Renters (Reform) Bill

Debate between Anthony Mangnall and Alex Sobel

Report stage
Wednesday 24th April 2024 Commons Chamber

[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.