Renters’ Rights Bill

David Smith Excerpts

Wednesday 9th October 2024 Commons Chamber

[David Smith (North Northumberland) (Lab)]

I would like to begin by warmly welcoming this Bill and declaring that until July I was chief executive of a homelessness charity. It is well known that section 21 evictions are the second highest cause of homelessness, so it is a delight to be able to speak in the debate and to support the Government. This Bill cannot come in soon enough.

I would like to read out a short excerpt from an email I received from a constituent who was recently issued with a section 21 notice:

“We have lived in our home for over four years and were shocked to be told that we need to move out. We have been desperately searching for a new house to call home but due to a housing shortage and extortionate rents, we cannot find anywhere to move to and are facing homelessness. In the time we have lived at our current house, we have made a life in our community. We run a business and teach twice a week at our local hall. We help care for an elderly gentleman in the village to enable him to remain in his own home. The feeling of being powerless is overwhelming. We have been completely consumed by our housing situation for five weeks now. We feel powerless to protect our boys, six and eight years old. It is hard to function and it feels like an impossible situation...Our neighbour advised us last week of the Labour Government’s plan to immediately abolish section 21 notices. We sincerely hope that this happens in the future so that going forward, people never have to feel the way we do now.”

That family wrote to me at the end of August. Sadly, thanks to the inaction of the previous Government this Bill is too late for them, but for many others it is timely. The perilous rental market is an anchor around the necks of many families like these and this excellent Bill is a reminder that Government really can help those in need.

However, I would like to ask the Minister to look at two tweaks to the Bill. First, will he examine whether any new no-fault grounds for eviction could include a provision that exempts tenants from paying their last two months of rent? Research by Generation Rent shows that the average unwanted house move costs a typical two-adult household £1,709. That includes finding the deposit for a new home, covering rent on two properties, taking time off work and a host of other costs. Most people do not have £2,000 lying around, so that insecurity can lead to homelessness. I urge the Government to look at those situations.

Secondly, I ask the Minister to consider whether the permitted 12-monthly rent increases should be capped at the lower level of inflation or wage growth. Character matters, and some landlords—a small proportion—have spent years extorting and squeezing their tenants. An obvious loophole some landlords will exploit to manipulate tenants is to use their annual rent increase to push rent to unexpectedly high levels and create economic evictions by the back door. That is on top of the fact that landlords are clearly increasing rent beyond any sense of the common good, with rent inflation last year outstripping wage growth by 3% and inflation by 5%. I understand that first-tier tribunals are in place for just this scenario, but evidence suggests that these tribunals have not had the overall desired effect of bringing average private rent increases in line with affordability, let alone inflation.

I am proud that this Government are genuinely committed to ensuring that the 4.6 million households renting privately in this country are no longer dependent on the whims of another for their security. That is part of a comprehensive plan, along with nationwide house building and a cross-departmental homelessness strategy, that will transform what it means to have a place of belonging and security in this country.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Chris Ward to make his maiden speech.