Renters (Reform) Bill (Fifth sitting)

Helen Morgan Excerpts

Committee stage
Tuesday 21st November 2023 Public Bill Committees

[Helen Morgan (North Shropshire) (LD)]

In the interests of avoiding repetition, I will keep my remarks fairly brief. As I outlined on Second Reading, Liberal Democrats welcome the Bill. We welcome the objective of achieving a balance between landlords and tenants, increasing the supply in the private rented sector and enhancing the ability of tenants to enjoy a secure and safe home. To that end, we welcome the introduction of periodic tenancies.

I would like to touch on some of the evidence that we heard last week around the absence of any longer-term tenancy option. We heard from both tenant and landlord groups that in certain situations they would like a long-term tenancy option to be introduced. As things stand, periodic tenancies guarantee a tenant only six months’ security before a no-fault ground for eviction can be introduced. For a landlord, that period of certainty is effectively only two months, because of the notice period that the tenant has available to them. Some landlords might therefore feel that they are not secure in that market, given that they cannot guarantee their income. Equally, tenants might feel that they are unable to commit to a local school, for example, or a job, because they do not know whether they will be in that property for longer than six months.

I have not tabled an amendment, because clause 1 does away with fixed-term tenancies and is a fundamental part of the Bill, and also because we are not opposing the introduction of periodic tenancies, but will the Minister give some indication of whether a long-term alternative, where neither the landlord nor the tenant could break those terms, could be considered? That would mean that some people will have the security that they need.

I was particularly concerned about the evidence from Grainger plc that some financing is dependent on the availability of a longer-term period for the landlord. We would all hate to see withdrawal from the housing market because of a lack of financing for landlords, given that the issue of supply underpins this whole housing crisis—not just in the private rented sector, but in social housing, as the hon. Member for Mitcham and Morden has already pointed out.

That is my key concern about clause 1. I do not want to repeat the concerns about the delays in implementing clause 1, except to echo them. Landlords are running a business and need certainty about when these reforms will take place, so that they can plan for them. Uncertainty is the worst thing for a business. Even if they do not particularly like the idea that is coming in, planning for it enables them to get over the hurdles, but if there is uncertainty, that is the worst thing for any business to plan for. The Minister needs to be clear about the timescale of reform, when exactly the clause will be implemented and what the finished reform will look like. I echo the concerns around that.

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Let me turn to the importance of not having tenancies that end at a fixed date. We will have slight disagreements about the student market, but we heard that one of its problems is that student tenancies last a year: by the time a student gets to any enforcement mechanism, they are on their way out, so the student housing ends up in a very poor condition. Well, that is the reality of the whole private rented sector at the moment. Many people think, “I am only here for a year, so there is no need to go to my local authority, because it will take too long for enforcement to come around.” That is particularly the case when people have minor issues, such as a little bit of mould but not a lot—most people unfortunately consider that a minor issue, although we should reconsider that thinking. It might be that they have minor issues about the behaviour of their landlord or issues with their neighbours. Those things need to be dealt with, but the problem with a fixed term is that rather than sorting out the problems, tenants hold off because they think, “I will be moving in a year.” The danger with the delay in the implementation of the clause is that more people will not enforce all the other standards that the Bill is meant to provide, such as the decent homes standard.

[Helen Morgan]

The hon. Gentleman is making an excellent point about short fixed terms, and I absolutely agree with him. To be clear, my proposal was for a long fixed term of at least three years.

[Lloyd Russell-Moyle]

I totally take that point. I am talking specifically about the short-term problem.

On the all-party parliamentary group for renters and rental reform, we heard from Gemma Marshall, who every year has to look for a new house and has had to change her children’s school three times. She lives not in London, which is even worse, but in north Devon. This problem affects all parts of our country. We also heard from Amy Donovan, who does live in London, and equally has had to move numerous times, which has meant that she cannot commute to her job effectively and has had to move job.

This issue causes problems for the very foundations of society. On the Opposition Benches—and, I genuinely believe, on both sides of the House—we believe that strong societies are built with strong, stable families and communities from the ground up. To some extent, communities are built with bricks and mortar—with people being safe and secure where they are. That is why the clause is so important, but also why it is so important that it is implemented right now, because any delay will mean more mould on the walls for the Amys of the world and more new schools for the Gemmas and their children. Whether the wait is a year, two years or whenever the Minister has the whim to act—he has not laid out the conditions in which he will enact the clause—it is not acceptable for anyone.