Renters’ Rights Bill
Debate between Kemi Badenoch and Nesil Caliskan(1 month, 2 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mrs Badenoch
Private landlords react to legislation, which is why we say that such legislation will reduce housing in the private rented sector. Fifty-six per cent. of landlords cited our Renters (Reform) Bill as a factor in their decision to sell. We already recognise those flaws, and such a reduction in supply is bad for both tenants and landlords. We are losing homes in the private rented sector.
Nesil Caliskan (Barking) (Lab)
Does the right hon. Lady recognise that the reduction in supply over the past few years is primarily down to the increase in interest rates, which has driven landlords out of the sector? A sector that is fundamentally broken requires the Government to take action to provide security for those who need a home for themselves and their children.
Mrs Badenoch
Of course we want people to have security in homes, but to do that we need to increase supply. We did what we could when we were in government, and we will help this Government to deliver. The fact of the matter is that this legislation is not going to help. We would love it if it did—we tried to make it work and we could not—but it would have a negative effect.
Landlords provide a vital service. The private rented sector is essential for those who cannot yet afford a mortgage, for young people and for those who need to move for work. Landlords selling and giving up homes for rent for mortgages do not help many of the people who need to rent. The overwhelming majority of landlords are responsible—I am glad the Secretary of State acknowledged that—and law abiding, and they see their property as a sustainable long-term investment.
The Government claim the Bill will reform the rental market. We do not believe it will—it will break it. Respect for property rights is not just an abstract principle. It underpins confidence in our economy and legal system. If the Government do not protect property rights, investment is damaged. If investment is damaged, growth is hit. It is painfully clear to anyone who understands markets that the Bill will act as a powerful disincentive for anyone to rent out their property. Most tenants do not have friends and family to rent from and, unlike Members of the Labour party, they do not have millionaire donors to put them up, so they will suffer most when supply goes down and rents go up.