Renters’ Rights Bill Debate
Full Debate: Read Full DebateJim McMahon
Main Page: Jim McMahon (Labour (Co-op) - Oldham West, Chadderton and Royton)Department Debates - View all Jim McMahon's debates with the Ministry of Housing, Communities and Local Government
(1 day, 23 hours ago)
Commons ChamberWe are considering the Lords amendments in lieu to the Renters’ Rights Bill, and I begin by recognising the work that has taken place in both Houses to improve this legislation, and by thanking their lordships for the constructive way in which they have approached this endeavour.
On the amendments themselves, the issue of shared ownership leaseholders was rightly championed in the Lords by my noble Friend Lord Young of Cookham, and I pay tribute to him for his persistence. He made a fair and compelling case for shared owners who, through no fault of their own, may be unable to sell their share and should not be penalised for re-letting in those circumstances. The Government’s acceptance of that principle, although through a modified amendment, is a sensible and pragmatic improvement, which we will therefore support.
On the decent homes standard and the service family accommodation estate, the Government have placed a duty on the Secretary of State to report on the conditions of service family accommodation and provide independent oversight. Our armed forces and their families deserve and need decent, well-maintained homes, and we believe that greater transparency will strengthen service families’ confidence in the system. We support this improvement, and we hope that the Government will look at our policy to create an armed forces housing association that would oversee these changes and address the declining recruitment and retention rates that, sadly, we have seen under this Government.
While we support these improvements, I fear the Bill in its current form will in some areas be counterproductive, and drive landlords from the market as well as putting up rents for tenants. Labour’s own impact assessment for this Bill supports that concern, stating that
“landlords can pass through some, but not all, of their cost increases to their tenants in the form of higher rent”
due to new costs. Under the Bill, all tenancies will continue until either the tenant gives notice or the landlord obtains a court order for possession on specific grounds. The Government have committed to ending section 21 evictions, but they must also ensure matching court reform so that the system works for both tenants and responsible landlords. We need clarity about when and how these changes will be implemented, because uncertainty helps no one. Local councils must have the means to enforce the new rules effectively, and the Government should set out a clear and workable plan to that end.
The Lords amendments represent a sensible set of adjustments that I would say make this Bill slightly more workable, but sufficient challenges remain in how it will operate in practice. We recognise the value of the scrutiny that has taken place in both Houses, and the constructive way that many of the concerns have been addressed, but the uncertainty in this sector is seeing landlords leave the market at an alarming rate.
The shadow Secretary of State knows that I have a great deal of time for him as a person, but he must reflect on how all of his speech is about the rights of the landlord with absolutely nothing about the rights of tenants. In my own constituency, 600 children are in temporary accommodation, having largely been driven out of their private rented accommodation because of no-fault evictions. Does he have anything to say about the rights of tenants?
I can only assume that the hon. Member has been asleep through the last couple of paragraphs I have read out, in which I specifically spoke about the rights of tenants in the military estate, for example, so I reject his characterisation of our position. The simple fact is that tenants’ rights are all well and good, but if accommodation for those tenants does not exist, they are no better off.
We have seen an estimated 18% of new homes for sale that were previously in the private rental market estate, and in London that figure is 29%. A reduction in the private rented sector market harms, not helps, people seeking to rent in the private sector. Labour Members will say, “Well, we are going to deliver 1.5 million new houses,” but no one—I doubt even their own Front Benchers—actually believes they have any chance of delivering that figure. The Office for Budget Responsibility certainly does not believe that they have any credible chance of doing it, so the housing and rental situation is likely to get worse.
I confirm that the official Opposition will support the Lords amendments, for the reasons that I have set out. We urge the Government to implement them professionally and swiftly, and to focus on delivering a fair and effective system for tenants, for the landlords that provide accommodation for those tenants, and for the wider housing market. However, there are still a number of flaws in the Bill—it does not do enough to protect renters or ensure a stable rental market, as it will reduce supply and, perversely, push up rents—which is why, having committed to not opposing the amendments, we will hold the Government to account on the Bill’s consequences.