Renters’ Rights Bill

Danny Kruger Excerpts

Wednesday 9th October 2024 Commons Chamber

[David Simmonds]

I will make some progress and move on to another area that has been debated. I know that the Minister will wish to have time to sum up on many of these points as well.

A number of Members, including my right hon. Friend the Member for New Forest West (Sir Desmond Swayne), highlighted the need for appropriate measures to support students in the rented sector. A good many landlords’ organisations have made the point that the Government’s intention to change the tenant and landlord’s full freedom of contract will have an impact, especially on students who wish to rent a property for the entire duration of their course. We need to ensure that there is appropriate flexibility in respect of student properties, so that students at university can find the housing that they need and landlords are not discouraged from entering that market, and so that the points raised by my right hon. Friend are addressed. We do not want a situation in which a landlord, wary of a two-month notice period, decides to take the property off the student market and put it somewhere else, in a way that perhaps addresses housing need less, and fails to support the local economy in the way that student housing would have.

That leads me to a point that I know we will explore in Committee: how freedom of contract particularly impacts constituents who struggle to pass the kind of credit checks and landlord insurance checks that are common in the private rented sector. We all have examples of people who have faced bankruptcy proceedings and entered into individual voluntary arrangements to address significant financial difficulty, and who then got themselves back on their feet; but who, when facing eviction, have found it impossible to find a landlord willing to rent to them. Those people are not eligible to access social rented housing, because they have a job and an income, but cannot access the kind of housing that locks them into a regular payment contract. However, they may be able to offer a significant up-front payment of rent—potentially many months’ rent, or even a year’s rent—to secure a property. That gives the landlord the certainty they need, and it also gives the person the guarantee of the home they need. We need to address that issue, because the implementation of a number of financial arrangements by previous Governments has created both an opportunity for people to get back on their feet after financial difficulty, and a challenge in accessing a long-term home in the rented sector.

As we proceed with this Bill, it is clearly important that policy is based on evidence. Having spoken to the Minister and many of his colleagues about the Bill, I know that there will be a high degree of cross-party agreement on some of the points that are discussed. However, I would like to bring this debate back to the key concern that we in the Conservative party have, which has been expressed by a number of Members: we need to ensure an appropriate supply of housing in the private rented sector, so that citizens who need to access those homes can do so.

We remain a party that respects and supports the aspiration of home ownership. Just like all other important life stages, our constituents are reaching that life stage later in life than has been the case historically. We are in a world where people do not typically leave school or university and spend 40 years working in the same business and living in the same town. People moving around and moving home to adapt to changing needs is a key issue that we need to address. Even those wishing to downsize and looking for a smaller property later in life—the last-time buyer market, as the industry likes to describe it—have their equivalent in the rental sector: people looking for accommodation that comes with a package that provides sufficient care and support. The choice to move into high-quality accommodation of that nature in the private rented sector can free up family homes that are in short supply. All these things need to be seen in the round.

Of course, most Members of Parliament are tenants—not all of us; those of us who commute are not—and will have experience of the London rental market. Luckily, Members of Parliament in that situation have the Independent Parliamentary Standards Authority to back them up, but that experience highlights the significant differences we see across the regions and geographies of the United Kingdom. My outer London constituency is dominated by owner-occupiers, but has a vibrant rental sector and a significant number of retirement homes. The population and the need are significantly different from the population and need in a university town full of young people looking to secure student accommodation, or looking for a good-quality private rented home for a short period while they get their first job and get their foot on the property ladder. We need to support that market effectively, and to get it right. We need a balance that avoids over-regulation and the unintended consequences about which my right hon. Friend the Member for North West Essex spoke so eloquently.

Regional variation was highlighted by a good many Members. Places being converted into holiday homes does not tend to be a significant issue in the London suburbs. However, we have heard from colleagues in this House, as we did during the last Parliament, about the massive impact that that has in many of our coastal towns and cities. The impact is not just on those in need of social housing, and those struggling to access, through social rent, accommodation in the private rental sector, but on those in other parts of the country where the local economy has been significantly changed as a result of those issues.

No debate about housing can be allowed to pass without mention of the impact of our Home Office contracts to secure accommodation for those in our asylum system. We know from feedback that many Members of Parliament have provided from around the country that in some areas, that has a significant impact. The initial very good intention behind those Home Office contracts was to disperse asylum seekers awaiting a decision to privately rented accommodation in parts of the United Kingdom where there was accommodation surplus to the needs of the community. That was why those contracts—run now by three private organisations, but run previously by the Home Office, and originated by the now Mayor, Andy Burnham, when he was a Home Office Minister—use that supply of accommodation.

However, we are beginning to hear, as we learned in debates about the use of migrant hotels and so on in the past, that the policy has, in some areas, taken a significant share of accommodation that would otherwise be available to the private rented sector. While it is absolutely right that we seek to reduce the cost to the taxpayer of people staying in hotels, we need to ensure that decision making does not simply tick the “out of hotels” box, and respects the needs and expectations of the community. In particular, given that it is always the lowest-cost accommodation that the Home Office will seek to rent, we need to ensure that the policy does not have an inappropriate impact on those awaiting housing through the local authority, or seeking the least expensive accommodation in the private rented sector.

All these different issues—temporary accommodation, short-term lets for students, accommodation for asylum seekers and owner-occupation—are impacted by this debate. I hope that the Minister will accept that we approach this topic in a constructive spirit, and that our challenge, as we go through the next stages of the Bill, aims at addressing the issues to get the Bill right.

My hon. Friend the Member for Romford (Andrew Rosindell), my right hon. Friend the Member for Witham (Priti Patel) and the hon. Member for Boston and Skegness (Richard Tice) all brought their direct personal experience to this debate, and set out why the points raised at the very start of this debate are so significant.

[Danny Kruger (East Wiltshire) (Con)]

My hon. Friend is making a very important speech. Does he agree that it would be very helpful for the whole House if the Government published an impact assessment on the effects of the Bill, and does he understand why that has not happened?

[David Simmonds]

I am sure the Minister will have heard that question and will address it, but there is a consistent pattern. A number of Members referenced yesterday’s debate on VAT on school fees, in which that point emerged, too. While we can see, for example, that there is a significantly higher proportion of pupils from ethnic minorities in private schools than in the state sector, the Government cannot supply an equalities impact assessment for their policy on VAT on schools. There seems to be a similar trend emerging with the winter fuel payments, and with the Renters’ Rights Bill; the Government say that it is very important that we get the policy right, but cannot supply evidence that they have properly considered the equalities impacts and the wider impacts, although much of that was enshrined as a legal requirement under the previous Labour Government.

In winding up—[Interruption.] I hear a cheer. That is the first, but I hope not the last, cheer I enjoy in this Chamber in my parliamentary career. This Bill is an opportunity to get things right for renters. We know that is a high priority for all political parties in this Chamber. We can all see the impact that the private rental sector has on housing supply in this country. We want to make sure that the sector continues to be an important, supportive and appropriate source of homes for people, and that it interacts effectively with other sources of accommodation. If we are to do that, we need to get this legislation right. Dare I say that the acid test will be future housing surveys? If the high satisfaction rates remain buoyant, perhaps the legislation has been right. If we fail to get it right, private tenants will be considerably less satisfied, and that will require the House’s attention again.