for our recovery, and I am not knocking it at all, but people have also seen the chance, over the lockdown period and particularly since, to come to invest in Airbnbs. That is why we are seeing this sudden growth in the city, which has taken it by shock and surprise, and has had that negative impact there.

I know that the Government have been on a path to look at a registration scheme on Airbnbs. I do not knock them for that, but the world has changed rapidly. I just say to them that we need to move on from that now and look at a full licensing scheme. A registration scheme would simply have serious deficiencies. We have heard about the benefits of a licensing scheme in Lisbon, and Scotland is introducing one. I also point the Minister towards what has happened in Nice, which has a stringent licensing scheme, but one that works incredibly well for those residents. A licensing scheme could help local government have sufficiency in resourcing to support this.

Both hon. Members have mentioned having a different class of housing so that a separate revenue could be charged from that, but we could also look at doubling council tax or even at having a multiplier on council tax, at the local authority’s discretion. This could be one way of looking at how we can build that revenue back into the local area. Of course these people will then pay for those services—currently they are not—such as refuge collection and even parking schemes, which have an impact on areas. We could also limit housing, and we have heard from hon. Members how advantageous that would be to a local area as well. Nice has not only a strict fines regime to deal with significant antisocial behaviour, but the right to remove licences and to grant licences. It is looking at how it can place conditions on licensed properties. There would be real advantage, not in the Government holding those powers, but in giving them to local communities, through their local authority. It would make landlords themselves have more responsibility as well for the properties that they let, including through a third party—an agency—and it would bring in greater controls.

Finally, let me look at the speed with which we need to bring this in. The Levelling-up and Regeneration Bill is before Parliament, and it talks about opportunities associated with things such as second property reform. As we have heard, for many people we are talking not just about a second property, but a third, fourth and so on. I have heard that some have more than 100 properties; this is a very highly organised industry. It would seem appropriate that the Government could table an amendment or new clause to that Bill to look at this issue and address the matters before us. If we do not act now, the housing issues that the Minister and his team are trying to resolve, which are complex and growing, are going to just get worse and worse. Therefore, I would really welcome more discussion with the Government about how we are going to move this rapidly into legislation to end this nightmare for our residents. Given the number of Members from across the House and their communities that this has an impact on, may I suggest to the Minister that he holds a roundtable with us so that we can discuss these issues at length? I think that across the House we all share the view of what we need to achieve, and I am sure that we can find the right solutions for government and for our communities.

Private Rented Sector

Karen Buck Excerpts

Thursday 16th June 2022 Commons Chamber

[Eddie Hughes]

I always love to hear from my right hon. Friend. His powerful oratory suggests some things sometimes that may not necessarily be quite the case. The English housing survey tells us that as many landlords are talking about selling some of their stock as are talking about buying new stock, so I think the equilibrium within the market is likely to be marginally less dramatic than he has suggested. Clearly, as a Government, we will be keeping a watchful eye on these things to make sure there are no unintended consequences. Given the work we have put in to reassure landlords and the consultation we have had during the creation of this White Paper, I think he may find that they are less frightened of the White Paper than his oration might suggest.

[Ms Karen Buck (Westminster North) (Lab)]

While also welcoming the content of the White Paper as outlined now, I share the concerns of my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook) about the further delay before legislation—the consultation and pilots—when there is pressing urgency. The Minister does not need to wait to get on with an urgent review of enforcement capacity. Whether it is about substandard accommodation or illegal evictions, we know we have a problem of capacity in local government, housing legal aid and the police supporting people facing illegal evictions. Can he undertake to review that capacity urgently and take steps to deal with it while we wait for the legislation?

[Eddie Hughes]

As I say, given the other challenges within the Department, I am not sure what our capacity is for that. However, I will commit to meeting the hon. Lady to discuss her suggestions in more detail in very quick time to make sure that I fully understand what she is proposing and see what the capacity might be for that.

Private Rented Sector Housing

Karen Buck Excerpts

Tuesday 15th March 2022 Westminster Hall

[Ms Karen Buck (Westminster North) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Gary. I congratulate my hon. Friend the Member for Liverpool, West Derby (Ian Byrne) on securing this debate and on a very powerful speech, setting out the conditions as he sees them in his own constituency.

I have the largest private rented sector in Britain in my borough, including some of the most high-end private accommodation it is possible to find—the luxury penthouses, the oligarch properties—but also some of the worst conditions. I am going to make three points of slightly different lengths, but my first is to beware the tyranny of the average. I urge the Minister to reflect on that point, because we know that over the decades there has been a steady overall improvement in the condition of property, including in the private rented sector. However, beneath that, we have a huge and arguably growing problem that is concentrated in particular sectors.

That problem was very well set out in Julie Rugg’s report three years or so ago, in which she looked at the sub-markets in the private rented sector. She rightly reflected on the fact that there are particular groups of people without power, including purchasing power—those who are dependent on housing benefit to rent their property—but also other kinds of power: those who do not have settled immigration status; those who have been homeless; the very young; the students; the old; and, in particular, those with disabilities. When the Minister responds and whenever we talk about this issue, it needs to be properly reflected that there is not a single sector, even allowing for geographical variations.

Secondly, I will touch briefly on the issue of enforcement. Although we will rightly hear from a number of colleagues, including the Front Benchers, about the need to move ahead with the overdue legislation to strengthen renters’ rights, those rights will mean very little unless we are sure that we have enforcement capacity—two kinds of enforcement capacity, in particular.

The first is the enforcement carried out by local authorities, particularly through their environmental health departments. Although I do not have time to reflect on this at length, we know from the work of the National Residential Landlords Association, and my own series of freedom of information inquiries to local authorities over the course of the past 10 years, that most local authorities do not enforce, or do so informally. Some of that informal enforcement will be fine, but it is untrackable—it is not monitored.

[Apsana Begum (Poplar and Limehouse) (Lab)]

Does my hon. Friend agree that what is needed is a centralised national landlord register that ensures accountability, so that tenants know before moving in whether their landlords have been compliant, especially in relation to health and safety?

[Sir Gary Streeter (in the Chair)]

Before the hon. Lady continues, it might be helpful to say that she is rushing, but she does not need to: every speaker can have six or seven minutes if they want, rather than four or five.

[Ms Buck]

I am grateful for that, Sir Gary; I am always anxious not to take too much time.

I certainly agree that one of the issues in the private rented sector is that we do not actually know where it is, other than when it comes to those claiming housing allowance in the private rented sector. There are landlords who are renting and we do not know who they are, so it is quite hard to enforce against them.

We have a patchwork of enforcement services. That requires resources from local authorities, which have been hammered over the past 10 years of funding cuts, and also political will. The situation needs a clear steer from the centre, together with good local knowledge—local authorities are in the best position to understand something about their own local markets. It also needs individual capacity for enforcement. We have just come from a statement on legal aid; one of the issues we should be very concerned about is the significant shrinking of the housing legal section’s capacity in recent years, with fewer providers and less capacity for access to services that put individual tenants in a position to enforce their own rights.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

My hon. Friend makes an important point about people in the private rental sector not being able to enforce their rights, because of lack of legal aid. Does she agree with restoring legal advice in this area? That would help prevent problems from escalating in the first place.

[Ms Buck]

My hon. Friend is absolutely right: the earlier one intervenes, the better, in all respects.

My third substantive point is the issue of temporary accommodation. This is property rented almost invariably from the private sector, often—although not always—managed by intermediary organisations such as housing associations and procured on behalf of local authorities. I raised a debate about this issue a little over a year ago, particularly looking at my own local circumstance, but the issue is wider than that. Human Rights Watch published a report a few weeks ago on the issue of temporary accommodation: a major human rights organisation felt it necessary to carry out an inquiry and report into the scandal of families and households in temporary accommodation and the conditions in which they are living. That report is utterly devastating. In the London Borough of Westminster, we have people living like this—I will quote from a couple of recent case studies:

“I’ve lived in this temporary accommodation Since June 2020 and have been under a lot of stress and strain due to my situation…I am infested with cockroaches and mice. As my son is a toddler, I always find him with the traps for…pests and putting them in his mouth. I fear for both his and my health. I have contacted my landlord, who are A2 Dominion”—

it should ashamed of itself—and

“Westminster Housing, and they keep sending pest control…They have sprayed the house but it only made matters worse. Cockroaches are everywhere! They’re in my fridge, my bed, my sons cot, within the sofas, just EVERYWHERE! I also have damp in my kitchen wall where there is water between the walls where I have an electrical socket.”

Another constituent wrote:

“I am currently in temporary accommodation and the council and housing providers which are A2 dominion”—

a bit of a theme will emerge with A2Dominion—

“are not listening to my concerns…The flat is infested with pharoah ants. They are all over the place. These ants carry bacteria which could harm my baby if they got to her. The ants have crawled on me. Today is the last straw when I saw them on my babies bottles. Pest control came out but never returned and there’s more than before… the bedroom is…freezing.... I have to put the heating on all night and that still doesn’t help so I’ve bought an electric heater that I have to put on through the whole night because of how cold the room is, and the electric heater takes so much electric that I can’t be affording.”

Another wrote:

“This house is riddled with black mould because of the continuous flooding. This has been going on since 2017. Each and every time I have made Westminster aware of the issues, I have been told that it is my fault because I don’t keep the property ventilated…It’s because I’ve been continuously flooded. I am forever cleaning black mould off the walls. My health has got worse. So much so, my current midwife is concerned for…my unborn child…I am continuously wheezing and have a dry cough…My eldest son has asthma and always complaining that his chest is hurting him.”

Another wrote:

“I actually haven’t had any hot water for at least 18 months and have to boil the kettle to have a bath. Why am I living like this in 2022???? Myself and my 18 month old sleep in the front room as the bedroom is too mouldy to sleep in. We have a hole in the ceiling and every time it rains, the water comes through.”

The last one wrote:

“I live in a temporary accommodation provided by Westminster council. I reported a leakage and mould problem in February 2021 to the council. The timing…was…terrible because I was undergoing breast cancer treatment so it was necessary for me to be at peace in my home free from…dampness…The reply letter acknowledges that the TA suffers from…damage, mould and disrepairs and even apologises to me yet says I will only be updated once they have more information? I think this matter is…a severe health risk yet the council believes it is…fine to continue sleeping in a mould infested home and have water dripping from the ceiling while you sleep.”

I could read 50 cases like that. The chief executive of A2Dominion earned a salary package of £276,000 in 2020, despite being in charge of a stream of those cases. But A2Dominion is not the only one.

It is my strong belief that, in addition to tackling the issues of enforcement and renters’ rights, the Government need to take action on the issue of temporary accommodation. The people accommodated there are in accommodation procured by the state. The state should set a higher bar for services than for the remainder of the private rented sector; in fact, it sets a lower bar. I would very much like the Minister, a year since I last raised this, to tell me what the Government are going to do about it.

--- Later in debate ---

[Eddie Hughes]

It would be fair to say that I will do everything I can. I feel personally invested in ensuring that happens. On the delay, I am not sure this is the legitimate answer the Government expect me to give, but we have been through two years of covid, and I have seen—we are seeing it now with the situation in Ukraine—that a number of staff have to pivot to the most pressing item that the Government are dealing with. We have a finite number of staff, and clearly covid has caused incredible challenges for the Government. I personally feel that they have responded well, but I understand the frustration. I conclude by saying that the debate has been incredibly useful for me—

[Ms Buck]

Will the Minister give way?

[Eddie Hughes]

I do not have time to give way; I need to give the hon. Member for Liverpool, West Derby time to wrap up. I remain open and will continue the conversation with hon. Members should they wish to take that opportunity.

Non-commissioned Exempt Accommodation

Karen Buck Excerpts

Wednesday 23rd February 2022 Commons Chamber

[Lisa Nandy]

Let me just say that I really regret this partisan tone. The hon. Gentleman is absolutely right to say that I entered local politics in 2006 having worked not just with children in care and young homeless teenagers at Centrepoint, but with child refugees, campaigning against practices such as those at Yarl’s Wood immigration detention centre that had happened under a Conservative Government but were also happening under a Labour Government. I will fight injustice wherever I find it and whoever is responsible for it, and I will stand up for people who do not have a voice. That is the great gift and privilege of this place. We are handed a megaphone through which we can shout loudly and make things change for some of the most vulnerable people in this country, and that is what we should do. I gently remind him, too, that the record under this Government has been appalling. Social housing builds have fallen off a cliff and housing-related support has been stripped away. Talk to any of the organisations, including Centrepoint, which I was proud to work for, and they will tell you that that situation is causing enormous harm not just to the people affected, but to many of the people who live in those communities, and it has to change.

[Ms Karen Buck (Westminster North) (Lab)]

I do not mind being partisan on this issue. Although the Labour Government, between 1997 and 2010, should have built more social housing, the absolute brutal fact of the matter is that the number of social lettings available for tenants has fallen from just under 400,000 to 300,000 in the past decade, and that is on this Government’s watch and they must take responsibility for it.

[Lisa Nandy]

I defer to my hon. Friend on that. She has been a superb champion for housing reform in this country over many, many years, including under the last Labour Government, and particularly in the past decade when we have seen exactly what she describes unfold. She has done more to reform and tighten up the law in this area through the Homes (Fitness for Human Habitation) Act 2018 than the Government have done in the past 12 years, so, absolutely, I defer to her on that.

--- Later in debate ---

[Ms Karen Buck (Westminster North) (Lab)]

At any one time, there will always be tens of thousands—probably hundreds of thousands—of people throughout our society who need help and support, including housing support. They are the most vulnerable people any of us will deal with. They include people leaving prison, people leaving the National Asylum Support Service, people fleeing domestic violence, and people whose homelessness is made worse by factors such as substance dependence or mental health needs. Without the right housing support and the support that wraps around housing, the circumstances that leave them vulnerable will be made dramatically worse.

I do not believe that there was a golden age—there is a degree of consensus in that respect. However, I do not think it is possible to argue that there were not conditions in place years ago whose absence has led to the present situation, which in some parts of the country is nothing less than a crisis. Many people at a point of vulnerability could once have accessed social housing and/or intervention and support from local authorities, including through schemes such as Supporting People that simply no longer exist. As a consequence, many of those people are left adrift, as my right hon. Friend the Member for Knowsley (Sir George Howarth) said, at the bottom end of a private rented sector that is unregulated, as has been well documented, or in conditions that are now classified as being part of exempt accommodation.

If we get this right, and many providers do get it right, the experience of supported housing will transform people’s lives and give them an opportunity. Often, their needs are transitional and they are able to get back on their feet after fleeing domestic violence or coming out of prison. That is exactly what we want—again, there is cross-party agreement. I commend the many individuals, charities and other organisations working in the field; they are often underpaid, and they deserve all our thanks for working in extremely challenging circumstances.

If we get this wrong, we will find that we are wasting public money at scale—as I believe we are doing—and letting down extremely vulnerable people. I do not think it an exaggeration to say that in some cases we are casting them back into the kind of crisis of physical or mental health from which we are notionally trying to help them escape. As I am sure hon. Members who represent constituencies more directly affected than mine will say, the situation is also causing a crisis in neighbourhoods because of the over-concentration of some of the poorest types of accommodation. This has been happening at an escalating pace over the past five or six years. There are now 150,000 people in the sector: the numbers have gone up by well over half in the past few years.

I am well aware, and want to hear from colleagues, that exempt accommodation and its associated problems are overwhelmingly concentrated in areas such as the midlands and in cities such as Leeds and Sheffield. In a way it is no surprise, because the landlords and providers who see an opportunity to make money—this has been described as a gold rush—will exploit cheap accommodation, particularly houses in multiple occupation, that they can buy cheaply and rent out at the maximum level they can extort from the state, providing next to no services in exchange. They walk away rich, and their tenants and residents are left in terrible circumstances.

Central London has largely escaped the worst of that, simply because it is clearly less profitable for landlords to move into that market, and less easy to buy up and make a killing. However, it is striking that some of the largest apparent increases—here I must sound a note of caution about the data that we should all be able to share, data that I would love the Government to have more of and to be able to tell us more about—are now occurring in inner London, including my own borough.

We do not know for certain whether all the accommodation in this sector was classified on the same date—the information is not always comparable or reliable—but I can say that while there is a clear economic argument for exempt accommodation to be based in cheaper areas, some of this appears to be less about the economic drivers than about landlords and providers talking to each other, seeing opportunities in a particular area, and then piling in and exploiting those opportunities. Sometimes when the market becomes saturated, or a local authority such as Birmingham starts working effectively to clamp down in a particular area, they will up sticks and move somewhere else where they think they can make a killing. Some of that is likely to happen in London, but it could happen anywhere in the country. There is a danger that a bit of a whack-a-mole is going on, and that the whole process is too slow for anyone to keep track of what is going on in the real world, because it is likely that the crisis currently affecting cities such as Birmingham will be somewhere else in a few months’ time.

Why have we seen this situation emerge, and what do we need to do about it? The first point is that we know very little. We need more information from the pilots; we have had too little, too late. The truth is that a deregulatory approach in areas where we should not have deregulated has left the Government in the dark, and that needs to change.

Secondly, it is clear that the decade-long local authority funding crisis plays a major role. Supporting People was a valuable programme, and the ring fence was lifted during a time of reasonable economic success when local authorities were being properly supported for the work that they were doing. However, as a result of the removal of the ring fence combined with the crisis in local authority funding, we saw £1.6 billion disappear from the sector as local authorities had to deal with the crisis in statutory services, particularly care services, and a number of people with significant but less often statutory care needs were neglected as a consequence.

If local authorities cannot provide funding for support services, that will inevitably have an impact on the quality of care that residents receive. It means that the only funding available to cross-subsidise service costs comes from the profit that landlords make on rents. The end of the Supporting People programme and the quality assurance framework that accompanied it, subsequently compounded by reductions in social security after 2011, created the conditions that led to the emergence of some of the poorest-quality services and the consequent risk to residents. It is worth pointing out that Supporting People had a built-in regulatory framework because of the nature of the contracting system, and of course that went too. The decade-long downward pressure on other housing options, about which we have already heard, was another factor. The social housing grant was halved in 2010, and housing support for renters was also slashed, which left hundreds of thousands of people in housing need competing at the bottom of the private rented market.

Thirdly—and, in my view, most importantly—there are significant gaps in the relevant regulatory systems which the ruthless and the indifferent will always exploit to their own advantage. As Inside Housing makes clear in a characteristically excellent analysis,

“case law states that there only needs to be a ‘more than minimal’ level of care and support to qualify as ‘exempt’, meaning some providers can reap huge rental yields”

while providing almost no support.

So, we have a situation where exempt accommodation is not required to meet any specific property standards or standards of management and where many properties are exempt from the licensing requirements that otherwise apply to houses in multiple occupation.

The Minister was keen to stress the role that local authorities should have in inspection and regulation, but it is worth noting that environmental health services on the frontline of this kind of regulation have taken a major hit from 10 years of reduced spending in local government. Not all local authorities will apply the same degree of rigour and interest in this field, but there is no doubt that the lack of resources available for environmental health officers is a critical part of the problem. So, once again we find ourselves in a situation where those most in need receive some of the weakest protection, with consequences for them and, where concentrations of these properties build up, for their neighbours. Moving away from a regulatory framework that is enforced by the Government and by local government to a situation in which the subsidy applies to individual residents through the housing benefit system means that we are relying on those very vulnerable people to exercise some degree of control themselves and to try to enforce standards on their own. When they have so little bargaining power, that is not going to be realistic.

There is much that can be done to improve the situation, not least through the better management of housing stock through licensing, through the requirement for providers to meet a fit and proper person test, through better information sharing and through tougher penalties being used against landlords who breach the rules or who get around the rules by setting up a new company after having been found to be in breach. But changes to the regulatory framework have to backed by inspection and, where necessary, enforcement. It is simply no good, as we have seen so clearly in recent years, to set new rules and simply hope that everyone will behave themselves. Some of the providers operate with goodwill, but they will always be undercut by the rogues. The fact is that the issues in the exempt accommodation sector do not exist in a vacuum. If we undermine support and housing services generally, this is where we will inevitably end up. The Government need to bear down on what has been a regulatory failure, but also to look at the bigger picture; otherwise, they will be shutting more stable doors for many years to come.