Renters' Rights Bill (Second sitting)

Connor Naismith Excerpts

Committee stage
Tuesday 22nd October 2024 Public Bill Committees

[Mr Amos]

Q Of what length?

Melanie Leech: Ideally, we would want a year—perhaps six months.

On the impact, to answer the Minister’s point, it is not that families cannot stay for as long as they want to. This is a high-quality product—I am talking particularly about the build-to-rent sector. The risk for build-to-rent providers is that people will treat build to rent more like an Airbnb-type product. That could transform what should be rental products for families to move into for the long term. That is what we want—we want people to stay somewhere to make it their home. But this proposal will inhibit the supply of those products to long-term tenants, because we are vulnerable to short-term tenancies flipping all the time. That is the concern. It is not that people cannot stay for long if they want to; it is that those products will be easier for people to treat more like a short let—an Airbnb-style product.

Timothy Douglas: We need build to rent, but let us not forget that in build to rent, on average, the rents are a lot higher, because people are paying for a concierge and the other services, so it is not the ultimate answer for all parts of the sector. We are not going to support everyone. I do not think that there should be a timeframe on the fixed term, but we can make use of grounds that landlords cannot use as levers, and you could put break clauses in as well.

[Connor Naismith (Crewe and Nantwich) (Lab)]

Q My question goes back to the decent homes standard, and the first part of the question is potentially more for Suzannah. What insights do you have into the impact of the application of the decent homes standard in the social rented sector and then, potentially, on everyone else? How do you see it translating across to the private sector, in terms of the impact on the standard of homes there?

Suzannah Young: We believe that everyone has the right to a warm, dry, safe, secure and affordable home, and social housing has a greater proportion of decent homes than housing of any other tenure. That could suggest that having a decent homes standard helps to bring up standards in housing. We also recognise that housing associations exist to fulfil a social purpose, and we are rightly held to a higher standard. We welcome the Government’s commitment to reviewing the decent homes standard. We are pleased to continue to work with the Ministry of Housing, Communities and Local Government as this develops.

In terms of some feedback for the private rented sector, we agree that it is important to have a clear, modern and meaningful standard that reflects what residents would expect a decent home to be. It is also important that all landlords should have a clear understanding of the condition of all their homes. In the social sector, we are doing work to develop a more consistent approach in that area, as part of our response to “The Better Social Housing Review”. It would need to be something that private landlords were able to do as well to bring up standards.

Specifically—this has been mentioned in terms of the private sector—it is important to recognise that the housing association sector faces multiple and competing pressures, with budgets that are already stretched. We would like to see investment in existing homes at the same time as development of the desperately needed new and affordable homes in the Government’s long-term housing strategy. I suggest that similar attention would be needed for the private sector.

Timothy Douglas: May I pick up on that point? That argument was used in Scotland on the Cost of Living (Tenant Protection) (Scotland) Act 2022. I gave evidence on that legislation two or three times to the Committee up there. In the end, the argument was that the cap was lifted for the social rented sector because it needs to plan for its investment. That is the crux, and it goes back to my previous points—there is no parity here with the incentives, the business planning and the costs that private landlords are facing. We have to have that parity. If the legislation is extending across, the funding needs to be the same. We have to have parity in the investment, the caps and everything else—that needs to be the same. We need that review into all the taxes and costs impacting private landlords, because, quite frankly, we are not getting legislation from either Government Department—the Treasury or MHCLG—that understands the investor appetite for the private rented sector. This legislation is not helping.

[Rebecca Smith]

Q This is a question mostly for Timothy. At the beginning of your contribution, you mentioned the unintended consequences we see from the Bill, and you gave the example of landlords departing the market. I know there is often the argument that they are still providing a home somewhere else if those properties get purchased. I am interested in the statistics you might have—representing both estate agents and landlords—on the impact on the housing market in full. How many properties stay in the private rented sector? Do they move from one landlord to another, or is that ultimately a property that is then lost permanently from the private rented sector?

Timothy Douglas: It is difficult to say. We know anecdotally that if you are in an agent branch and a landlord wants to sell, the branch would try to push that property towards a bigger landlord who could perhaps take it on before it goes on to the open market. We know that that happens in order to retain property. Anecdotally, we know that, because of legislative uncertainty and costs of legislation, as well as the cost of living, which has also hit landlords with their costs, landlords have left the sector—I gave the example of the agent in the west midlands previously. However, it is difficult to ascertain hard data across the board. That could be another recommendation to the Government: to come back with an annual review to Parliament on the state of the private rented sector.

Suzannah Young: May I come in on that?

--- Later in debate ---

[Carla Denyer]

Q Yes—whether you think that the Bill goes far enough to prevent or manage unaffordable rent hikes.

Anny Cullum: Unfortunately, no. We as an organisation at the moment would never recommend that anyone go to the rent tribunal, because we have seen tenants go there and have more rent—a higher percentage—awarded than the landlord was asking for in the first place. We are pleased to see that you are going to get rid of that, but we would like to see rent rises capped at the lower of median wage growth over the last three years or inflation. From my experience, I know most tenants are not going to go to the tribunal. It is brilliant if they do, but a lot of people will accept the rise, or have to move out because they cannot afford it, or get into debt. This means that the people who do go to the tribunal will still be judged against market rents that are way more unaffordable than the one at which they went into their contract. Does that make sense? We are not going to bring rents down just by tinkering with the tribunal.

This is mainly about making sure that people can stay in their homes and it does not undermine the Government’s efforts to prevent no-fault evictions. This could easily be used as a no-fault eviction by the back door. You could just put the rent up to a level that you know your tenant cannot afford. We do not think comparing what is affordable with new prices is the best way, so we would advocate for that cap on how much rent could be increased by.

[Connor Naismith]

Q Helpfully, the question I wanted to ask has been answered, so I will just give you the opportunity to say anything that you have not been able to cover in other answers, but that you would like to see from the Bill.

Anny Cullum: As I said, the five areas that I wanted to cover were illegal evictions, landlord licensing, capping rent up front to one month, withholding rent for disrepair and making renting more affordable. We see even the cap on in-tenancy rent rises as not really about affordability, but mainly about preventing back-door economic evictions or section 21s. We feel that, while this Bill goes far on improving security for renters, it is not going to do enough to address one of the No. 1 problems our tenants and members are coming to us with every day, which is affordability. Rents are outstripping wages all the time. We would like to see the Government set up a commission to look into ways we can bring rents down and keep them affordable once and for all. That is something that we would like to see.

[Lola McEvoy]

Q Do you agree that the fact that renters can challenge rent hikes under this legislation will, as an action, militate against unreasonable rental increases by landlords? Do you agree that the fact that we are going further in this legislation to make sure that renters have more support and that they can challenge any unreasonable rent hikes in the courts will, in and of itself, have an impact on landlord behaviour?

Anny Cullum: It might have a small impact, but I think that the reality is that most landlords will expect most tenants not to make use of that scheme.

City and Town Centres: Regeneration

Connor Naismith Excerpts

Wednesday 16th October 2024 Westminster Hall

[Connor Naismith (Crewe and Nantwich) (Lab)]

It is a pleasure to speak in this debate, which I thank my hon. Friend the Member for Derby North (Catherine Atkinson) for calling.

Town centres are not merely a collection of shop units in our town centre. They form part of the social fabric of our communities, and they deserve—mine certainly does—a Government who will proactively regenerate that social fabric. As the MP for Crewe and Nantwich, the place I am proud to call my home, I have witnessed the decline of Crewe town centre. It is not lost on me that the emergence of online retail has had a part to play in the decline of our town centres. We need a Government who stand ready to respond to these changing circumstances, not one who simply expect the market alone to sort it all out.

I believe that each town across this country has its own distinct draw, and local authorities need to be empowered by the Government to reflect that. In my constituency, we have demonstrated how hospitality, leisure and experience-based initiatives can drive improvement. We have had fantastic events such as Nantwich Food Festival, and investment by our Labour-led council in Crewe Market Hall has transformed the venue into a thriving modern food, drink and entertainment space.

[Andrew Cooper (Mid Cheshire) (Lab)]

Does my hon. Friend agree that town centre events have a really important role to play in driving the vitality and viability of town centres that have been in decline? In my constituency, for instance, Northwich town council, the business improvement district, rotary clubs and various community groups have partnered to put on a full events programme over the course of the year. That really drives footfall into the town centre and has helped us to promote it as a destination for businesses considering investment.

[Connor Naismith]

I absolutely agree. Local stakeholders and organisations coming together to put on community events that drive footfall into our town centres is a way for us to tackle the challenges of retail struggling in the modern context.

Additionally, at the heart of our local community in Crewe are our vital small businesses—the lifeblood of our community. They have the community at the heart of their agendas and understand what is best for their local areas. Ensuring their success will be our success, and I hope to see the Government proactively pursue that agenda. To that end, I welcome the Government’s commitment to business rates reform, which will have a huge impact on our ability to support small businesses and encourage those that are not currently on the high street back there.

None the less, there are challenges that I know not only my constituency faces, as we have heard from the contributions so far, including that of empty shop units, which has been mentioned often. Local councils need to be given power to take a more active role in the take-up of empty units. The disused Marks & Spencer building in Crewe is a great but sad example of just that, with significant heritage and value that makes it an important asset to our community, but damage inside that makes it a poor attraction commercially, meaning that it has stayed unoccupied and is of no local benefit. I ask the Minister, what steps are the Government taking to ensure that we can breathe new life into buildings, such as that one, in the heart of our town centres?

Furthermore, connectivity remains an issue affecting many northern towns such as Crewe. Our railway heritage is a fantastic asset for regional and national connectivity, but it presents a challenge, with railway bridges and tracks creating connectivity problems in the town centre. I hope that the Government’s planning reforms will give more power to local authorities or prospective private investors into towns across the UK. The Government’s commitment to cross-departmental working will support greater connectivity within our town centres. I want the Government to put local communities at the heart of decision making. In our manifesto, we talked about returning power to local communities, and I urge the Government to make good on that promise.

Renters’ Rights Bill

Connor Naismith Excerpts

Wednesday 9th October 2024 Commons Chamber

[Connor Naismith (Crewe and Nantwich) (Lab)]

I welcome the new Bill put forward by the Government. I only wish that Conservative Members had expressed as much interest and passion in this subject as they did yesterday when it came to defending tax breaks for private education. Politics, as they say, is about priorities, and the priorities of this Government are clear. In my constituency of Crewe and Nantwich, I have been deeply saddened by the number of constituents I have spoken to who are affected by this policy area, and shocked at some of the individual stories I have heard since taking office.

Being able to rent in comfort and stability is a luxury for many of my constituents, which is why I support the ending of section 21 no-fault evictions. According to reports in Cheshire East, we have seen 74 accelerated repossession orders made this year alone, with 15 having been completed. One of the first cases that I dealt with after becoming an MP related to this matter. My constituent Kerry, a single mother of two young children, had been threatened with no-fault eviction and was on the brink of homelessness. She was able to find accommodation with the support of my office, but this issue is neither isolated nor uncommon, as we have heard from many Members today. These are the real, lived consequences of 14 years of Conservative failure.

I am immensely proud that this Government are willing to take action where the previous Government dithered and delayed. Had the previous Government enacted their proposals rather than bowing to the interests of their lobbyists, many vulnerable people across the country could have been spared both the mental and physical toll.

The Bill also applies Awaab’s law and introduces a decent homes standard for the private sector. In 2022, 32% of private rented sector homes in the north-west would have failed the decent homes standard, the highest proportion of any English region and higher than the English average of 21%. Around 21% of those homes in the north-west contained a category 1 hazard, which is higher than the English average of 12%, and around 6% of rented homes contained damp or mould. This is nothing short of a crisis.

The previous Government completely failed renters in my constituency and across the north-west of England. They failed, and they have left it for this Labour Government to make the right decisions so that we change people’s lives for the better. I believe that all the Government’s proposals—ending no-fault evictions, strengthening tenants’ legal protections, implementing the decent homes standard and establishing a database for the sector—are important and sensible policies. They will be truly lifesaving in some cases, so I will be glad to vote for them.