Private Rented Sector

Debate between Liz Kendall and Jack Dromey

Wednesday 23rd January 2013 Commons Chamber

[Jack Dromey (Birmingham, Erdington) (Lab)]

I beg to move,

That this House recognises the private rented sector’s growing role in meeting housing need; notes that there are 8.5 million people, including more than one million families with children, now renting privately; recognises there are major implications of the growth in this tenure for families and communities in Britain today; notes with concern the lack of protection afforded to tenants and landlords by the unregulated lettings market and the confusing, inconsistent fees and charges charged by letting and management agents; further notes the lack of stability, security and affordability for families and other renters; further notes the increasing number of complaints about rogue landlords and the poor standards in the sector compared with other tenures; calls on the Government to regulate residential lettings and management agents and to end the confusing, inconsistent charges regime, making fees easily understandable, upfront and comparable across agents; further calls on the Government to promote longer term tenancies where tenants want them; and finally calls on the Government to introduce a national register of landlords and empower local authorities to improve standards and deal with rogue landlords.

The question for debate today is simple: how do we ensure that the private rented sector provides enough homes that are sufficiently stable and secure, affordable and of a decent standard? Nearly 8.5 million people, including more than 1 million families with children, now rent privately. Labour believes that the private rented sector has an important role to play in meeting housing need. As a result of the biggest housing crisis in a generation, more and more people are being locked out of home ownership and are looking to find their homes in the private rented sector.

The housing crisis gets worse by the day. House building is down; new starts are down 9% in the past year alone to fewer than 100,000. Homelessness is up, having risen by more than a third since the general election. People struggle to get mortgages and rents are ever rising in the private rented sector.

Most people dream of owning their own homes and we want them to realise their dream—as we did in government, when more than 1 million more families were able to buy their own homes. However, more people are finding themselves in the private rented sector, and for longer periods than at any time in years gone by.

We want a strong and thriving private rented sector that works for all those people, but the evidence shows that too many tenants are being ripped off by unscrupulous letting agents, lack security in their homes, face ever-increasing and unpredictable rents, and are plagued by rogue landlords and poor standards. We need a private rented sector that protects tenants and landlords from being ripped off by unscrupulous letting agents who do not protect their money and are not clear about the fees that they charge.

[Liz Kendall (Leicester West) (Lab)]

Last year, I conducted a secret shopper survey of letting agency fees in Leicester West. One agency charged a £125 application fee, a £150 tenancy fee and another £100—I do not know what for—on top of a month’s rent in advance. Does my hon. Friend agree that such huge, unclear and unfair fees must be tackled?

[Jack Dromey]

My hon. Friend is to be commended on her initiative. On a wider scale, Which? undertook that same kind of mystery shopping initiative, and it demonstrated an enormous variation in charges. For example, the charges for checking a reference vary between £10 and £275. As I will argue later, the opaqueness and the scale of the fees charged is wrong, and that must change.

We need a sector where 1 million families with children have the certainty that the rent will not rise at any time and that their children will not be forced to move school. We need a sector where there is no place for rogues who prey on vulnerable tenants and where every home is a decent home.