Renters (Reform) Bill

Debate between Munira Wilson and Clive Betts

2nd reading
Monday 23rd October 2023 Commons Chamber

[Mr Clive Betts (Sheffield South East) (Lab)]

First, I put on record that I am a vice-president of the Local Government Association.

Having considered the White Paper and then the Bill, the Select Committee welcomes in principle the proposal from the Government to abolish section 21. We heard evidence in a number of sessions from organisations such as Shelter, looking at the interests of tenants, and from the National Residential Landlords Association, and they all accepted that this was the right way to go and engaged constructively with the Select Committee on that.

People’s homes can be taken away from them just like that when they have paid their rent and observed their tenancy conditions, and in principle that simply cannot be right. When a home is taken away, people have to move somewhere else, and their children have to uproot themselves from their school and be taken to another school. Members of the family who work may have to find another job somewhere else, because their home has moved and they can no longer get to their place of employment. That simply is not right in this day and age.

We recognise as a Committee—I made this point in an intervention—that there will be added work for the justice system, because evictions will now require a decision from the courts and more tenants may feel empowered to go to the courts. I am really disappointed that the Secretary of State is not going to indicate when he thinks the reforms to the court system will be in place to allow the legislation to be enacted. I think we need assurances today about when that will be. That cannot be an excuse for delaying something that has already been delayed for far too long.

I want to point out one or two other issues. I welcome the Secretary of State’s welcome for the work that the Select Committee has done, even though his response was a little late; I accept his apology for that. We said very clearly in our report that enforcement by local authorities will be absolutely key in making these changes work. There has to be proper funding for local authorities, as the Local Government Association has said today, to enable that work to be carried out properly. We want assurances from the Secretary of State on that as well.

One of the really good ideas is the property portal, so that tenants and all of us know who the landlords are. We have suggested some changes and some improvements, on which I think the Secretary of State will come back to us, to make sure that the property portal is comprehensive. It should cover things such as when the property last had a gas safety certificate and when the electrical systems in the house were properly inspected, and information of that kind, including whether it complies with the decent homes standard. All those things are important, and tenants should be able to access that quickly. The registers should be updated and digitised, which we are encouraging the Secretary of State to do. We hope he will come back positively on that.

The cost for tenants is important. We welcome the Secretary of State’s saying that rent increases cannot take place more than once a year, but we have concerns about the overload on the tribunal system and the way that those arguments will be played out, often with the landlords having a great advantage. We are not quite sure why the Secretary of State is saying that a tenancy agreement could not have a yearly update of rents in line with inflation, with no need for argument. That is actually the case in many rent agreements now. While it has been difficult in the last couple of years with hyperinflation, historically—with inflation at about 2%—that has not been an issue and it gives some certainty to tenants. We are not sure, and we have not had an explanation, why the Government have ruled that out completely.

Coming back to the point about tenants on benefits, why can we not have a ban on landlords automatically prohibiting tenants on benefits from renting? Surely the Secretary of State should do that, and should indicate very quickly that he is prepared to accept that as an amendment to the Bill.

[Munira Wilson]

I strongly support the point that the hon. Gentleman has just made about the importance of the Government outlawing these blanket bans on renting in the private sector by those who are in receipt of benefits. I have been seeing a double whammy in that, in a constituency such as mine in Twickenham, rents have gone up by over 12% in the past year and, as he said, local housing allowance has not gone up, so people are evicted and banned from renting if they are in receipt of benefits when they try to find a new place. I pay tribute to the work of Citizens Advice Richmond, which has been running a campaign on that. We need to see the ban on such practice in place soon.

[Mr Betts]

I completely agree with those points, and I hope the Secretary of State responds positively to them. I think the situation is of real concern, and there is no reason why the ban cannot be enacted.

I have already made the point about local housing allowance. It is not part of the Secretary of State’s Department, but it is part of Government policy. It is always going to be a challenge for tenants to pay their rent in the private rented sector given the rise in rents recently, but people on the lowest incomes and on benefits are now being excluded from most properties because they simply cannot afford it, because their local housing allowance has been frozen. The LHA needs to be lifted. Even if the Secretary of State cannot say so today, I hope he is encouraging those behind the scenes who can make the changes to make them in a proper and timely way.

I have a couple of other points. Student housing is different. The difference in student housing has been recognised where it is purpose-built student housing in that it will be exempt from the ban on periodic tenancies. That is entirely sensible. Recently, we have seen some real pressures on student accommodation in some university cities. Last year, Manchester students were actually being encouraged to live in Liverpool, because there was not enough housing in Manchester for them. That is just one of a number of examples in relation to protecting the student market, including non-purpose-built accommodation.