Cost of Living: Private rented sector

Debate between Christopher Chope and Lloyd Russell-Moyle

Tuesday 18th July 2023 Westminster Hall

[Sir Christopher Chope (Christchurch) (Con)]

It is a pleasure to speak under your chairmanship, Dr Huq.

I had not intended to participate in this debate, but having listened to what the hon. Member for Stretford and Urmston (Andrew Western) said in introducing his debate, I wondered where the issue of supply comes into this equation. The crisis in the rented housing sector is largely one of a lack of supply. When I had the privilege of being a junior housing Minister in the 1980s, we transformed the supply of rented housing by introducing the Housing Act 1988, which freed up tenancies and introduced shorthold tenancies. It enabled those with surplus accommodation to let it out through agreements under which they realised that, if they wanted to recover possession, they could do so at a time of their choosing and by agreement with the tenants. As a result of the 1988 Act, the supply of private rented housing in this country soared, and the sector was completely transformed for the better.

[Lloyd Russell-Moyle]

Does the hon. Member recognise that 50% of former council houses that have been sold off are now just rented out, rather than providing stable homes? The reforms that he talks about have led to an increase in private rents above and beyond the inflation in the housing market, less home ownership, less stability in the housing market and more insecurity. They have partly caused the crisis that we are in now.

[Sir Christopher Chope]

Obviously, I do not accept that analysis, and I certainly do not accept the hon. Gentleman’s proposition that, just because somebody lets out a property that used to be a council property, that somehow means it is a meaningless value to the person renting it. If a former council tenant buys a house and ultimately chooses to let it out, that property is available in the private rented sector. On supply, a lot of people in that sort of situation are now withdrawing their properties from the rental market, thereby reducing the supply and forcing up pressure on costs and rents.

[Lloyd Russell-Moyle]

Does the hon. Gentleman agree with the chief executive of the National Residential Landlords Association that it is a myth that landlords are leaving the market, that in fact the private rented sector is growing, despite further regulation, and that there is no evidence that the private rented sector is being vacated? Some people are leaving, but more people are joining.

[Sir Christopher Chope]

I do not accept that, because I have looked in vain at the impact assessment that accompanies the Renters (Reform) Bill—I looked at the latest iteration a couple of weeks back—and the Regulatory Policy Committee condemned that impact assessment as totally inadequate in dealing with the consequences of the reforms for the supply of housing from the private rented sector. The Government’s own impact assessment does not answer the question as to the quantity and quality of private rented accommodation that would be available were those reforms to be implemented. One can only assume that the Government either do not know the answer to that question or do not wish to disclose it.

As somebody who believes in the market, my instinct is that, if we put pressure on potential suppliers of a product through regulation, the likely consequence is that the potential suppliers will withdraw some of that product from the marketplace. That is exactly what is happening at the moment. One of the figures used by the hon. Member for Stretford and Urmston in introducing the debate was the large increase in section 21 evictions. My understanding—admittedly, it is only anecdotal—is that that is because private landlords now feel that they are going to be squeezed by both a nominally Conservative Government and the prospect of a real socialist Government, both of whom are basically anti-private landlord and are determined

The Renters (Reform) Bill has only been printed and had its First Reading—it has yet to receive a Second Reading, which is a complaint from the Opposition—but I hope the Government withdraw that legislation, because the mere fact that it has been printed in the form of a Bill is driving a large number of people away from renting out their private homes and causing them to bring property back under their control, with a view to selling it. A lot of the property that is available for sale at the moment is property that was formerly rented.