Private Rented Sector

Chloe Smith Excerpts

Tuesday 4th March 2014 Commons Chamber

[Stephen Gilbert (St Austell and Newquay) (LD)]

I extend a warm welcome from the Liberal Democrat Benches to the new hon. Member for Wythenshawe and Sale East (Mike Kane) and congratulate him on his maiden speech. When I made mine years ago, it was terrifying. The hon. Gentleman acquitted himself admirably, as I am sure he will continue to do over the next 12 months. He said a lot about Aristotle, who said:

“It is the mark of an educated mind to be able to entertain a thought without accepting it.”

I think you will agree, Mr Speaker, that that is what we often do in this place when we listen to one another speaking across the divide.

It is clear that over the last 30 years, housing in this country has changed dramatically. The country has moved away from the high level of social tenancies that used to dominate the landscape. Now, more than 8.5 million people live in private rented accommodation. Many of the people I speak to most weekends at my advice surgeries dream of owning their own home. That dream has been handed down through generations, and it helps to create a stable family life and a meaningful existence. We cannot build a big society if we do not have roots in the society and the community in which we live. People who are subject to the transient churn of the private rented sector all too often fail to grip the community around them and engage positively with it.

People’s dreams of owning their own home are becoming harder to realise. The average age of a first-time buyer is rising, and is now 37, the size of deposit required to buy a home is ever higher, and bank lending has become more stringent in recent years. When ever-increasing house prices, due to shortage of supply and high demand, are factored in, a significant part of society may never be able to own the home to which they aspire, or will struggle for decades to do so. For them, the private rented sector is the only realistic option.

[Chloe Smith (Norwich North) (Con)]

I am sure my hon. Friend will explain how the issue affects his rural constituency. Will he acknowledge that it is a problem not only in the large urban stretches of London, but in smaller cities such as Norwich?

[Stephen Gilbert]

My hon. Friend is exactly right. The problem is not restricted to one part of our country, but is a national housing crisis. I consider myself to be a fairly astute observer of politics from time to time—perhaps on high days and holidays—but I fail to understand why the issue is not higher up the political agenda. The House is reasonably well attended today, but election after election passes without housing achieving the penetration of public consciousness that it deserves. A generation is frozen out of the housing market, millions of people are on waiting lists for social housing, and, as the hon. Member for Stockton North (Alex Cunningham) said, millions more are living in inappropriate conditions in the private rented sector. There will be a moment at which housing bursts through, and when that happens I suspect that whichever party is best able to capitalise on the public anger will be rewarded at the ballot box.

The private rented sector sees a huge turnover and is inherently unstable. In my view—I share the analysis of my hon. Friend the Member for Harrow East (Bob Blackman)—that is partly because of the nature of the short-term tenancy arrangements within the sector. Often agreements will be for six months, or 12 months if you are lucky. Almost inevitably, there will be annual rent increases that are above inflation or above the retail prices index or the consumer prices index. As the hon. Member for Stockton North said, there is a failure by landlords to invest. This often creates a churn in the private rented sector that is undesirable for the people who are in it and for landlords, as well as for our wider communities.

We should not make the mistake of thinking that all the people who are renting are students or young people. In fact, half of all private renters are over 35 and a third are families. Moving is not always desirable for people who are trying to create deep links with local schools and other links with local communities, and it is our job as Members of this House to recognise that. The housing charity Shelter, which does excellent work across the piece but particularly on this issue, says that two thirds of renters in England want the option to stay in their properties for longer periods, and eight out of 10 want to know that they are not subject to the annual unpredictability of rent rises. This shows that the private rented sector is not fluid because of consumer choice; it is not what the individuals who are renting want to happen. They are victims of the market who are concerned about punitive rent increases and the motives of their landlords.

I fully endorse the suggestion by my hon. Friend the Member for Harrow East that the Government need to bring forward measures on longer-term tenancies that will benefit property owners and renters. The Government should make overcoming the inherent short-termism that is built into the system a priority.