Renters’ Rights Bill

Andrew Rosindell Excerpts

Wednesday 9th October 2024 Commons Chamber

[Ms Stella Creasy (Walthamstow) (Lab/Co-op)]

I congratulate all Members who have given their maiden speeches today, and the Minister for Housing and Planning, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), for all his hard work on this Bill.

If I am honest, I am disappointed that the shadow Secretary of State, the right hon. Member for North West Essex (Mrs Badenoch), is not still with us—looking at the faces of Conservative Members, she appears to be unexpectedly busy—because she seemed to argue that the challenge that the Government are creating is to intervene poorly in a market. In the limited time available to me, I want to take on the challenge that she created, because I am not sure that she actually understands what this market is. That may well show in Conservative members’ voting if they think they are voting for somebody who understand market economics.

Let us look at what we are talking about. In my constituency, we have had the biggest growth in affordable housing in London, yet we have also had a 55% increase in homelessness. This is not a healthy market where there is effective competition, and where every participant has the tools to operate equally. Let me try to explain through some of the stories from my constituency. My constituent Kate, who works in the NHS on a nurse’s salary, has had to move every single year, because landlords are selling properties and putting up prices. That is not healthy—it is an overheated market. It means that the state picks up the pieces, through the salaries we need to pay and to deal with the consequences for her and her family.

My constituent Claire, who is self-employed, started renting her home for £1,750 a month in November 2019, and it had increased by £200 by 2023. She has now been threatened with another £400 a month raise, putting her total rent up to £2,350 for the same property within five years. What powers do my constituents have in that market, apart from to exit? That is not a healthy, functioning market.

We are seeing mould in properties, so the quality of goods in this market is not good enough. Emily, a mum from Walthamstow, was scrubbing mould from the walls of her three-month-old son’s room every single day. She eventually walked out because she found mould on the underside of her son’s cot mattress. But she was afraid to complain because she was afraid of section 21 eviction powers, so she does not even have the voice of exiting the market. Albert Hirschman would be horrified. We have to end the scandal of no-fault evictions, and we have to deal with the mould.

[Andrew Rosindell (Romford) (Con)]

Will the hon. Lady give way?

[Ms Creasy]

Of course I will let the hon. Gentleman in. If he is going to make a declaration of interest, obviously I will let him intervene.

[Andrew Rosindell]

The hon. Lady is making some excellent and valid points, but does she agree that the London borough of Waltham Forest should ensure that its residents who are homeless—our heart goes out to those people—are cared for and looked after in Waltham Forest? At the moment, her borough council is sending her homeless constituents to the London borough of Havering. They are living in Harefield Manor in Romford. Surely Waltham Forest should look after its homeless people in its own borough.

[Ms Creasy]

I know that the Conservative party is about to go down a rabbit hole about immigration, but honestly, moving people from Walthamstow to the hon. Gentleman’s constituency is not the challenge here. We have a broken rental market where the rights of renters do not allow them to compete fairly.

Let me give the hon. Gentleman another example so that I can explain the problem. The reason we need to tackle bidding wars is that there is a straight-out conflict of interest affecting the consumer. How can the person who represents them to the landlord also represent them fairly in a rental agreement? It is little wonder that Catherine, one of my constituents, found that she had to offer £300 over the asking price to secure a flat in a bidding auction. That is why people from Walthamstow are being moved out, and the hon. Gentleman would do well to think about sorting that market out, rather than trying to build a blockade on the A406.

Discrimination against single parents is widespread in the market, by definition because of what happens when households need to rent property. Ruth, in my constituency, is a single mum with two young children. She was told by agents, “Don’t even bother applying.” She could pay the rent and she was entitled to housing, but she was not even entitled to compete in this market.

In the final minute I have, I want to make a plea to the Minister about the credit rating of those in our private rented sector. It is not true that renting in the private sector automatically damages someone’s ability to get a mortgage, but if they are having to move time and again, their credit rating clock goes back to the start because lenders look at their addresses, they have to re-register for all their utility bills and they have to keep building up their good record. That gets taken into account by some lenders. People are finding that this affects other forms of credit, including the credit cards that many of them are using to pay their bills. In my constituency, the average percentage of people’s income spent on rent is 44%. If they have kids and are trying to pay for childcare, it does not take a rocket scientist or Ayn Rand to realise that this market is not working for them.

I believe we could do more if we came up with a good credit score passport to help those constituents of mine and others, who are paying their bills but who have been evicted through no fault of their own, not to lose their precious good credit rating. I hope the Minister will be willing to listen to some ideas about how we can do that with the companies.

Thank goodness for this legislation. It is long overdue, because tackling unfair markets is absolutely what good co-operators like myself and good people who care about social justice wish to do, and I shall vote wholeheartedly for it as a result.

--- Later in debate ---

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Recent statistics show that 50% of the private rented sector in Cornwall does not meet the decent homes standard, way above the average of 21%. Less than 20% of homes in Cornwall were in the private rented sector four years ago, yet a quarter of our children and young people were living in those homes, including a third of our under-fives.

That has been evidenced by the noticeable uptick in recent years of section 21 evictions that affect families with young children. Cornwall now has more than 800 households in emergency or temporary accommodation, and many of them are young families who have struggled to find somewhere else to live because of the cost, their children or even their cats. Because of our geographical spread, many of those families have ended up in holiday parks, caravan sites or hotels up to an hour and a half’s drive from home. With poor rural transport links, this often leaves families completely cut off from jobs, schools and support networks.

In September 2020, Cornwall council’s economic growth committee published an inquiry into the private rented sector in Cornwall and recommended a number of measures to extend licensing powers. It also recommended data gathering on landlords and tenants in the private rented sector, Disclosure and Barring Service checks, longer terms and the limiting of annual rent increases. However, covid happened, further local government cuts affected officers’ capacity and the council changed to a Conservative administration that was wary of upsetting landlords following covid, so none of the recommendations was enacted.

Regardless of the council’s caution, the private rented sector has still been decimated in Cornwall, with many landlords selling up or flipping to lucrative short-term holiday lets. Prices have skyrocketed, and many people are struggling to find a home, which is why I am so pleased and relieved that the Government have prioritised this Bill. It will bring in many of the measures proposed by that Cornish report—at last, we will end no-fault evictions, introduce longer protected terms and limit annual rent rises. Awaab’s law will force landlords to follow strict timescales to inspect and repair homes, including those with damp and mould, and the decent homes standard will apply to the private rented sector for the first time, with local councils given the power to fine landlords who fail to address serious hazards.

Many people are shut out of the market if they have children or pets, or are on benefits. Changes to stop that happening will prevent the most vulnerable in my constituency remaining unhoused, and the heartache as people have to decide to give up treasured pets.

[Andrew Rosindell]

The hon. Lady is making some compelling points and mention pets. Does she remember the Dogs and Domestic Animals (Accommodation and Protection) Bill of 2020, which I put to the House all those years ago? I am glad that the measures in that Bill now being brought into legislation. Does she agree that this Bill needs to be extended further, so those in social housing, as well as those in freehold accommodation, can have a pet, so everyone can have a pet at home, and not lose their home because they love and care about their cherished animal?

[Jayne Kirkham]

I was not here when the hon. Gentleman introduced his previous Bill, but I am sure the Minister has considered the importance of pets to people living in all types of housing.

The court system and local authorities will need extra capacity to deal with the extra work created by the legislation. I was pleased to hear the announcements about digitisation and the ombudsman. The proposed changes will support the security of privately renting families in Truro, Falmouth and across Cornwall. As I have said, many people in Cornwall have been evicted from their rented homes with two months’ notice, so they can be used as short-term or holiday lets. We know that Cornwall council is the local authority with the largest supply of short-term lets outside London.

There are 24,300 holiday let properties in Cornwall, up 30% on 2019. Statistics from the council tax base tell us that over 13,000 second homes are registered in Cornwall, which is nearly 5% of the total housing stock and five times higher than the average across England. There are also 27,000 families on the waiting list for social housing, but Cornwall has only 10,000 council houses and 22,000 housing association homes.

I am pleased that the Minister is considering a toolbox of measures that could be made available to local authorities to discourage the further depletion of the private rented sector and full-time residential housing in Cornwall, such as the higher council tax that is coming in, licensing and registration, planning restrictions and closing the business rates council tax loophole.

In conclusion, I very much welcome the Bill. It provides many benefits for the people in Truro and Falmouth who rely on the private rented sector for their home, and certainty for the landlords who provide those homes.