Renters (Reform) Bill

Helen Morgan Excerpts

2nd reading
Monday 23rd October 2023 Commons Chamber

[Helen Morgan (North Shropshire) (LD)]

Let me first draw Members’ attention to my own entry in the Register of Members’ Financial Interests. I am also half a residential landlord.

The Bill has taken far too long to reach this stage. It is more than four years since the Government’s manifesto pledge, and now, in the dying months of the current Parliament, the Bill has only just reached Second Reading. Broadly, however, my Liberal Democrat colleagues and I support it, and will vote for it this evening. Any legislation that paves the way towards a fairer situation for both renters and landlords must be welcome. Most important is the end of no-fault evictions, and I shall say more about that shortly. We also welcome clauses that will allow renters to keep pets in their homes, and the creation of a housing ombudsman, which will enable decisions to be made more quickly and cheaply for tenants and landlords.

Security for both tenants and landlords is vital, and it is essential that in providing that security for tenants, we do not inadvertently cause an exodus of landlords from the rental market. The Country Land and Business Association has found that 44% of landlords plan to sell or change the use of their rental properties in the next two years, which is cause for concern because at the same time we are seeing an increase in the number of people entering the private rental market. Rightmove estimates that for every property advertised for rent there are 24 applicants, whereas there were just eight in 2019. We need to ensure that we are incentivising landlords to stay in the market and to give renters security once they manage to become that one person in 24 to secure a property to rent.

The length of rental tenancies is an important element in that regard. In its current form, the Bill introduces rolling tenancies without specified end dates. That provides considerable security for tenants, but the six-month protected period is potentially too short. Meanwhile, 43% of landlords do not have a portfolio of properties; they have just one, so the risk of empty months is significant for them. Providing longer-term tenure might alleviate that risk and remove an incentive for landlords to exit the market. The Liberal Democrats’ proposal is to extend the default tenancy from one to three years, and, during that three-year period, only to allow rents to increase by the rate of inflation. That would give both renters and landlords greater stability.

As I mentioned earlier, the Liberal Democrats welcome the banning of section 21 or no-fault evictions. I am sure that Members on both sides of the House have had an enormous amount of casework featuring, for many renters, a sudden and drastic upheaval in their everyday life caused by a section 21 eviction. Such evictions leave people stressed about their security of tenure and worried about not having somewhere to call their home, and can pull the rug from under their feet. They can require people to move to a new area, forcing them to find new schools for their children or new jobs for themselves and try to settle into new communities. That is particularly significant at present, because more families than ever are living in private rented accommodation, and, according to the Renters Reform Coalition, 1.8 million renter households include children.

The Government’s commitment to abolish those types of eviction and legislate for landlords to be able to evict only in “reasonable circumstances” is therefore a welcome step towards ensuring that renters’ rights are protected in law. It will also ensure that tenants living in properties suffering from disrepair or even infestation can report such issues to their landlords without the fear of a “revenge eviction”. It should drive up standards, particularly if coupled with longer tenancies. As always, however, there is a balance to be struck between providing security for tenants and ensuring that the legislation does not cause an exodus of landlords from the sector. It remains important for landlords to be able to remove tenants who are genuinely damaging their property or the surrounding community, but I hope that the Minister will make the definition of what will enable that to happen absolutely clear. It is also important to guard against landlords being able to use flimsy excuses to evict tenants, allowing section 21 evictions to continue in all but name.

I hope that the Minister will elaborate on the reform of the legal system that will be necessary to allow landlords to evict when there is non-payment of rent, unreasonable damage to property or clearly defined antisocial behaviour, or a genuine change in a landlord’s circumstances. A prompt and fair court process is obviously essential to retaining landlord confidence in a reformed system, but delays in that process should not be used as a mechanism to kick this important legislation into the long grass.

The quality of rental housing must also be considered. Black mould, damp, faulty boilers—I am sure we are all aware of the difficult conditions that some rental properties are left in. I say “some” with great seriousness, because not all private landlords leave their properties in disrepair, but we must make the Bill robust enough to challenge those who do. The Government have previously promised to introduce legislation at the earliest opportunity to apply the decent homes standard to the private rented sector. I find it concerning that that legislation has not been introduced, and the Government have instead announced that they will delay the requirements that will force private landlords to meet energy performance certificate standards.

I understand the cautious approach in ensuring stability of supply in the private rented sector, but responsible landlords should not baulk at taking measures over a reasonable timescale that will enhance the value of their asset. I also understand the concern about the usefulness of the EPC, but it should be possible to revisit that and phase in a more effective measure of energy efficiency rather than abandoning it altogether, providing certainty and a fixed timetable that landlords should be able to work to. Without such measures, the Bill risks offering rogue landlords an easy escape route when it comes to improving the quality of the properties.

The Bill is better late than never, but I urge the Government to revisit the issue of length of tenancy, to clarify the circumstances in which, and the legal process through which, a landlord would legitimately be able to evict a problematic tenant or sell the property, and to consider including a decent homes standard so that those renting privately can be sure of a safe and warm home for themselves and their families.

Let me end by calling for a rapid increase in the building of social housing, because a shortage of supply is behind all these issues in the private rented sector, and it leaves far too much power in the hands of landlords.