Renters’ Rights Bill

Richard Tice Excerpts

Wednesday 9th October 2024 Commons Chamber

[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.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Pam Cox to make her maiden speech.