Private Rented Sector

Jim Shannon Excerpts

Wednesday 25th June 2014 Commons Chamber

[Emma Reynolds]

Indeed. I have before me a press release from the Secretary of State, which contains plenty of warm words but no action.

Let me explain further the second element of our proposals, to which there has been an hysterical reaction from, in particular, the Conservative party. I must make it clear, in order to avoid any more ridiculous misinterpretation, that the Labour party is not proposing a return to 1970s rent control. We are proposing that landlords and tenants should agree and set initial rents based on market value, and should conduct rent reviews no more often than once a year.

As Ministers will know, there are different housing markets in different parts of the country. In areas of lower demand there is not a great deal of pressure on rents, but in areas of high demand, real problems are caused by excessive rent increases. We propose that there should be an upper ceiling on any rent increases. That works well in Ireland, Spain and other parts of the world.

[Jim Shannon (Strangford) (DUP)]

I congratulate the Opposition on raising an issue in which every Member of Parliament has an interest. In my constituency, demand greatly outstrips supply, which is leading to housing problems and problems with the allocation of housing benefit. Does the hon. Lady share my concern, and that of many people outside the House, about the fact that rent arrears are causing financial difficulties and evictions? Is it not time for us to address this issue before it becomes too difficult to do anything?

[Emma Reynolds]

There are problems with rent arrears, notably in the social housing sector. Many people are, for the first time in their lives, finding it difficult to pay their rent and finding themselves in arrears because of the Government’s callous bedroom tax.

Our reforms will be good for tenants, but they will also be good for landlords, and it will be essential for us to provide the right safeguards for them. The vast majority of landlords in England are small landlords with one or two properties, and they regard their extra house as a pension pot. They are interested in the increase in the value of their property over time, and in finding good tenants who pay their rent on time and treat the house like a home. We want to work with landlords to ensure that we get the balance right, but we also feel that tenants deserve extra protection and longer-term tenancies.