Renters (Reform) Bill

Caroline Lucas Excerpts

2nd reading
Monday 23rd October 2023 Commons Chamber

[Michael Gove]

As the hon. Gentleman knows, I have an enormous amount of respect for the work that he does in this area. I would draw a distinction between the response to the Select Committee’s report and the bringing forward of legislation, but he is absolutely right to draw attention to the fact that we need to consider—and we are—our responses to the consultations on registration and on changes to planning use requirements in the short-term let market. We hope to come forward shortly with our response to those consultations. I should also say that I had the opportunity last week to talk to the founder of Airbnb, and I outlined concerns very similar to those that the hon. Gentleman has outlined.

[Caroline Lucas (Brighton, Pavilion) (Green)]

rose—

[Jim Shannon (Strangford) (DUP)]

rose—

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[Caroline Lucas]

There is plenty to welcome in this Bill, but it should have been an opportunity to increase minimum energy efficiency standards. When the Secretary of State for Energy Security and Net Zero last week tried to defend the scrapping of energy efficiency standards for the PRS, she essentially said, on the Floor of the House, that it was because they could cost property owners up to £15,000. The right hon. Gentleman will know that the regulations include a £10,000 cap, so the cost cannot possibly be £15,000; indeed, according to the Government’s own assessment, the average cost of upgrading homes to an energy performance certificate rating of C would be less than £5,000. Will he please correct the record, apologise on behalf of his colleague, who has misled the House, and put it on the record that it could not possibly cost £15,000? His own assessment suggests that it costs less than £5,000.

[Michael Gove]

I am grateful to the hon. Lady; no one could doubt her sincerity or her commitment to making sure that we improve the condition of homes and that we deal with energy efficiency. The first thing to say is that the cost will be determined in the market. The amount that an individual might have to pay can be capped by legislation, but the cost is a function of the market. The second thing that it is important to stress is that the decent homes standard, and indeed the work we are doing on retrofitting overall, will improve, and has improved, energy efficiency, but we need to balance the improvement of energy efficiency against the costs that individual landlords and tenants face in a cost-of-living time that is challenging.

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[Angela Rayner]

We need legislation for decent homes alongside these provisions. I hope that we can get into that, and how we can protect people, in Committee. As the Secretary of State acknowledged, at the moment many families face a situation of inadequate housing, which goes beyond the scope of the Bill. I think we all agree that that needs to be addressed as soon as possible.

[Caroline Lucas]

On decent home standards, would the right hon. Lady support the integration of Awaab’s law into the Bill? We are talking about delays, but my concern is that if those provisions do not make it into the Bill right now, our constituents, including some of mine in Brighton, will still be living in absolutely atrocious accommodation, with water streaming down their walls, mould and kids getting ill.

[Angela Rayner]

If we can address that in the Bill, we should push for it, but we should also push to ensure that, whether in social housing or private rentals, people should have confidence that their homes are safe. Homes should be a safe place, but at the moment, that is not the case for too many.

Huge swathes of renters have been left paying a heavy price for the Government’s inaction on section 21. This is real for people such as the Brady family, who live in Wiltshire and have experienced two no-fault evictions in the past two years. Mr Brady is a gardener and Mrs Brady works full time. After being forced out of their home, where they had lived for 15 years, they have resorted to living in their van. The family are able to bid on council houses when they become available, but so far, everything has been at least an hour away from where they live. Mr Brady said:

“There is a housing crisis and there are reasons behind it—you can use whatever excuses you want but it is a political decision. It was a political decision not to build enough houses, it was a political decision to sell off the social housing stock.”

Those are not my words but the words of a man who would still have a roof over his head if the Government had not dragged their feet.

I feel that more delay is inevitable. Conservative Members threatened in the newspapers this weekend to choose their self-interest over the national interest by opposing or delaying the Bill. They do not want to see these changes enacted. Then, on Friday evening, the Department snuck out the suggestion that section 21 changes are dependent on court improvements, which could take years to complete. Today we discovered—not from an announcement to the press, to Parliament or to the public, but from a leak—that that is indeed the core part of a grubby private deal that the Secretary of State has struck behind closed doors with his own Back Benchers. So the Government who broke our justice system are now using their own failure as an excuse to break their own promises.

Just how long will it take? Can the Secretary of State promise that the Government will meet the pledge they made at the last general election, which he mentioned, before the next general election? Renters simply cannot afford any more excuses or delays; he must provide clarity on that. [Interruption.] I know that he is a confident Secretary of State—he says so from a sedentary position—and I have confidence in his abilities, but people who are facing section 21 notices cannot afford any more dither and delay. He will get support from those on the Labour Benches in enacting this legislation to protect families who need protection.

We think that the Bill is a good starting point. We fear that a number of loopholes have been left in it, however. One such loophole is the commencement clause, which leaves Ministers the power to decide when—or, perhaps, whether—to actually bring an end to section 21. But that is not the only loophole. I hope that the Minister will engage with us constructively in Committee to close all those loopholes and strengthen the Bill in a range of areas.

For example, the new grounds for and protections from evictions are a welcome step, but the details on those grounds remain vague. On evictions, there remains a loophole by which renters are protected only for the first six months of their tenancy if their landlord decides to sell the property or move back in. That time limit needs to be increased as part of the Bill to give renters proper protection.

On section 21, it is not just a question of when the law is implemented but of how. Every household threatened with homelessness by a section 21 notice has the right to assistance from their local council to prevent them from becoming homeless, but the Bill removes that right to immediate help. That loophole could lead to a huge spike in homelessness and must be closed.

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[Caroline Lucas (Brighton, Pavilion) (Green)]

It is about time. It is nearly five years since promises were first made to tenants facing soaring rents, huge energy bills, cold and damp homes, and limited rights. We are now on our 15th Housing Minister since 2010, and the Government are fast running out of time to make good on the promises in the Bill. Unforgivably late though it is, the Bill is important and provides a genuine opportunity to move towards the most basic goal of creating fairer, greener homes. It is clear that the market has become over-commodified and grossly distorted. We have a generation who will never be able to earn enough to have a mortgage, and cannot even afford their rents now. Key workers are being forced out of the places they work in, families uprooted, children forced to move schools, revenge evictions for those who complain—the list goes on.

More people are becoming homeless following rising evictions from the private rented sector. Annual Government figures released recently show a 23% increase in people at risk of homelessness because of a section 21 no-fault eviction. I welcome this delayed but essential Bill, not least because Brighton and Hove is one of the most expensive cities to rent in outside London, with a large proportion of renters being ripped off on a long-term basis with no end in sight. Recent analysis shows that in our city rents have jumped by 47% since 2011, and wages have risen by 35%. To put that another way, since 2011, renters in Brighton and Hove paid £530 million more to landlords than if housing costs had matched wages.

There are some good principles and useful changes in the Bill, such as measures on security of tenure, a new ombudsman and so on, but there are also glaring loopholes and big omissions. In particular, the measures on rent increases are inadequate and rely on a resource-intensive and time-consuming appeals process that could see tenants worse off at the end of it, as the tribunal process includes a power to impose a higher rent than the one the tenant is appealing. At the very least that power needs to be removed. Indeed, Ministers need to go further and get to grips with the fact that many people simply cannot afford their rent as it stands.

Many of my constituents are paying massively more than 30% of their gross monthly income on housing costs. That is unsustainable and we need a conversation about a national system for rent controls with local flexibility. Such a system will need to be both bold and implemented gradually and fairly, introduced alongside a suite of policies to address the housing crisis, including a major increase in social house building and real support for community-led housing.

As well as tackling demand and sky-high rents, dealing with insecurity of tenure is vital, so it is right that the Bill contains measures for periodic tenancies, and to ban section 21 no-fault evictions, and that students in the general PRS are also included. As many have said, it is deeply concerning that last Friday the Government appeared to have kicked that part of the Bill down the road—who knows how long for?—by saying that they first need to fix the mess that they have made of the court delays. We need to know exactly when we can expect that part of the Bill to come back.

Even before last Friday’s attack on the section 21 provision, there had been noises about a possible Government amendment to exclude students from the reforms. I remind the Secretary of State of his own White Paper, in which he says:

“It is important that students have the same opportunity to live in a secure home and challenge poor standards as others in the PRS.”

Well, I agree with that.

As well as ensuring that students remain included, we need to firmly shut another glaring loophole in the no-fault eviction ban. In the Bill, if a landlord seeks to sell or to move in themselves, they can issue a no-fault eviction notice and the no-let period after they use that exemption is just three months. That is too short and could easily be abused. For example, a landlord could evict tenants by saying they want to move in and re-let just 12 weeks later. That no-let period should be nearer 12 months. Good landlords genuinely using these exemptions would have nothing to fear from that.

I welcome the proposals for the portal, although I would like to see far more issues covered on it. That portal has real potential to improve enforcement of energy-efficiency standards and to ensure warm and dry homes. I was dismayed when the Prime Minister announced last month that he would be scrapping the updated minimum energy efficiency standards for private rented homes under the pretext of saving people from expensive upgrades. It is not hard-pressed tenants and families who will be required to upgrade their homes, but the landlords who would no longer be allowed to rent out cold and inefficient homes.

Private renters live in some of the leakiest homes in the UK, with more than a quarter of households living in fuel poverty. As the Climate Change Committee has observed, these regulations would have cut energy bills significantly—by around £325 a year on average at current prices. Ministers need to stop this false dichotomy between climate action on the one hand and costs on the other, and admit that, in cutting our emissions, we can also deliver warmer and more comfortable homes. The Government need to bring forward an amendment in Committee to require all privately rented homes to be energy performance certificate grade C by 2028 at the latest.

Finally, we know that the UK’s inadequate housing stock is eroding not only people’s budgets, but their health and wellbeing. The death of two-year-old Awaab Ishak in 2020 as a result of prolonged exposure to mould in his home environment was a terrible tragedy and an utter scandal in the social housing sector. It is frankly shocking that the decent homes standard still does not apply to private rented homes, with the Government admitting that almost one in four of those homes in the private rented sector would not meet this most basic standard.

The vague commitment for jam tomorrow while children breathe in dangerous mould today is simply not good enough. It is not good enough for the mum in Brighton who emails to say that her daughter has been coughing for two months because of the leaky, unsafe, insecure flat that she is desperate to leave. It is not good enough for my constituents who are ill from long-term exposure to mould, living with walls that are dripping wet and a permanent cough, or those whose rented accommodation was so bad that it was recently filmed by the BBC for their “Rip Off Britain” feature. Again and again in my constituency casework I hear about landlords who blame tenants for the problems caused by structural issues that the landlords have themselves ignored, such as the landlords who kept one family’s £1,730 deposit to pay for mould removal and redecoration. That is frankly outrageous.

Will Ministers give us a timeframe for decent homes legislation and confirm that it will be in the King’s Speech next month? Will they explain how the Government can possibly justify failing to ensure that all landlords are compelled to act on health hazards, such as damp and mould, in a timely manner? Will they act with urgency to apply Awaab’s law to the private rented sector?

Renters (Reform) Bill

Caroline Lucas Excerpts

Report stage
Wednesday 24th April 2024 Commons Chamber

[Jacob Young]

I am delighted to bring the Renters (Reform) Bill back to the House on Report. I express my gratitude to Members across the House for their contributions on Second Reading and in Committee, and for their continued engagement throughout. I thank my predecessors, my hon. Friend the Member for Walsall North (Eddie Hughes), whose Parliamentary Private Secretary I had the privilege of being as he steered the White Paper, and my hon. Friend the Member for Redditch (Rachel Maclean), whose Whip I had the privilege of being as she steered the Bill on Second Reading. I have seen the Bill at every stage of its formation, and I can say to the House that the Bill we are discussing today would not have been possible without their hard work and dedication. I also pay tribute to the hon. Members for Greenwich and Woolwich (Matthew Pennycook) and for North Shropshire (Helen Morgan) for their constructive engagement and commitment to seeing the Bill delivered, so that its benefits can be realised.

The Bill will create a fairer private rented sector for both landlords and tenants, delivering on the Government’s 2019 manifesto commitment. The Bill brings in the most significant reforms for the sector in over 30 years. It will abolish section 21 of the Housing Act 1988 and bring in new decency standards, giving England’s 11 million tenants more certainty of secure and healthy homes. It will mean that tenants will be supported to hold down jobs in their local area, children to stay in the same school, and households to put down roots in their communities. Alongside abolishing section 21, we are strengthening and expanding landlord possession grounds, including stronger protections against antisocial behaviour. Combined with our reforms to ensure a modern court system, that will ensure that landlords retain confidence in getting back their properties when they need to, safeguarding their investment.

The new private rented sector ombudsman will resolve tenants’ disputes and support landlords in handling complaints effectively. That will help to avoid disagreements escalating unnecessarily to the courts, saving both landlords and tenants time and money. Our new property portal will make landlords’ responsibilities clear in one place and support tenants to make more informed choices. We are also providing stronger protections for renters with pets, recognising the joy that pets can bring. However, the Bill must strike a balance between delivering that security for tenants and fairness to landlords.

[Caroline Lucas (Brighton, Pavilion) (Green)]

This morning, the Secretary of State had the brass neck to suggest that to keep his promise to outlaw no-fault evictions before the next election it is now down to the House of Lords to get on with it. Will the Minister tell us which is more disingenuous: the five years we have been waiting for the Government to keep their promise, or the blatant concessions to the significant numbers of Conservative MPs who are landlords, who have been gifted what amounts to an indefinite delay to the ban on no-fault evictions?

[Jacob Young]

As I said, we introduced the White Paper in 2022. We published the Bill just last year in 2023, and we are taking it forward today to abolish section 21. She talks about Conservative Members. I can tell her—she will not read this in the newspapers—that I have been lobbied by Members on both sides of this House to ensure that the reforms work effectively. That is what the changes that we are making today on Report will do. They will bring balance to the Bill, delivering security for tenants and, as I said, fairness to landlords. The amendments will ensure that the new tenancy system works effectively.

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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.

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Finally, there many great people doing work in housing law, be it in the courts or behind the scenes. One of the great contributors to housing law in this country recently retired from the bench. His Honour Jan Luba KC may be known to some Members as one of the titans of housing law, both as a lawyer and as a judge. Jan recently retired as the designated civil judge for London. He had oversight over all London’s county courts. He has probably done more for housing law than anyone else I have come across. I hope that in retirement he will speak frankly about the pressures that his colleagues who are still working are under. That is my plea. If we want to make this Bill work, we have to use the assessment under new clause 30 as evidence of the need for sustained investment in our civil justice system.

[Caroline Lucas]

It is four months since the Bill concluded in Committee and five years since the Government promised to legislate for renters’ rights, so I start by saying that it is totally unacceptable that it has taken so long for the Renters (Reform) Bill to be on Report. It is deplorable for nearly a million renters to have been issued with section 21 eviction notices in England since the Government promised to abolish them, according to recent YouGov data. Renters have been badly let down by this delay, and aspects of the legislation before us continue to let them down.

My amendment 12 would require energy performance certificates for properties to be provided to the database operator and for the details to be recorded in the portal. This simple amendment would make a big difference. It would recognise that information is power and allow tenants to know whether the home they are about to rent will be damp and leaky or warm and efficient.

Amendment 12 also builds on the existing rules that require EPCs to be commissioned before properties are put on the market and for them to be clearly displayed in adverts in commercial media. Fairness and logic demand that renters should be able easily to compare energy efficiency information when considering properties to rent. A cold and damp home can end up costing renters dearly, both in high energy bills and health and wellbeing impacts.

Renters in cold and damp homes run an increased risk of problems associated with mould and of health conditions such as asthma and heart disease, as well as of poor mental health. We all know that the UK has some of the leakiest homes in Europe and that tenants are particularly exposed to high global gas prices, because the private rented sector is the least energy efficient of any tenure. A staggering quarter of renting households are living in fuel poverty today, so urgent action is essential to improve standards across the sector and to ensure that all renters have a warm and decent home in which to live.

It therefore beggars belief that the Prime Minister announced last September that he was scrapping the requirement to upgrade energy efficiency standards in private rented properties to EPC grade C. That was despite it being essential to deliver on our climate and fuel poverty targets. That upgrade would save tenants more than £250 a year, even at so-called normal prices, according to the Climate Change Committee. As well as harming renters, that regressive move was also contrary to the wishes of landlords, 80% of whom are in favour of stricter energy efficiency regulations.

My amendment 13 seeks to tackle the crippling private rents that so many people are paying. In Brighton and Hove, in which my constituency rests, a new study of more than 50,000 renters found that tenants in the city were spending a scandalous 56.9% of their pay on rent, making it the most expensive city in England in which to rent. As the Bill stands, the measures on rent increases are wholly inadequate. They rely on a resource-intensive and time-consuming appeals process that could even see tenants worse off at the end of it, because the tribunal would have the power to impose a higher rent than the one the tenant is appealing. That is frankly outrageous and goes directly against the promise made in the Secretary of State’s White Paper, which said:

“We will prevent the Tribunal increasing rent beyond the amount landlords initially asked for when they proposed a rent increase.”

Amendment 13 would simply make good that broken promise by ensuring that the rent payable after a tribunal determination can be no higher than the rent initially imposed by the landlord in the notice served on the tenant. One would have thought that that would be pretty straightforward. Given that the landlord is proposing that rent level in the first place, that must surely be the upper limit of what the tribunal can determine. The Secretary of State obviously understands that principle, since he put in in his own White Paper.

The removal of this commitment in the Bill shows the Government are determined to bend over backwards to tip the balance of power even further in favour of landlords. In short, amendment 13 would get rid of what seems to be a deliberate disincentive to discourage tenants from using the process that is supposed to protect them from unfair rent hikes. In the absence of a national system for rent controls with local flexibility, which is what we really need, amendment 13 is a modest rebalancing of the rent tribunal process, and I would welcome the Minister’s consideration and response in summing up the debate.

There is limited time in the debate, but I very much support the amendments seeking to prohibit evictions within two years of the beginning of a tenancy where the landlord wants to sell or move family in. As the Bill stands, tenants can be served two months’ notice just four months after a tenant has moved in, making a mockery of ministerial claims to improve security of tenure. I also sincerely hope that Ministers will accept amendment 14, which addresses the deeply concerning fact that the notice period for eviction under the new landlord grounds is just two months. This amendment extends it to four months in recognition of the huge difficulty many people face in finding somewhere suitable and affordable to rent when they are evicted, which, as we know, is a major cause of homelessness.

[Neil O’Brien]

I have never been a landlord, but I have been a private renter and I greatly welcome some of the measures in the Bill as they would have helped me and other private renters a lot. I was offered some extraordinary properties when I was a private renter. I remember that one had dog mess all over the floor, while another in Elephant and Castle had bare wires hanging out of the wall and a gas cooker hanging off the wall. I welcome the extension of the decent homes standard to the private rented sector through this legislation, and it is striking how little controversy there has been about that given how big a deal it is. The proportion of private rented homes that have a major category 1 hazard in them has already come right down, from 24% when we came into office in 2010 to just 12% now, but that is still too high, and it is three times higher than in the social rented sector. So it is great that today we are pressing on with fixing this.

The Government amendments we are debating today are welcome. They strike a good balance between the interests of tenants and of landlords. For example, new clause 30, which makes the commencement of the end of no-fault evictions dependent on county courts being ready, is sensible. The slow recovery of the courts from the covid backlog has been frustrating, and there is a much wider question about how we can get rid of old-fashioned court practices that slow things down. My hon. and learned Friend the Member for Bromley and Chislehurst (Sir Robert Neill), Chair of the Justice Committee, made important points about the paper-based nature still of a lot of what goes on there.

However, a lot of good ideas can be wrecked if we do not get the implementation just right and my hon. and learned Friend also mentioned that it currently takes about 55 weeks from commencement to possession, which is much too long. Although I agree with what we are doing here in terms of no-fault evictions, it is a big deal and it is right and reasonable that those who let out properties do at least know that they can rely on a slick and well-functioning court process before we bring this measure in. Even those on the Opposition Front Bench said the courts were recovering from the pandemic, rather than being fully recovered, so I think they recognise that up to a point as well.

The Government have made a range of other sensible reforms in the new clauses before us to ensure that there is fairness for landlords as well as tenants, including new clause 15 which gives those who let out properties some confidence in the first six months. There are the new student grounds as well, and I note that even landlord groups such as the National Residential Landlords Association are now saying we should get on with this legislation, so I think this is about right.

A large number of Government amendments are before us today, but the overall effect is to get a good balance in the legislation. I know some have concerns about the end of section 21, but many countries have a similar system and the sky has not fallen in. Germany, Austria, Denmark, Switzerland and the Netherlands all banned no-fault evictions, and they have a higher share of private renting than us, and in the US and Canada states including California and Quebec do the same and the sky has not fallen in there either. Even Scotland has had this since 2017 and, again, although it has done some other things that are pretty unwise in terms of rent control, the sky has not fallen in.

Landlords will still be able to cite a lot of reasons to ensure that they can get their property back. Indeed, my hon. Friend the Member for Dover (Mrs Elphicke), who is not in her place, suggested that perhaps there were still too many, but I think it is essential that people can get their property back. The end of section 21 changes the balance a bit, recognising that it is no small thing to ask people to move homes.

There are more people living in the private rented sector with children these days, and it is hugely disruptive to have to move. I remember how, in a place that I was renting, we were all moved out because the landlord was supposedly going to do massive works, but he ended up installing about 1 square metre of linoleum and let the place out again for the same rent. It was just a huge amount of disruption to no particular end. For those in a more vulnerable position than I was, it is not a small thing to be asked to move home, so by ending section 21 but still enabling landlords to get control of their property when they need it, we are striking the right balance.

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[Jacob Young]

I beg to move, That the Bill be now read the Third time.

This Bill is an opportunity for us to improve the life chances of millions of private renters across the country, and I hope that we have also given reassurance to the millions of good landlords who endeavour to provide homes for those who rely on the private rented sector. When the Government set out their levelling-up missions in 2022—as the Levelling Up Minister, I feel this keenly—we made a clear commitment to halve the number of poor-quality homes by 2030 to

“Restore a sense of community, local pride and belonging especially in those places where it has been lost.”

When housing is secure and safe, it is the launch pad for rich and fulfilled lives and gives people

“a place they’re truly proud to call home”.

This Bill marks the biggest change to the sector in more than 30 years. Rightly, Members have pressed the Government to ensure that it strikes the right balance, improving the sector for all while ensuring that no party is unduly burdened either by cost or by process. I believe that the Bill now strikes that balance, and I am proud to have taken it through the House as my first Bill as a Minister. I should add that taking it over 24 hours before the beginning of the Committee stage was an added excitement that I shall not forget. Let me again pay tribute to my predecessors, my hon. Friends the Members for Walsall North (Eddie Hughes) and for Redditch (Rachel Maclean).

At this point, I invite the hon. Member for Brighton, Pavilion (Caroline Lucas) to intervene, if she wishes to do so.

[Caroline Lucas]

I am grateful to the Minister. As he knows, I tried to intervene earlier during his summing-up speech. I merely wanted to pursue the point about rent tribunals that I made in my initial intervention. In the White Paper, the Government said that they were going to prevent tribunals from increasing rents beyond the amount that landlords initially asked for when they proposed a rent increase. Why have the Government gone back on that? Why do they now envisage a scenario in which someone could go to a tribunal and end up with a higher rent than the one against which they are appealing? That is surely a massive disincentive.

[Jacob Young]

Large rent increases should not be used as a back-door method of eviction, but it is crucial that landlords are able to increase rents in line with market levels to maintain investor confidence. We have listened to concerns, and we think it fair that the tribunal is not limited when determining that market rent. This means that, as the hon. Lady said, the tribunal has the freedom to make full and fair decisions, and can continue to determine the market rent of a property. I understand the hon. Lady’s concerns, but it is important that all our measures are proportionate and that we do not allow the tribunal to become overburdened by too many complaints. I therefore think that this is a necessary safeguard.

[Caroline Lucas]

The Minister is being very generous in giving way. I am not the only person to have said that it should not be possible for rents to rise in these circumstances; the Government’s own White Paper said it only a short time ago. I wish that the Minister would address the point about the disincentive. If a tenant knows that by going to a tribunal they could end up with a higher rent than the one against which they are appealing, surely that will be a massive disincentive.