Renters’ Rights Bill Debate
Full Debate: Read Full DebateJames Cleverly
Main Page: James Cleverly (Conservative - Braintree)Department Debates - View all James Cleverly's debates with the Ministry of Housing, Communities and Local Government
(2 days, 2 hours ago)
Commons ChamberI call the shadow Secretary of State.
The UK needs a vibrant and fluid private rented sector. We need it to deliver communities that are happy and cohesive, and to deliver fairness, stability and security for families. I have been looking at the Government’s position on the Bill, and I pay tribute to the Minister for Housing and Planning, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), for the work he has done on it—or is he the right hon. Member?
Well, he deserves to be the right hon. Gentleman. He has been doing the hard yards; he has done loads of work on this Bill. I am sure he was disappointed that he did not get to lead the Department—congratulations to the new Secretary of State—but I have no doubt that the opportunity will come in the near future. I would just say: be patient for the moment.
While I have no doubt that the Bill is full of good intentions, it is poorly though through and counterproductive. In fact, I am assuming it is poorly thought through, but it is entirely feasible that the measures within it are well though through, and are designed to undermine the private rented sector. It is inept, either by accident or on purpose—I will go with inept by accident, because that is more in keeping with the Government’s actions in this Department.
The Bill is clearly a mishmash of measures on issues that are Back-Bench hobby horses—issues that those on the Front Bench do not have the authority or the courage to put to bed. It is entirely counterproductive, as has been recognised and highlighted by their lordships in the other place. The Bill risks driving private landlords out of the sector, reducing the supply of private rented accommodation and pushing up rents for those in the private rented sector. Limiting the supply of such accommodation means limiting the options for tenants in the private rented sector, and leaving them worse off.
We do not need to look very far to see what happens when Governments get this wrong. In Scotland, fixed-term tenancies were abolished, rent controls imposed and regulations tightened, and what was the result? Fewer landlords, shrinking supply and the fastest rises in rents in the UK, with Edinburgh and Glasgow facing steeper rent rises than ineptly Labour-run London. The Labour Government in Westminster are about to make the same mistake, because Government Back Benchers are, for whatever reason, obsessed with “fixing” an already highly successful sector. The private rented sector has the highest satisfaction levels of any tenure type—higher than levels in the social rented sector or among owner-occupiers.
I do not know what correspondence the right hon. Gentleman is looking at, but the correspondence I receive from my constituents in Hillingdon does not tell a story of a sector that is secure and safe; instead, my constituents tell me that they are battling damp and mould, and have had 35% rent increases in recent years. Is that success, in the Opposition’s view?
The hon. Gentleman makes the classic statistical error of assuming that his inbox is representative of all the people in the sector. Has it not occurred to him that people who are happy in their private rented accommodation do not tend to write to their MP, saying, “Apropos of nothing, I just want to let you know that I am happy”? I have it on good authority from my hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds)—my good friend and colleague—that the hon. Member for Uxbridge and South Ruislip (Danny Beales) is not doing a terribly good job of championing the social rented sector in his constituency. He seeks to deny the private rented sector, while simultaneously denying people the social rented sector. I am not sure where he thinks people in his constituency should live.
The point is that the Bill is a mishmash of incoherent proposals, which, instead of being designed to improve the private rented sector, are designed to keep angsty Back Benchers happy, but Front Benchers are already starting to learn that they cannot pay political Danegeld to their Back Benchers. I give the Front-Bench team due notice: their Back Benchers will be insatiable. They will take whatever red meat they are thrown, and they will ask for more. We have already seen this, Madam Deputy Speaker, with the proposed changes to social security and disability benefits. The Front Benchers had plans, but their Back Benchers had other plans, and guess who won? Those showing courageous leadership on the turbulent Back Benches. The Government will see the same again on this issue.
The Opposition understand that a good tenure mix is good for the UK. We took measures to improve the private rented sector, but we made sure that we did it in the right order. We made sure that the courts were ready.
I was intrigued by the right hon. Gentleman’s remarks about the success of the private rented sector. If the sector is so successful and is working so well, why have the Opposition consistently held the position—both when they were in government and, I believe, going into the election—that they would go forward with ending no-fault evictions? I am confused. I would be grateful if he could explain.
It is interesting that on the one hand, we have voices on the Front Bench saying that we did not do anything in government, while at the same time, voices on the Labour Back Benches say that we were doing something.
No. Perhaps Labour Members should co-ordinate their criticism.
The previous Conservative Government understood that there is a need to reform the system, but that every part of the system needs to be ready. That is why we made sure that the justice system was ready first before we started making changes to the legal frameworks, giving tenants, landlords and courts the time to adjust. However, the Labour Government have abandoned that discipline. The changes put forward by their lordships came about through careful consideration of the provisions in the Bill and their implications in real-world scenarios, not the fantasy world of many Labour Back Benchers.
The Labour Government were defeated in the other place on several important amendments. There is a pattern to the Government’s defeats: time and again, Ministers accepted a principle but when it came to taking action to deal with the principle, they fell short. I will give some examples from amendments on Report in the other place. Amendments 87 and 88 in the name of Lord Keen would raise the standard of proof for financial penalties to “beyond reasonable doubt”. The principle is clear: setting serious penalties requires having serious evidence. The noble Lord Keen made the case powerfully in the other place, yet the Government still refuse to act. In doing so they are introducing a huge degree of uncertainty for both landlords and councils, and uncertainty is toxic to the provision of homes in the sector. Making these changes will reduce the housing supply.
Earlier in response to my hon. Friend the Member for Uxbridge and South Ruislip (Danny Beales), the shadow Secretary of State said that my hon. Friend did not need to pay any attention to the people in his inbox who had contacted him. Was he not advocating exactly that—we should not listen because it is a small number of people, and we should accept these amendments so that this legislation can be watered down? Is he not arguing both sides of the same coin on this?
If the hon. Gentleman was going to criticise what I say, he should have at least listened to what I said. What I said was that extrapolating—
No, no, get it right first time. What I said was that extrapolating from a Member of Parliament’s inbox is not a good way of gauging the full spectrum of opinion within a cohort of people. At no point did I say—and I would never say—that we should ignore the people who write to us, and no one should assume that we do. I am pretty certain that the hon. Gentleman would not, and I certainly do not. That is absolutely not what I said.
The point I am making is that the Government’s argument was, “There aren’t that many people, and frankly they’re all posh, so we can ignore them.” That was basically the framing of their argument, but tell that to the extended families of people, typically of ethnic minority origin, who often live in close proximity to each other. There will be communities all across the country where the elders of the family have rented properties that have tenants in them, but because those properties are near where they live, they envisage at some point in the future members of their extended family moving into the properties in order to provide care for them. Disregarding and diminishing this as an idea just because it is something that the Government Front Bench accuse only the posh Members of the other place of doing is rather distasteful.
The shadow Secretary of State failed to address the second concern the Government have about amendment 21, which is the substantial risk of abuse that will flow from the definition of a “carer”. The definition under the amendment could be anyone providing any form of voluntary care. It could be someone who provides the weekly shop. Does he not see the risk of abuse that comes with a ground that is so broadly drawn? That was our other concern, and he has not addressed it.
There are always opportunities for abuse, but we cannot be closing off a provision that would be really valuable to many families around the country because there is a risk of abuse. If we were to do that, there would be loads of areas where Government would not legislate. We do not disregard an opportunity just because of the potential for abuse; we manage that potential for abuse.
I will move on a bit more quickly as I want to ensure that all Labour Back Benchers get their opportunity to speak. [Interruption.] It is their legislation.
Lords amendment 58 in the name of Lord Cromwell would reduce the ban on re-letting from 12 months to six months. That is a wholly pragmatic point. There is the idea in the Bill that a landlord would have to wait for 12 months, but if it is clear after six months that, despite genuine efforts—there is provision to ensure that efforts are genuine—there is no chance of selling, it is entirely reasonable that a landlord should seek to re-let. That is not as quickly as Members on the Labour Benches would do so; nevertheless, it is an entirely fair provision.
The largest Government defeat in the other place came on amendment 59 in the name of Lord Young of Cookham, which is about the exemption for shared owners from the 12-month ban on re-letting. The Minister said at the Dispatch Box that he recognised that this area created challenges, but I urge the Government not to dig in their heels on the issue. The cohort of people envisaged by the amendment are often those most in need of flexibility—people who are not of significant financial means—and limiting their options when it comes to, perhaps, a distressed asset would be entirely wrong. I have no doubt that he recognises that. I urge him to move quickly to a resolution on this matter to reassure the Chamber and the other place that those people will not be disadvantaged by the Bill.
The Lords amendments are well thought through. They attempt to take this mishmash of a Bill and knock it into some credible shape, providing protection for tenants and a bit of reassurance for landlords so that they can continue to provide a supply of private-rented accommodation to help people get on the housing ladder and to live in homes they love and value in communities that they cherish. If the Government choose to blindly ignore those amendments, I have no doubt that the Bill will have the effect of reducing the number of landlords, reducing the number of homes and increasing rents, which is the opposite of what any of us in the Chamber should want. That is why the Opposition will support the amendments.
Once again, I stand here proud to speak in favour of this groundbreaking legislation that finally brings some balance back between the landlord’s right to profit from an asset and the renter’s right to a home. I oppose in particular Lords amendments 26, 27 and 18 proposed by the landlord lobby in the other place. Amendments 26 and 27 would increase the evidence bar for all civil penalty offences to the criminal standard of proof—beyond reasonable doubt rather than on the balance of probabilities. That would gut the ban on discrimination against housing benefit recipients, the ban on refusing to let to families and the ban on bidding wars. Those measures would be almost unenforceable if the amendment stood.
Discrimination is notoriously hard to prove, and we all know that early interactions between a renter and a prospective landlord are often not in writing, so proving beyond reasonable doubt that a prospective renter was prevented from letting a property because they might be a benefits claimant or have kids would be extremely challenging; it is the same for proving bidding wars. Councils already struggle to pursue civil penalty cases because of the staff time and resource involved in gathering evidence to support those cases. Introducing that new, higher bar of evidence for already challenging cases would make them almost unenforceable. It would also be out of line with other legislation, such as the Equality Act 2010, which require only the civil standard of proof. If we do not oppose those Lords amendments, such unlawful practices will continue unchecked, and renters will continue to face homelessness as a result.