Renters’ Rights Bill

Joe Powell Excerpts

Wednesday 9th October 2024 Commons Chamber

[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

May I start by thanking the Minister for Housing and Planning, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), for meeting me over recess to discuss the Bill. I know that he will be closing the debate later today.

I am afraid that one consequence of the Government’s prioritisation of this Bill is that, because my Committee has no members, I cannot yet speak as its Chair, but I very much look forward to doing so, and I thank the House for electing me to this important role.

The Bill is of great importance to many people in my Vauxhall and Camberwell Green constituency and to millions of renters across the country. Too often they feel the sharp end of a market that is not working for them. They can suffer inflation-busting rent rises under the threat of eviction. They can end up waiting far too long for repairs to serious problems. Data from Shelter highlights the fact that almost one in three households in my constituency lives in the private rented sector. In 2001, the number of households in private rented accommodation was 8,129. By 2021, that figure had increased to more than 13,178—a staggering 62% increase in just 20 years.

We have spoken about affordability and rent increases. This issue is pushing so many people into debt and putting them at risk of homelessness. According to Shelter, the average monthly rent in August 2024 in England was £1,327, but the figure for Lambeth is almost twice the national average at over £2,210. We all know that wages are not rising in line with this increase. The reality facing many private renters today is that they can be evicted with only two months’ notice, often needing to find thousands of pounds to cover moving costs and deposits on a new property.

We have touched on the fact that most private landlords are good. The majority of them are providing a good service, and they play an important role in our housing ecosystem. The majority of them take their responsibilities seriously, but for far too long a minority of rogue landlords have been able to exploit loopholes in legislation to treat tenants in a frankly unacceptable way. The Bill must put an end to that, and provide tenants with the certainty and security they deserve.

In 2019, when I first stood for election, the Conservative manifesto promised to end no-fault evictions, yet half a decade later, renters are still desperately waiting for a fair deal and they cannot afford to wait any longer. I think about the emails that I have received since the start of the cost of living crisis, with constituents facing rent rises of between 20% and 30%. One constituent even emailed me to say that their rent had doubled in just one year. They said:

“I am a private renter. I’m particularly concerned about unfair rent increases. I am 47 and have lived in the same area for most of my time in London, but despite the huge amount of properties that have been built in the area, none is affordable to buy and few are affordable to rent.”

He goes on to say:

“I rent privately and my rent has been increasing faster than my salary. At this point in my life, things should feel more secure. If you want to truly end no-fault evictions, you need to address extortionate rent increases which are as good as an eviction for many.”

I know that many colleagues across this House have received similar emails, which highlights why this Bill is so badly needed.

It is critical that the Government act urgently on this matter, so I welcome the speed with which they have delivered this Bill to the House. It shows how seriously they take the private rented sector. Although this Bill is similar to the Renters (Reform) Bill, which was introduced under the previous Government, there are a couple of important differences that further improve the offer to private renters.

The raising of maximum fines in multiple areas, such as discrimination against those with children or those who are on benefits, is a step in the right direction, although the Renters’ Reform Coalition has called for an even larger fine to act as a proper deterrent. I hope the Secretary of State will take that on board.

The introduction of clause 55 outlawing rental bidding is also important. Since the general election in July, I have been contacted by tenants who are facing bidding wars. A person is told that they are going to view a rental property, and then, when they turn up, they are told that 45 other people will be viewing it with them and that the property will go to the highest bidder. That is just unacceptable.

I also welcome the extension to the protected period for no-fault eviction grounds and the required notice periods where these grounds are used.

[Joe Powell (Kensington and Bayswater) (Lab)]

Does my hon. Friend agree that one of the unintended consequences of section 21 is that people often do not report damp and mould or the repairs that they need for fear of eviction, because they will be pushed into finding a new tenancy, which they simply cannot afford?

[Florence Eshalomi]

I thank my hon. Friend for that intervention. That is really important. I give credit to the previous Government for Awaab’s law, which tackles the problems of damp and mould in the social housing sector, but it is vital that we have the same protections for private tenants who, frankly, live in squalor. We have seen emails from people talking about black mould. That is not acceptable. Housing benefit is being paid for those properties. We need to make sure that tenants are renting the right properties.

The Bill will increase security for tenants, and help deal with those big deposits that they have to save for. However, as some colleagues have highlighted, the success of the measures in this Bill will come down to enforcement. In its report on the previous Government’s Renters (Reform) Bill, the predecessor Levelling Up, Housing and Communities Committee found that measures making it easier for tenants to challenge rent rises in a first-tier tribunal could increase the workload of our justice system. We all know that our justice system is struggling under the backlog, and that backlogs are far too common. It is critical that the Government’s good intentions do not result in a system that tenants simply cannot access because of those lengthy backlogs. We cannot send tenants to tribunals if it ends with them being further frustrated by the judicial system. Will the Minister please tell me what work is under way to ensure that the tribunals are ready for this change in the law and can cope with the increase in cases?

The previous Committee also warned that levels of implementation could vary massively between different councils. The large number of landlords in this country can make enforcement in the sector quite challenging, particularly when local authority finances are so stretched. Although the introduction of the private rented sector database will help, we could see unscrupulous landlords fall through the cracks if there is not stringent enforcement by councils. The Bill will place new regulatory powers and enforcement responsibilities on local authorities.

The Minister is well aware that our councils are facing significant funding pressures. The Local Government Association reports that due to inflation, wage pressures, and cost and demand pressures, English councils face a £2.3 billion funding gap in 2025-26. What steps is the Minister taking to work with councils to ensure that there is sufficient enforcement of this legislation and that councils are properly resourced to carry out their new responsibilities effectively?

Finally, will the Minister please confirm whether the housing ombudsman will run the new private rented sector ombudsman, so that tenants can access justice in disputes? When I met the housing ombudsman, he mentioned that a number of cases that were brought before him were allowed when an appeal was made, so there is already failure at a local level. We also have to consider the fact that so many private renters are afraid to challenge their landlord because of the fear of eviction. We need a strong ombudsman to help them get the justice that they deserve.

I look forward to working with the Minister as this Bill progresses through Parliament. I hope that he will address the points I have made and ensure that we have a sector that works with our tenants, recognising how much they pay, and provides them with security, so that they no longer have to fear being evicted through no fault of their own. Thank you.

--- Later in debate ---

[Joe Powell (Kensington and Bayswater) (Lab)]

It is a great privilege to follow that excellent speech. The Renters’ Reform Bill is potentially transformative for Kensington and Bayswater, as it is for the whole country. Nearly 45% of my constituents are now private renters—a huge increase in the last decade and now the biggest tenure type by some distance. Those renters pay the highest rents in the country: an average rent of £1,600 per person. A rental property in my constituency now averages £3,400 a month.

Yet despite the fact that those renters pay an increasing proportion of their take-home pay each month in rent, I have been inundated since the general election with cases of constituents facing the major challenges that colleagues have already highlighted—section 21 evictions, damp and mould, slow repairs, unaffordable rent hikes, bidding wars and a feeling of insecurity and lack of power that never leaves a person under the current rules.

I think of my former constituents Jean and Jack Franco, who lived with their mum in a rental flat in north Kensington. After eight years of never missing a rent payment, they were served a section 21 notice by an anonymous overseas landlord and given just weeks to leave. All their attempts to challenge the decision and engage the landlord failed. Their request for just a few more weeks to find a new home was denied. The council were unable to help them, so Jack and Jean had to leave with their mum for a new part of London as rents in my constituency are so unaffordable.

The letting agent told the Francos that the owner wanted to sell the property, but today that property is still being rented out, but at twice the rent that the previous family were paying—a back-door eviction by an anonymous landlord that this Bill would have stopped. I also think of the constituents who I met, along with the Deputy Prime Minister and the Minister, around the table in north Kensington; they could not even bring themselves to report the challenges with the condition of their flats for fear of a section 21 notice that could leave them on the streets, sofa surfing or scrambling for temporary accommodation. This renters’ Bill is also for them. I want to focus on one critical area of implementation, the landlord register, which is a huge opportunity to give renters, landlords and local authorities the information they need to ensure that standards are upheld and new rights can be enforced. I note here my entry in the Register of Members’ Financial Interests, because I have worked on a number of new government registers in recent years, including the public register of beneficial ownership and the register of overseas entities. It is crucial to design them in a way that is as transparent as possible and does not create loopholes.

I ask the Secretary of State and the Minister to look at the detail of what will be in that register, including landlord and agent contact details, details of past enforcement action, eviction notices, safety information, information about accessibility and the rent being charged. If we include all those things, we will have a genuinely useful register that will promote accountability and genuinely drive up standards.

This game-changing Bill should also not be seen in isolation. The most exciting thing about today is the Government’s commitment to attacking our housing crisis from multiple angles: planning reform to build 1.5 million new homes, including the biggest increase in social housing in a generation; learning from Grenfell, and speeding up the remedial work up and down the country; accelerated implementation of the Social Housing (Regulation) Act 2023, including Awaab’s law; a new decent homes standard for social and private housing; a crackdown on dirty money in luxury property; and an end to the feudal leasehold system. This is a comprehensive—

[Madam Deputy Speaker (Caroline Nokes)]

Order. The hon. Member will know that there was a time limit, on which he is beginning to stretch my patience.