Letting Agents

Debate between Jack Dromey and John Healey

Wednesday 27th February 2013 Westminster Hall

[Jack Dromey]

We moved decisively down the path for comprehensive regulation of the sector under the last Government.

[John Healey]

It is of course hard for me to answer for our colleague who would have been in position as Housing Minister or the Minister responsible at the time, but does my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) agree that it might have been that the case that was put at the time from the Opposition Front Bench was not persuasive enough? It certainly is now.

[Jack Dromey]

My right hon. Friend makes a very good point. What the Labour Government did was to establish the Rugg review. The Rugg review made comprehensive proposals, including in respect of regulation of letting agents. We moved decisively down that path.

The hon. Gentleman who is now the Housing Minister, unless he has undergone a damascene conversion and believes the opposite of what he said five years ago in opposition, will no doubt say when he responds, “Yes, this Government now intend to act,” because thus far there has been a lamentable failure to act, despite the chorus of voices calling for change. I am talking about tenants and landlords. The Labour party put forward a very powerful policy proposal, supported by the Association of Residential Letting Agents, the National Landlords Association, the Residential Landlords Association, the British Property Federation, the Royal Institution of Chartered Surveyors and many other players in the housing field, including registered social landlords, many of which now have private rented portfolios. They all back the proposals that we put forward, calling for change.

I pay tribute to the right hon. and hon. Members who have taken part in today’s debate, including the hon. Member for Southport (John Pugh), for the way in which they have spoken up. It is just like we saw in the Opposition day debate last month: there is a growing cross-party consensus that says, “This has to end.” In relation to how it ends, the hon. Gentleman was right when he said that the idea of a voluntary arrangement will not wash.

I pay tribute to Ian Potter and the work of ARLA. For two decades, it has campaigned for regulation, but in the meantime it has also tried to raise standards in the sector. However, that is on a voluntary basis—the rogues do not sign up. That organisation sometimes takes action against its own members who have acted disreputably, but it has arrived, out of bitter experience, at the clear conclusion that a voluntary scheme will never work; regulation is essential. The case put forward by the Royal Institution of Chartered Surveyors of the potential benefit to the economy of £20 million further reinforces the case for change.

The case is overwhelming. No more evidence is required. An all-party consensus is emerging. The Government have said that they have an open mind on this issue. An open mind, however, is no longer good enough. I ask the hon. Member for Hertford and Stortford (Mr Prisk), who is now the Minister for Housing, to have the courage of his convictions five years ago and to tell the House today that this Government will at last move to regulate letting agents.