Private Rented Sector

Jim Shannon Excerpts

Thursday 9th February 2023 Commons Chamber

[Mr Betts]

We did not specifically look at that, but my hon. Friend makes a very good point. We made the following recommendation: the Government propose one housing ombudsman for landlords, and a separate housing ombudsman, or system of mediation, for agents, but why cannot we bring those together, and have just one private rented sector ombudsman, covering landlords and agents?

[Jim Shannon (Strangford) (DUP)]

I thank the Select Committee and its Chair for their report. Private rents are rising dramatically—by as much as 35% or 40%, in some instances of which I am aware. For many renting in the private sector, that means that they could well be evicted. Tenants are betwixt a rock and a hard place. Did the Select Committee consider whether agreements should contain a proviso that would protect tenants from undue rent increases and the alternative of council accommodation?

[Mr Betts]

The issue of rent in the private rented sector is clearly important. We did not propose any change relating to the first time a tenancy is let, but we recognise that there must be some mechanism for agreeing rent increases once the tenancy is let. Otherwise, landlords could simply jack up the rent to an extortionate amount to get a tenant out. The Government propose letting landlords suggest increases, and tenants going to tribunal if they do not agree with them. We do not know why the Government resisted the proposal that there be built-in clauses in tenancy agreements—many agreements have such a clause—that say that rents can go up by a certain amount each year. The agreements could also include a break clause, so that there could be a reassessment every few years. Otherwise, we may find that the tribunal system, like the court system, gets completely overloaded. That would be another unintended consequence, which we want to avoid.