Private Rented Sector

Debate between Nick de Bois and Emma Reynolds

Wednesday 25th June 2014 Commons Chamber

[Emma Reynolds]

Absolutely. That is why we proposed—I regret that the Government got rid of the legislation within weeks of getting into office—a national register of landlords and greater powers and flexibility for local authorities in areas where that is a particular issue. In London and other areas of high demand, it is a big issue. Those local authorities should have greater powers to introduce licensing schemes.

[Nick de Bois (Enfield North) (Con)]

Will the hon. Lady give way?

[Emma Reynolds]

I will, and then I will wind up my speech.

[Nick de Bois]

In the motion, there is much that many can support, but where I struggle is on what you are saying about fees. You talk about limiting rents—

[Nick de Bois]

I apologise, Mr Speaker. The hon. Lady talks about limiting increases in a three-year contract, but surely, without the fees, all that the agencies will do is front-load increases: we will see incremental, large rises at the beginning.

[Emma Reynolds]

The hon. Gentleman raises a valid point. According to research by Shelter, which has conducted a thorough piece of work on the issue, only one landlord in 120 that it surveyed said that they had noticed an increase in agency fees and had passed that on in full to their tenants. Therefore, to be frank, the change we are suggesting is not that big. It is pretty big news for tenants, but it will not make a massive difference to the letting agent industry. It will have to change its business model slightly, but what it has done, especially in the years of the global financial crash, is shift ever so slightly, often little by little, the costs of the tenancy on to the tenant, who does not have the power and leverage to negotiate with the letting agent. The tenant sees a property that they like. They do not choose the letting agent. They do not have leverage over the negotiations. The landlord has that leverage, and the landlord should do the deal with the letting agent on the fees, including on the fee that the landlord pays the letting agent to manage the property.