Renters (Reform) Bill

Debate between Karen Buck and Jacob Young

Report stage
Wednesday 24th April 2024 Commons Chamber

[Jacob Young]

I commit to working with the Chair of the Levelling Up, Housing and Communities Committee, and indeed with all Members of the House, to ensure that the decent homes standard provides for decent homes of the kind that he describes.

This is the first time we have applied the decent homes standard to the private rented sector, and we have to get it right. In order to target the minority of unscrupulous landlords, in Committee we also gave stronger powers to local councils, and we strengthened rent repayment orders. That will help to ensure effective and proportionate enforcement of the new system.

Let me turn to the Government amendments that we have tabled on Report. They respond to concerns from Members, constituents, and tenant and landlord groups, ensuring security for tenants while giving confidence to good landlords and supporting the private rented market. Several Members from across the House have played a direct role in helping us to ensure that the Bill works as effectively as possible for all those who live and work in the private rented sector. I of course include in that my hon. Friends the Members for Totnes (Anthony Mangnall) and for Northampton South (Andrew Lewer) for their continued engagement and constructive dialogue on the measures in the Bill.

[Ms Karen Buck (Westminster North) (Lab)]

I am listening to the Minister carefully. From his contribution, we would not think that there was any controversy at all about the position we have got to with the legislation. If everything is so wonderful, why have all the key housing charities and organisations in the field withdrawn their support for the Government?

[Jacob Young]

They have not withdrawn their support. I accept their disappointment with some of the amendments tabled on Report, but they have also endorsed some of them, including one that I know is very close to the hon. Lady’s heart in relation to expanding the homelessness prevention duty, which has the support of organisations such as Crisis, the homelessness charity. We will continue to work with everyone across the sector to ensure that the Bill is effective when it goes to the other place.

Turning to the amendments, I will address them thematically, starting with our tenancy reform measures. Government new clause 15 will ensure that a tenant’s notice to quit cannot expire within the first six months of the tenancy unless the landlord has agreed that it can expire sooner, thus increasing the amount of time a tenant must remain in a property at the start of the tenancy from two to six months. The change ensures that landlords are able to recover the costs of replacing tenants and will prevent tenants from using PRS properties as short-term or holiday lets.

Once the six-month initial period of commitment has ended, the tenancy will continue as a normal periodic tenancy, so after the six-month period tenants will need to give only two months’ notice. That ensures that tenants will retain the flexibility to end tenancies when their circumstances change or when a landlord does not fulfil their responsibilities. This measure strikes the right balance between providing landlords with the confidence they need to operate within the PRS and ensuring a fairer, simpler tenancy system.

In addition, the Government are exploring potential exemptions to the rule, such as the death of a tenant, domestic abuse or significant hazards within the property. Today I met the Domestic Abuse Housing Alliance to reaffirm our intention on the exemption and make clear that victims of domestic violence will be better protected by these reforms.

Government amendments 239 and 240, which I have just mentioned to the hon. Member for Westminster North (Ms Buck), will give tenants certainty that the homelessness prevention duty will be owed when a valid section 8 notice is served. I pay particular tribute to my hon. Friend the Member for Harrow East (Bob Blackman) for his contributions on this topic, ensuring that his landmark Homelessness Reduction Act 2017 continues to be effective. The prevention duty will apply where the date specified in the notice is within 56 days and the duty may not be ended simply because the 56 days has passed. This means that households can continue to receive support while the threat of homelessness remains. Mindful that that will broaden the scope of the prevention duty, we will carry out a new burdens assessment and provide funding for local authorities for any additional costs.

Alongside expanding the homelessness prevention duty, let me take this opportunity to restate our position on another important issue. The statutory homelessness code of guidance, which local authorities must have regard to, states that authorities should not consider it reasonable for a homeless applicant to remain in the property until a court issues a bailiff warrant or writ to enforce a possession order. We have heard anecdotal evidence that some local authorities are encouraging tenants on a blanket basis to remain in a property until the bailiffs are at the door. That is wrong. Doing so creates further delays in possession, penalises landlords, who have a legal right to their property, can be stressful for the tenant and, in the long run, is not beneficial for them at all. The guidance is clear on the importance of early prevention: authorities should contact landlords at an early stage to understand the circumstances of an eviction and establish what steps can be taken to prevent homelessness.

The Government are also working to ensure that families can move out of temporary accommodation and into stable accommodation, as well as reducing the need for temporary accommodation by preventing homelessness before it occurs in the first place. That is why we are investing more than £1.2 billion in the homelessness prevention grant over the next three years, including a £129 million top-up for the homelessness prevention grant for 2024-25, as part of an unprecedented £2.4 billion to tackle homelessness and rough sleeping.

It is expected, furthermore, that the £1.2 billion local housing fund will enable councils in England to obtain better-quality temporary accommodation for those owed a homelessness duty, providing a lasting affordable asset. It is expected to provide around 7,000 homes by 2026, to ease local homelessness pressures, reduce spending on unsuitable bed and breakfast accommodation and provide safe and sustainable housing for local communities.

Government amendments 64 to 75 extend the restrictions on re-letting and marketing a property following the use of the moving in and selling grounds to cover licences to occupy as well as tenancies. This will mean that landlords and people acting on their behalf, such as letting agents, will be prohibited from letting or marketing a property as a short-term or holiday let following the use of those grants. I thank my hon. Friend the Member for North Devon (Selaine Saxby) and the hon. Member for North Shropshire for raising this matter in Committee. The change closes a loophole in the no re-letting period and helps to ensure that the balance between long-term and shorter-term lets remains stable.

I turn now to Government amendments to the possession grant, starting with the student market—I know this is an issue close to the heart of my hon. Friend the Member for Loughborough (Jane Hunt). As I have said, in Committee the Government introduced a new ground for evicting full-time students, to maintain a yearly churn of student housing. Since introducing that ground, we have heard concerns that the ground would not apply when students are living in smaller properties or in houses of multiple occupation on individual contracts.

Government amendments 226 to 228 expand the circumstances in which the student ground can be used. Landlords will be able to ensure that properties rented to students, whether they are living individually, in pairs or in larger shared housing, will be vacated in the summer, as long as all the tenants on the tenancy agreement are students. To protect tenants, we have strengthened the requirement for landlords to provide notice to the tenant at the outset of the tenancy that the ground may be used to evict them. Possession will not be possible using this ground unless written notice has been given by the landlord at the beginning of the tenancy.

Government amendment 158 will extend ground 1B to allow social landlords to re-let their property to a different tenant on rent-to-buy terms, protecting the supply of such properties. The grant will be available only after the sitting tenant’s discounted rent period has ended and they have been offered the chance to purchase the property. I thank the National Housing Federation for raising this issue.

Government amendments 175 and 184 insert a new possession ground 5H into schedule 2 to the Housing Act 1988, which will allow private registered providers of social housing and charities to continue to operate schemes sometimes known as stepping-stone accommodation. We are keen to support those schemes, which help those who have struggled to access the private rented sector, and I am grateful to Centrepoint and the Mayor of the West Midlands, Andy Street, for drawing that point to my attention. I thank Andy Street for all he is doing to support such organisations.

Government amendments 198 and 199 and new clause 29 serve to replicate an existing mechanism that allows landlords of qualifying agricultural workers to provide assured shorthold tenancies rather than more secure assured agricultural occupancies. The amendment was the main ask of the Country Land and Business Association and is vital to maintaining the supply of homes for rural workers by protecting the status quo. It will ensure that opted-out agricultural occupancies under the old system will continue to be opted out when they transition to the new tenancy system.

Leaseholders have raised the issue that many leaseholder agreements restrict sub-letting on assured shorthold and fixed-term tenancies. Amendments including Government amendments 160 to 164 and new clause 13 will address that ask by ensuring that sub-leases made under those agreements can continue unabated under the new tenancy system and that new agreements can be made if they were previously permitted. We have drafted the provisions very carefully to ensure that superior landlords and leaseholders have corresponding rights and responsibilities, as they did under the previous system.

Government new clauses 18 to 24 extend to Scotland the provisions outlawing blanket bans on letting to tenants in receipt of benefits or with children, in consultation with the Scottish Government. They do so in a broadly similar way to those in England and Wales, with adjustments to align with the Scottish enforcement framework, demonstrating a cross-nation commitment to tackling discrimination in the private rented sector.

In part 2 of the Bill we have made technical amendments to our redress clauses, including ensuring that the PRS landlord ombudsman can co-operate with other dispute resolution services. The amendments will ensure that the ombudsman operates effectively. Although no final decision on the ombudsman provider has been made, our amendments would also allow the housing ombudsman service to effectively administer private landlord redress alongside social redress.

A key driver in having a single ombudsman to resolve private landlord-tenant disputes is making the service simple to use. I reiterate to hon. Members that the Government are absolutely committed to minimising costs and streamlining new requirements for landlords. Our ambition is that fees for the PRS landlord ombudsman will be low cost and will represent value for money for landlords, similar to those for the housing ombudsman, where membership costs for social landlords were just £5.75 per unit in 2023-24. I also reaffirm our commitment to aligning the ombudsman and property portal, with the ambition being that landlords will need to input their details only once in order to be compliant with both services.

Let me turn to enforcement of the new system. We introduced measures in Committee to ensure that all landlords involved in criminal rent-to-rent arrangements can be held to account, including superior landlords where they are aware of illegal activity. Government new clause 32 ensures that superior landlords are liable for the Housing Act 2004 offences of failing to hold the correct licence for a property. Government new clause 33 seeks to ensure that landlords and superior landlords can, where appropriate, be served with improvement notices requiring the removal of hazards. Those changes close loopholes, ensuring that local councils can continue to hold the correct landlord to account to ensure that their properties are safe and well managed.

Renters (Reform) Bill (Tenth sitting)

Debate between Karen Buck and Jacob Young

Committee stage
Tuesday 28th November 2023 Public Bill Committees

[Jacob Young]

The hon. Member is trying to press me for a specific timeframe, but I am unable to give him that commitment today.

I thank the hon. Member for Greenwich and Woolwich for tabling new clause 60. The tragic case of Awaab Ishak’s death has thrown into sharp relief the need for the Government to continue our mission to rebalance the relationship between landlords and tenants in this country. It is right that all tenants across both sectors should expect safe and decent homes from their landlords. However, our focus for the private rented sector is to strengthen the enforcement of standards by local housing authorities, as well as introducing new means of redress through the PRS ombudsman.

We do not consider it to be of interest to private rented sector tenants to introduce a further route for potential litigation and enforcement. Private tenants already have rights when it comes to repairs in their home and the safety of their home. Private landlords are required to make sure that their homes are free from the most serious health and safety hazards. If hazards are present, the local housing authority can issue an improvement notice requiring them to be remedied within a specific time. Landlords who fail to comply can be prosecuted or fined up to £30,000. Additionally, if tenants consider that their rented home is not fit for human habitation, they can seek remedy through the courts under the Homes (Fitness for Human Habitation) Act 2018, to which the hon. Member for Greenwich and Woolwich referred.

Our focus is on strengthening the new system through the Bill. As I have just set out, we intend to introduce a decent homes standard in the private rented sector for the first time. The Government’s amendment to introduce the relevant provisions will place a stronger duty on landlords to keep their properties free from serious hazards, and allow local housing authorities to take enforcement action if private rented homes fail to meet decent homes standards. Through the Bill, we are also introducing a private rented sector ombudsman, which will be able to help private tenants to resolve repair issues quickly and for free if their landlord has not acted appropriately to remedy an issue within a reasonable timeframe.

Through existing legislation and new measures introduced by the Bill, private rented sector landlords will be held to account for providing safe and decent homes, and for providing timely repairs. We do not consider that it would be in the interest of private rented sector tenants to introduce a further route for potential litigation.

[Ms Karen Buck (Westminster North) (Lab)]

Before the Minister sits down, will he deal with the issue of licences? Those of us who deal with a large number of people in homeless accommodation know that those in temporary accommodation, whose accommodation is held under licence, often endure the worst conditions of all, and very little of this legislation currently applies to them. Will he bring something forward?

[Jacob Young]

I am happy to have that conversation with the hon. Lady and the hon. Member for Greenwich and Woolwich at a later date. If there are specific points that I have not addressed, I am happy to write to her, but I ask the hon. Member for Greenwich and Woolwich to withdraw the new clause.

Renters (Reform) Bill (Ninth sitting)

Debate between Karen Buck and Jacob Young

Committee stage
Tuesday 28th November 2023 Public Bill Committees

[Jacob Young]

I am not in a position to give an example today. If an example comes to mind, I shall write to the hon. Gentleman with it.

[Ms Karen Buck (Westminster North) (Lab)]

I just want to press the Minister on this point. It is right that there is an issue about balance, but by asking the Committee to accept that the detail will be brought forward in regulations—without our having any idea of where the balance might lie and what kind of exceptions we are talking about—the Minister is asking us to approve the clause rather in the dark.

[Jacob Young]

I reject the suggestion that the Committee is being asked to approve the clause in the dark. Obviously, any regulations will come before the House will be debated at that time. These things could breach someone’s human rights or affect their ability to protect their own data, therefore it is right that we properly consider them once we know what the portal actually looks like, and we have information recorded on it and so on.

I encourage the hon. Member for Brighton, Kemptown to withdraw his amendment. A landlord’s national insurance number or date of birth, for example, is key information that should remain private to a landlord and is not necessarily for tenants’ viewing. I respect the hon. Member’s points and the issues that he raised; as I say, we will consider them fully when we come to make regulations after Royal Assent.

Renters (Reform) Bill (Seventh sitting)

Debate between Karen Buck and Jacob Young

Committee stage
Thursday 23rd November 2023 Public Bill Committees

[Ms Karen Buck (Westminster North) (Lab)]

I want to press the Minister on his thinking and on the motivations for widening ground 14 in respect of antisocial behaviour. I support the hon. Member for North Shropshire and my hon. Friend the Member for Greenwich and Woolwich.

There is a continuing theme of the Government looking at this world as they want it to be, rather than at the rather messier reality. In respect of private tenancies, it is a world that they have quite deliberately created. No one likes being exposed to any form of antisocial behaviour or inconvenience. Some antisocial behaviour can literally ruin lives. Many of us will have dealt with casework relating to harassment; stalking; deliberate making of noise at antisocial hours; people running small businesses in flats, which can create noise; behaviour arising from the often illegal use of accommodation for short lets; people stealing post; and abuse, including homophobic and racist abuse. All those things can occur, and they can be extremely damaging to people’s lives.

One of the problems, which my hon. Friend addressed, is that these things are often not dealt with not because the threshold is too high for such cases, but because, in many instances, it is extremely difficult to gather the evidence. People are often extremely reluctant to act as witnesses and support evidence, and a lot of evidence is one-on-one and, to some extent, highly subjective.

Managing antisocial behaviour requires landlords to be part of the solution, and it is completely right that we are encouraging the consideration of that. Social landlords spend considerable time and resource trying to do that, with varying degrees of effectiveness, but in the private rented sector—with honourable exceptions—that often simply does not happen. The reduction in the threshold that the Government are proposing will make it even easier for landlords to choose to go down an eviction route or to hold the threat of eviction over the heads of households, in such a way that they themselves do not have to take a great deal of responsibility.

The Government must anticipate consequences from their change to the definition, or one would like to think that they would not have done it, but we need the Minister to spell those consequences out. Obviously, we must expect that more people will risk eviction for behaviour that is below the current threshold; that is a consequence almost by definition. In how many instances do the Government think that is likely to apply? Who might be affected by it, and under what circumstances not currently covered by legislation? What will happen to people who are at risk of eviction with a lower threshold?

[Jacob Young]

Does the hon. Lady accept that we cannot possibly know those figures? At the moment, landlords have the ability to use section 21 to remove tenants who are causing repeated antisocial behaviour. We are removing section 21, so we cannot possibly know what the impact will be.

[Ms Buck]

If the Minister is going to propose a change to the law, it is incumbent on him to have some indication of what the implications might be; otherwise, I am not sure why the Government would make the change. I do not understand that argument at all. It might be difficult to provide quantified figures, but the Minister has a duty to present to the Committee a sense of the type of instances that the change will apply to so that we can have some idea why it is necessary.

--- Later in debate ---

[Jacob Young]

Let me put to the hon. Lady—this goes to a point that the hon. Member for North Shropshire made earlier—what Grainger has said in evidence to the Committee:

“We welcome the strengthening of anti-social behaviour grounds for possession, which has been of particular concern to us previously.”

Does the hon. Lady not accept that that, in and of itself, is reason enough to proceed on this ground?

[Ms Buck]

I have a very large Grainger development in my constituency, and it is not an issue that has come to me at any scale. Obviously—the Minister is right—landlords are likely to want these powers. Of course, if a landlord is able to circumvent the abolition of section 21 by using powers of eviction in other ways, at a lower threshold or with a lower evidential base, then they are going to want to do that.

We are saying that a balance has to be struck between the genuine need to deal with serious antisocial behaviour and the consequences of that. It will mean additional pressures on households, on local authorities, which inevitably end up having to deal with the consequences of it, and indeed on the courts, which will be expected to make judgments with a much looser and more nebulous definition of antisocial behaviour. I am not sure that the Minister’s argument works there at all.

--- Later in debate ---

[Ms Buck]

I absolutely agree. The sword of Damocles is hanging over the heads of lots of people just living a fairly ordinary life. Families with special needs children are a particularly high-risk category. A woman and her representative came to me recently to say that her current property is unsuitable. She lives with her non-verbal autistic 19-year-old son, and they have occupied the property for over 20 years. As her son has grown older, he has displayed more challenging behaviours, in line with those often associated with autism. The family has been subject to several complaints from neighbours in relation to the noise being made, but the mum states that it is near-impossible to have full control over her son, due to his increasing support needs.

There is one other category the Minister needs to address, which is what we do about families who have already been evicted from social housing. Clearly, families cannot be on the street. Getting landlords to provide accommodation to households in those cases is essential, but already extremely difficult.

[Jacob Young]

Is the hon. Lady suggesting that landlords should be forced to house tenants that were committing antisocial behaviour, simply because they have been removed from social housing?

[Ms Buck]

Of course I am not suggesting that landlords should be forced. I am saying that a balance needs to be struck. As I have said several times, the Minister is completely failing to recognise that the Government have chosen to use the private rented sector for housing, at scale, households who previously would often have been provided with social housing and supported. The Government have to recognise the consequences of that. There has to be proper provision in law. The abolition of section 21 is part of that, but as we keep arguing, by taking away other safeguards in the legislation, the Government are undermining something that we regard as very positive.

The proposed change will lead to more evictions at a lower threshold; it will lead to families leaving their property before going to court, as my hon. Friend the Member for Greenwich and Woolwich says; it may lead to landlords actively avoiding tenants who may pose a risk; and it will lead to more applications to local authorities, which will then have to source more temporary accommodation, inevitably in the private rented sector, to house them.

The Minister has to ensure that there is a proper backstop. If the Government want to house people—particularly those with vulnerabilities and families—in the private rented sector at scale, as they do, getting the balance right is essential. The weakening of legislation in this respect is one way in which they are failing to do that.

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[Jacob Young]

I do not believe that it does, but I will write to the hon. Gentleman to clarify. Turning back to what I was saying, it asks judges to give particular regard to the effect of antisocial behaviour on other tenants within houses of multiple occupation, which the hon. Gentleman had mentioned.

[Ms Buck]

Will the Minister clarify that, if the courts found grounds to evict a tenant under this lower threshold—without certain circumstances, such as special needs, mental health, and so on—would a local authority find that household to be intentionally homeless?

[Jacob Young]

I will write to the hon. Lady and other hon. Members to confirm the status of that issue—I appreciate that question was raised in the last sitting as well. As I was saying, with houses of multiple occupation, it will make it—

Renters (Reform) Bill (Sixth sitting)

Debate between Karen Buck and Jacob Young

Committee stage
Tuesday 21st November 2023 Public Bill Committees

[Ms Buck]

I really do hope that the Minister will concede on this point. One of the striking themes that emerged in the evidence sessions was just how little we know about what is happening in the private rented sector. It is to the shame of the Government, and probably even the previous Government, that this massive transformation in the life of the country and throughout the housing stock, which is affecting millions of people, has happened without us having accurate data to assess the impact. We are struggling to catch up in so many respects.

We will no doubt be talking more about the changing grounds for possession in the context of antisocial behaviour and rent arrears but as has been reinforced—we just need to keep saying this—the people in the private rented sector who we have the most concern about are those whose equivalents were not in the private rented sector 20 or 25 years ago. Their patterns of need, the patterns of demand they place on the sector and the risks they have to face are also quite different.

Families with children, families experiencing domestic violence and those with all kinds of vulnerabilities, including serious mental health problems, addictions or learning disabilities, would for the most part not have been in this situation before, but they are now having to be accommodated. It is not only that they are in the private rented sector in a way that they were not before, and are at risk, but that they are disproportionately impacted by harsh decisions that cause them to lose their homes. They face a higher risk and are worst affected.

I do not know whether all Members have experience of this, but any Member of Parliament with a larger private rented sector will be experiencing the consequences and will have traumatised families coming to them with problems who will perhaps be facing eviction and be in distress. That is often for completely trivial reasons or because of circumstances that arise simply out of misunderstandings or the failure of the bureaucratic and social security systems to catch up.

It is the most basic and sensible thing to do to ensure that there is a proper data review and that we make up for the fact that we have spent several decades now trying to understand a system about which we have too little information. The Minister has a chance to put that right.

[Jacob Young]

I thank the hon. Member for Greenwich and Woolwich and other hon. Members who have spoken on amendment 137 and new clause 54. We all agree that it is vital that the Government keep such an important set of policies under review. We must ensure that the grounds for possession are providing adequate security to tenants and functioning effectively for landlords, too.

We are committed to robustly monitoring and evaluating the private rented sector reform programme. Our impact assessment for the Bill, which has been published online, sets out our plans for evaluation. That builds on the Department’s existing long-term housing sector monitoring work, and we will conduct our process, impact, and value for money evaluation in line with the Department’s recently published evaluation strategy. Setting an arbitrary deadline in law for that work might detract from the quality of evaluation and prevent us conducting as robust an assessment as possible. I therefore ask the hon. Member to withdraw his amendment 137.

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[Ms Buck]

I absolutely agree. It is an issue for the self-employed; the very small businesses operating at the margin; the people who, because of the structure of our labour market, dip in and out of employment and have highly variable earnings; and the people who are on zero-hour contracts. It is exactly those people who end up in difficulties. It would be lovely if the system had the competency and level of provision to help those people, but all too often it does not. Many young people and vulnerable people—for instance, after a relationship breakdown or a bereavement—do not know where to go for advice. They try to help themselves and fail to do so.

Ground 8A is both disproportionate to the scale of the problem and unnecessary, because there are powers in the system to deal with rent arrears anyway. It will inevitably lead to further evictions, which will be concentrated among those people who have the biggest problems, who will end up making claims for homelessness support from local authorities.

The Minister does not need to go down this route. As my hon. Friend the Member for Greenwich and Woolwich said, if the Government do not want to go all the way to removing the reformed ground 8A, which would be the simplest way, there are layers of protection that could be built into the system. The Minister should trust the courts: that is what they are for. They are good at this, they are experienced at this, and they know how to tell a charlatan from somebody with genuine and complex problems. The measure will place an unnecessary burden on the most vulnerable people, and I genuinely believe that the Minister will have cause to regret its implementation.

[Jacob Young]

I think we can all agree that it is better for a tenancy to continue where possible, and we encourage landlords and tenants to work together when rent arrears arise. However, sometimes a tenancy cannot be sustained, and in such instances it is right that landlords have certainty. Ground 8A is intended to support landlords when a tenant is repeatedly falling into serious arrears. It will also prevent tenants from repeatedly paying down a small amount of arrears to frustrate possession proceedings brought on ground 8.

[Ms Buck]

As this point was raised with the Minister, can he share with the Committee the statistics that demonstrate the scale of that problem?

[Jacob Young]

I shall endeavour to write to the hon. Lady with such evidence, if there is any.

The Government have set a high bar for the ground. Tenants must fall into serious arrears three times within a rolling period of three years, which is already a significant financial burden for landlords to bear, particularly at a time of rising costs in the sector. Amendments 153 to 156 and 180 seek to narrow the ground. They propose that each instance of arrears must last two weeks, rather than one day, and must fall within a one-year period. That is simply too high a financial cost to ask landlords to bear. It would severely limit the availability of the ground.

The ground must also remain mandatory. As the Committee has heard, there is already a discretionary ground, ground 11, for persistent delays in rent payments, but that does not offer certainty to landlords. Ground 8A is intended to give certainty to all parties: a defined threshold that can lead to eviction. We therefore think that the ground strikes the right balance. I ask that the hon. Member for Greenwich and Woolwich withdraw the amendment.

Ordered, That the debate be now adjourned.—(Mr Mohindra.)

Renters (Reform) Bill (Fourth sitting)

Debate between Karen Buck and Jacob Young

Committee stage
Thursday 16th November 2023 Public Bill Committees

[Ms Buck]

Short answers are fine.

Simon Mullings: We are lucky because we have had very recent statistics. The timescales for the various stages of possession and litigation are exactly as they were in 2019, when this Bill started its slow journey to where we are today. There is no doubt that there is a need to improve processes through the courts. What we have at the moment is an extremely good network of county courts, with a very evolved set of civil procedure rules that deal with possession claims very well. What we lack is resources for the county courts for both the physical estate and the personnel in the court to be there to provide the sort of first-class service that you would like to see in possession cases.

HLPA members have been campaigning on court reform and improvements to the court system since around 2015 or 2016, so we are all for it. I echo what Shelter’s director said earlier in the week: it is so important that we move forward with the Bill and the abolition of section 21, which is a key driver of homelessness and of misery, particularly for families with children in schools, who want the stability of knowing that the children can go to the local schools. Section 21 is also a driver of rent increases in various ways—I am telling you things you all know. I do not think there should be any further delay whatsoever.

Giles Peaker: I do not think it is necessary. I am reluctant to think that the process of legislation should be based on whether the courts are functioning as they should be. I agree with Simon: the actual process of possession proceedings is probably one of the quicker processes within the county courts at the moment and is fairly well honed. I would add that the current time from issue to a possession order under the accelerated possession proceedings—an “on the papers” process, without a hearing—is roughly the same as under the section 8 process with an initial hearing. There is no great time lag for the section 8 process as opposed to accelerated possession proceedings. Most possession claims will go no further than first hearing—if there is no defence, that is it. There would not be such a significant impact on the courts’ functioning to make this a concern that should cause further delay.

[Jacob Young]

Q We heard evidence this morning that suggested that the courts are currently overwhelmed and that the abolition of section 21 would increase contested cases. That is not your assessment?

Giles Peaker: I do not see that it would necessarily increase contested cases. It would inevitably involve the process that leads to an initial hearing—those are 10-minute hearings on a list day. I really do not see why it would increase the number of contested hearings, because unless there is a defence, the possession order is highly likely to be made at the first hearing. On at least some of these new grounds, if the ground is made out, there is no defence. So I am unsure of the amount of additional burden.

Liz Davies: I think that is the point. Currently, under section 21, landlords can get possession on the papers. There is no court hearing: the papers go in; the tenant has the right to respond; the district judge considers on the papers whether or not there is a defence. If there is no defence, the possession order is made; if there is a defence, it is put over to a hearing. Once section 21 is abolished, the starting point is that there will be a five or 10-minute hearing, which is usually about eight weeks after issue. That is about the same period of time as for the paperwork procedure I just described. At that hearing, the question for the court is, “Is the case genuinely disputed on grounds that appear to be substantial?” That is set out in the rules.

The great thing about that hearing is that there are housing duty solicitors at court. If a tenant does not have legal advice or advice from a citizens advice bureau beforehand, they turn up and talk to a duty solicitor—I am sitting next to one of them. Duty solicitors give realistic advice. If there is a defence—if the landlord has got it wrong—the duty solicitor will go in front of the court and say, “Actually, there is a defence,” and it gets adjourned for a trial, and that is right and proper. But if there is not a defence, the duty solicitor will say, “I’m sorry, there is absolutely nothing that can be said legally to the court,” and a possession order will be made.

One of the important things about advice, and indeed early advice, is that tenants get realistic advice, so they know whether they have any realistic chance of prolonging the proceedings, and so forth. In many ways, a hearing with a duty solicitor will be beneficial to landlords, and, as Giles says, it takes about the same length of time. There is lots to be said about county courts’ efficiencies and inefficiencies, but I do not think that is the problem.

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[Ms Buck]

Q I want to ask your views on the amendment to ground 14 on antisocial behaviour. What safeguards do you think would need to be incorporated to ensure that, for example, that does not lead to vulnerable people—people with mental health problems, or those experiencing domestic violence and so forth—being at risk?

Liz Davies: The change from “likely” to “capable” is a worry. Ground 14 remains discretionary; I made the point about the wisdom of the courts, and one would hope that, where it is a case of domestic abuse, or a case of mental health, and so forth, the courts would have the wisdom to see that that person was not at fault. However, I do not see any need to reduce the threshold. If antisocial behaviour is such that a private landlord needs to get their tenant out because of the effect that that behaviour is having—usually on the neighbours but sometimes on the landlord themselves—then it is going to cross the threshold of “likely to cause”. I do not see the point in lowering it.

[Jacob Young]

Q Thanks for that, Liz. We heard evidence this morning to suggest the contrary, as some build-to-let landlords were having to evict six or seven properties because of one that was causing antisocial behaviour. I guess that the whole thread through this Bill is about creating a system that is fair and balanced. Do you think that it is fair that a landlord would have to put up with a tenant creating antisocial behaviour and would potentially have to move other tenants on because they could not get that tenant out through the court process?

Liz Davies: No, clearly that is not fair, but the current ground 14 allows for a possession order when the tenant or somebody residing in or visiting the tenant’s property

“has been guilty of conduct causing or likely to cause a nuisance or annoyance”

to other people residing, living nearby or next door, visiting, and so on. So, that test is there. There is an antisocial behaviour ground for possession. It is discretionary, but the Bill will continue it as a discretionary ground; it simply lowers the threshold by a small amount from “likely to cause a nuisance” to “capable of causing a nuisance”. I really cannot see the circumstances in which a very difficult tenant who has been causing the sort of antisocial behaviour that you have just talked about will not meet the threshold of “likely to cause” but will meet the threshold of “capable of causing”. It is a very narrow distinction.

The point is that antisocial behaviour grounds are there—they really are—and courts use them. At the moment, they are used only by social landlords because of section 21, but we can all tell you that courts are very heavy on antisocial behaviour, and it is impossible for a tenant to remain in possession unless the court is satisfied that that behaviour has stopped and will continue to stop. Courts do not allow tenants to remain in possession under the current test.

--- Later in debate ---

[Jacob Young]

Q To explore that final point you made about not charging rent having issued a notice to vacate, when someone has gone through that process, for a landlord that would mean two months of not getting rent from the property plus three months when the property could not be let again through one of the section 8 grounds. In the event that the landlord was intending to sell the property, but was unable to sell it and had to go back to market to re-let it, they will have gone five months without rent. Do you think that is fair? I appreciate that we would both agree that we want to stop bad landlords, but for a good landlord who wanted to sell their property but was unable to, is that fair, to be in the situation where they have five months’ rent withheld?

Ben Leonard: I think it is fair to place a reasonable barrier to the abuse of those grounds. These things are always a balancing act. Would it be fair for someone to have to continue paying rent while having to uproot their life and sort things out? They are not really getting what they are paying for in those two months, because those two months are spent preparing to leave, moving their children’s schools or saving for a deposit. They need to pay for all those sorts of things.

For the landlord, it comes down to the cost of doing business. Landlords make a hell of a lot of money on those properties, and I think it is reasonable that sometimes there are times when the amount of money they are getting in will dip because of such things. If it is a choice between landlords’ profits coming down for a series of months and tenants potentially being impoverished, I would choose the former.

[Ms Buck]

Q I want to ask you about the decision not to proceed with the proposal in the “A fairer private rented sector” White Paper on limiting the amount of rent that the landlord can ask for in advance. Is that an experience you found with the people you work with? You talked about frequent moves being very inconvenient, as well as extremely expensive.

Ben Leonard: Yes, absolutely. The limit on deposits was a huge step forward, but they are going by the back door, so not much has changed, because people ask for rent in advance. I can speak from my own experience: I had to pay six months’ rent in advance before moving to my current flat. A lot of the people I know and work with do, and often they are borrowing money to do it, because not a lot of people have that kind of money lying around. In a way, it is often discrimination—it is a way of saying, “Well, you might be able to afford the rent, but we don’t like the look of you. Let’s see if you can stump up this much cash up front.” It is totally unjust, basically. If you are earning enough income to pay the rent, the property should be available to you. That is the bottom line; extra barriers should not be put in the way, such as rent up front.

Bidding wars are a big thing as well. Something should be done about landlords pitting tenants against each other to drive up rents. If a landlord wants more rent for a property than it is on the market for, they should have listed it as that in the first place, because again tenants end up chasing properties for months at a time, because everything they think they can afford suddenly goes up £300 or £400 a month by the time they can actually let something. It is an absolute nightmare. Imagine you have been evicted, then you are put in a situation of rent in advance and all that. It just doesn’t work. It is a broken system.

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[Ms Buck]

Q Can we go back to the issue of illegal evictions? Roz, you said that there is a lack of data in that area, which is absolutely right. Your organisation, probably more than almost any other, has a wealth of anecdotal information about what is happening. What can you tell us about the trends and characteristics? Is there any sense that some people pursue that route because of the problems in the court system? We have had quite a lot of discussion—other witnesses may have a view on this—about the proposed delay because of the problems in the court system, and some witnesses were very clear that there are no justifications for delay. What does your experience tell us about that, and what have you picked up about the reasons for such evictions?

Roz Spencer: Thank you for asking. You heard it here first: the safer renting count, which was first established in 19—sorry, 2021; I am showing my age—established a methodology that looked at five different sources of data that could be collected on an established, reliable basis, and did not involve any significant overlap between the data points, and we have just updated those figures from 2021 to 2022. The trend between those two years is an 18% increase in reported offending under the Protection from Eviction Act 1977—so, those are illegal evictions and cases of extreme harassment likely to give rise to the loss of a home. That 18% uptick is of significant concern. I have no evidence to suggest that the performance in courts has had any bearing on that, and I would be surprised if it had.

There is another figure that is interesting—I think it is buried in the Government’s H-CLIC data. All local authorities report on trends in Protection from Eviction Act offences leading to homelessness. That is a very big, stable and reliable time series for the data. Interestingly, during the pandemic, when there was a ban on section 21 and a subsequent inability to use bailiffs to enforce lawful evictions, there was a substantial drop in lawful evictions between 2020 and 2021. There was no such drop in the number of unlawful evictions. In fact, those numbers held up, sadly, at more or less the same level. As a proportion of evictions leading to homelessness, the figure came close to doubling.

The interesting suggestion buried in that statistic is that it is so important, when you are quite rightly considering replacing section 21 with new grounds for possession, that you avoid the unintended consequences of those changes in access to lawful eviction increasing the number of landlords who feel that they can get away with just doing it anyway.

I have another statistic to offer you. If you look at our count of what we think is a very conservative estimate of the number of unlawful evictions and the Ministry of Justice statistics for the number of convictions in a year, the figures show that in more than 99 out of 100 offences, the person who commits the offence, the landlord who undertakes the unlawful eviction, walks away scot-free, so it is little surprise that people do not regard the enforcement of the law as adequate.

Your clause 58 in the Bill is so important because it corrects one of the major defects in what is a 46-year-old piece of legislation, the Protection from Eviction Act, which does not do what it says on the tin. It has not been preventing evictions because nobody has a duty to enforce it. That is a very long answer to your question, but there is a lot of support for what I am saying in those data.

[Jacob Young]

Q We have spoken a lot about data and the portal in this session. How do you think we can use that data to judge the effectiveness of the reforms? Going back to our discussion about lessons learnt, in 10 years’ time we will need look back on this and are, “Where were the improvements that we could have made differently?” How do you think we can use the data to help to shape that thinking?

Roz Spencer: Our count report is in the House of Commons Library. It argues strongly that the Government need to start counting the data. I would not have thought it would be problematic for the Government to introduce their own mechanism for counting, and we talk about the methodology at some length in the report. I would advocate that you start showing, as Government, not only that the law and enforcement matter, but that you understand that the impact assessment needs to be based on data that you simply do not have at the moment.

Samantha Stewart: I am not saying that we are going to fund this, but we should all think about something similar to what we are doing with funding in Scotland. If you want to really understand how impactful the legislation is, we should start tracking it pretty soon, using the data and everything else at our fingertips.

Renters (Reform) Bill (Third sitting)

Debate between Karen Buck and Jacob Young

Committee stage
Thursday 16th November 2023 Public Bill Committees

[Jacob Young]

Q Your point is specifically around digitisation, so it is not necessarily about court reform as a whole. Specifically on digitisation, do you think that we could do section 21 before that?

Richard Miller: That’s right, yes. Digitisation is absolutely necessary. It is disappointing, but we understand the reasons why it has not happened already. It is a major project and we need to have the system that will be in place for the foreseeable future before we start building the digital systems to cope with that system.

Nimrod Ben-Cnaan: On your point about the ombudsman, Minister, there is little to comment on in the Bill. The shape outlined in the Bill is just that: an outline of an idea that has been suggested by various parties. You have heard some of them in previous sessions, and that might be useful in their own terms. Our concern has always been that the ombudsman would be used to displace, specifically, tenants’ access to the courts when they need it, and through that to displace the provision of legal advice that would otherwise be available for them. We would like to ensure that tenants have a good, reliable source of information and advice about their rights, what they can act on, how they can act on it and the support to do so. On the ombudsman, well, let us see that idea get fleshed out in detail.

I was heartened to hear from the Department’s officials that the intention is not to have the ombudsman somehow displace access to courts, for example, with disrepair claims, which would be so important to us. The court still does, and can do very well, the kinds of things that the ombudsman cannot do at all—be that through things such as establishing fact, applying the law, interpreting the law and sometimes being able to issue injunctions when there is, for example, an unlawful eviction. A law centre would normally be able to step in and stop that right there and then, in a way that the ombudsman would not even have the power to do so. Actually, we have a lot going on with the courts at present, and we should resource them and resource the allied measures to make the most of them.

[Ms Karen Buck (Westminster North) (Lab)]

Q Could I just go back to the issue of advice and representation? You both made the point that there are strong arguments for tenants being represented. Will you tell us what those arguments are? In practical terms, what are the consequences at different levels—within the courts, and also going back to issues such as homelessness—of people not being represented and having advice? Can you give us an indication of how the level of service is spread out across the country? Are there particular places and areas where there are difficulties for tenants in getting representation?

Richard Miller: The Law Society has published a number of maps showing the availability of legally aided housing advice across the country. Those have shown, over time, that the picture is getting worse. The number of law firms and law centres delivering these services is reducing. We now have something like 42% of the population without a housing provider on legal aid in their local authority area. By definition, the sort of people we are talking about—those who are financially eligible for legal aid, where very often the issue is that they are unable to pay their rent—cannot afford public transport to travel significant distances to get the advice they need. Local provision of advice is vital.

The problem we have—there may well be many people around the table who are not experts in the legal aid system—is that the last time the remuneration rates for legal aid were increased in cash terms was in the 1990s. That is what the profession is up against, and that is why more and more firms have decided that it is not economically possible to carry on delivering these services. We are seeing an absolute crisis in the state of legal aid provision across the country, and that needs to be addressed. I will pass over to Nimrod to deal with the consequences of people not being represented.

Nimrod Ben-Cnaan: Things have got so bad that even delivering the duty desk at court—the scheme that we are so reliant on to make possession work well for all parties—is difficult. In the last procurement round, the Legal Aid Agency had such problems sourcing providers in the greater Liverpool area—Merseyside, if you like—that there was a reliance on transitional arrangements. If you have a large urban centre where a legal aid firm should be able to make a sustainable business but is not able to do so, we have a real problem.

In terms of the kind of impact that legal aid services could offer us, I would say that the current scope of legal aid needs to be addressed, not just the remuneration. Ten years ago, in the Legal Aid, Sentencing and Punishment of Offenders Act 2012, the scope cut to legal aid was such that a lot of early intervention to help people was taken out of scope, so you are basically incentivised to let problems escalate. It is the wrong way round, and even the Government are realising that in their current review of civil legal aid. If you get in early, you are able to divert people from the court wherever possible. You get to represent tenants wherever possible, lightening the load of the court, and you get to give assistance for as long as it is needed, rather than by adhering to whatever original parcels you were apportioned by legal aid. There is an opportunity here to make a secondary provision to legal aid that would help to prop up the system through this transition.

Richard Miller: To build on that, some unrepresented tenants do not bring cases that they could and should bring and do not enforce their rights; others bring cases that are misconceived, and that has an impact on the landlord, who has to defend the misconceived case, and on the courts, which have to put in resources to hear it. When these cases go to court, whether they are validly brought or misconceived, unrepresented tenants very often do not understand the processes and what is required of them, so they do things wrong and have to have things explained to them. That means that the courts have to put a lot more resources into managing the case than they would if the tenant was represented, so there is a whole range of ways that landlords and courts—and therefore the taxpayer—are adversely impacted by tenants being unrepresented.

Renters (Reform) Bill (Second sitting)

Debate between Karen Buck and Jacob Young

Committee stage
Tuesday 14th November 2023 Public Bill Committees

[Jacob Young]

Q You mentioned the decent homes standard. Could you elaborate on your thoughts on that?

Ian Fletcher: As I say, the stock of build to rent has been developed over the past 10 years, so it is unlikely not to be meeting the decent homes standard. Equally, the management of the property is done to a very high standard. That is something the sector is very proud of. I do not see any challenges in introducing decent homes into the sector from a build-to-rent perspective. We have sat around a number of tables with the Department as it has worked through the specifics of how the standard would impact the private rented sector, and I have not heard many dissenting voices in terms of this being introduced into the sector.

[Ms Karen Buck (Westminster North) (Lab)]

Q When the Bill was first presented, the British Property Federation indicated some concerns about the relationship between a minimum tenancy period and the growth of the short lets sector and that this might be an additional boost to it, and I just wonder where that came from. What is your evidence for that? Indeed, have you conducted an analysis of the growth of short lets, the factors driving that and the connection between this and the legislative framework?

Ian Fletcher: It is something that we have been continually concerned about. In a London context, the removal of the planning constraints on the short lets market affects property across not only the rental sector but the leasehold sector.

It is a concern, I suppose, in terms of members. At the moment, you obviously have to take a minimum six-month tenancy, but what members often find is that you do not want to restrict subletting, because often that is helping the ultimate tenant, if they have to move for various reasons. You are finding that quite a lot of people are moving into these premises and then subletting to somebody who will take it on a short-let basis, so these are portals and things of that nature that, to some extent, are exploiting that situation.

--- Later in debate ---

[Jacob Young]

Q It would be interesting to know your thoughts on the portal, and on how we can make the most use of it to support councils in taking enforcement measures.

Dr Dawson: The CIEH is very happy to see the portal introduced. I am based near Wales, and I sit on the advisory panel for Rent Smart Wales on behalf of the CIEH. We have seen the portal brought in, and it has been very effective. It provides a lot of data on where rental properties are, and who their landlords are. Local authorities have quite a hill to climb in trying to find that out independently. It will be a very useful source of information. It is also a good source to look at when collecting certificates on properties.

However, we find that the portal has limited impact with regard to the condition and contents of properties, and management practices. It is an information-gathering tool. It has the potential to be a central information portal that landlords and tenants can refer to—a sort of single source of truth. On very small landlords registering with landlord bodies, 85% of landlords own one to four properties, and we are finding what an author referred to as a cult of amateurism. These landlords have differing levels of expertise, and of knowledge of a complex legislative environment. The portal can be a central reservoir of information for them, with quite a bit of scrutiny behind it.

As I say, we welcome the portal when it comes to providing data on where the properties are and who the landlords are, though the more unscrupulous operators will still try to avoid the register so as to evade their duties. I would not go so far as to say that it will make a significant impact on the condition and contents of properties, or the management practices of landlords in the sector.

[Ms Buck]

Q Can I go back to the decent homes issue? The repair and maintenance of properties is central to the issue of the security of tenants who are seeking to enforce their rights, and who sometimes have landlords act against them. How do you see the decent homes standard being enforced? How do you see the decent homes standard interacting with other overlapping measures and standards in law, and the tools available to environmental health officers?

May I also ask a question about enforcement, which is central to this issue? As we know, the enforcement record is very patchy in local government. In your view, why is that?

Dr Dawson: With regard to the use of the decent homes standard in the sector, I have found through my personal research on the sector that there is a lot of variation in the licensing conditions and standards set for private landlords in different sub-markets up and down the country. It is only right that local authorities tailor their approach to suit their local market, but there is great need for more consistency between the licensing conditions that they set and what they require in their area.

If we were to bring in the decent homes standard across the sector, licensing standards could be revised to accommodate that new duty and any updates made to the decent homes standard. That would provide a fairly common set of grounds for properties nationally. Then, local authorities need only make small changes to what they require of properties in their area to fit local peculiarities of housing; for example, northern back-to-back houses are something to burden yourself with only if you need to be aware of the issues that they present. You get steel-framed houses in some areas and concrete houses in others. Local authorities need to be able to focus their approach and the standards that they require to fit what they have going on in their area.

We still have the opportunity to use the housing health and safety rating system under the decent homes standard. The updates to the HHSRS will come through fairly shortly; we will welcome their being brought into practice. Use of the HHSRS would remain a common requirement during the inspection of properties, to satisfy the requirement on properties not to have serious hazards.

A whole range of factors influence levels of enforcement in local authorities. At the moment, we have about 2.2 qualified environmental health officers for every 10,000 private rented sector dwellings, so that is already a pretty low rate. Where we have larger authorities and significant political backing, we see more environmental health officers, with better recruitment, better political backing and more funding for those officers, which is key, so you start to see a collection of experience building up and the legal backing behind it. For example, Newham has something like 100 environmental health officers or enforcement staff in its departments, and they can move their way through more than 200 prosecutions in a year. In contrast, a rural authority may have one or two environmental health officers, who must share their duties across all the regulatory functions of environmental health, including food safety, health and safety, environmental protection and public health.

One of the profession’s big problems is ensuring consistency in funding. When funding is renewed annually and you are looking at changes each year, it is very difficult to do succession planning. We have seen a gradual reduction in the number of people coming through university environmental health programmes in order to support the profession and provide a reservoir of expertise for the inspectorate. We are also seeing more of them going off to private sector employers, rather than the public sector.

A range of issues are affecting the sector, and the sustainable and predicable funding such as we get with Housing Act 2004 licensing has been a real lifeline for the sector. Where we have big schemes going, it has managed to keep the nucleus of staff that is required for the expertise and the momentum to move large-scale enforcement forward. My apologies—that was quite a long answer.

[Jacob Young]

Q You touched on your experience in Wales. We are aware that there are similar, but not necessarily identical, reforms in Wales. What lessons can we learn from the reforms implemented there?

Dr Dawson: When Wales first implemented the scheme, about 196 penalty notices were given out in the first couple of years and there were about 13 prosecutions. The main reason, from the Welsh Government’s own analysis, is that they did not set up clear systems and processes for liaison with local authorities ahead of the formation of Rent Smart Wales.

There is a process whereby local authorities are expected to carry out enforcement functions and can then bill Rent Smart Wales, through an agreement—a memorandum of operation—that they have all signed up to. However, because they are trying to account for small amounts in hours and tasks, it is very difficult for local authorities to predict the workload and allocate officer time against it. That has become somewhat of a Cinderella to local authorities’ other duties.

One of the higher impact areas is that, although Rent Smart Wales provides licensing and can therefore enforce conditions, it also has a separate registration function, which is purely information gathering and gives it the ability to send out mailshots to landlords and letting agents about changes to the law and training courses that are available. However, landlords have the opportunity to exempt themselves from those communications, and a very large proportion did so at the point at which they registered. Therefore, they receive no communications and no updates, so they are none the wiser, despite the benefit of having registered and made themselves available to get that information. That was a sad loss, and there is not much you can do about it now.

--- Later in debate ---

[Jacob Young]

Q Thank you both. First, could you clarify your initial points? What effect do you think the reforms we are proposing would have on supply in the private rented sector? On a different tangent, what are your views on how we should strengthen councils’ enforcement powers to crack down on criminal landlords?

Dr Rugg: On the issue of supply and section 21, counterfactually, a lot of landlords let because of section 21; they do not evict people because of section 21. Section 21 gives them the confidence that, if they run into severe difficulties, they will not have to go through a protracted court process in order to end a tenancy. This is particularly pressing for smaller landlords, who might find themselves paying two or three mortgages at the same time, with tenants that are problematic. You can understand the reasons why risk is hugely important to landlords a lot of the time. Antisocial behaviour is really problematic. If there is a tenant causing lots of problems in the neighbourhood, the landlord wants to get that situation to a close as fast as possible.

Abolishing section 21 would increase landlords’ perception that there is risk in the market. An area that will be problematic is that landlords who come to the sector with property—perhaps they have inherited it or they have started a partnership and there is a spare property—will think very hard about whether to bring that property to the market. I think that is one of the consequences we will see. The market does not look like a very friendly place to landlords at the moment, and that is the big issue we have around supply.

How we help local authorities deal with criminal landlordism is something that I am particularly concerned about at the moment, because it is part of a big project I am working on. Local authorities have very different approaches to dealing with enforcement action in their area. One of the issues is that there is an awful lot of variation in political—i.e. councillor—attachment to the notion that this is something they should be dealing with, so councils invest at different levels in their enforcement activity. That is a democratic issue, and that is something we cannot do anything about, but I agree with the notion that Dr Dawson introduced that we really need some baseline standards that everybody can expect to adhere to.

One thing we have not really mentioned is the use of letting agents. They cover an awful lot of property in the market, but we do not expect them to show responsibility for the quality of the property they are letting. In a sense, I think that is soft policing, if we think that letting agents should have greater responsibility for ensuring that the properties they have responsibility for meet the standards that we set for the sector. In some ways, that would relieve local authorities of some of the burden of inspecting all properties. At the moment, local authorities are obliged to inspect only a certain proportion of properties that sit under licensing regimes. An awful lot of the sector sits outside that and is covered by letting agents. I think we are missing an opportunity to think about how we skill up different parts of the market to improve property quality.

Professor Gibb: I think one of the reasons I am here is that yesterday my colleagues and I published an evidence review for the Department for Levelling Up on the question, “Is there evidence that increasing non-price regulation has led to disinvestment in the private rented sector?” That is clearly a very important question for the kinds of policies being proposed here. In producing the review—it is an international evidence review over the last 20-odd years—we found that it is very hard to answer that question, because there is very little research that directly speaks to it, but you can infer from some of the peer-reviewed literature, and there is actually very little evidence that that is the case.

In other words, we believe that there is probably a constellation of factors that drive disinvestment in the sector, and it is very hard to identify whether increasing regulation, per se, is behind that. The fact of the matter is that in England, there was increasing regulation in the last 20 years, while the sector was growing. There is also evidence internationally that where regulation has increased in the short-term lets market, there might have been a short period of disinvestment, but there has not been disinvestment in the longer term. In the longer term, investment tends to have stabilised and continued to grow.

So we have been quite struck that there is very little evidence to that effect. That is not to say that there is not disinvestment going on, but it is a much more complicated thing. Another problem is that often we have several regulations being introduced at the same time, and it is quite hard to unpick the causal forces of individual things. The bottom line is that we found it quite hard to identify that increased regulation was causing disinvestment or was correlated with it.

[Ms Buck]

Q Julie, your report from a few years ago was helpful in encouraging people to think about the private rented sector not as a homogeneous whole, but as having different markets within it. Given what you said, and with the Government—rightly, in my view—going ahead with abolishing section 21, I wonder what you think the impact will be on the different markets. What are the warnings there that you have just given us, in particular on the most vulnerable, at the lower end of the market? What safeguards could be introduced to ensure an adequate supply of decent accommodation for people entering the different layers of the market?

Dr Rugg: I am better able to speak about the lower end of the market, because that is the area that I specialise in. We had some comments earlier about build to rent, and there are some concerns about the build-to-rent sector, but I will not go into those here.

Thinking about the lower end of the market, the proposed regulation seeks an end to “No DSS”, as a catch-all. I do not think that that will necessarily work particularly well. Landlords seek not to let to people in receipt of benefits for two reasons: first, because they might have some prejudiced view about the people who tend to be in receipt of benefits, and that is something that is certainly not right; and the other set of reasons sits around frustration with the benefits administration and the level of benefits being paid.

I have researched landlords and housing benefit for many years—too many to mention. In the past, landlords who routinely let in the housing benefit market enjoyed quite good relations with their local authority and they worked together to deal with problems that their tenants might encounter in the benefits market. The introduction of universal credit has completely taken that link away. A lot of landlords are feeling quite exposed now: they have tenants with quite high needs having problems with their benefits, and they simply cannot do anything about it. That is a problem that we need to think about.

One of the earlier speakers referred to the rent control that sits in the local housing allowance system. That is hugely problematic. It means that tenants who receive local housing allowance simply cannot shop around the market, because the rent levels are far too low for them to act as effective consumers. Essentially, they are having to shop where they can, and some landlords are definitely exploiting that situation, letting very poor-quality property on the understanding that the tenants do not have very much choice.

Professor Gibb: I do not have much to add, except to say that I completely agree on the local housing allowance. We have just been doing some research in Scotland that suggests that the levels are far too low to be effective for the great majority of people. It is really welcome to think about the market rental sector as a series of segmented markets. We should therefore not expect regulation that covers the whole area to have equivalent effects in different parts of that area.

The only other thing I would say is that we also need to think as much as we can about housing as a system, recognising the importance of social and affordable housing alongside the bottom end of the rental market, and thinking about how those things can connect together and about the value that increasing investment in social and affordable housing would bring.

Oral Answers to Questions

Debate between Karen Buck and Jacob Young

Monday 16th October 2023 Commons Chamber

[Jacob Young]

I look forward to meeting my hon. Friend and visiting her constituency.

[Ms Karen Buck (Westminster North) (Lab)]

T6. Some 4,240 households in London alone were evicted last year using the no-fault possession grounds that the Government first promised to scrap four years ago. How many more households will be evicted before the Government meet their promise?