Renters (Reform) Bill

Duncan Baker Excerpts

2nd reading
Monday 23rd October 2023 Commons Chamber

[Duncan Baker (North Norfolk) (Con)]

I must declare that I own half of a rental property with my wife and should therefore refer the House to my entry in the Register of Members’ Financial Interests.

I want to start by talking about one of my favourite subjects in this place. I have often spoken in the House about the impact of second homes in my constituency. While they bring many economic benefits, we must also face the fact that quite often they turbocharge the market, pushing up prices and making home ownership simply a dream for many local people. It is no big secret that North Norfolk has the highest proportion of second homes in the country outside London. In addition, one in five properties are private rentals. However, with an increasing number of holiday lets and second homes for many local people, the availability of secure, long-term rentals is diminishing year on year. That is particularly worrying in a constituency such as mine.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I am very grateful to my hon. Friend, whose area I know well because—I declare an interest—I farm in his constituency. I also have rental properties. What he is saying is absolutely correct. The Bill will have a disastrous effect on areas such as his and mine, reducing the number of rental properties and therefore increasing the price of rent. For youngsters, that is really serious.

[Duncan Baker]

I thank my hon. Friend for intervening. I do not agree at all, actually. In constituencies like mine, people have a real problem with the security of rental property. If they are evicted, it is virtually impossible for them to find somewhere else to rent in a short space of time at the moment. I deal with queries about that all the time, but I will come on to that in just a moment.

It is worrying that for so many who are looking to settle down in a family home of their own, renting is becoming the only option due to rising house prices. For example, on Friday I bumped into a local estate agent in one of my biggest towns, North Walsham. He told me he has 25 applicants for every rental property that comes on to the market. The demand is just off the scale. Clearly, that is a really huge problem. There is simply not enough rental market security when demand is rising as it is.

Now, clearly I am a Conservative and I am not against people wanting to purchase property in Norfolk as a second home. If one works hard in life, one should have the choice to spend one’s finances as one wishes. But I also believe that when the market begins to fail, intervention is sometimes necessary and that is where we are at the moment. Many second homes, for instance, are left vacant for large parts of the year, reducing the property pool and once again reducing the availability of homes for residents to rent. Although holiday lets and vacant second homes are not the focus of my speech today, following conversations I have had with many of my constituents, especially Jane Platt, whom I met when she came all the way from North Norfolk to Parliament back in March, I know how unsettled and insecure tenants can feel in the sector as it currently stands. That fear is exacerbated in areas such as North Norfolk, because if a landlord decides to serve an eviction notice, given everything I have just said, there would simply be so little choice available for renters who need to find a new home quickly. Indeed, sadly, just in the four years I have been in this place, I have tried to help many desperate families find a suitable home to rent. That is at the pinnacle of why I support the Bill.

The Government are trying to help. Many initiatives have come forward; I was a Parliamentary Private Secretary in the Department for Levelling Up, Housing and Communities for a short period of time. Doubling council tax on second homes, planning changes for short-term rentals and now this Bill show that the Government are committed to fulfilling their manifesto commitment to introduce reforms that will provide families across the UK with that extra reassurance that they will be able to settle into a family home and be free from, in certain cases, unfair evictions and, in very limited circumstances, landlords who do not act in a correct way. Many landlords and tenants are good, honest and decent people; they are the norm. The private landlord is, in my view, the answer to the rental crisis we face, but only if they are incentivised properly, for example with tax reforms. I gently suggest that in some regards we could go further with some of the Government’s proposals to ensure that good and decent tenants feel secure in the private rental sector and feel they can put down roots. It might not be a big issue for some Members, but as others have said, enabling someone to have a pet in their home, as I allow, is certainly right in the 21st century when so many people treat a family pet as a part of their family.

There is large support across the board for the Government’s current proposals, and I am not suggesting that they are materially changed. However, I believe there are some valid conversations to be had around increasing notice periods from two to four months to give people time to find a new home. I have said it before, but in my constituency and in many others—for instance, in the south-west—I doubt anyone could find another rental property in two months, such is the enormous shortage. In addition, I would potentially improve the protected period at the start of the tenancy from six months to at least a year, as well as making all grounds discretionary rather than mandatory so that a court can take into account a tenant’s circumstances before granting possession. Above all—I have said this to various Ministers before—why can we not incentivise long-term landlords to return to the market by offering mortgage interest relief on long-term tenancies? In a constituency such as mine, so many people offer short-term rentals in their holiday cottages and on Airbnb, but if we could switch those people to offering long-term tenancies on their properties by giving them mortgage interest relief, it would fundamentally change the situation overnight and give more renters market security. It would seriously improve the amount of rental stock we have available.

I appreciate the need to safeguard landlords from antisocial tenants and to allow them to get their properties back when needed; we have heard that this evening. However, the tightening of some of the Government’s proposals would not cause an exodus of landlords from the sector or prevent them doing what they wish with their asset. As I said before, I own a part-share and I do not have any fear at all. When a landlord has a good relationship with their tenant, that is how it works—operating good relationships. Generally, people who are trying to rent are decent people. Creating a fairer, more secure and thriving rental sector is achievable, and this Bill is the first step.