Economic Growth

Sam Tarry Excerpts

Tuesday 14th November 2023 Commons Chamber

[Sam Tarry (Ilford South) (Lab)]

We are now facing the 14th year of Conservative rule. In that time, the Conservatives have presided over the worst growth in GDP per head since records began, a sustained decline in living standards and a huge housing crisis, while our public services are disintegrating.

It is clear that the economic policies of the past decade have totally failed to address the biggest challenges faced in our everyday society. We are in the midst of the worst pay crisis since the Battle of Waterloo. Real income is still below levels of 2010. In fact, our entire economic system is a stagnant, economic disaster zone—as the New Economics Foundation has put it,

“a stitch-up between large, distant institutions and large, distant corporations.”

My constituents in Ilford South feel the full force of this economic malaise every day, whether it be in the shops, navigating the ever-growing prices of basic goods with an ever-shrinking pay packet, or perhaps most acutely in their very homes, where they face ever-rising rents, crumbling houses and the constant threat of no-fault evictions.

The private rented sector is the worst case of this—a highly deregulated mess that has enabled rents to skyrocket as quality declines, with freeholders looking to grab as much ground rent as possible. The English Housing Survey says that almost a quarter of occupied private rented properties, amounting to nearly 1 million properties, fail the decent homes standard.

Private tenants are almost three times as likely to be exposed to damp and mould as social housing tenants. Even if the property tenants reside in is liveable, there is always the looming threat of a section 21 no-fault eviction. Since the Government first promised to end section 21 no-fault evictions, over 70,000 households have been evicted and threatened with homelessness, and in the past few months, section 21 claims have risen by a shocking 38%. Section 21 is now a leading cause of homelessness in this country, but it can also be used as a weapon by unscrupulous landlords to quash any demands from tenants who complain about failure to meet basic standards and conditions.

While it is welcome to see that the Government are finally bringing forward the long-awaited Renters (Reform) Bill, which will end section 21 evictions, it seems to be too little, too late and appears to be indefinitely delayed. How much longer do tenants in my constituency in Ilford have to live with the constant fear of a no-fault eviction hanging over their heads?

The Bills presented in the King’s Speech do nothing to address the cost of renting. The past year has seen the biggest rise in rents since records began, forcing private renters to fork out huge proportions of their income on living costs. Sandra, in my constituency, said to me recently:

“Initially, our monthly rent was at a reasonable level, but we were shocked when our landlord proposed a substantial rent increase of £450 extra per month…As law-abiding citizens who diligently pay our taxes, we find ourselves in a bewildering and unjust situation. It is disheartening to see individuals and families, who were once stable in their homes, being pushed into homelessness or temporary accommodation due to these unreasonable rent increases.”

This will be a familiar story to countless families across London, as many London MPs will know. The average advertised rent in London is now a record £2,501 per month. Record rents are a symptom of the housing crisis and a broken private rented sector. Thankfully, the Mayor of London is urging the Government to act now, because London is one of the few global cities without any form of rent controls. We can learn from international precedents to design an effective system of rent control for London. Our Labour Mayor proposed two-year rent freezes, which could save average renters in London £3,374. I hope that the Minister will consider granting the Mayor of London the powers that his counterparts in Berlin, New York and Scotland have to introduce rent controls.

This is a failing sector that has pushed more and more families into disastrous temporary accommodation. When I speak to my constituents who are trapped in temporary and emergency accommodation, I hear how they have been waiting upwards of 10 years for a social home. As MPs, we have all heard the horror stories. This is a complex issue, with no silver bullet. The long-awaited and yet further delayed Renters (Reform) Bill is a welcome step in the right direction, but it does not go far enough. It does nothing to tackle excessive rent increases and it fails to close loopholes that will allow unscrupulous landlords to continue to exploit tenants. If this Government, and indeed any future Government, are serious about tackling this crisis, they must go further. They should give local leaders the power to issue rent controls and empower tenants with proper rights and guarantees. We need more Becontree estates, once homes fit for heroes, not Battersea power station monuments with luxury flats for the super-rich.