Renters’ Rights Bill

Naushabah Khan Excerpts

2nd reading
Wednesday 9th October 2024 Commons Chamber

[Rebecca Smith]

My experience has been that this does impact on the market. That is why the market in Plymouth has failed, in the words of the chief executive of the city council, because those properties often get bought by a family who may not have been—[Interruption.] No, let me finish. Such a family may have been in a privately owned property, not a privately rented one. I feel that we are speaking to the same point, but ultimately the market in the constituency I represent is not working. I am speaking only about the evidence I have seen for myself, but the 89 properties that are going to be sold will mean 89 further households needing temporary accommodation. It they have to be found further accommodation when there are 50 inquiries for every rental property in Plymouth, there is clearly a problem, although I do take the points that Labour Members have made.

[Naushabah Khan (Gillingham and Rainham) (Lab)]

Will the hon. Lady give way?

[Rebecca Smith]

I will.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. We need to reduce the number of interventions, because they eat into other Back Benchers’ time.

[Naushabah Khan]

I will be brief, Madam Deputy Speaker. Does the hon. Member recognise that a number properties are taken out of the private rented sector to be used as temporary accommodation because landlords are able to get a better deal, sometimes from councils, and that that also has an impact on the market?

[Rebecca Smith]

Yes, the hon. Lady is correct. That is part of the problem, and I go back to my point: it is why in cities such as Plymouth the private sector market is failing. Those temporary homes are needed for those who have been evicted from the private rented sector, and then we end up with them staying in temporary accommodation, rather than permanent homes. Ultimately, we are all seeking to achieve somewhere for people to live in the long term, not temporarily. I believe we all need that security, which is ultimately what the Bill is trying to achieve. I am just highlighting that if there is no supply, there are no homes for us to secure through this legislation.

I know that the Secretary of State recognises the important role of landlords, yet this Bill feels like a using sledgehammer to crack the nut of no-fault evictions and poor conditions, with significant unintended consequences, as the shadow Secretary of State, my right hon. Friend the Member for North West Essex (Mrs Badenoch), outlined. We will see properties leaving the market and therefore a further increase in the number of people not in accommodation. I take the House back to this figure: this Bill will increase, from 365 already, the number of households in the city I represent who are living in temporary accommodation.

--- Later in debate ---

[Naushabah Khan (Gillingham and Rainham) (Lab)]

I thank the Minister for bringing forward this legislation, which will have a significant impact on many of my constituents in Gillingham and Rainham, where the number of people living in the private rented sector has increased by 162% in the last two decades. It is vital that the law catches up with the reality of people’s lives. That is why I am so proud that this Government have brought in the Bill at this point, when the previous Government failed to do so.

The rights of tenants do not have to be pitted against those of landlords. Having a system that is inherently fair, gives renters stability and offers them the right to live in a home of a decent standard should not be seen as an attack on landlords, many of whom are doing the right thing. It should be seen as an opportunity to create a healthy and stable private rented market that plays a fundamental role in tackling the housing crisis, rather than adding to it.

Like many colleagues who have spoken, I find that housing is the No. 1 issue that my constituents contact me about. Some have raised the appalling conditions that they live in but are too scared to raise with their landlord for risk of eviction. Others are concerned about the significant rent hikes that they face, which they cannot afford, while many have received a section 21 notice and have been forced to leave the property that they have lived in for decades, with no alternative.

An insecure rental market places significant pressures on local councils. My local authority, Medway, faces budget pressures when it comes to temporary accommodation—the costs are £3 million above what was forecast—and other authorities are in a similar situation, or much worse. That is an unsustainable position for cash-strapped councils to face year on year. With that in mind, I welcome the strides that the Bill makes in ending rental discrimination; it makes it illegal to discriminate against those on housing benefit, and empowers tenants to challenge unreasonable rent hikes. There is also the much-needed end to section 21 notices. I campaigned for that while working for a homelessness charity, and the sector was deeply disappointed when the previous Government failed to deliver it.

However, further safeguards are required to ensure that protections are robust, and there should be clear evidence thresholds that enable tenants to understand better how they can benefit from the changes in the law. That should also apply to the exemptions that we have specified for landlords. For example, if a landlord chooses to sell their property and, as a result, evict their tenant, the legislation should include a clear evidence baseline, setting out the parameters for what is considered to be a genuine intention to sell. Finally, local authorities will be crucial to the Bill’s success; it places new regulatory and enforcement responsibilities on them, so proper resourcing will be necessary to support that work.

This important, much-needed Bill has the ability to reform the sector robustly, and I hope the Minister will continue to review opportunities to ensure that it is strengthened as it progresses.

Renters' Rights Bill (Second sitting)

Naushabah Khan Excerpts

Committee stage
Tuesday 22nd October 2024 Public Bill Committees

[Rebecca Smith]

Q My question slightly expands on what David said earlier about the burden on local authorities. The new building safety legislation, for example, was really good news, but it had an impact on the level of staffing available to carry out roles, because of the conflict with the private sector, which might offer people higher salaries. Do either or both of you think that there is a similar risk with this Bill? What could we be doing to ensure that we have the right lead-in time and adequate staffing? Is there an immediate solution that we could learn from that previous example?

Dr Henry Dawson: Councillor Hug, would you like to start?

Cllr Adam Hug: As much support as possible in training up the next generation of environmental health officers is essential. There is a whole raft of skills shortages across the housing sector that you touched upon. Obviously, we want to make sure that people are considering this line of work as a career they want to go into rather than leave. There is a pipeline problem in terms of people coming into environmental health as a workstream, but I do not think that should necessarily delay what we are doing with the Bill. Ultimately, it has been talked around for some time; we need to crack on and get it done. It is absolutely the case that getting that local funding piece is right. Then we can join up with skills and training by making sure that local authorities have a pathway to recruit people into their teams. It is about getting the funding piece right alongside the direction of travel.

Dr Henry Dawson: We face some barriers to bringing people into the profession. For example, we have some more sustainable sources of income with things like licensing legislation, where we can charge a fee; at the moment, my own research finds that only about half those schemes charge enough in fees to cover the full costs of management and enforcement. The Lawrence and Wilson review of selective licensing has shown that if we do not charge enough, it ends up reducing the exercise into a sort of glorified paperwork, so we have to charge enough to make it meaningful.

I would argue that staffing is probably one of the most fundamental issues when it comes to the effectiveness of the interventions proposed in the Bill. At the moment, the predominantly hand-to-mouth existence with local authorities, which we have had for quite a long time now, has been predicated on the fact that we are relying on the council tax payer to fund the enforcement of the private rented sector. That is quite peculiar compared with other industries such as building control or planning, which are able to levy up-front fees that do not have to go through a test of political will—which a lot of local authority managers have to navigate to try to predict what the market within their local political support will accept. It takes a lot out on the guesswork and acceptability side.

The ability to charge a fee also provides us with a sustainable and predictable source of income, and that has been lacking for a long time in local government. If you are never sure of whether you will have funding beyond one or possibly three years, with short-term pots of money that are provided often based on a competitive approach—it is about winning them—then you get a member of staff, but you have to train them once you have got them in. Being optimistic, we can train them through an apprenticeship scheme lasting a year to do just housing work, or if we are training them as an environmental health officer, it is three years for the traditional degree route or five years for an apprenticeship.

Having some form of ringfencing of the funding, which allows local authorities to dedicate resources to attract people into the profession, would be very helpful, as the report that I have pretty much every time I speak to a local authority about recruitment for my programme at the university is, “We don’t have the resources to send people to these events to raise awareness about the profession.” A lot of people are just not aware of what we do; once they find out, it is something that sells itself.

Fire and police are comparable bodies, and they tend to have much more success because they have the resources to devote to this. It comes down to sustainable and predictable funding. That allows us to train and retain, and attract new staff.

[Naushabah Khan (Gillingham and Rainham) (Lab)]

Q I have a question about the wider implications of the Bill and the impact on local authorities. For example, it would be helpful to understand whether you feel the abolishment of section 21 will have a wider implication, and how it might help to tackle some of the bigger homelessness challenges that local authorities are currently seeing—or whether it will have an impact at all.

Cllr Adam Hug: I think the provision will help; the whole point is that we are desperate for this. It has been talked about for a long time and as soon as it can be brought in to provide security in the market, it will be extremely helpful to help stabilise a lot of tenancies where there is still uncertainty. The quicker it can come in, the more helpful it will be.

The Bill will not be a magic bullet that will solve the homelessness problems that councils are facing. I pointed out earlier one of the small technical challenges: the duties that local government will be dealing with will be extended in time and go up, we think, from 56 days to 21 weeks on average under the prevention duty. That is a small price to pay, but ultimately, we would like some help paying for that price.

In terms of stability in the private rented sector, this measure is long overdue and will hopefully take some heat out of the sector, but there are all sorts of things going on that mean that it is going to take a long time to turn around the wider issues of local government finance for temporary accommodation, because that is one of the biggest pressures; there are so many councils at the moment that are working hard to procure as much temporary accommodation as possible.

[The Chair]

I call Harpreet Uppal.

Renters’ Rights Bill

Naushabah Khan Excerpts

Report stage & 3rd reading
Tuesday 14th January 2025 Commons Chamber

My Liberal Democrat colleagues and I welcome the new Government’s bringing forward legislation to improve the situation for renters. We have been scrutinising it carefully, to ensure that renters really do get the fair deal that they deserve. It is a step forward, and I will support it, but I urge the Government to go further and take up the challenge of improving the Bill, so that it truly represents the seizing of this once-in-a-generation opportunity.

[Naushabah Khan (Gillingham and Rainham) (Lab)]

I join colleagues from across the House in saying that I was proud to serve on the Public Bill Committee. For too long, tenants in my constituency of Gillingham and Rainham have been at the mercy of a broken rental market. The system has gone unchecked for the last few decades, and left renters with a lack of security, limited rights and too often no choice but to live in unacceptable conditions. The previous Government promised change. Ministers stood at the Dispatch Box and assured the public that they would deliver fair reform in the rental sector, yet they failed. They kicked the can down the road, while tenants faced soaring rents, substandard housing and the ever-present threat of losing their home at a moment’s notice.

The failure to address the housing crisis is perhaps one of the most glaring legacies of the last Government. The number of people renting privately has exploded. Many are renting not from choice, but because it is the only option. In Gillingham and Rainham, 22% of households now live in the private rented sector, and rents have risen sharply over the last decade. Families, young people and older residents alike feel trapped. They are locked out of home ownership and housing security, and locked into paying for homes that are too often cold, damp or unsafe.

Recently, my inbox has been full of stories of constituents who have been evicted through section 21 evictions. Pat Cooper, for example, was told just before Christmas that she would have to leave her home of 35 years. It has left her feeling incredibly distressed, facing real uncertainty about what the future holds for her, with limited choices that she can afford. There are countless similar stories of people who have been plunged into uncertainty and the risk of homelessness because of no-fault evictions. The previous Government had every opportunity to end this injustice, but they chose delay and inaction over the wellbeing of often vulnerable families.

My constituents know that this Government are different. Within their first 100 days, they have brought forward this landmark legislation, which I know will deliver the security, dignity and fairness that renters in my constituency deserve. I welcome the fact that the Bill will end the scourge of no-fault evictions once and for all. I welcome the decent homes standard being extended to the private rented sector; that will guarantee that tenants no longer have to put up with mould, disrepair or unsafe conditions. Crucially, I welcome the introduction of an ombudsman to hold accountable those who do not uphold the law, and to give tenants a clear route to justice. I thank the Minister for considering representations from Members of different parties and the amendments in front of us, which introduce new rules to cap advance rent payments and provide safeguards for bereaved families—something that has been spoken about powerfully today.

This Bill sends a clear message: it is the end of the era of unchecked power for landlords who do not want to follow the rules. For far too long, too many tenants have been treated as second-class citizens in their own homes, and I am glad to see that this Government are putting an end to that. It is high time that renters across the country were treated with the fairness, dignity and respect that they deserve, and I am proud to support this Bill as it progresses through this place and the other place. It will give my constituents their basic rights.

[Several hon. Members rose—]