Private Rented Sector White Paper

Rachael Maskell Excerpts

Thursday 3rd November 2022 Commons Chamber

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to follow the hon. Member for Harrow East (Bob Blackman). I sat on the levelling up Bill Committee, and seven Ministers served us during that time, so I share that frustration. We need a long-term strategy to ensure we address the housing crisis we face.

I congratulate the hon. Member for Dover (Mrs Elphicke) and my hon. Friend the Member for Brighton, Kemptown (Lloyd Russell-Moyle) on securing this important debate, which has caused hon. Members to stay behind on a Thursday because we care so passionately about housing. I also welcome the new Minister to her place. I trust she will produce the goods that we are all longing for: not just a fairer private rented sector and a 12-point plan, but the first step of a comprehensive strategy to address once and for all the housing crisis that we see.

The private rented sector has now become the backstop to housing, as opposed to local authorities, which traditionally had that role. As a result, power has shifted from the state into the hands of private landlords, which is why we face some of these deep-seated crises. In York, 20.4% of people live in the private rented sector. I have looked at the number of class 1 measures that need to be taken because of a failure to keep those homes in good condition. A quarter of homes have trip hazards, poor wiring, mould, rodents—the list goes on. That is why today’s measures on raising those standards are so important. But that can be only a first step.

Most landlords are there to serve a community in their own way, but also to realise the value of their estate and investment. Much extraction of property and money removes those opportunities from anybody else. For any tenant I speak to in the private rented sector, renting is not their choice. It is a matter of needing a home and for many people that home is not satisfactory for them. Since the year began, we have seen a plethora of section 21 notices; they are rising in number. I will talk about that because we are seeing a rise in costs and a decline in conditions. Looking at costs, my constituents spend 32% of their income on rent, which means that, with the cost of living crisis and energy costs, there is little left to start saving for that longed-for home. Property prices are rising in York at a rate that is running away from people, so they are trapped, with no assets, in the private rented sector. We must facilitate people’s ability to break out from that.

Some costs fall heavily on people who receive local housing allowance. I really hope that the Minister will talk to colleagues about that—I appreciate that there is crossover of interest in housing—and how the broad rental market is evaluated. The average rental cost in York is £945 per calendar month, and yet someone would receive only £650 in their LHA for a two-bedded property. That gap means that people cannot afford to live in the private rented sector and have nowhere to go. Ultimately, we see that many people with the vital skills needed to ensure that our economy can function are leaving our city. There are deep-seated challenges because the rental market covers a much broader area than York, which has a particular hotspot in property expense.

We also see people taking real advantage of section 21 notices because of the short-term holiday let market. The hon. Member for North Devon (Selaine Saxby) focused her speech on that, and I will do so, too, because it is hitting holiday hotspots across the country at such an alarming rate. Private landlords are flipping their properties over from the private rented sector to short-term holiday lets. In York, a landlord can get £700 from a property for a weekend. In the light of the measures spoken about by the hon. Member for Harrow East and the changes first in buy-to-let mortgages and then when George Osborne pulled back some tax advantages, landlords say that their margins are too tight to maintain their properties in the private rented sector so, to make any profit on their assets, they need to flip their properties.

We have more than 2,000 short-term holiday lets just in my constituency and the surrounding area, which are hollowing out streets and communities. Ultimately, because of that market, people are being kicked out of their homes and having to leave the area and their jobs, and children are being taken out of school. That is why I have a private Member’s Bill—the Short-term and Holiday-let Accommodation (Licensing) Bill—before Parliament. I hope that the Department will work with me to bring it into being and regulate and license short-term holiday lets. It is due to have its Second Reading on 9 December, and it could transform our ability to regulate that market. That is where the inequality sits and where we need to see significant change.

I welcome the measures in the White Paper for greater accountability and for greater power for tenants—something that has been so absent. That is why I very much hope to see those measures brought forward in a Bill at the earliest possible stage. An ombudsman is a way of bringing powers to book, but it needs to be properly resourced. If it is not, it will be ineffective in bringing about the changes that we need to see and to put curbs on landlords wanting to exploit the system.

I turn to students. My hon. Friend the Member for Brighton, Kemptown mentioned the challenges in student accommodation. I met York Residential Landlords Association to discuss the matter as well as the universities in York. Purpose-built student accommodation has an exemption and can issue just one-year tenancies to students. However, in the private rented sector, there is not that option. That will cause real challenge. Next year’s students are already seeking out their accommodation. Landlords are saying that if the legislation comes in, they will simply start looking for their accommodation during the exam period. That, clearly, would not be in anyone’s interests. My hon. Friend the Member for Brighton, Kemptown came up with a really sensible and positive suggestion, and I hope the Minister can look at it, but we do need to solve this issue for the sake of students. I have 40,000 students in one form or another in York, so it is a major issue for us.

I hope the Minister, in her time in the role, will look internationally at good practice, as there is much to learn from across the globe. In particular, I am attracted to measures taken in Finland where tenants are provided with resourcing, instead of just a local housing benefit, to start being able to access the property market themselves. It is an interesting model that should be considered as an opportunity.

I concur with hon. Members from across the House on the need to build social homes. We really do have a crisis, and when there is a crisis urgent measures need to be taken. The problem with housing is that it is still seen as a short-term fix for developers trying to make their revenue. We have to think far more long-term about it. I urge the Minister to think about the opportunities her Government have to use public land for public good. I am talking about disposals of Ministry of Defence land, NHS property services, Network Rail and so on—significant estates. If we can build social housing and affordable housing on those estates, as opposed to housing to market, it could be a real game changer. The interest of the spending Department is to receive a capital receipt, but if we can find that as a mechanism to deliver the housing our communities need it could be really important.

I will close on this point. When Nye Bevan sat where the Minister is and had the opportunity to deliver housing—I think we all recognise that he delivered more for social housing and more for housing in our country than any other Minister ever has, and I certainly pay tribute to him—he said that the only way to deliver the housing the country needed was to empower local authorities, municipal authorities, to have the authority to go ahead and build. He built and he delivered. I trust the Minister will, too.

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[Felicity Buchan]

The hon. Gentleman will recognise that legal aid does not fall within my remit, but I am happy to meet him and have a conversation.

We empathise strongly with those affected by the cost of living issues. That is why the Government have provided over £37 billion in cost of living support this year to those who need it the most. We have given unprecedented support to protect households from high energy prices. For tenants who are unable to afford their rental payments, there is a range of potential support available through the welfare system.

My hon. Friend the Member for North Devon (Selaine Saxby) and the hon. Member for York Central (Rachael Maskell) both raised the issue of second homes and holiday lets. I am aware of the pressures in their constituencies. The White Paper contains a proposal on that issue, and I point both hon. Ladies to the Department for Digital, Culture, Media and Sport’s call for evidence on the topic.

[Rachael Maskell]

The DCMS call for evidence has closed, but I have a private Member’s Bill before the House. Will the Minister’s Department work with me to ensure that we can regulate short-term holiday lets?

[Felicity Buchan]

Specifically, that falls under the DCMS, but I am happy to have a conversation with the hon. Lady.