Renters' Rights Bill (First sitting)

Sam Carling Excerpts

Committee stage
Tuesday 22nd October 2024 Public Bill Committees

[Lola McEvoy]

Q It is really interesting to hear your evidence. Thank you for raising Ayesha’s story, because it makes a real difference to us as Committee members. Good landlords and good tenants are welcome in this. What do you see as an opportunity for the people you represent to support the work of the landlord database? What is the best way that we can ensure it affects people such as Ayesha?

Ben Twomey: Relating the database to rent repayment orders would be useful. If there is a way in which tenants or tenant groups can access the database to make sure that landlords are compliant with the database, it would be helpful. Adding the actual rents to that database would be useful, because we would finally get an honest and clear picture of what people are paying in rent. That would start to change the inflated idea that a landlord can stick their finger in the air and charge whatever they like just because it is a new tenancy. We would start to see the patterns appear for when people are in tenancies.

We should also have certain restrictions for evictions. We think eviction notices should be logged on the database. That would give a clearer picture of why people are being evicted, so that measures later down the line can be taken to reduce the number of evictions. It is helpful that in the Bill they will now have to have a reason for eviction, because currently we do not know why landlords are evicting. We know that it coincides far too often with complaints made by a tenant, but we could continue to track that through the database. We think that landlords should be restricted from making evictions or even rent hikes if they have not registered with the database and the redress scheme.

Tom Darling: I would agree with all that. I know that the Government intend to set out what will be on the database in secondary legislation, but I think it would be helpful to have a steer from Ministers throughout this process on what they intend to be on the database.

[Sam Carling (North West Cambridgeshire) (Lab)]

Q I have a couple of things to ask. First, I would like to hear your views on the arguments that the first panel of witnesses made that assured shorthold tenancy abolitions would remove some security from tenants, particularly students but also people who have longer tenancies.

On your point about the idea of limiting rent increases to wage growth or inflation, how would you respond to the counter-argument that it might lead to landlords setting a much higher baseline rent between tenancies, knowing that they would not necessarily be able to increase the rent as much within a tenancy?

Tom Darling: To take the first point about the lessening of security, similar reforms in Scotland led to an increase in average tenancy length. The idea that abolishing fixed-term tenancies will lead to Airbnb-lite, as we heard earlier, is ridiculous. Clearly, the people proposing that have not been through joining a tenancy recently, because it is an incredibly stressful experience. That is the last thing people would think of to do to go on holiday or to stay for only two months. There has been no evidence of that in Scotland, despite similar reforms in place there, so I would dismiss the idea.

The ability to leave the tenancy to be used in very rare circumstances—for example, where you realise there is some black mould that you did not see, which was being hidden from you when you viewed the property, or you have a serious change in personal circumstances—is an essential protection. It is to be used by tenants in very rare circumstances. Actually, the arguments about that are more about landlords: they would prefer to have the certainty of six months’ rent up front—I am sure they would. We think the Government have the balance right on that particular point at the moment.

Ben Twomey: To add to that quickly, the point made by the letting agents about someone on a two-year fixed-term contract who might find themselves at risk of a form of no-fault eviction by the end of one year is a valid concern. We would welcome support in calling for a longer protective period from no-fault evictions in that case. At the moment, one year is in the Bill, which we welcome as security for renters, but doubling that to two years would be very welcome to make sure that people on such contracts do not find themselves disadvantaged.

To address the point about rent-stabilisation measures, it is important that the vast benefit to potentially millions of private renters is weighed against any potential disadvantages. Millions of renters finding themselves better protected from arbitrary evictions through a rent hike, and from being driven into debt, poverty or homelessness, is an enormous success.

In Scotland, which introduced such measures recently, there has not been an enormous increase in market rents disproportionate to what has happened in England, Wales or indeed Northern Ireland. It was similar tracking of rent inflation with new tenancies. While doing that, we have protected all those people, yet what is happening in the market is similar. One of the ways to solve part of that market problem and to begin to drive down rents is, as has already been said, to build lots of homes at the same time. Some of the most successful rent-cap regimes across Europe are in places with lots of social housing, which takes some of the pressure off the private rented sector.

[Claire Hazelgrove]

Q Thank you both for joining us today. It is so important to hear renters’ voices here in Parliament as we discuss this crucial Bill. A simple question from me: do you believe that, as drafted, the Bill will improve the lives of, and make things fairer for, the millions of renters across our country?

Tom Darling: Simply put, yes. We will be pushing in a number of places where we think the Bill should go further and where we do not think the Government have quite got the balance right, but the groups in our coalition have been campaigning for this change since the promise was first made nearly six years ago. We think it will be an important change to our housing system.

Ben Twomey: Yes. Our homes are the foundations of our lives. The Bill will give us some much-needed security and should drive up standards and quality. As I say, we are worried about affordability within that, but the main reason why you as politicians have probably not heard from renters so much as is in the past year or two is that things have got so desperate. We are worried that if there are some improvements to renting, suddenly we will lose our ability to have spaces like this where we can begin to make change. If this is to be a once-in-a-generation opportunity to make that change, we think you should cover all bases and make sure that no one finds themselves homeless, in poverty or in debt because of the fact that they have been forced into private renting.

Renters’ Rights Bill

Sam Carling Excerpts

2nd reading
Wednesday 9th October 2024 Commons Chamber

[Sam Carling (North West Cambridgeshire) (Lab)]

Affordability is a huge issue for private renters. As a nation, we spend more on rent as a proportion of our income than most of Europe. World Health Organisation guidelines state that housing is unaffordable if more than 30% of income is spent on housing costs. Here in the UK, the average renter pays more than that. The private rented sector currently provides the least affordable housing of all tenures, and most renters settle on a place they can just about afford. That is exacerbated by some landlords and agents asking for more than the advertised price, which pits prospective tenants against each other in a bidding war. The tenant who wins out, paying more than expected, then has no way to vet their landlord.

Some 21% of privately rented properties do not meet the decent homes standard—a far higher proportion than in both owner-occupied and socially rented homes. With no landlord register, there is no way of knowing how well a given landlord treats their tenants and properties. Tenants are expected to leap into the unknown and just hope their property is up to scratch.

If they move in and find their property is not up to scratch, the chances are that they would be unlikely to complain because, with section 21 no-fault evictions still in place, they do not have security. They can be kicked out for no reason. The last Government sat idly by on this. Almost a million renters have been given no-fault evictions since the Conservatives first pledged to scrap them. Once they are evicted, the whole frustrating process starts again.

With all this in mind, it is no wonder that housing insecurity in the private rented sector is higher than for other tenures. Renters are more likely to move often, staying in a property for an average of four years, compared with 12 years for those in social housing and 17 for homeowners. That insecurity means a greater risk of homelessness. Nearly a quarter of homeless people, or those most at risk of homelessness, cited the end of a private tenancy as the main cause of their homelessness or risk.

Stress from insecure housing affects job prospects and health outcomes. It can lead to mental health problems and difficulty sleeping, and it can contribute to physical illness, too, particularly in children. It is astonishing how under-regulated the private rented sector is. The decent homes standard is not applied, and neither is Awaab’s law, which sets clear legal expectations about the timeframes within which landlords must take action to make homes safe where they contain serious hazards. By passing this Bill, we will fix both those loopholes.

More than one in five of my constituents in North West Cambridgeshire are private tenants, and the chaos in the sector affects all age groups. The stereotypical renter is often portrayed as younger, but let us not forget the significant proportion of older people and pensioners who rent in the private sector—there are more than 1,000 in North West Cambridgeshire, according to data from the last census.

The Bill will tackle the sector’s problems head on. It means strengthened rights to challenge unreasonable rent increases. It means an end to rental bidding, to landlord anonymity and to frightening, sudden and unjustifiable section 21 evictions. The Conservatives failed to protect private renters despite promising action for so long, so I am particularly pleased that we are introducing the Bill so soon into our time in office.

The Bill’s measures build on the Government’s plan to create a housing sector that works for all, regardless of tenure. Manifesto commitments to make housing more affordable, to support first-time buyers and to prioritise the building of new socially rented homes are exactly what we need, and I look forward to the publication of the Government’s long-term housing strategy, which will set out these objectives in more detail.

I know how important this Bill will be for my constituents in North West Cambridgeshire. They deserve stronger rights and protections and, above all, security of housing, and we will deliver that.