Renters (Reform) Bill

Anthony Mangnall Excerpts

2nd reading
Monday 23rd October 2023 Commons Chamber

[Anthony Mangnall (Totnes) (Con)]

Listening to this debate, I am surprised that we are being accused of dither and delay when 13 years of Labour government never produced a Bill such as this. However, that is for Labour Members to discuss and to wrestle with on their own terms.

I welcome the Bill and support its sentiment, but, as with all pieces of legislation that pass through this place, the devil is in the detail. The Minister and the Secretary of State have a trifecta on their hands. They must reassure Members in this place and in the House of Lords; reassure tenants; and reassure landlords, because, at the moment, I am not entirely sure that we are there. Just as not all tenants are bad tenants, not all landlords are bad landlords. We must make sure that what we provide in the Bill today, in Committee and on Third Reading will reassure both tenants and landlords and take them with us. As many Members have said, it is a balancing act of ensuring the rights of property ownership along with the rights of good, firm tenancies.

I have three areas on which to focus my remarks. The first is the removal of fixed terms—following the brilliant speech of my hon. Friend the Member for Cheadle (Mary Robinson), I shall also mention the unforeseen consequences, which she talked about. Perhaps I can give an example. My constituency has one of the largest second home and Airbnb markets in the country. Under the Government’s proposal that tenants will be able to hand back a tenancy with a minimum of two months’ notice, someone could come down, pretend that they are going to rent a house on the long-term rental market, go there for June, July and August, and then hand back the tenancy. With this clause, we would completely obliterate the long-term rental market because people would take advantage of it as a short-term letting market and then hand the property back.

The disparity in prices between the short-term let market and the long-term let market is unbelievably significant in south Devon. I hope that the Minister can reassure me on that point, because that is exactly what people will do. They will rent a house on the pretence that they will stay in it for a significant period, they will be there for the summer, and then they will give it back. That is what the clause allows. We have to ensure that the unforeseen consequences are addressed.

Unless the Minister can give me some reassurance, I worry deeply about what the long-term rental market will look like. At the moment, across south Devon only 70 homes are available for people to rent. We do not demonise landlords without risk. We need to incentivise people to put their houses into the long-term rental market so that they can provide that social value. That is exactly why the Country Land and Business Association has said that it thinks that the rural private housing sector is set to shrink, with 44% of landlords either selling their property or changing its usage class.

My second point is about court reform. I am distinctly uneasy about voting for a Bill that does not come with enforcement and arbitration measures. We have been here before. It is all very well to give a brilliant speech in this place, and clip it and put it on YouTube or Instagram, but if we do not address the legal mechanisms that are needed to enforce the measures, we do our constituents a disservice. It is part of the process in this place, and it worries me that the Government are suggesting that we vote blindly on a piece of legislation that does not have that enforcement mechanism in it.

As I have said, the devil is in the detail, so perhaps the Minister could tell us what the timeline will be for the full creation of the court system or arbitration system. How quickly will we see judgments come along? How will we look to expand the wording on antisocial behaviour, and what will the actual terminology be? When considering a Bill a few years ago, we had a very vague term for the acceptable level of noise. The people who had to enforce that were the police.

If we do not have specifics in our laws they end up being interpreted, sometimes for the better but more often for the worse. Again, I ask the Government to be clear about their laws and language, so that we can ensure that the Bill is drafted in the right way to help both tenants and landlords. I do not feel that this is particularly party political, or that many people from across the House would disagree with those points; it is about having good law and good legislation, and we are all part of that system.

My third point is about the social value of landlords. Both the shadow Minister and the Secretary of State made exactly the same point: they expressed the value of landlords in the housing mix. We have to remember that, because without landlords out there providing houses, our housing market would be a lot worse off. We therefore also have to ensure that under the rights of property ownership, which this place has protected over the years in many different forms, we are clear about the grounds for eviction. I do not think that it is controversial to ask for evictions on the basis of a breach of contract, persistent late payment or damage to property. We have to be clear about those things.

No Member who has spoken in the debate, which has been broadly co-operative, wants people to be homeless or to live in bad housing, but we have to be absolutely clear about what we are asking of tenants and landlords. We have to provide reassurance and ensure that we are incentivising the long-term rental market. By the way, we could also look at reinstituting section 24 mortgage rate relief, but that may be a debate for another time. We have to ensure that we are not pushing houses back into short-term lets, that we are creating a transparent legal system, and that we are looking after the value of tenants and landlords in equal measure. As I said at the beginning, this framework is welcome, but unfortunately there is more work to be done.

Renters (Reform) Bill

Anthony Mangnall Excerpts

Report stage
Wednesday 24th April 2024 Commons Chamber

[Mr Betts]

It is disappointing that we are having to focus primarily on the Government back-pedalling on the timetable for the abolition of section 21. The Levelling Up, Housing and Communities Committee looked at this a year ago and concluded unanimously that the principle of the Government’s intention was right. We had some reservations and caveats, and we raised concerns and suggested detail changes, but nevertheless we agreed on the principle. Generally speaking, there is agreement across the House that it is the right thing to do.

In the meantime, people are living in uncertainty in private rented housing. That is why we thought it was the right thing to do. That is what the measure is for: to give people greater certainty about where they will be living in a year’s time. It is not merely that; it is also so that they know, if they do not have a car, that they can get on the bus to their place of work in the morning—if the landlord evicts them and they have to move home, will they be able to get to that job in the future? It is also about children at school: will those children be able to get to the same school if they are evicted from their home and have to find a new property? That is the sort of family certainty that the abolition of section 21 will introduce. So many families are living in uncertainty—not just housing uncertainty but other uncertainty—while we await that abolition. The Minister needs to get on with it and give us some clear time commitments on when it will happen.

We have just discussed the problem of the courts. Of course, covid has affected lots of public services, but I say to the Minister that it is not a surprise. If we look at how long it was taking local authorities to get court hearings to deal with antisocial behaviour cases before covid, we see even then that those ran into months. It has been a problem in the courts for many years. That is why the Committee has suggested—it has been suggested before—a housing court system. I know that Ministers do not want it and that the Ministry of Justice does not want it, but it seemed to us a way of resolving what are often simple or quick problems. A small claims court format could do it in many cases without the need for lawyers to be introduced. I am sorry, but I have no conviction that, with several months of looking at this, several years of contemplation and plans for action, the courts will be any quicker in two or three years than they are now. The court system has delays, and they are likely to remain, so we need to look a bit beyond the existing system to resolve these problems. Obviously, Ministers have set their minds against that.

I turn to the other main problem that we highlighted on implementation: local authorities and their staff. We know that local authorities are desperately short of staff for enforcement in the private rented sector. Once section 21 goes, tenants who are currently frightened—even those living in appalling damp properties—to make complaints against their landlords, because they are concerned they would be evicted as soon as a complaint is made, will feel emboldened to make that complaint, and if their complaint is not listened to, they will be emboldened to go to their local authority and ask for help. Local authorities will get more requests for help, and they have not got the people to deal with that.

Will the Minister assure us that he is starting to talk to the Local Government Association about the new burdens that will be placed on local authorities—this is a new burden that we are imposing on them, albeit a good one—and that there is some agreement on the resource that will be needed? Resources do not produce extra staff overnight, so local authorities will need advance warning so that we have the staff in place to respond quickly.

[Anthony Mangnall (Totnes) (Con)]

I apologise for interrupting the hon. Gentleman. Given the important point he is making about redress for tenants and who they might go to, would he add any comment on consumer protection for unfair trading, which is one of the remedies for those who have difficulties with either the standard and quality of their property or the landlord, as well as those who have been mis-sold for a rental period?

[Mr Betts]

I think the reality is that local authorities are generally short of resources right through, as the Committee’s recent report on local authority funding—again, it was unanimously agreed—showed. Because of the demands of social care on local authority budgets, other services are often cut even more than the mainstream. We have previously looked at trading standards and consumer protection, which are an important element—the hon. Member is absolutely right—and I hope that they will be factored in when we have the new burdens discussions.

There are some things that the Minister could resolve fairly quickly. He referred to the important role that the ombudsman can play in resolving disputes. There is sometimes a bit of a conflict between whether someone goes to the ombudsman or to the courts—sometimes, the ombudsman will not deal with a case if it is in the courts. It would be helpful to clarify those issues. But why does he not just decide that the housing ombudsman, who currently deals with social housing issues, will also deal with private sector housing? He should make that decision. Again, if the ombudsman is to have that responsibility, it needs to gear up by starting to recruit more staff and getting in resources to be able to do it. It is a simple decision. He has not ruled it out, but he has not ruled it in. Can we not just do it? It seems obvious. Why set up another body, which would have to start from scratch, when the ombudsman has the skills to do it? Those skills are slightly different in some cases, but why not let it get on with that, and tell it now that it will have that job to do?

I have a couple of other points. The property portal is a really welcome development. We know that when someone is trying to track down a landlord—it is often a local authority, which wants to serve a notice on them—suddenly, the ownership of the property moves, and a different member of the family becomes an owner, or a different company is set up. To know who owns the property, information will have to be given to the property portal, along with all other information about the property. That is a really important step forward, as well as making sure that the portals are digitised so that the information can be kept up to date simply.

I welcome the Minister saying that selective licensing and the property portal are not the same thing, with the property portal to be there for all properties. Selective licensing—it is in the name—will be there for some properties. When there is a review of selective licensing and the relationship with the property portal, will the proposals come back to the House for consideration at some point? I want reassurance on that. Many of us support selective licensing, which we see operating against the worst landlords and the worst properties, and we hope that there will not be a diminution of those powers and responsibilities that would weaken what it can achieve.

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[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Before I call the next hon. Member speaks, I have now to announce the result of today’s deferred Division on the draft Economic Growth (Regulatory Functions) (Amendment) Order 2024. The Ayes were 395 and the Noes were 50, so the Ayes have it.

[The Division list is published at the end of today’s debates.]

[Anthony Mangnall]

I rise to speak to the amendments that stand in my name, as well as on a number of Government amendments. I feel that I should start by thanking both the Minister and the shadow Minister for their conversations over the last five months on this topic.

I should be clear about my position in leading a number of amendments to the Bill. At no point have we ever sought to stop section 21 coming in, and I hope that I will be able to make that clear in the course of my remarks. What we have sought to do is to stop the ending of fixed-term tenancies—something I believe would have a dramatic impact on the supply of properties, including long-term rental properties. That, to me, is the concern. I believe that it will cause far greater upset in the short and long term in respect of whether people can have the houses that they need.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

In rural areas such as mine where housing is already very expensive, more and more landlords are already deciding that letting their properties out is not worth the candle. They will therefore sell them, and the effect will be that there are fewer and fewer properties to rent. Those that are available will therefore go up and up in price and our youngsters will struggle to get on to the rental ladder.

[Anthony Mangnall]

I thank my hon. Friend for making that point. It is one that I will come on to, in terms of both the impact that the Bill will have on the attractiveness of short-term lets and the bureaucracy and hassle that will arise from this legislation.

From the outset of the Bill’s arrival in Parliament, I have worked to ensure that it strikes the right balance between tenant and landlord—a balance that ensures that the rights of tenants are respected and enshrined in legislation while the rights of landlords, property ownership and contract law are maintained and safeguarded. I believe that a failure to strike that balance would have a disastrous impact on the private rental market in the United Kingdom. Complicating the rental market with onerous requests, bureaucratic measures, additional costs and an inability for people to operate their personal property as they wish would only result in large swathes of the private rented sector throwing up their hands and selling their properties, just as a failure to support tenants would only embolden rogue landlords, diminish standards and increase unfair treatment.

From the start, it has been my mission to find a level playing field that ensures that tenants and landlords can co-operate together in a fair market that has a healthy supply of rental properties, with rights and standards enshrined, costs low and bureaucracy minimal, in a system that respects the rule of law and, perhaps most importantly, has a structure and a court system that is effective and that delivers. All of this has been done because we are in the midst of a supply crisis in the private rented sector, on which we have yet to touch.

On average, 25 prospective tenants inquire about every available rental property, up from eight in 2019, according to Rightmove. Hamptons estimates that between 2016 and the end of 2023, individual landlords sold almost 300,000 more homes than they bought. Last year, the Bank of England warned that demand for rental properties continued to outstrip supply as the number of landlords choosing to exit the market increased. It is therefore vital that responsible landlords have confidence that pragmatic changes are being made to the Bill. Failure to do so would only deepen the crisis.

I have said previously that the failure to have a sensible rental period at the start of a tenancy would likely result in the flourishing of long-term rental properties being used as short-term lets. Given the substantial price difference between short-term lets and long-term lets in constituencies like mine and the constituencies of the hon. Members for North Shropshire (Helen Morgan) and for Westmorland and Lonsdale (Tim Farron), there would be a very real likelihood of people exploiting that loophole.

Landlords incur costs and expenses when entering into a tenancy, and they need the certainty of a minimum period. Many buy-to-let mortgage lenders also require a minimum six-month tenancy agreement when lending to residential landlords. As a result, I tabled amendment 6 with the support of 58 colleagues to ensure that tenants cannot give two months’ notice to leave a property until they have resided in it for four months. I believe that this is in line with the recommendations of the Levelling Up, Housing and Communities Committee. I therefore welcome that the Government have accepted this argument and tabled new clause 15, which mirrors amendment 6. I will therefore not press my amendment.

[Matthew Pennycook]

I wonder whether I can tease out the hon. Gentleman’s reasoning in thinking that the possibility of rental properties being used as short-term lets is so serious. It is an entirely hypothetical problem. Renters who take out a tenancy agreement will have to provide a five-week deposit—they will probably be charged the maximum—and they have to go through a lengthy process to try to get that deposit back. What evidence does he have to suggest that, en masse, tenants will try to game the system in the way he expects?

[Anthony Mangnall]

With the greatest of respect, I am saying that that is one of the reasons why I fear not having a minimum notice period. My constituency has the highest number of second homes and short-term lets of almost anywhere in the country. There is a significant price differential, and a significant amount of hassle is being heaped on landlords by this Bill, which might push them in that direction. This may be one of the foreseeable consequences. I have raised it on Second Reading and in private conversations with the hon. Gentleman.

New clause 2, on rent repayment orders, would enable local housing authorities to impose financial penalties on certain individuals where they believe that a housing offence has been committed by a body corporate. Last year, the Supreme Court delivered a landmark ruling in which it said that, where a rent-to-rent company takes over the running of a property, it cannot pass its legal liabilities on to the property’s landlord. The Government have amended the Bill to reverse that decision, which will mean that landlords can be fined even in cases where a rent-to-rent company or similar has, without the landlord’s knowledge, been asked by a tenant to illegally sub-let a property. According to data from Direct Line, one in 10 renters admits to sub-letting part of the home in which they live, of whom 48% did not disclose it to their landlord and three quarters did not review their existing lease agreement to determine whether sub-letting was permitted. The amendment would deal with the main concern associated with the use of rent-to-rent companies. It would address the problem of landlords and others who willingly hide behind such companies to let properties while avoiding liability for rent repayment orders, without penalising those who are innocent victims of such companies. I welcome and recognise the fact that the Government have seen sense and tabled their own amendment, mirroring my proposed new clause 2, in the form of proposed Government new clause 34. I therefore withdraw proposed new clause 2.

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[Jacob Young]

As I said in my opening speech, we are exploring expediting possession for serious antisocial behaviour claims. I am happy to work with my hon. Friend on how we go about that and ensure that it happens before these reforms are fully implemented.

[Anthony Mangnall]

The Minister will find in this part of my speech we will be agreeing vehemently, although the latter part of my speech might not be so agreeable. I am grateful to him for his intervention; I always welcome the opportunity to work with him.

Likewise, in the case of rent arrears, it cannot be acceptable to have a system that allows rent arrears to continue to build for seven months. The amendment would make good on the Government’s commitment that the justice system is fully prepared for the impact of the end of section 21. Again, I am grateful that the Government have decided to accept the point in principle and introduce proposed Government new clause 30, which mirrors my amendment 9, which was supported by so many colleagues. I therefore withdraw amendment 9.

Proposed new clause 1, the repeal of requirement for selective licensing, under my name, would remove the ability of local housing authorities to designate areas as subject to selective licensing. The Bill provides the Secretary of State with the power to develop a new property portal that all landlords would have to join to demonstrate to prospective tenants that the properties they rent meet all required standards. It would be effectively a national licensing scheme. As selective licensing deals only with management quality and not property standards, the changes in the Bill are likely to do more than selective licensing to improve properties.

Since councils will be able to use the portal to access information on all private rented properties and landlords operating in their area, and in view of plans for a decent homes standard for the sector, local selective licensing schemes will be made redundant. In Wales, the introduction of landlord registration led to the end of almost all selective licensing, so it is unlikely that local authorities would pursue costly and complex schemes in future. I take on board the Minister’s comments in his opening remarks.

Selective licensing is an additional cost to landlords, in addition to the property portal and redress scheme. Landlords should not have to be regulated twice and pay twice for much the same thing. Proposed new clause 1 would scrap selective licensing schemes for private rented housing when the property portal goes live. Having both would not enhance protections for tenants, but merely be a duplication. Scrapping them would remove an unnecessary layer of bureaucracy and cost for landlords. I am grateful for the Minister’s opening remarks. I will take the Government at their word that the Dispatch Box commitment to conduct a review of selective licensing will take place at the earliest opportunity.

My new clause 3 would enable courts to consider hearsay evidence during the course of proceedings for possession on the grounds of antisocial behaviour. It is vital that, when section 21 ends, swift and effective action can be taken against tenants committing antisocial behaviour who cause misery for so many neighbours and fellow tenants. To support this, the Government have changed the wording of the discretionary ground to repossess a property due to tenant antisocial behaviour—ground 14. They clarify that any behaviour “capable” of causing “nuisance or annoyance” can lead to eviction. Previously, it was behaviour “likely” to cause a problem.

However, that is not the true problem. The current problem, which is not dealt with by the Bill, is that the main evidence of nuisance is provided by neighbours, as they are closest to the person involved. The changes to the definition of nuisance do not alter the fact that evidence of behaviour needs to be provided, and that will still come from neighbours. However, in so many instances, neighbours are reluctant to attend court and give evidence, in part because the slow speed of the court system means that they will be forced to live near the person that they have reported or helped to evict for several months afterwards.

A better solution would be to allow landlords to use evidence of problematic behaviour that is provided by neighbours complaining by text or email to the landlord or the letting agency. This evidence is not currently admissible, and the courts cannot give sufficient weight to it when deciding whether the tenant is committing antisocial behaviour. This amendment would allow for such evidence to be used by the courts.

In the negotiations and discussions that we had in the run-up to this debate, the Minister’s Department and his civil service team were extremely helpful in highlighting Civil Procedure Rule part 33.3 in relation to

“circumstances in which notice of intention to rely on hearsay evidence is not required.”

Again, the comments made by the Minister are welcome, although I hope his Department will follow this up with the Ministry of Justice. I therefore withdraw new clause 3.

Amendment 5 covers houses of multiple occupancy relating specifically to students. This would mean that the ground for possession for student properties could also be used for properties occupied by one or two students, which would not otherwise have been considered as HMOs.

Ending fixed-term tenancies will be problematic for the student housing market—it would be problematic for the whole Bill—which operates on a yearly cycle, from one academic year to another. Although the Government have recognised that by allowing fixed-term agreements to continue in purpose-built student accommodation, it will not apply, as I understand it, to traditional off-street private-rented housing, often rented to those in their second or third year of studies. This is a concern shared by many in the industry and, indeed, by the Levelling Up, Housing and Communities Committee, which has noted:

“Currently, the proposal is to include this part of the PRS in the tenancy reform, but we conclude that abolishing fixed-term contracts could make lettings to students considerably less attractive to private landlords, as the student market mirrors the academic year and benefits greatly from 12-month fixed tenancies.”

I hope that I have quoted the Select Committee report accurately.

A Government amendment to the Bill made at Committee stage established a new ground for possession—ground 4A—to protect the student housing market. This is to be welcomed. It will ensure that landlords can guarantee that most student properties will be available for each academic year, but it will not protect all student housing. The new ground will cover only houses of multiple occupation; it will not apply to those properties occupied by one or two students. This oversight would be rectified by my proposed amendment. Again, I thank the Government for recognising this and introducing their own amendments 226 and 228, which have addressed that problem.

As I come to my concluding remarks—at last—I wish to make some comment on amendment 10, which has not been selected.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I have been listening carefully to what the hon. Gentleman has been saying. He has a range of amendments and it is perfectly in order for him to speak to those, but it is not in order for him to speak to amendment 10, because it has not been selected. Not only has it not been selected for a Division, but it has not been selected for debate. There might be a general point to which he could make reference, but he may not speak to amendment 10.

[Anthony Mangnall]

I thank you, Madam Deputy Speaker, for being so generous in your explanation on that.

The problem that I see with this Bill is that, while the intent to remove section 21 is a good and necessary one—yes, it has taken time to get to this point—it is not one that those who have signed my amendment have ever objected to. The principle that explains why the amendments have been so widely supported is that there must be some leeway around ensuring that fixed-term tenancies can remain. Indeed, they still remain in certain instances within the student market.

[Mr Marcus Fysh (Yeovil) (Con)]

My hon. Friend is making a powerful speech. Does he agree that it is in renters’ interests, more than anything else, to be able to agree tenancies longer than six months, in order to have security of tenure? If they have a young family, they will not want grounds such as sale to get in the way.

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[Anthony Mangnall]

My hon. Friend is right to make that point. In essence, the Bill forbids a contract being agreed with a date on which the tenant would have to leave the property. The noble Lord Hannan of Kingsclere pointed out in February in the other place that

“language matters in politics and tendentious phraseology has consequences. How have we reached the point where the expiry of a contract, freely entered into by two parties, at the end of its term is now widely referred to as an eviction, let alone a no-fault eviction?”—[Official Report, House of Lords, 20 February 2024; Vol. 836, c. 519.]

To be clear, the Bill will make it illegal to sign a fixed-term tenancy. The lack of clarity when describing the end of a contract has meant that we are now terming simple cessations of contracts as no-fault evictions. Who is at fault when a previously agreed contract comes to an end at a future date? No one. I believe that there are ways to retain fixed-term tenancies and scrap section 21.

[Caroline Lucas]

Will the hon. Gentleman concede that, although in principle it is perfectly possible to imagine a scenario where the tenant and landlord mutually agree to a set length of tenancy, the reality is that, because so many tenants are rushing for so few properties, the amount of free will that the tenant has in signing up to that contract is not very great? The idea of its being mutually agreeable is rather more suspect than the hon. Gentleman suggests.

[Anthony Mangnall]

I come at it from a different angle: we are heaping so many rules and regulations on people, and making things so difficult, they are leaving the market as a result. This was one of the pioneering policies of Thatcher, bringing in the idea of the free market in property, and ensuring that millions of people across the country could realise the social value of having a buy-to-let property on a long-term basis. The hon. Lady will not agree with me; I do not think that we agree on very much. That is okay; it is good to be able to debate the issue, especially in this Chamber.

We must be honest about this: removing fixed-term tenancies is essentially the state telling individuals what they can and cannot do with their own private properties. It is conceivable to remove section 21 while retaining fixed-term tenancies. I have said that the Conservatives have long prided ourselves on being the party of free markets, and we should keep that in mind when we vote later. We are sending completely the wrong message, with dire consequences for future levels of housing supply. We are making an enormous mistake, which will reduce long-term lets in favour of short-term lets and result in many properties being taken off the rental market. I would hate to be back here, having to repeat the figures that I gave at the start of my remarks—in 2019, there were eight people for every one property; now there are 25—and say that the number is going up and up. I fear that, as a consequence of the Bill, that will happen.

[Mr Betts]

The hon. Gentleman seems to be in favour of abolishing section 21, but then giving landlords the right to bring in fixed-term tenancies, which end with a section 21 notice. If the landlord chose, therefore, section 21 would not be abolished, would it? It would be a figment of our imagination here, because in practice it would never be delivered with his proposal.

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[Anthony Mangnall]

The hon. Gentleman is right to make that point, and he has far greater expertise in this area than I, but I am saying that we can retain fixed-term tenancies, scrap section 21 and amend other parts of the Bill. There is breach of contract. Indeed, we could make notice periods longer. I know that the Department discussed that idea when this was mooted after the 2019 election: we could scrap section 21 but increase the notice period for an eviction. Those are ways we could do it, but to throw the baby out with the bathwater and to become so restrictive on someone’s private property is a problem. People go into the buy-to-let market to let their property out, but unfortunately I think this Bill will have the opposite impact, pushing people out of the market who will no longer want to deal with the hassle.

[Simon Jupp (East Devon) (Con)]

My hon. Friend is making a fantastic speech and I commend him for all of his efforts on the Bill. One of the challenges is that sometimes our thinking about this issue is constrained to, for example, a metropolitan area. He and I both represent rural constituencies that are really affected by short-term holiday lets, and the unintended consequence of this Bill is that landlords will be pushed towards using those, because the rules and regulations will become so tight and constraining on long-term landlords. Does he agree?

[Anthony Mangnall]

My hon. Friend is absolutely right to raise that point, and it comes back to the question of trying to incentivise long-term lets over short- term lets. In rural constituencies in the south-west, we face a rising tide of short-term lets. However, we are not legislating on the basis of our own respective constituencies, but on a nationwide approach. We should look very carefully at other countries and other examples of where things have gone so badly wrong through, sometimes, the simplest tinkering of housing legislation: Scotland on rent controls might be one, and Finland or Berlin might be another. They are examples of things having been got horribly wrong.

[Steve Brine (Winchester) (Con)]

I have been listening very carefully to an excellent contribution, as always, from my hon. Friend—they are lucky to have him in Totnes. Further to the intervention from our hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown), is my hon. Friend saying that the irony of this debate is that we are effectively legislating to no-fault evict tenants because we are pushing landlords out of the market through this legislation? Can he back that up with any more evidence that he has heard in his deliberations while creating this excellent speech?

[Anthony Mangnall]

My hon. Friend is absolutely right. I will use my constituency as an example: I have seen a significant decline in the number of long-term lets over the last four-year period. They are going straight into short-term lets at a far greater cost, making renting totally unaffordable and leaving us to come up with innovative ways to supply the correct amount of rental properties for people who live and work in south Devon. I think that is also reflected in east Devon, in Yeovil in Somerset and, I am sure, in the Cotswolds.

I will finish by saying that I am grateful for the work Parliament has done on this. At no time do I think the Government have dragged their feet; at no time do I think they have tried to block me. By virtue of tabling quite so many amendments, I am probably responsible for some of that hold-up, and for that I apologise. Ultimately, however, it comes down to a belief in whether we are overreaching. I feel that this Bill is overreaching. There are ways we can help to ensure that the rights of tenants and landlords are enshrined and balanced, but removing fixed-term tenancies is a step too far for me—it will be significantly negative for the future rental market, and I will unfortunately have to vote against Third Reading.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

The Renters (Reform) Bill had the potential to bring much-needed security and safety to renters, yet amendments to water it down, brought forward in Committee and even on Report, are a backward step that will significantly undermine the Bill’s intent. As an MP with one of the largest student populations in the country, I am all too aware that students are experiencing a housing crisis on top of a cost of living crisis. We have seen landlords asking students renters for guarantors, as well as for deposits of up to 100% of their annual rent, the criterion for which is that the guarantor must own a UK property.

That requirement has an impact on the accessibility to working-class students of private rented sector accommodation at their university. It also has an impact on the ability of care leavers and those estranged from their families to access higher education altogether, as well as that of international students who do not have family members with property in the UK. To mitigate that, I have tabled new clause 41, which seeks to end one of the most illogical parts of the rental process: guarantor schemes. The expectation that, despite entering into a legal contract that outlines the responsibility of the landlord and the tenant, a nominated individual takes responsibility for fulfilling the contract seems to undermine the purpose of the contract itself. My new clause seeks to tackle financial pressure on students, supporting the amendment tabled by my hon. Friend the Member for Sheffield Central (Paul Blomfield) to stop landlords from signing up tenants months before an academic year, which creates an arms race for student lets.

We must also consider those who have come through the care system or have become estranged from their parents, for whom living at home has never been an option. If students do not know a guarantor who owns a house in the UK, they may be stuck paying extra to a private company, paying six months’ rent or more up front, or being unable to rent at all. Guarantors are not expected for most people of the same age who are not students, so why is there this discrepancy for students?

An international postgraduate student at Leeds University told me:

“My only viable option was using the Guarantor service ‘Housing Hand’ which costs me an additional 50 pounds a month on top of rent and bills. I am a PhD student receiving the UKRI minimum stipend which is paid monthly.

The cost of living for food and rent alone is already difficult on this stipend and during final week before the stipend is paid each month I often struggle to maintain a healthy and balanced diet due to financial strain.

This is not only demoralising but effects my academic progress on a physical level as I am often hungry and unable to afford fresh fruit and vegetables which are a staple of my diet. It may not sound like much, but not having to pay for this guarantor service could make a considerable difference to my overall wellbeing on a monthly basis as this money could instead be used on fresh food.”

Research conducted by students from the Centre for Homelessness Impact found that just 36% of universities provide help on rent guarantors, that even fewer provide a rent guarantor service for students, and that, as universities themselves face financial issues, such a service will become more unlikely. Renting as a student is already an uphill struggle. We know, for example, that student accommodation prices have increased by 61% since 2012, and information from the National Union of Students UK shows us that two in five students have considered dropping out because of the cost of rent and bills. When we are trying to encourage people to attend our world-leading institutions, which strengthen the skills potential of our country’s workforce, why do we put up so many barriers?

Our universities are the UK’s strongest soft power. International students in particular are left with nothing but bad choices—they must either find a UK guarantor or pay six months’ rent or more up front to their landlord. As one student recently relayed to the all-party parliamentary group on students:

“International students often face more challenges than home students. We have heard stories of students paying months of rent upfront, only to find out they have been scammed and the place they thought they'd secured doesn’t even exist. We had one case where international students paid a whole year’s rent in advance, only to find out their landlord went bankrupt. While they eventually got their money back, the stress and uncertainty they went through was unbearable.”

The Bill was a welcome opportunity to rectify so many of the scandals in the private rented sector, yet there has clearly been a continued and concerted campaign to force the Government to create an unprecedented two-tier rental market in which students would be at the mercy of section 21 evictions that other tenants would be protected from.