Renters (Reform) Bill

Edward Leigh Excerpts

2nd reading
Monday 23rd October 2023 Commons Chamber

[Sir Edward Leigh (Gainsborough) (Con)]

I have no financial interest in the Bill. I am not a landlord, have never been one, and have no desire to be one. It sounds like a very stressful job. However, I do declare a personal interest, because I am the father of young people in their 20s and 30s, and I am increasingly worried about their lack of opportunities to buy their own home, or indeed rent a home. My generation was fortunate in experiencing full employment, a buoyant housing and rental market, and low levels of net migration. I was able to buy my first house—although it was a bit of a struggle—for £25,000.

The opportunities for young people are so difficult now. and I think they should be at the forefront of our thoughts. They are overwhelmingly reliant on the rental sector for accommodation. The housing crunch means that they have to rent for a larger proportion of their lives, and the Government benchmark for an “unaffordable” level of rent is 30% of income. As of last year, four in 10 under-30s in England, Scotland and Wales are now paying rents that the Government consider “unaffordable”. The crisis is driven by a massive shortage of supply. Policies such as Help to Buy only help to increase demand, while doing nothing when it comes to supply. Only massive, comprehensive planning reform can solve this problem. We have to build many more houses, and we have to free up the rented sector.

We need a public-spirited mentality. Many older people have worked hard and have purchased their homes, but they are undermining the ability of younger people to do the same by objecting to new housing proposals—and, of course, when they object, they are also objecting to the ability of their own children and grandchildren to get on to the housing market. Much opposition to new housing is due to the fact that it is often poorly built, and developments lack the upscaling in infrastructure that is needed to support it. We need to adopt a holistic approach. The housing shortage means that first-time buyers have little to choose from, and delays them from getting on to the property ladder. Young people’s wages have not kept up with the rising cost of living and housing. They are forced to spend more and more of their money on rent, leaving less room for savings, paying off debt, and spending money which will flow into the general economy. Rent increases are outpacing wage growth in most of the UK.

I know that many Members, and rental reformers, have argued in favour of getting rid of no-fault evictions to help give renters security, but I believe the reality is the opposite. Banning no-fault evictions will make the rental market even more stagnant, and will lead to its drying up further. I urge the Government, if the Bill becomes law—as I am sure it will, with Labour support—to allow a cooling-off period so that over the next year, more and more landlords do not just get out of the sector altogether. Apart from adding to the burden of landlords, we do not want to see what happened when Ireland did this. The regulatory burden on landlords there was such that the rental sector shrank massively and Governments have paid the price in terms of popularity. The number of available properties for rent in Ireland has shrunk to a record low. A temporary eviction ban there ended at the end of March this year and did nothing to alleviate the shortage.

No-fault evictions are in some sense a legal fiction. Evicting a tenant for fault is a complex process and the burden is on the landlord to prove a breach of tenancy, arrears of rent, nuisance or antisocial behaviour, criminal activity or substantial disrepair. Depending on the tenancy, the notice period could be as short as two weeks or as long as several months. Notice procedures are highly regulated and must observe the prescribed format. Failure to observe this down to the letter of the law can render a notice invalid, delaying eviction. If the premises are not vacated, it is up to the landlord to initiate costly legal proceedings.

Let us look at what happened in the past. In 1952, under Harold Macmillan as Housing Minister, more than 270,000 new dwellings were completed. In 2019, the year before the pandemic, just 213,000 new dwellings were built. In the statistical year ending March 2019, 612,000 people came to live in the UK, with 385,000 emigrating from the UK. That is a net migration figure of 227,000 people, on top of the housing shortage that already existed. The post-covid statistics are even worse. The Office for National Statistics estimates that net migration to the UK in 2022 was 606,000. The same year, energy performance certificate data suggests that just 252,000 homes were built. The number of people we are letting into the country is 2.4 times the number of new dwellings we are building. This is a crisis and it needs to be addressed.

This does not take into account the fact that even without these newcomers there is already a squeeze on housing. We welcome the fact that we had 174,000 Ukrainians coming here, and perhaps we have not done enough but we have also welcomed people from Afghanistan. No one is claiming that we should not have taken in these refugees in genuine need, but we need to be realistic. If we are letting in these people in need, we need to severely curtail other migration—not just illegal migration but legal immigration—in order to stay afloat and give our own young people a chance to buy and rent houses. Younger and less well-off people are being left to shoulder the burden.

House builders face complex and lengthy planning processes that slow down development, and I cannot agree with the Government on removing housing targets. We need to reimpose housing targets on local authorities and we need a massive house building drive. We need to give many more people the opportunity to rent and we need to control net migration. For all these reasons, I cannot support the Bill tonight.