Cost of Living: Private rented sector

Rupa Huq Excerpts

Tuesday 18th July 2023 Westminster Hall

[Andrew Western]

I agree with the points made by the hon. Lady. I commend the work of the local authorities that are leading the way in building social and affordable homes in an incredibly difficult climate. It is not an easy thing to do with the way the grant regime is set up, but I know how fixated council leaders are on tackling the housing crisis, particularly in places such as London and my constituency in Greater Manchester, where prices are driving key workers and low-income workers out of the local area, which causes all sorts of issues with labour shortages and the provision of skills that we desperately need.

I support planning reform, but it will not be easy. Difficult choices must be made to end the gross inequities of our housing market. In the current system, we are set to spend more on housing benefit than on building affordable homes, and renting is no longer a step in the journey towards owning a home, but an expensive, insecure quagmire, dragging down a generation of younger people. The cost of living crisis is affecting us all, but especially private renters. They are generally, younger, poorer, more vulnerable people, trapped in the vicious circle of a broken rental market. It is no wonder that Sky News found last week that low-income private renters are suffering the most in the current financial climate, and the need for action to tackle this social catastrophe is now acute. Labour has shown that it gets this. I hope that when the Minister responds to the debate, she will show that she understands it too.

[Dr Rupa Huq (in the Chair)]

Members should bob up and down if they wish to speak, so we can calculate how long everyone gets.

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[Beth Winter (Cynon Valley) (Lab)]

The hon. Gentleman is arguing very strongly on behalf of landlords in the private rented sector, but the overwhelming evidence shows that the majority of tenants are on a low income. Their tenure is often insecure, and the properties are often low quality, with damp and mould. Did you consult tenants? Can you speak on behalf of the tenants who are suffering?

[Dr Rupa Huq (in the Chair)]

Order. The “you” should be “he”.

[Sir Christopher Chope]

I shall try to address the hon. Lady’s remarks by saying that in my constituency, there is a lot of social rented accommodation, and to suggest that poor-quality accommodation with damp and mould is the exclusive purview of the private landlord is a complete travesty of the facts. In much of the social rented sector, the stock is very poor quality, insulation standards are very low, repair standards leave much to be desired, and rents are increasing. This year, the Government have allowed social rents to go up by 7%. The point was made just now that there may be a 6.5% increase in private sector rents by the end of 2023.

There is a problem right across the rental market—it is not confined to private landlords—but one thing is absolutely certain: if we restrict the supply of private rented accommodation, rents will go up, and the Government’s response will be to control the rents, which will produce an even worse result. Landlords will not even have the resources to maintain their properties in good repair. Those of us who were privileged to be around in the late 1970s and to see the state of the accommodation across much of our urban areas, particularly London, know that that resulted from years and years of neglect by the public sector, and of penalising the private sector and driving it out of business. My concern is that we should not get back into that scenario. I hope that when my hon. Friend the Minister winds up the debate, she will confirm that the Government will not go ahead with the renters’ reform legislation, because that will have the perverse consequence of reducing supply and increasing rent.

My final point is about population. The population of this country is expanding exponentially and unsustainably. Since 1990, which is also the base date for measuring CO₂ omissions, the population of this country has gone up by between 10 million and 11 million, or about 20%. Last year and the year before, net migration was more than 600,000. The number of people who wish to live in this country is increasing far faster than our ability to provide rental accommodation for them.

[Dr Rupa Huq (in the Chair)]

Order. I am told by the Clerk that we are straying from the terms of the debate. There are others who want to get in.

[Sir Christopher Chope]

I have given way a lot, and hope that I have been able to give some more balance to the debate. My hon. Friend the Minister should not forget the undoubted success of the 1988 reforms, and should remember that she is a Minister in a Conservative Government.

[Several hon. Members rose—]

[Dr Rupa Huq (in the Chair)]

We will go to an informal limit of six minutes, and will start with Alex Davies-Jones.

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[Beth Winter]

Is the Minister aware that the devolved nations have been underfunded by billions of pounds? Going back to the point that the Minister made earlier, the local housing allowance is a reserved matter, and it has been frozen since 2020, since which time we have had a cost of living crisis. People are struggling. My question, though, relates to the report by the Levelling Up, Housing and Communities Committee, which stated:

“If the Government believes the PRS is the right place for those on the lowest incomes, it should…make sure housing benefit…covers benefit recipients’ housing costs.”

The Committee is still awaiting a response from the Government. When will the Government respond?

[Dr Rupa Huq (in the Chair)]

Order. We need to allow the Minister to respond and Andrew Western to wind up the debate.

[Rachel Maclean]

I am afraid that I do not agree with the premise of the hon. Lady’s question, which is that the devolved nations have been underfunded. Her Government in Wales is led by the Labour party, and it is up to them to deliver housing for people who live in Wales. I suggest that she address her comments to their door.

We recognise the struggles that renters have faced in recent months, which is why we have taken decisive action to offer vital support where it is desperately needed. More importantly, we are making the most significant change to the private rented sector in over 30 years to provide the stability and security that renters need, as well as continuing to build new affordable homes so that many more people can own their own home. I therefore look forward to working with Members from across the House to achieve that goal, which we all share. I thank all Members who have contributed.