Renters (Reform) Bill

Rachel Maclean Excerpts

2nd reading
Monday 23rd October 2023 Commons Chamber

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

It is a huge pleasure to deliver the closing speech today on the Second Reading of the Government’s Renters (Reform) Bill, and I begin by thanking Members across the House for their valuable, thoughtful and knowledgeable contributions to the debate. I have enjoyed and noted the contributions from my hon. Friend the Member for Dover (Mrs Elphicke), the hon. Member for Sheffield South East (Mr Betts)—the Chair of the Select Committee —my right hon. Friend the Member for Calder Valley (Craig Whittaker), the hon. Member for Westminster North (Ms Buck), my hon. Friend the Member for Milton Keynes North (Ben Everitt), whom I thank for all his work across a range of all-party parliamentary groups, the hon. Member for Liverpool, Riverside (Kim Johnson), my hon. Friend the Member for Cheadle (Mary Robinson), the hon. Member for Sheffield Central (Paul Blomfield)—I would be very happy to meet him and his APPG—and my hon. Friend the Member for North Norfolk (Duncan Baker), who will know about all the work we are doing to help address the second home issue in his constituency. He has spoken to me about that on a number of occasions.

I also thank the hon. Member for North Shropshire (Helen Morgan) for the support from the Liberal Democrat Front Bench. I declare an interest similar to that of my right hon. Friend the Member for Gainsborough (Sir Edward Leigh), as I have four children in their 20s who are renting in London. I know at first hand of the issues that they and their friends face, and that is why I am so convinced that this Bill is the right thing to do for the next generations of our children and grandchildren.

[Mr Betts]

The Minister’s children are in their 20s, but we want to make sure that they are not in their 30s before the Bill actually comes into effect, so will she give us a clear time when the courts will be ready for the Bill to be active in the Government’s view?

[Rachel Maclean]

I will come on to that precise point, if the hon. Member will allow me.

I want to thank the hon. Member for Battersea (Marsha De Cordova), my hon. Friend the Member for Poole (Sir Robert Syms), the hon. Member for Liverpool, West Derby (Ian Byrne) and my hon. Friend the Member for Don Valley (Nick Fletcher), whom I will be happy to meet again, as requested. I also thank the hon. Member for Coventry South (Zarah Sultana), my hon. Friend the Member for Guildford (Angela Richardson) and the hon. Member for Dulwich and West Norwood (Helen Hayes). I am deeply concerned about the case she has raised with me and will continue to work with her. I thank my hon. Friend the Member for Totnes (Anthony Mangnall), the hon. Members for Stretford and Urmston (Andrew Western), for Brighton, Kemptown (Lloyd Russell-Moyle), for Blaydon (Liz Twist), for Brighton, Pavilion (Caroline Lucas) and for Putney (Fleur Anderson), and the right hon. Member for Hayes and Harlington (John McDonnell).

It is right to say at this point that we are committed to honouring the manifesto commitment that we made in 2019 to create a private rented sector that works for everyone and to level up housing quality in this country. I am grateful to all hon. and right hon. Members who continue to engage constructively with us on the provisions in the Bill so that we can deliver the change needed to create a fairer rental market for both tenants and landlords. Of course, I echo the sentiment of my right hon. Friend the Secretary of State, who said in his opening remarks that we will continue to work closely with Members to further hone and refine this legislation as it is put on the statute book.

[Several hon. Members rose—]

[Rachel Maclean]

I will make progress, because I have limited time and I must address the points that have been put to me.

First, it is right that antisocial behaviour is a discretionary ground. Judges must decide on the circumstances of a case. Having formerly been Minister with responsibility for safeguarding and domestic abuse, I completely understand the importance of taking such serious issues into account and striking the right balance between tenants and landlords. I was asked whether local authorities will have funding to carry out their enforcement duties. Of course they will have that new burdens funding, as they would with any Government legislation.

I was asked about blanket bans on benefit claimants and families with children, and I make it very clear that we are committed to outlawing the unacceptable practice of such blanket bans. We are carefully considering how to get these measures right. This is a significant reform, as I think all Members understand. We must do it in the right way, while ensuring that landlords rightly have the final say on who they rent their properties to.

[John McDonnell]

Will the Minister give way?

[Rachel Maclean]

I will give way to Members if I have time, but please allow me to make my points.

There have been many questions about the ombudsman. We need simplicity and clarity for landlords and tenants. It is important to say that this Bill does not, in itself, establish a new ombudsman. An existing ombudsman could do the job and, again, we are looking at that very carefully to make sure we get the right solution for this vital part of our regulatory reforms.

I am grateful that many Members have welcomed the point about pets, and I agree that we are a nation of animal lovers. Again, this is about reasonableness. My hon. Friend the Member for Cheadle is exactly right—the circumstances she set out would constitute a reasonable ground for refusal, but we need to look carefully at how this works.

The decent homes standard has been raised again, and it is a key part of our reforms. We must make sure that the new system we introduce means people are living in decent, safe and warm homes. Everyone in this House will be under no illusion about how importantly this Government take this issue, as they can see the work that has been introduced by my right hon. Friend the Secretary of State to tackle these issues, which have laid unresolved for many years. This Government brought in groundbreaking reforms in the social rented sector, and we will do so in the private rented sector to give tenants the same protections.

It is important to note at this point that the vast majority of possession claims do not end up in the courts—only something like 1% of claims go through the courts. In my capacity as Housing Minister, I work closely with the Under-Secretary of State for Justice, my hon. Friend the Member for Finchley and Golders Green (Mike Freer), who is responsible for His Majesty’s Courts and Tribunals Service. There is a wide-ranging programme of reform in the court system.

The courts have already made huge improvements. It is worth saying that over 95% of hearings are listed within four to eight weeks of receipt, and of course the ombudsman will encourage the early dispute resolution process, taking a lot of claims out of the courts and freeing up court time for more complex processes. When we bring in this reform, however, it is right that we ensure landlords have confidence in the justice system because, as everybody has pointed out, if we do not have good landlords in this country who have confidence in the systems that underpin the justice system, we will not have the rented homes in every constituency that our country needs.

We have always committed to aligning and synchronising the reform of the private rented sector with the court system; we note that that was a recommendation of the Levelling Up, Housing and Communities Committee. We do not think that a housing court is the right way to do that; nor is that the view of the sector or of the stakeholders, with whom we have engaged in huge detail. This work remains a priority for our Department and for the Ministry of Justice. We want to see landlords being offered a digital process for possession on all grounds.

[Richard Graham (Gloucester) (Con)]

If the Bill’s Second Reading receives widespread support because it will rightly ditch no-fault evictions of tenants without triggering an exodus of private sector landlords, that will in no small part be down to the hard work, for which I am very grateful, of Ministers including my hon. Friend. While she is looking at what is a reasonable speed to resolve antisocial behaviour claims in the courts, will she confirm that it is the Government’s firm intention to fulfil our manifesto commitment and implement the Bill as soon as possible?

[Rachel Maclean]

I thank my hon. Friend very much. I can absolutely give him that assurance.

[Mr Fysh]

Does the Minister accept that if the Country Land and Business Association’s estimate is correct that the Bill may reduce the available private rentals by 40% in rural areas, that could have a completely deleterious effect on the Prime Minister’s main pledge, which is to get inflation down? Core inflation is driven by rentals. Will the Minister work with me to fix the Bill and ensure that that does not eventuate?

[Rachel Maclean]

I am very happy to work with my hon. Friend on this and many other issues, but it is important that I say that we have done considerable analysis. There is no evidence, such as the estimate that he has just pointed to, that the Bill will lead to landlords leaving the sector, but it is right that any policy that the Government bring in is based on evidence. That will always be our approach.

[John McDonnell]

Will the Minister give way?

[Rachel Maclean]

I want to wind up now, because I cannot detain the House any longer. I assure right hon. and hon. Members that we are focused on introducing this groundbreaking once-in-a-generation reform. I commend the Bill to the House.

Question put and agreed to.

Bill accordingly read a Second time.

Renters (Reform) Bill (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Renters (Reform) Bill:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 5 December 2023.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Consideration and Third Reading

(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.—(Andrew Stephenson.)

Question agreed to.

Renters (Reform) Bill (Money)

King’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Renters (Reform) Bill, it is expedient to authorise the payment out of money provided by Parliament of:

(a) any expenditure incurred under or by virtue of the Act by the Secretary of State; and

(b) any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(Andrew Stephenson.)

Question agreed to.

Renters (Reform) Bill (Ways and Means)

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Renters (Reform) Bill, it is expedient to authorise:

(1) the charging of fees under or by virtue of the Act; and

(2) the payment of sums into the Consolidated Fund.—(Andrew Stephenson.)

Question agreed to.

Renters (Reform) Bill (Carry-over)

Motion made, and Question put forthwith (Standing Order No. 80A(1)(a)),

That if, at the conclusion of this Session of Parliament, proceedings on the Renters (Reform) Bill have not been completed, they shall be resumed in the next Session.—(Andrew Stephenson.)

Question agreed to.

Petition