Private Rented Sector Housing

Grahame Morris Excerpts

Tuesday 15th March 2022 Westminster Hall

[Grahame Morris (Easington) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Streeter. I congratulate my good and hon. Friend the Member for Liverpool, West Derby (Ian Byrne) on securing this important debate. It speaks volumes that, apart from the Minister—to whom I mean no disrespect—and his Parliamentary Private Secretary, no Government Members are present for this debate. They really should be. I do not know if it is an indication that there are no problems in the private rented sector in the constituencies of Government MPs, but this is a really important issue for me and for many Opposition Members.

I know from personal experience that my hon. Friend the Member for Liverpool, West Derby, is a long-term advocate of improving housing quality and conditions. Even before he was elected to this House, he very kindly hosted members of my team from Easington, who visited Liverpool in 2018 to discuss and see for themselves how that city’s very successful selective private sector rented scheme was improving the community’s quality of life. I am grateful for that, because we learned from that scheme.

I will use the little time I have to highlight the issues that affect my constituency in east Durham. I am pleased to note that after many delays and much procrastination by the Government, permission was finally given to Durham County Council to implement a scheme based on the very successful Liverpool model. That scheme will come into effect on 1 April this year. That selective licensing scheme is not a solution, but it is an important tool in the toolbox. I thank Councillor Kevin Shaw, who my hon. Friend the Member for Liverpool, West Derby met during that visit. He is the erstwhile holder of the housing portfolio at Durham County Council, and has always been a champion of driving up standards, tackling homelessness, and the effective regulation of absentee landlords.

This is not an abstract argument. I hope the Minister will take up some of the invitations that have been extended to him, in order to see the impact that absentee landlords have on former mining communities such as Easington Colliery, Horden and Blackhall. That impact is really quite sinful, and clearly exposes the Government’s myth of levelling up. People living in those private rented properties, which in many cases are former colliery houses, think that term is some kind of joke. Far from levelling up, many people are struggling just to keep up.

When preparing for this debate, I was reflecting on the fact that I served for a number of years on Easington District Council, a local authority that had housing responsibilities. The vision of my predecessors was “farewell to squalor”—an end to squalid housing conditions—and that gave birth to the new town of Peterlee. The idea was that we would never again suffer the appalling conditions that so many families in my constituency were subjected to before the development of that new town.

From the Government’s statements and Ministers’ responses to debates, it seems as though they measure success on housing policy by new building starts. However, there are multiple facets to, and crises in, the UK housing sector, from a lack of affordable housing stock in overheated economies, such as in parts of London and the south-east, to problems associated with derelict and void properties in the northern regions, in areas such as mine, which are falling into decline and damaging local communities. A number of Members have made positive suggestions; I do not want to elaborate on those, but I hope the Minister will respond to the suggestion about section 21 no-fault evictions, the suggestion from my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) about addressing the issue of poor energy efficiency, and all the other suggestions made. When he responds to my remarks, I would like him to concentrate on the availability of a selective licensing scheme for the private sector.

When these problems were arising, I pointed them out to the Housing Minister. I was just checking how many Housing Ministers there have been since I was first elected in 2010; I think the current Secretary of State for Transport was the Housing Minister then, and there have been 11 or 12 since. Perhaps part of the problem is getting a grip on the portfolio and understanding the depth of the problem. As soon as we feel that we are making some progress with a Minister, they are shuffled, and we have to start all over again. I am not making excuses for the Minister, and I am sure he will respond in his own way.

Seven years ago, I warned the then Housing Minister, the right hon. Member for Great Yarmouth (Brandon Lewis), that the bedroom tax was undermining the viability of social housing in many of my communities, and I pointed out the problems arising in the former mining community of Horden, where Accent Housing, a housing association, withdrew an investment plan after local housing market failure and a collapse in demand, partially because of the bedroom tax undermined demand for certain types of properties in the area. I said that I understood that Accent Housing

“is currently seeking permission from the Homes and Communities Agency to dispose of its properties on the private market, which means that it will put…up…for auction”—[Official Report, 11 February 2015; Vol. 592, c. 266WH.]

the whole of its housing stock, amounting to several hundred houses. That meant ownership was fragmented among many private landlords, who bought small parcels of stock. Instead of dealing with a stock of 500, 600 or 700 houses, we had dozens and dozens of private owners buying three or four properties. I warned then that the consequence would be an influx of absentee private landlords. They are not bad people; I am not suggesting that they are evil. Some have good intentions. They buy these properties, often at auction without even seeing them, to put that investment in their pension portfolio, but the effect has been bad for residents, tenants and the wider community.

I want action from the Government. I fear that their policies have laid the foundations for many of the problems with poor condition of housing stock. There has been decline of local housing demand, increases in the number of derelict and void properties, and a decline in the local quality of life. I have no doubt that the rise in crime and antisocial behaviour has been exacerbated by Government policies, and by the reduction we had in the number of police. I know we are all desperately trying to reverse that, but much of the damage has been done, and it will take a huge commitment and a great deal of time and effort to recover from this position.

Horden is not alone. Many areas, particularly former industrial areas—perhaps including the Minister’s constituency—have been blighted by problems and the short-sighted nature of managed decline. My constituency needs significant funding for housing redevelopment and regeneration, so will the Minister stop holding competitions to identify the areas of greatest need? He should take responsibility for the devastation that has been inflicted on communities such as mine, where people have served the nation, including by mining the coal that powered the engines of industry that made Britain great, and they deserve recognition.

In conclusion, I ask the Minister not to join his long list of predecessors in batting aside the criticism. I want him to work with the Labour party Front Benchers, and to visit my community. I want us to work together to create a funding and investment package that will improve my area and others. I want an investment package that will really deliver on the levelling-up promise. We want an end to meaningless rhetoric.

--- Later in debate ---

[Eddie Hughes]

The hon. Gentleman makes an important point. It was raised by another Member with regard to the balance of power between tenants and landlords. For too long, the power has rested more fundamentally with landlords and we need to redress that balance to bring the standards of the worst up to the standards of the good, and we need to accept that that might mean that some landlords will exit the sector. If they have been providing a particularly poor service and poor quality accommodation, the sector will be better for their absence from it. That is why we are consulting on a decent homes standard for the PRS. Unfortunately, I am not able to say when that work will be concluded, other than in due course, but we are working closely with stakeholders to make sure that the review gives us an appropriate basis for legislation in the future.

I completely accept that there have been problems previously with the selective licensing across Liverpool. My understanding of the situation is that there were some statutory problems with the application. I appreciate that it might have been an administrative-type problem, but at least we are there now. I am an enthusiastic consultee with regard to the idea of a landlords’ register, because it would be incredibly helpful for all councils to know where their private rented landlords are, and it would help them focus whatever resources they have more specifically.

[Grahame Morris]

This is not a one-way Streeter—sorry, street even for the tenants. There are certain advantages for landlords of such a scheme being adopted, which I understand will happen in County Durham in two weeks’ time, based on the excellent scheme that my hon. Friend the Member for Liverpool, West Derby (Ian Byrne) was promoting.

[Eddie Hughes]

It is great to hear about good work that is going on across the country, and I fully accept that we can learn from the work that other areas are doing.

I quickly want to cover a few more points. The hon. Member for Vauxhall (Florence Eshalomi) mentioned Louise’s case. I would be grateful if she would write to me, so I can pick up that case, because we need to be concerned about standards in all forms of accommodation, and student accommodation is one of them. The hon. Member for Strangford (Jim Shannon) raised working with devolved assemblies. One of the things I have been working on is the new homes ombudsman, who will ensure the new properties we build are of an appropriate quality. We have been working very closely with the devolved Assemblies on that issue, and we will continue to do so in other areas.

I am grateful for the invitation from the hon. Member for Easington (Grahame Morris) to visit. I hope there is no reshuffle before I get the opportunity to get out and about more, to say the least. With regard to the hon. Member for Ellesmere Port and Neston (Justin Madders), when we are talking about insecurity and poor quality housing, I hope that work to abolish section 21 will address both those points because tenants will have more security and more leverage to complain about the standards of accommodation they are being provided with.