Private Rented Sector Housing

Jim Shannon Excerpts

Tuesday 15th March 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) for setting the scene so very well. He does so with a knowledge and a determination for the change that each and every one of us wishes to see. I will give a Northern Ireland perspective, which the Minister is not responsible for, but will do so in order to back up the hon. Gentleman and the other speakers. It is always a pleasure to speak after the hon. Member for Vauxhall (Florence Eshalomi). She and I usually spar in this Chamber. Either she is first and I am second, or vice versa. Today the hon. Lady takes prominence, as she always does.

These are incredibly poignant issues. There are just not enough houses to meet the need in Northern Ireland, and that has meant that people pay high rents for properties that are not fit for purpose, let alone worth the money. In my office there are three massive and critical issues—benefits, housing and planning matters. Every day in my office features housing issues.

Two years ago, the rent for a standard three-bed house in Newtownards, the major town in my constituency, would cost approximately £450—for a nice house in a nice area. Two years on, that same house will now cost at least £750. I was in shock just the other week when a lady came into the office. She is divorced from her husband—separation happens—has three children and was paying £850 for a house. The gas boiler was broken and she could not set the timer. She is in private accommodation because that is all that was available. She had to press the boost button each hour to make it work, in a house in wintertime with three children. The difficulty for her was that she could never get a house with the Housing Executive, which is the equivalent to council housing over here on the mainland, because she and her partner work and they have an income and good health, so there is no way in the world that they will ever qualify for the points to get them a Housing Executive house. It would be the same here.

That is a real problem. They are stuck in a rental house, they cannot get out of that rental house and there is no other accommodation, rental or private rental where they can go, so they find themselves in a very difficult position. My constituent had divorced her husband. Separation happens; not every marriage succeeds and hers unfortunately did not. They did not have enough credit to buy a house, for which a mortgage would have cost her less. The hon. Member for Ellesmere Port and Neston (Justin Madders) mentioned mortgages and if someone were able to get a mortgage for a house, they might be able to pay less and have something to look towards. Unlike in the constituency of the hon. Member for Vauxhall, the average price of a house in my constituency is £250,000.

My constituent asked if we would contact her landlord to get the heating on in the morning so that her children were not shivering while getting dressed. That is the reality of housing in this United Kingdom of Great Britain and Northern Ireland today; every Member has said it, and every other Member who will speak will confirm it. The simple solution on paper for her was to move, and yet she could not find anything large enough or in her price range. She therefore had no option other than to pay the top price for that low-quality housing—I know that this is replicated in too many other constituencies.

The Northern Ireland Assembly report for the Private Tenancies Bill states that

“the private rented sector continues to play a critical role in meeting housing need in NI”.

The latest available data, which is from 2016—hardly up to date—indicates that the private rental sector has taken over from the social housing sector as the second-largest housing tenure. Approximately 17.4% of occupied dwellings are in the private rental sector, in comparison to the Executive—known as council housing here—which makes up 15.6% of occupied dwellings.

According to the Department for Communities, nearly half of those in the private rental sector are in receipt of some element of housing support. We say this every day in debates, but it does not lessen the issue: the price of energy is going through the roof. Renting is one cost, but then there is gas, electric or oil—whatever it may be. Housing benefit becomes a critical factor for many tenants in my constituency who are in the low-wage bracket and find those costs difficult to deal with. It is either through universal credit or housing benefit that they get help. In 2019-20, some £270 million was paid into the private rental sector, either in housing benefit or through the housing-costs element of universal credit. That tells us a wee bit about the magnitude of the issue we have before us.

The current fitness standard for all housing tenures in Northern Ireland, including private rental sector properties, has been in place since 1992. It is not the Minister’s fault, but it is totally unsatisfactory to have a standard set some 30 years ago. The housing fitness standard has been described as a physical standard, but it is arguably very outdated and does not sufficiently address issues such as thermal comfort, energy efficiency or home safety—three critical factors. As people have referred to, there are houses overrun with ants, spiders and insects, so we do need to raise the bar, and raise it soon.

Too many families are living in substandard housing. There is too little legislative weight on landlords to do what they should morally be doing. As we have families faced with high fuel prices, they can little afford to carry out the work that landlords should be carrying out for them. It has occurred to me that we must make it a priority in this House to work on this issue, which is tantamount to the abuse of the vulnerable—those who feel trapped by poverty and circumstance, and by a lack of legal support and redress. I hope that the legal statement that was made today can help; I think the hon. Member for Lewisham West and Penge (Ellie Reeves) referred to that. We hope that the legal changes that have been talked about today may help get legal redress.

I know that the Northern Ireland Assembly are seeking to address this issue back home; we in this House must also ensure that obligations on landlords are a UK-wide standard. The Minister works hard at his job and I respect him, but I will ask him to take the UK-wide approach on board when considering the matter further. People in every corner of this great United Kingdom of Great Britain and Northern Ireland deserve that protection, regardless of their postcode. The hon. Member for Vauxhall said it was about helping people; I totally agree with that. Our job is to make sure that people’s lives can get better. We need to do that.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Eddie Hughes)]

It is a pleasure to serve under your chairmanship, Sir Gary. Given that I have a bit of a cold, it might be easier for me to conclude two or three minutes early, to give my voice a rest. I thank the hon. Member for Liverpool, West Derby (Ian Byrne) for securing this debate on the quality of housing, which is an issue that affects us all. Although I appreciate that there has been no representation from the Government side, I like to reflect that that might be because my colleagues have faith in the Minister responsible and the forthcoming promise of legislation, but that will be for others to judge.

We have discussed standards in the private rented sector. I am delighted that the opportunity has arisen, because we have ambitious plans to create a vibrant private rented sector that is safe, healthy and fit for purpose. During the debate, we have heard a wealth of expertise and experience from across the House. Although I appreciate that we are on different sides of the House, I like to think we are on the same side of the argument. I share others’ determination to address these problems.

I start by reiterating our commitment to drive up standards in the private rented sector. Good quality housing can help to improve a wide range of outcomes, including health, quality of life and educational attainment. Since 2004, landlords have had to ensure that their properties are free from the most serious category 1 hazards, those that that pose an imminent risk to tenants’ health. In 2016, we strengthened local authorities’ enforcement powers to deal with hazardous properties by introducing financial penalties of up to £30,000, extending rent payment orders and introducing banning orders for the most serious and prolific offenders. Councils have been using those powers.

I fully appreciate that the shadow Minister, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), says that the Government are not spending enough, but I think the examples I give show that some councils are doing that. He described the provision as patchy, which is unfortunate and certainly something the Government would like to address, but there are definitely examples of good practice.

Enforcement action by Burnley Borough Council over the past two years, for example, has netted fines and costs of more than £85,000. This year, Bristol City Council banned a landlord for letting or managing properties for five years after it found he was running a seriously unsafe house, with 18 tenants, including six children. At the height of the pandemic in 2020, when people were spending so much more time in their homes, we increased safety further by requiring landlords to ensure that electrics in properties were safe. Local councils have also been using powers we gave them to do that. Fenland District Council has fined four landlords £25,000 for dangerous electrics. We are amending regulations to make it mandatory for both social and private landlords to instal a carbon monoxide alarm in any room used as living accommodation where a fixed combustion appliance of any fuel type is used.

There has been a marked improvement in standards in the private rented sector. The proportion of homes in the sector with category 1 hazards has halved since 2010. However, as the shadow Minister pointed out, 12% of homes in the sector still contain serious hazards. It is not good enough, so I need to talk about what we will do.

The levelling-up White Paper outlined a set of ambitious missions to level up the country and support our communities. On housing quality, the Government set our ambition to half the number of non-decent rented homes by 2030, with the biggest improvements in the lowest-performing areas. We have committed to consult on introducing a legally binding decent home standards in the private rented sector. We are working with a range of experts to review the housing, health and safety rating system risk assessment tool, which forms part of the decent home standards. That will make it more efficient and effective for local authorities to use and more accessible for tenants and landlords.

We are exploring a register of private rented properties so that local councils can identify where to target their enforcement and leave the good landlords alone. We are also committed to requiring all private landlords to belong to a redress scheme to drive up standards further and ensure all tenants have a right to redress. As have been said, we will abolish no-fault evictions, which will mean tenants who complain about poor standards are protected from revenge evictions. We will publish our landmark White Paper later this spring, which I understand technically starts on 20 March, so I hope very soon.

Let me turn to the issues that Members have raised. I appreciate it is slightly outside the course of the debate, but the social rented sector was mentioned by a few Members. We had the social housing White Paper, the charter for social housing residents. The regulator for social housing and the housing ombudsman have not needed to wait for us to introduce legislation to become more muscular in their interactions with the problems they face. The housing ombudsman has seriously increased its number of staff, as has the housing regulator. As we prepare for legislation, I am in constant contact with them both to ensure that they will have the powers that they need, but they already have the staff they need to carry out that level of enforcement.

A number of people mentioned the problems with mould in the socially rented sector, which was deplorable. Following the report published by the housing ombudsman, we do not have the presumption that it is the tenant’s fault—a lifestyle choice on their part—that causes damp, so we are already seeing steps in the right direction in advance of any legislation.

On the items listed by the hon. Member for Liverpool, West Derby, I share the frustration with section 21. Clearly, that will be fundamental in the White Paper. It seems deplorable that people could be concerned about reporting dangerous items in their property to their landlord with that fear hanging over them. We have consulted widely. I share the concerns of others and that will be fundamental to our reforms.

[Jim Shannon]

The shadow Minister clearly said that there are landlords who are doing the job right, but there are those who do not. Is it the Minister’s intention to bring those people up to the standard of those who do it right? Owning rented accommodation is not a cash cow; it is more than that. There is an obligation to look after their tenant. Will the standard be those good owners of rental accommodation?

[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.