Private Rented Sector: Regulation

Gregory Campbell Excerpts

Wednesday 24th May 2023 Westminster Hall

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does the hon. Member agree that one factor that should be taken into account is Government support for greater availability of good-quality social housing, which would help to suppress the increase in rents? Allied with that, the Bill and the tax regime should pursue bad landlords, support good landlords and protect tenants at the same time.

[Navendu Mishra]

I agree, although my experience is that Stockport Homes, one of the major local social housing providers, has been struggling to secure properties because their cost has risen significantly. Recent census data shows that Stockport has seen a 48% increase in property values in the past five years, whereas the average in England is 20%. For social housing providers, securing or building new properties, particularly with the rising cost of building materials, is a significant financial commitment that many of them are not able to make. I agree that bad landlords need to be pursued. I do not think the enforcement regime is good enough. Of course, there are good landlords out there—I am not going to dispute that—but they often get tarred with the same brush that bad landlords leave us with.

The Renters (Reform) Bill is a positive step, but there are many loopholes. The rules around section 21, on landlords evicting tenants by claiming to move families in, need to be looked at. There is no provision on rising rents. It is unclear what the penalties will be for landlords who break the rules. There are so many loopholes that we need a serious discussion about how to deliver for people across England.

I have already mentioned the statistics on the average rent values in my constituency. I would like to conclude by making two further points. Owner-occupiers spend 18% of their household income on mortgage payments, while private renters spend 31% of their household income on rent. That is simply unfair, and it is also unsustainable. It is evident from the data for constituencies across England that many—not all—private landlords are making large amounts of money out of the cost of living crisis.

Yesterday, Labour MPs, along with those of several opposition parties, voted to end the unfair leasehold system. Labour is serious about reforming the housing sector; it is not just warm words. I am sorry to say that the Government have failed and continue to let down renters consistently, year after year. In 13-plus years of this Government, we have not seen serious action. I hope the Minister will address these points.