Letting Agents Debate

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David Lammy

Main Page: David Lammy (Labour - Tottenham)
Wednesday 27th February 2013

(11 years, 9 months ago)

Westminster Hall
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David Lammy Portrait Mr David Lammy (Tottenham) (Lab)
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This is a very important debate, and I want to remind the Minister of the context in which we have it. We can all think back to a period in British history when the vast majority of people were in private accommodation. We had tenements and Rachman-like landlords, and Charles Dickens, for example, was able to illustrate coherently and fantastically just how grim it was for many people, particularly in the capital city. Since then, we have had the welfare state, slum clearance and the Addison Act of 1919. There was a wonderful balance, with subsidised, affordable housing, and where people could afford to buy their own home, as my father did in 1956 for £6,000. People could get easy credit at the bank and could get on to the housing ladder, or they could seek to get private accommodation.

The Minister should be deeply concerned that we have returned, in Britain today, to a context in which the vast majority of people are in private rented accommodation. We are going backwards as a country, not forwards. We are not building sufficient houses. He will know that because of the decision to generate a right-to-buy scheme, while not building housing to replace the right to buy, we have now lost our social housing, and that is leading to a dire state in London. We have come to a new market in which, frankly, many—this does not apply to all—cowboys are operating. They have seen a gap in the market and vulnerable people, and they have rushed in with a whole set of practices that have been well illustrated in this debate.

It is now time for the Minister to deal with a situation in which complaints against the sector have risen by 123% since 2008, and where we recognise that there is conning and fraud by these cowboys. People are losing deposits and extortionate fees are charged that are hard to understand. We need a statutory code and legislation in this area. We need to consolidate fees in one structure and publish clearly what those fees are. We need a compulsory public membership scheme, so that we know who our landlords are and what their practices are. There is market failure in this area. This is something that traditional Conservatives should be concerned about dealing with.