Private Renting: Homeless and Vulnerable People

David Burrowes Excerpts

Wednesday 8th February 2017 Westminster Hall

[Richard Benyon]

It is for a multitude of reasons, but the hon. Gentleman is right that that factor has contributed in certain areas. I applaud private landlords who take housing benefit tenants. Not all of them do, and they need to be supported in trying to do so. I recognise that that is part of the problem, and some of the solutions that I will talk about go precisely to that point.

[Mr David Burrowes (Enfield, Southgate) (Con)]

The all-party parliamentary group on refugees has found that landlords increasingly are not taking another category of people: newly recognised refugees. They are unable to provide sufficient documentation to prove their status and struggle to get a deposit and first month’s rent in the 28-day move-on period to ensure that they get the tenancy that they deserve.

[Richard Benyon]

Many local authorities are doing noble work in trying to provide accommodation for the refugees—particularly the Syrian refugees—who we have taken in. I pay tribute to my hon. Friend’s local authority for doing its best. However, there will be several problems at the next stage, because we want those people to be assimilated into our society, get work and be able to function like any other person. We want to ensure that we have systems in place to allow them to transition from the support that they get at the moment. I have direct experience of that in several areas, and I am keen to talk to him about trying to find longer-term solutions to the issue.

The problem that we are talking about is coupled with the capping of local housing allowance and the shortage of available accommodation at the shared accommodation rate. Those burdens can result in people ending up on the street. However, I believe that there are ways of making the private rented sector work for vulnerable people, and innovative solutions are being delivered every day. Homeless and vulnerable people are being helped and guided into the rental market and, most importantly, given the tools and support that they need to sustain lengthy tenancies. Creative change in the market has the potential to improve not only access but standards in the private rented sector.

--- Later in debate ---

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

I congratulate the hon. Member for Newbury (Richard Benyon) on securing this debate. I am here because I am full of rage. I am full of rage at the number of homeless families I see on a weekly basis who do nothing worse than work for their living and raise their children and who find themselves homeless because of a lack of security of tenure in the private sector. It is about time that MPs from all parties address the issue as it is, rather than as they might like it to be. Our constituents—the people out there—look incredulously at us as we seem to consider that, somehow, things are okay. They are not okay.

When I had a proper job, before I entered this House almost 20 years ago, I worked in the homelessness and housing association sector. Today, I see things in my suburban constituency that I never thought possible. The major reason for homelessness in my constituency—and, I am sure, in others in London—is mature families being evicted from assured shorthold tenancies in the private sector. These are not tenants who have been there a short while, abused the property or not paid their rent. In my experience—I am willing to share with any hon. Member the 147 cases that I have seen since 1 September that fall into this category—they are families with children at the top of primary school and the middle of secondary school. They are simply being evicted because the landlords can get more rent from somebody else and can realise the value of their assets. Neither of those things makes them bad individuals, but it makes for a very bad housing situation for someone to find themselves in.

There are consequences to this. I sit there and I go through the process. I say, “They’ll issue you with a section 21, then they’ll go off to the county court, then they’ll get a possession order and then you must wait for a bailiff’s warrant. You will get 10 days’ notice of the bailiff’s warrant, and when that comes, the council will put you in temporary accommodation in Luton.” We live in south-west London. Some of the people I have talked to did not know that a place called Luton existed, but they will soon find out. I am sure that Luton is a fine place, but if someone works in south-west London and their children go to school in south-west London, it is not the place where they want to live.

[Mr Burrowes]

I have had similar experiences in my constituency surgery. Does the hon. Lady hope that the ambition, not least behind the Homelessness Reduction Bill, to deal with this matter might be realised? Sadly, responsibility is sometimes triggered only once the bailiff notices have been served. There is also the issue of the inappropriate placements in Luton. The ambition needs to be fulfilled by the housing White Paper—by ensuring that there is sufficient supply, but also that prevention duties are in place that actually mean something for the 147 families to whom she refers.

[Siobhain McDonagh]

I have a controversial view on the prevention of homelessness Bill. I believe that it is a sticking plaster and does not resolve the problem. It simply puts more demand on local authorities, which cannot cope with what they have at the moment. At the heart of the matter is supply. At the heart of it is control, whether that is control over how much rent people have to pay, some control over landlords who are not prepared to maintain their properties or some control in terms of security of tenure. Unless those things are addressed, and addressed in numbers, the problem will not be resolved.

What are we doing to the children who find themselves in this position, who find themselves moving year on year, or six months on six months? These are kids who do well at school and want to be ambitious at school, but who never know or never experience the simple security of living in the same place for a reasonable length of time. That is life for people in my constituency, and the scary thing is that it is life for an ever growing proportion of people, not just people in poor, low-paid work—

--- Later in debate ---

[Neil Gray (Airdrie and Shotts) (SNP)]

It is a pleasure to take part in the debate with you in the Chair, Sir Alan. I congratulate the hon. Member for Newbury (Richard Benyon) on securing the debate. I thought his speech was an honest assessment of the country’s current situation. It was refreshing and followed on from the honest title of the White Paper presented yesterday: I remind hon. Members that that is based on the situation in England.

The hon. Member for Mitcham and Morden (Siobhain McDonagh) made a passionate speech and touched on short-term tenancies and tenancy insecurity, and on the building of homes. What she said is right: it is the only way we shall get around the housing supply problems we face across these isles. I understand what the hon. Member for Plymouth, Sutton and Devonport (Oliver Colvile) was saying about hostels, but we must surely be capable of providing something more secure and dignified to homeless people in this day and age. The constituency example outlined by the right hon. Member for East Ham (Stephen Timms) reminds me of looking at census data from Victorian times. It is shocking and highlights the desperate situation that people find themselves in, particularly in London. Action must be taken on that.

The private rented sector has a clear role to play in assisting those experiencing or facing the prospect of homelessness. However, the problems it creates are also well known: affordability, landlords’ reluctance to rent to housing benefit recipients, a lack of security of tenure, poor quality housing and a lack of support for vulnerable people. All these make what is a potential source of vital support for homeless and vulnerable people more difficult for them to obtain.

The focus on seeking private rented solutions for homeless and vulnerable people presents challenges. Although there has been a growth in the private rented sector, changes to housing benefit entitlement since 2010 mean that it is more difficult for housing benefit claimants to cover the full amount of rent due, as I said in an earlier intervention. That is especially so for young people, who are seeing their support cut away. In the light of all of the UK-wide issues caused by the Government’s social security policies, I believe that the effective approach being taken in Scotland should be commended and articulated.

All local authorities in Scotland have a duty towards all unintentionally homeless households, regardless of whether they are classed as being in priority need. That is one reason why, in April 2016, Crisis recorded that Scotland has been on a “marked downward path” for the past five years in relation to homelessness. That downward path can be seen in the Scottish Government’s statistics from 2016, which indicate that 81% of unintentionally homeless households in Scotland that had an outcome between April and September of that year secured settled accommodation—not only in social housing but in private rented tenancies as well.

[Mr Burrowes]

I welcome what the hon. Gentleman says about that progress, but I was in Edinburgh over the weekend and I was particularly shocked by the level of street homelessness. I am a London MP and have sadly seen an increase in that on our streets in London, but in Edinburgh it was extremely significant.

[Neil Gray]

I would not for a minute even begin to suggest that we have all the answers in Scotland, nor that, just because the evidence from organisations such as Crisis suggests that things are going the right way, we cannot do more. Clearly, more can be done. I live near Edinburgh and know the situation there very well, which is a smaller version of what we see here in London. That is why some of the Scottish Government’s interventions, which I will touch on, are directed at that.

If private rented accommodation is to be a viable solution for homeless people, it is clearly imperative that protections are put in place to ensure that it is secure and affordable and provides an acceptable standard of living conditions. I will focus on some of the measures introduced in Scotland in the past decade that help to address some of those issues. In 2006, Scotland was the first part of the UK to introduce a mandatory landlord registration scheme, which we touched on earlier, in terms of licensing. The local authority must be satisfied that the owner of the property and the agent are fit and proper persons to let the residential property before registering them.

Commencement of the Private Housing (Tenancies) (Scotland) Act 2016 will remove the “no fault” grounds for repossession, and should mean that there is no risk of a retaliatory eviction in Scotland. When commenced, that Act will also introduce a new type of tenancy for the private rented sector in Scotland to replace short assured and assured tenancies for all future lets. The new tenancy will be known as a “private residential tenancy”, which will be open ended and will not have a “no fault” ground for possession equivalent to the current notice that can be given under section 33 of the Housing (Scotland) Act 1988.

Finally, the 2016 Act will allow local authorities to implement rent caps in designated areas—“rent pressure zones”; one such zone is in Edinburgh—where there are excessive rent increases. Applications must be made to Scottish Ministers, who will then lay regulations before the Scottish Parliament. Tenants unhappy with the proposed rent increase will also be able to refer a case to a rent officer for adjudication. Each of those rules and pieces of legislation help in different ways to ensure that the private rented sector is up to standard when used as an option for homeless and vulnerable people. There is clearly no point in placing homeless people in privately rented accommodation when it will only lead to an unaffordable rent, unacceptable standard of housing or an insecure tenure.