Renters’ Rights Bill

Jeremy Corbyn Excerpts

Wednesday 9th October 2024 Commons Chamber

[Angela Rayner]

I thank the hon. Member for his comment. I hope that he recognises from my opening remarks that good landlords have nothing to fear from this Bill, and we will help them. The new database will help landlords to understand and meet their legal duties, and we will provide clear guidance. I will talk more about how that database will work.

Part 1 of the Bill will introduce a new, modern tenancy system that removes fixed-term tenancies, meaning that tenants can stay in their home until they decide to end the tenancy, and they will only need to give two months’ notice. This will end the injustice for tenants who want or need to leave at short notice but cannot, and allow both landlords and tenants the flexibility to respond to changes in their circumstances.

I want to make it clear that our Bill ensures that landlords will still be able to reclaim their properties when they legitimately need to, through clear and robust possession grounds. We have also considered the unique situation of student accommodation and specialist sectors such as stepping-stone accommodation, for which the Bill also includes a possession ground. In most cases, tenants will have four months’ notice, so that there is time to find a new home, and landlords will have to wait a year from the beginning of a tenancy before they can use the “moving in and selling” grounds for eviction. This honours our commitment to level the playing field decisively for renters, which goes further than the last Government’s ambitions. Of course, landlords will still be able to quickly evict tenants who engage in antisocial behaviour and make other people’s lives a misery, to protect the strong communities that we want to see flourishing around the country.

The Bill will also empower tenants to challenge unfair rent increases that are designed to drive them out. It will prevent tenants from being bound by rent review clauses, putting them in a stronger position to challenge unreasonable rent hikes at tribunal.

[Jeremy Corbyn (Islington North) (Ind)]

I welcome most of what is in this Bill. A third of my constituents live in the private rented sector. The last time I looked, there were hardly any available properties to rent in my constituency that were within the local housing allowance. The level of rent is astronomical, unaffordable and driving working-class communities out of inner-city areas. Does the Secretary of State not agree that the Bill needs to go further and bring in rent controls, so that housing is available for all people?

[Angela Rayner]

I understand the right hon. Gentleman’s point, but I disagree on how to resolve the issue. Rent controls restrict housing supply, which does not help anyone, but our Bill takes practical measures to help renters by empowering tenants to tackle unreasonable rent hikes and prohibiting unfair rental bidding, and we will continue to assess potential action on sky-high rents. Hopefully, we are taking measures that will help his constituents and others across the country.

--- Later in debate ---

[Jeremy Corbyn (Islington North) (Ind)]

I pay tribute to all the new Members who have delivered their maiden speeches, and I wish them well as Members of the House. I draw particular attention to the maiden speech made by the Member for Birmingham Perry Barr (Ayoub Khan), my colleague in the Independent group.

The issue of housing that we are debating today should have been a huger issue in the general election than it actually was. A quarter of a million people in this country are homeless at any one time. In my own area, 2,000 people are living in temporary accommodation —or, sadly, sleeping rough—including 850 children. I pay tribute to the many organisations in my area that do a huge amount of work to try to alleviate the problems of homelessness, including Streets Kitchen, the Single Homeless Project, Shelter from the Storm, and Acorn, which represents private sector tenants.

I welcome the Bill. Much of it is very good. It is a huge improvement on what has gone before. Frankly, it should have been law a long time ago. However, there are one or two areas that I think we should consider. British renters, on average, spend 30% of their income on rent, and the proportion is far higher in London. One in five private tenants spend more than half of their salary on private sector rent. Young people, especially those moving into inner-city areas, for instance in London, Birmingham, Newcastle and Manchester, are saddled with student debt and, on top of that, are paying phenomenal amounts of rent, usually in shared flats. It is quite normal for young people in my constituency to be renting flats for more than £2,000 a month, which they have to share with three or four other people. They might be happy sharing for a short time in their 20s and 30s, but as they get older they want their own place. They have no savings and no ability to save, and they have no security of tenure either. Something has to change.

I made this point in my intervention during the Secretary of State’s opening speech. I welcome the Bill, because ending no-fault eviction and providing security of tenure is a huge step forward. Providing for some predictability when it comes to getting repairs done and rights of representation is good, and the role of local government in these measures is also good. However, unless we address the fundamental issue of very high rents in the private rented sector, we will not make any progress.

In my constituency, about a third of people live in the private rented sector—up from less than 10% when I was first elected to the House many years ago—and the figure is rising all the time. The rents are incredibly high. When somebody who is on universal credit and eligible for housing benefit looks for a flat in my area, none is affordable within the local housing allowance. It is simply far too expensive, so the only thing that happens is that people move out. We need to bite the bullet and introduce rent controls in this country. It would not be the end of the world, and they would not destroy the private rented sector. Rent controls have been introduced in Berlin, and they are quite common across much of Europe and in the United States. Unless we introduce rent controls, we are going to have a continuing long-term problem.

I want to finish by saying that we are dealing with a desperate housing shortage in this country, and it will be resolved only by the comprehensive building of council housing with secure tenure and genuinely affordable rent. That will deal with the scourge of homelessness.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

For the benefit of new colleagues, one does not stride past a Dispatch Box once a debate is taking place.