Renters (Reform) Bill

Baroness Laing of Elderslie Excerpts

2nd reading
Monday 23rd October 2023 Commons Chamber

[Angela Rayner]

The Bill talks about the ombudsman. We need to make sure that landlords understand their obligations, and where they do not, we need to ensure that there is redress. As I mentioned earlier, that ombudsman must have real teeth, and I hope the Secretary of State understands that. While I respect the landlords who are in the Chamber and those who are listening to this debate—I know many of them do a good job and are trying their best—we have to have a minimum standard. We cannot have circumstances, as we have seen in Greater Manchester, where children are living in very poor conditions. It is really important that we have regulation and, where people are in accommodation that falls below those standards, we have redress.

After four years, the clock is ticking. There can be no more delay, but the Government’s track record does not instil much confidence. On the Tories’ watch, mortgage bills and rents are soaring, fewer people are able to buy their own home, and over 1 million people are stuck on social housing waiting lists. Those problems are only going to get worse because the Prime Minister could not stand up to his Back Benchers on house building targets. Now it appears that once again, he is caving in to them, rather than keeping his promises to the British people.

This Bill is an important step forward, supporting renters at the sharp edge of the cost of living crisis, so Labour will work constructively throughout its passage. We will not be the cause of delay—I hope the Secretary of State can say the same about his Back Benchers. If they cannot act in the national interest and support a renters’ reform Bill worthy of its name, let me make clear that our offer is to do so instead, because over the course of our proceedings today, 33 renters will have been put at risk of homelessness because they were issued with a section 21 notice and 11 will have got a visit from the bailiffs evicting them. Every single one of those people will be faced with anxiety about the future—anxiety about having to pay eye-watering moving costs and about whether they will be made completely homeless. They cannot afford to wait for the Prime Minister to find a backbone and stand up to his party. They cannot afford to wait for the Secretary of State to buy off his Back Benchers, and they cannot afford to wait yet more years for this Government to keep the promises they made to them.

We stand ready to work in the national interest, and will do so with anyone else who is prepared to join us. I urge the House not to waste this chance.

[Madam Deputy Speaker (Dame Eleanor Laing)]

It will be obvious to the House that a great many people want to catch my eye. We have a long time—we have three hours ahead—but I want to be fair in the way that that is divided up, so we will begin with a time limit of seven minutes.

[Mrs Natalie Elphicke (Dover) (Con)]

In 2014, fellow housing expert Calum Mercer and I published a then-seminal paper called “Nation Rent”. That paper challenged what was then the status quo, which was that generation rent affected only younger people and would be a passing phase. “Nation Rent” set out that it was a changing structural environment in the housing and financial markets that had occurred since 2003, which saw a rapid acceleration of the private rented sector—overtaking social rent—together with a fall in home ownership. That structural change started long before the credit crunch and financial crash, but accelerated after them.

A decade on, little has changed in structural terms, and it should concern Members of all parties that generation rent has now become nation rent. The percentage of people aged between 35 and 44 and between 45 and 54 who are renting privately has tripled over the past two decades, and has more than doubled for those aged between 55 and 64. Nation rent is now embedded, not just in the younger generation but through the generations. As I set out in my 2018 paper with the Housing and Finance Institute, “A Time for Good Homes”, that structural change towards private renting affected around 2.4 million homes, or around 6 million people.

The need for legislation reflects that long-term structural shift. The private rented sector is no longer a flex or transitory tenure: it is the main tenure for millions of people for much, if not all, of their lives. The current legislative framework—a short-term tenure for long-term living, one person’s pension pot but another person’s only home—is not fit for that purpose. That is why there is tension and strain, which is reflected in the design of the Bill and the comments that have been made about it. There is a need to find a new balance that reflects this new reality for millions of people in our country, acting in a way that is fair and responsible to those who are being housed as well as to those who house them.

It remains my view that although the principle of the Bill and its measures are very welcome, they do not go far enough in dealing with the fundamental challenges of an overweighted private sector. There needs to be a long-term plan for housing that rebalances the housing tenure mix—a plan to boost home ownership and expand affordable rented housing substantially; one that unblocks the financial and regulatory constraints on affordable home ownership and professional renting, and one that builds more homes. I continue to work cross-party and cross-industry, inside and outside of this place on those priorities, as I have done for many years and as is reflected in my entry in the Register of Members’ Financial Interests.

Given my long-term campaigning for housing, I was pleased to stand on a manifesto to build 1 million homes this Parliament, work towards 300,000 homes a year by the mid-2020s, and scrap section 21 evictions. We have done well on the first, the second is a work in progress and the third manifesto commitment is why we are here today. I know at first hand the personal commitment that the Secretary of State and the Housing Minister bring to this matter, and how hard their commitment to it is.

This is a vital piece of legislation, because it seeks to provide greater security and stability for renters. This matters—and it should matter to everyone on the Conservative Benches—because housing instability destroys wealth creation, damages life chances, restricts educational prospects and harms health. I see this in my constituency inbox, as I am sure do all Members. In my MP surgery, I had a mother who had spent hundreds of pounds of her own money over many years building a comfortable home for her and her disabled daughter, only for them to be turfed out by their landlord with nowhere to go. Recently, I had to discuss with Ukrainian refugees how someone had complained to their landlord about the heating not working, only for them to find themselves served with a section 21 eviction notice. How do you begin to explain that that is just how things work in our country? They should not work like that; this needs to change.

That is why this reform is so important, but we cannot allow any delay, and that includes the proposed delay because, supposedly, repossession is taking too long. That is nonsense. There is already clear court guidance to deal with repossession claims in a timely manner, as set out in civil procedure rule 55.5, which states that the hearing must take place between four and eight weeks from the claim. Although there have been some spikes in court hearings over the covid pandemic, the timeliness of possession claims has remarkably improved. The latest available figures from the Ministry of Justice show that the average time between claims and orders is now back to under eight weeks. The average time between claims and warrants is the same as it was in December 2019, when the Conservative commitment was made to the nation. The repossession figures have collapsed from the post-covid high of 69 weeks, and are back on track to pre-covid levels. For landlords, every single median metric—be that for orders, warrants or possessions—has dramatically improved on the latest Government data.

Therefore, this landmark section 21 reform should not be delayed on the basis that court improvements are required. That was a concern of our Select Committee, and I think it has now been met in part by the improved data. Any change to the Bill that delays the implementation of these vital reforms cannot be supported. This issue affects millions of people in our country. That is why renters reform—specifically the abolition of section 21—was in the 2019 manifesto, on which all of us on the Conservative Benches stood. It was a manifesto that put the Conservatives on the side of the people, and a manifesto that secured such a huge majority. It would be a grave mistake not to honour that commitment, or to stifle it by delay.

To conclude, the Renters (Reform) Bill will provide security and stability to millions of renters across the country. It should be passed by Parliament without any further delay, but we must also do more to continue to unlock home ownership and other housing to deliver the homes and the housing stability that our nation needs.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the Chair of the Levelling Up, Housing and Communities Committee.

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[Ben Everitt (Milton Keynes North) (Con)]

This is without doubt a significant Bill, which shows that the Conservative Government are serious about delivering our manifesto commitments and delivering for the British people. In my constituency, tackling homelessness and rough sleeping is a key priority. To make in-roads, we must reform the private rental market. Many of my constituents and people across the country are trapped in high rental spirals, with little or no other viable options available to them. On that basis, the Bill’s proposal to enable tenants to appeal excessive market rents designed to force out tenants could be an important step, but we need to ensure we see more detail on how that would work in practice.

On top of that, and more broadly, we must go back to these proposals and make sure that they do not let up on the delivery of more affordable housing and social housing. The Housing Minister, my hon. Friend the Member for Redditch (Rachel Maclean) has heard me say that time and again. I believe there is a consensus across the House on that point. As the Bill progresses, I will be keeping a strong look-out for the appropriate protections for renters, but we cannot forget that without landlords, we would not have a rental market at all. That is why we need to strike the right balance between assurances for landlords and protections for renters. The tendency to vilify landlords is not just unhelpful to our public discourse; it is unhelpful to how we are developing legislation. We must make sure that we look after landlords in this process; they form a critical part of the housing ecosystem, and scaring them off would set us back even further, so we must tread carefully.

Through my role as chairman of the all-party parliamentary group for housing market and housing delivery, and from meeting landlords and tenants in my constituency, I have engaged with a huge range of stakeholders, including professional landlords such as Grainger and charities such as Shelter. Through those discussions, I am aware of the sticking points that we need to resolve as we progress this Bill through its remaining stages.

To get into just one of the details—I know we are pushed for time—Grainger and others in the industry favour the idea of introducing the ability for landlords to request a six-month minimum tenancy length. Once that period is over, renters could issue a two-month notice. Responsible landlords such as Grainger—and many others; in fact, the vast majority of them—want to build communities and have lasting bonds with the people they house, which is an often forgotten point in these debates. Conversely, charities that I have been talking to that fight for the side of tenants and renters, such as Shelter, want to see a longer protected period for tenants, with a focus on open-ended tendencies. They want to see the protected period lengthened from six months to two years to give renters more certainty and security. In the light of proposals to introduce comprehensive possession grounds for landlords, we need to be careful that we find a compromise between the two positions.

The reforms proposed in the Bill are promising, and I think we can all accept that they are a step in the right direction. However, there is more work to be done in finding the right balance between the needs of renters and landlords and successfully integrating the rental market with our levelling-up plans and the need to deliver more affordable housing across our country.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call Feryal Clark—not here. That is a shock.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Just for the sake of clarity, let me say that I am grateful to the hon. Member for North Norfolk (Duncan Baker). He took the correct allotted time. There seems to be a mistake with the clock, but the hon. Gentleman has done the honourable thing, and I thank him very much for that.