Private Rented Sector Housing

Eddie Hughes Excerpts

Tuesday 15th March 2022 Westminster Hall

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Eddie Hughes)]

It is a pleasure to serve under your chairmanship, Sir Gary. Given that I have a bit of a cold, it might be easier for me to conclude two or three minutes early, to give my voice a rest. I thank the hon. Member for Liverpool, West Derby (Ian Byrne) for securing this debate on the quality of housing, which is an issue that affects us all. Although I appreciate that there has been no representation from the Government side, I like to reflect that that might be because my colleagues have faith in the Minister responsible and the forthcoming promise of legislation, but that will be for others to judge.

We have discussed standards in the private rented sector. I am delighted that the opportunity has arisen, because we have ambitious plans to create a vibrant private rented sector that is safe, healthy and fit for purpose. During the debate, we have heard a wealth of expertise and experience from across the House. Although I appreciate that we are on different sides of the House, I like to think we are on the same side of the argument. I share others’ determination to address these problems.

I start by reiterating our commitment to drive up standards in the private rented sector. Good quality housing can help to improve a wide range of outcomes, including health, quality of life and educational attainment. Since 2004, landlords have had to ensure that their properties are free from the most serious category 1 hazards, those that that pose an imminent risk to tenants’ health. In 2016, we strengthened local authorities’ enforcement powers to deal with hazardous properties by introducing financial penalties of up to £30,000, extending rent payment orders and introducing banning orders for the most serious and prolific offenders. Councils have been using those powers.

I fully appreciate that the shadow Minister, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), says that the Government are not spending enough, but I think the examples I give show that some councils are doing that. He described the provision as patchy, which is unfortunate and certainly something the Government would like to address, but there are definitely examples of good practice.

Enforcement action by Burnley Borough Council over the past two years, for example, has netted fines and costs of more than £85,000. This year, Bristol City Council banned a landlord for letting or managing properties for five years after it found he was running a seriously unsafe house, with 18 tenants, including six children. At the height of the pandemic in 2020, when people were spending so much more time in their homes, we increased safety further by requiring landlords to ensure that electrics in properties were safe. Local councils have also been using powers we gave them to do that. Fenland District Council has fined four landlords £25,000 for dangerous electrics. We are amending regulations to make it mandatory for both social and private landlords to instal a carbon monoxide alarm in any room used as living accommodation where a fixed combustion appliance of any fuel type is used.

There has been a marked improvement in standards in the private rented sector. The proportion of homes in the sector with category 1 hazards has halved since 2010. However, as the shadow Minister pointed out, 12% of homes in the sector still contain serious hazards. It is not good enough, so I need to talk about what we will do.

The levelling-up White Paper outlined a set of ambitious missions to level up the country and support our communities. On housing quality, the Government set our ambition to half the number of non-decent rented homes by 2030, with the biggest improvements in the lowest-performing areas. We have committed to consult on introducing a legally binding decent home standards in the private rented sector. We are working with a range of experts to review the housing, health and safety rating system risk assessment tool, which forms part of the decent home standards. That will make it more efficient and effective for local authorities to use and more accessible for tenants and landlords.

We are exploring a register of private rented properties so that local councils can identify where to target their enforcement and leave the good landlords alone. We are also committed to requiring all private landlords to belong to a redress scheme to drive up standards further and ensure all tenants have a right to redress. As have been said, we will abolish no-fault evictions, which will mean tenants who complain about poor standards are protected from revenge evictions. We will publish our landmark White Paper later this spring, which I understand technically starts on 20 March, so I hope very soon.

Let me turn to the issues that Members have raised. I appreciate it is slightly outside the course of the debate, but the social rented sector was mentioned by a few Members. We had the social housing White Paper, the charter for social housing residents. The regulator for social housing and the housing ombudsman have not needed to wait for us to introduce legislation to become more muscular in their interactions with the problems they face. The housing ombudsman has seriously increased its number of staff, as has the housing regulator. As we prepare for legislation, I am in constant contact with them both to ensure that they will have the powers that they need, but they already have the staff they need to carry out that level of enforcement.

A number of people mentioned the problems with mould in the socially rented sector, which was deplorable. Following the report published by the housing ombudsman, we do not have the presumption that it is the tenant’s fault—a lifestyle choice on their part—that causes damp, so we are already seeing steps in the right direction in advance of any legislation.

On the items listed by the hon. Member for Liverpool, West Derby, I share the frustration with section 21. Clearly, that will be fundamental in the White Paper. It seems deplorable that people could be concerned about reporting dangerous items in their property to their landlord with that fear hanging over them. We have consulted widely. I share the concerns of others and that will be fundamental to our reforms.

[Jim Shannon]

The shadow Minister clearly said that there are landlords who are doing the job right, but there are those who do not. Is it the Minister’s intention to bring those people up to the standard of those who do it right? Owning rented accommodation is not a cash cow; it is more than that. There is an obligation to look after their tenant. Will the standard be those good owners of rental accommodation?

[Eddie Hughes]

The hon. Gentleman makes an important point. It was raised by another Member with regard to the balance of power between tenants and landlords. For too long, the power has rested more fundamentally with landlords and we need to redress that balance to bring the standards of the worst up to the standards of the good, and we need to accept that that might mean that some landlords will exit the sector. If they have been providing a particularly poor service and poor quality accommodation, the sector will be better for their absence from it. That is why we are consulting on a decent homes standard for the PRS. Unfortunately, I am not able to say when that work will be concluded, other than in due course, but we are working closely with stakeholders to make sure that the review gives us an appropriate basis for legislation in the future.

I completely accept that there have been problems previously with the selective licensing across Liverpool. My understanding of the situation is that there were some statutory problems with the application. I appreciate that it might have been an administrative-type problem, but at least we are there now. I am an enthusiastic consultee with regard to the idea of a landlords’ register, because it would be incredibly helpful for all councils to know where their private rented landlords are, and it would help them focus whatever resources they have more specifically.

[Grahame Morris]

This is not a one-way Streeter—sorry, street even for the tenants. There are certain advantages for landlords of such a scheme being adopted, which I understand will happen in County Durham in two weeks’ time, based on the excellent scheme that my hon. Friend the Member for Liverpool, West Derby (Ian Byrne) was promoting.

[Eddie Hughes]

It is great to hear about good work that is going on across the country, and I fully accept that we can learn from the work that other areas are doing.

I quickly want to cover a few more points. The hon. Member for Vauxhall (Florence Eshalomi) mentioned Louise’s case. I would be grateful if she would write to me, so I can pick up that case, because we need to be concerned about standards in all forms of accommodation, and student accommodation is one of them. The hon. Member for Strangford (Jim Shannon) raised working with devolved assemblies. One of the things I have been working on is the new homes ombudsman, who will ensure the new properties we build are of an appropriate quality. We have been working very closely with the devolved Assemblies on that issue, and we will continue to do so in other areas.

I am grateful for the invitation from the hon. Member for Easington (Grahame Morris) to visit. I hope there is no reshuffle before I get the opportunity to get out and about more, to say the least. With regard to the hon. Member for Ellesmere Port and Neston (Justin Madders), when we are talking about insecurity and poor quality housing, I hope that work to abolish section 21 will address both those points because tenants will have more security and more leverage to complain about the standards of accommodation they are being provided with.

[Matthew Pennycook]

The one question I would like the Minister to answer before he wraps up is why the Government have decided to replace a commitment to a renters reform Bill in this Session with a White Paper. Can he guarantee that we will get that comprehensive renters reform Bill in this Parliament?

[Eddie Hughes]

It would be fair to say that I will do everything I can. I feel personally invested in ensuring that happens. On the delay, I am not sure this is the legitimate answer the Government expect me to give, but we have been through two years of covid, and I have seen—we are seeing it now with the situation in Ukraine—that a number of staff have to pivot to the most pressing item that the Government are dealing with. We have a finite number of staff, and clearly covid has caused incredible challenges for the Government. I personally feel that they have responded well, but I understand the frustration. I conclude by saying that the debate has been incredibly useful for me—

[Ms Buck]

Will the Minister give way?

[Eddie Hughes]

I do not have time to give way; I need to give the hon. Member for Liverpool, West Derby time to wrap up. I remain open and will continue the conversation with hon. Members should they wish to take that opportunity.