Renters’ Rights Bill

Markus Campbell-Savours Excerpts

Wednesday 9th October 2024 Commons Chamber

[Mrs Badenoch]

That question is nonsense. My point is that tenants will not be able to find properties to rent in the first place. From that intervention, it seems that Labour still does not understand these concepts.

We worry that the higher prices will be paid by tenants, especially young people and the less well off. Demand is rising in England, but availability is not keeping up. Forty-seven per cent. of landlords have either attempted to sell a property in 2023 or are thinking of doing so, with the biggest reason being to their fear of new laws.

[Markus Campbell-Savours (Penrith and Solway) (Lab)]

Penrith and Solway contains the Lake District national park and other tourist areas. Does the right hon. Lady recognise that the previous Government’s failure to introduce their promised reforms to section 21 has led to many private landlords moving from the private rented sector into the holiday let market? Her reasoned amendment says the Bill will

“reduce the supply of housing”—

[Madam Deputy Speaker]

Order.

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[Mr Amos]

I certainly agree with my hon. Friend. We need a lot more council and social rented homes. I will return to that issue.

In the spirit of ensuring that a plentiful supply of rented housing comes forward, we urge the Government to retain the option for landlords and renters to agree between them fixed-term tenancies of three years, rather than periodic tenancies being the only product on the shelf, so to speak. We are worried that investors will be unlikely to invest ahead if they cannot see security of tenure coming from their investments. There could just be an increase in short-term holiday lets as a result, because there would be no difference between tenures.

If both renters and landlords are to have any faith in the courts when it comes to resolving disputes over evictions, the courts must have the investment to do the job. Put simply, and as was said earlier, there are not enough judges or bailiffs and the system simply will not work until there are. In the same way, local authorities must be funded properly to take on the new responsibilities in the Bill. In Taunton and Wellington, the local Somerset council has more than 10,000 people on the council housing waiting list and was brought the brink of bankruptcy by the Conservative Government’s cuts to proposed funding for social care—a crisis across the country that the outgoing Conservative leader of Somerset called a “ticking timebomb”, which was handed to the new administration.

In those circumstances, it is not surprising that Somerset and local authorities across the country are unable to enforce the standards of housing that we would want. The House of Commons Library found

“evidence of low and inconsistent levels of enforcement”

when it comes to addressing poor property standards. No amount of words in the Bill will make up for the need for resources; I was pleased to hear the Secretary of State mention funding for local authorities to discharge those duties. That is vital. The Bill also rightly makes separate provision for student housing, but it does not extend to one or more student renters renting together. If that does not happen, there could be a significant withdrawal of student housing from the market. We would be concerned to see that.

I turn to other provisions in the Bill. We welcome the protections for renters on benefits, who of course should not be discriminated against. We will also be seeking an assurance that the 12-month prohibition on re-letting following an eviction will also apply to re-letting furnished holiday lets, such as on Airbnb. We are pleased to see that, following the work of my hon. Friend the Member for North Shropshire (Helen Morgan) and of the Minister of Housing and Planning, who both worked on the Bill in the previous Session, no new, punitive definition of antisocial behaviour is being introduced. We thoroughly welcome that element of the Renters’ Rights Bill.

To support our serving military personnel and help address the recruitment challenge in these uncertain times, I also support the bid of my hon. Friend the Member for North Shropshire, also in the last Session, to ensure that MOD housing is also subject to the decent homes standard proposed in the Bill. It is curious that the Government often like to legislate for others; I want reassurance that they will legislate for their own MOD housing at the same time. Service personnel deserve decent homes just as much as anyone else. That decent homes standard surely must extend to better insulation and energy efficiency—to EPC level C, as was mentioned earlier.

I ask the Minister to meet the concerns of my constituents in Taunton and Wellington and across the country by agreeing guidance with landlords and the sector on what would constitute reasonable grounds for refusing permission to have a pet—a subject close to the heart of the Secretary of State, I know—and ensure that tenants are allowed to keep their pet once that has been agreed.

Above all, the Bill is about bringing an end to the shameful delays of successive Conservative Governments when it comes to protecting renters from unfair evictions. I heard the right hon. Member for North West Essex (Mrs Badenoch) say that she wanted to help the Bill— but she has also tabled an amendment to kill it. If that is helping, I would hate to see her definition of attacking something.

The change really cannot come soon enough. One of my constituents, Mike Godleman, came to me some time ago. He had been served with a section 21 eviction notice while recovering from major surgery. He had loved his home of over nine years. A couple of months ago, his councillor and I visited him to try to help him. We met a kind, gentle and creative man who taught sign language, loved dance and was a talented teacher and photographer. His charming sons Perez and Zakkai meant the absolute world to him, and he had become more of a friend to us than a constituent. His sons were a complete credit to him when we met them. Sadly, some 10 days ago Mike was found in his flat. He had passed away as a result of a pulmonary embolism—clearly not caused by his eviction notice, but surely people in Mike’s position should not have to suffer being made homeless as a result of a notice that inherently, and on the face of it, shows that there was no fault on his part.

Conservative Administrations since 1988 have ushered in a system in which the tenure that has grown most is the one that gives the least assurance to tenants; assured shorthold tenancies are now the most common form of tenancy. Their approach seemed designed to maximise disadvantage to renters—40% of renters now say that, as a result, their last home move was forced on them, adding turmoil to insecurity of tenure. In fact by repeatedly announcing that they would legislate but then failing to deliver on that legislation, the last Government prompted a massive 30% growth in Airbnb short-term lets, taking away more security of tenure from other tenants.

It is hardly surprising that Ministry of Justice reports show that standard procedure claims for possession and eviction massively increased under the last Conservative Government, while accelerated procedure claims doubled from 4,000 to 8,000. The Conservatives’ inaction was a shocking abandonment of thousands of tenants to increasing eviction rates, as landlords sought to pre-empt the often promised, but never delivered, end to no-fault evictions.

[Markus Campbell-Savours]

Does the hon. Member agree that, as I think the shadow Minister alluded to in her speech, there have been attempts to use no-fault eviction as a way to deal with people who are at fault, and that the failure of that system has now become an excuse for not reforming this injustice?

[Mr Amos]

I agree with the hon. Member. We must make sure that the courts are properly resourced so that the grounds that are in the Bill to provide for eviction, where it is justified, can work effectively. That is surely the way forward, rather than some back-door approach in which no-fault evictions are used for a multitude of reasons, many of them not justified.

While it is right to legislate to end no-fault evictions—measures that Liberal MPs such as the former Member for Bermondsey and Old Southwark, Simon Hughes, vehemently opposed from these Benches back in 1988 —we surely cannot think that the private sector alone is the answer to solving our nation’s housing crisis. The Government must be more ambitious, immediately banning no-fault evictions, building 150,000 council and social rent homes per year, a comprehensive programme to insulate all housing, a planning use class to control second homes and allowing councils to halt the right to buy, so that when we build council houses we are not trying to fill the bath with the plug taken out.

Those are the priorities that the Liberal Democrats will be campaigning for and working to see on the face of this Bill. I urge the Minister and the Government to take on as many of our suggestions as they possibly can.

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[Rebecca Smith (South West Devon) (Con)]

I congratulate the hon. Member for Rushcliffe (James Naish) on his maiden speech. He may be the first triplet I have ever met, so he can add that to his list of firsts.

I speak recognising that we want, understandably, to keep tenants safe and to ensure that those in the private rented sector have the security that we believe they deserve. However, I do worry that the Government’s good intentions in what they are seeking to achieve will actually leave us with no homes left to rent, or at least a significant reduction. Having worked in a homelessness team 20 years ago, I have seen at first hand the impact on those who are evicted. More recently, as the cabinet member for homes and communities, I had responsibility for homelessness, building safety, disabled facilities grants and the cross-party plan for homes that Plymouth city council has proudly worked through over the years.

I speak for tenants and landlords. No one can be responsible for homelessness and not want to ensure that people in vulnerable situations have the best opportunities. However, I also speak for the many excellent landlords in the city that I represent part of, not least those who are members of the South West Landlords Association, whose training I participated in while I was a cabinet member. They provide the vital rented homes that the city and the surrounding areas need, the loss of which will have an impact on the very tenants we are hoping to support.

None of this Bill will be relevant if there are no homes left to rent. Rightmove is currently claiming that there are 50 inquiries for every rental property in Plymouth. We also have 365 households in temporary accommodation, with 162 of those households in bed-and-breakfast accommodation. I am sad to say that those numbers have not really moved much in the last couple of years, because of the lack of private rented property. With this Bill, we may therefore be ignoring the dangers of the impacts on those tenants in temporary accommodation.

We need to ensure that the private rented market in cities such as Plymouth and the surrounding rural areas is fit for purpose, and at the moment it is completely broken. The fact that the homes are not necessarily always fit to in live is almost the least of the problems, because again, as I have said, if there are no homes to live in, people do not have anywhere to be.

[Markus Campbell-Savours]

This issue of landlords removing themselves from the sector was also brought up in the speech of the right hon. Member for Witham (Priti Patel). What does the hon. Member think happens to properties when landlords remove themselves from the sector?

[Rebecca Smith]

The hon. Member makes a very good point, and that brings me on nicely to the next section of my speech. One of my constituents has recently written to me to say that he is very sadly, having been a landlord for the same tenants for 25 years, selling his entire portfolio of 89 properties. Sometimes, we do actually see—[Interruption.] Will the hon. Member allow me to finish? Thank you.

We sometimes see some really constructive solutions to these problems. For example, while I was a cabinet member on a Conservative council under the Conservative Government, Plymouth city council, Plymouth Community Homes and Homes England were able to work together to purchase 86 three-bedroom properties from Annington Homes, which is the supplier for the MOD. So the hon. Member is correct that there are some options. However, although my constituent has approached the council, there has currently been no movement. The point I want to make in this section of my speech is about what more Homes England could do to ensure that when landlords leave the market as an unintended consequence of this Bill, their properties are bought by local councils, although they may need the grants that Homes England has so generously provided in the past.

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[Richard Tice (Boston and Skegness) (Reform)]

I congratulate hon. Members on their excellent maiden speeches this afternoon and declare an interest as someone who has been involved in the commercial and residential property sector for over 35 years.

The thing is, there are many good and noble intentions in the Bill. The Secretary of State outlined them and I think the whole House endorses them. She spoke about the need to balance rights between tenants and landlords. That is a matter of judgment, and I fully respect that the Government are making a series of judgments and decisions. The reality is, though, that in the last five years, the quantity of private sector properties available to rent in the United Kingdom has reduced by about 50%. As more restrictions and regulations are imposed, the quantity is going down. I think that is particularly so in Scotland, where there have been even tighter restrictions and the availability of properties for rent has reduced.

Of course, what we all want is the opposite—a greater supply of rental properties—but that requires additional capital for additional new homes to be built. That is a key objective of the Government that I think all of us support, but to ensure sufficient reward and attraction for that capital, landlords need to know that the balance of risks and rewards is appropriate and that vacant possession can be secured.

I am old enough, ladies and gentleman, to remember the ’70s and ’80s—[Hon. Members: “Surely not.”] I know. A two-tier market emerged between what were called assured tenancies and assured shorthold tenancies, for which vacant possession could be secured. Properties with assured tenancies were worth approximately only 80% of those with assured shorthold tenancies. I say to the Minister, in the Secretary of State’s absence, that the risk here is that if the Government get this wrong, the capital will disappear, the quantity of properties to rent will reduce and the quantity of supply to be built for the private rented sector will reduce.

I urge the Government to keep these measures under close review as the Bill passes through the House. If they get the balance wrong and it is made too difficult to secure vacant possession—particularly of properties with tenants involved in antisocial behaviour or not paying their rent—the supply will reduce dramatically.

[Markus Campbell-Savours]

I asked this question before and did not get a successful answer. Perhaps the hon. Member can tell us what will happen to those properties when landlords pull out of the market.

[Richard Tice]

It is a really good question, and I am happy to answer it. If the landlord pulls a property available to rent out of the market, it will go into the ownership sector and that property will not be available to rent.

We know that there is significant demand to rent, and I say to the Government that we want to increase the supply of properties available to rent. I therefore repeat the point that it is about risk and reward. The Government must make these judgments. I just say to the Minister that he should keep this closely under review. If the Government get the balance wrong, the market will reduce while demand will continue to rise, so rents will rise as the supply reduces. That is my concern. If the Bill passes—it is likely to—perhaps the Minister should review it in a year by looking at the data and seeing what is happening to rents, what is happening to supply and whether further tweaks and adjustments are needed.