Private Rented Sector: Regulation

Sarah Owen Excerpts

Wednesday 24th May 2023 Westminster Hall

[Sarah Owen (Luton North) (Lab)]

It is a pleasure to see you in the Chair, Mr Davies. Before I start, I would like to put on record my disappointment and anger at the misnaming of my wonderful colleague and dear friend, my hon. Friend the Member for Erith and Thamesmead (Abena Oppong-Asare). The frequent misnaming of particularly my black women colleagues in this place is not okay and needs to stop.

[Philip Davies (in the Chair)]

As the Chairman in this debate, I apologise profusely to the hon. Member for Erith and Thamesmead (Abena Oppong-Asare). I hope that she will accept that genuine apology. It is no one else’s responsibility other than mine. The shadow Minister is quite right to draw attention to that.

[Sarah Owen]

Thank you, Mr Davies. I will move on.

I congratulate my hon. Friend the Member for Liverpool, Walton (Dan Carden) on securing this incredibly important debate. He has put forward compelling points that the Minister needs to hear, and I hope she will take them back to the Secretary of State, because we will not stop pushing until justice is granted for renters.

Labour believes that housing is a human right. Everyone, regardless of whether they are a homeowner, a leaseholder or a tenant, is entitled to a decent, safe and secure affordable home. Housing that is fit for habitation should never be a bank account-emptying privilege, but under 13 years of Tory rule that is exactly what it has become.

We have all been let down by negligent housing policy, from the persistent inability to end the feudal farce of the leasehold system to the abandonment of housing targets altogether, and from the economic experiment of the former Prime Minister and Chancellor, which sent mortgages soaring, to the shattered promise to end rough sleeping. Whole towns are taken up by second homes for the privileged few, while families are holed up in B&B bedrooms.

Our housing crisis is not that complicated. It is not an issue that only specialists in Whitehall can understand or that Ministers can gatekeep. It is quite plain to see for all of us that our Government do not prioritise building homes, and that the homes that we have built are not up to a decent enough standard. That is a failure of production and regulation. The Renters (Reform) Bill does not come close to meeting the scale of the problem. We need boldness, creativity and backbone if we are to fix the rotten and decrepit private rented sector.

Poor housing is directly linked to poor physical and mental health. Mould and damp can aggravate or even create chest issues, and overcrowding can cause anxiety and depression, which can lead to the breakdown of relationships. One in five privately rented homes do not meet the decent homes standard, and one in 10 have a category 1 hazard that poses a risk of serious harm. That is a shameful statistic. The knock-on impact on school attendance, workplace absence and NHS resources cannot be overstated. Surely the Minister agrees that providing decent affordable housing would provide an economic boost in a variety of ways, so why is that reality not reflected in Government policy?

[Wera Hobhouse]

Students often do not have a good reputation, but they often have to live in appalling conditions and they never really have a way of addressing the issue. In Bath, that is a particular issue. Does the hon. Lady agree that we should also look at the appalling conditions in which some students are forced to live?

[Sarah Owen]

It behoves all of us to represent everybody who lives in rented accommodation, whether they are students, pensioners, workers, people who are not working at all or families. I will talk more about that.

Only last week, more than three and a half years after it was first promised, did we finally see the Secretary of State’s Renters (Reform) Bill. We welcome that long-overdue legislation and look forward to engaging constructively on its development, but it is clear that in improving it we will have our work cut out for us. My hon. Friend the Member for Liverpool, Walton was right to highlight the loopholes in the Bill. He mentioned unfair evictions and spoke powerfully and movingly about the heartache and uncertainty caused by section 21 notices, which are a leading cause of homelessness in England. The Government’s delay since first committing to ending them in April 2019, more than four years ago, has resulted in 60,000 households being threatened with homelessness by section 21 notices.

Labour and our stakeholders welcome the Bill’s steps towards scrapping section 21 evictions, but there remain ways for ill-intentioned landlords to remove tenants unjustly. The Government must take steps swiftly to amend that flaw in their legislation. In the short term, we call on them to extend notice periods to a legal minimum of four months, with firm, punitive measures for landlords who do not abide by the law.

We are not naive about the fact that some evictions are warranted. Landlords who are dealing with antisocial behaviour or even criminal activity from their tenants must be supported in reclaiming their properties. We recognise that robust and effective grounds such as those cannot be diminished. However, the Government have yet to assure us that grounds could not be exploited by bad-faith landlords to continue their unjust evictions. Will the Minister provide any detail on how the Government will defend against that?

The Bill also lacks support for local authorities to act on injustices in their local private rented sector, as has been mentioned throughout the debate. We expect measures that would strengthen enforcement powers, require councils to report on enforcement activity and allow them to cap the advance rent that local landlords can ask for. The Government owe local authorities an explanation of why they have neglected to give them the muscle to ensure that the new legislation is successfully enacted.

It is also incredibly troubling that the Bill does not include a ban on landlords refusing to rent to benefit claimants or those with children. That allows discriminatory “no DSS” practices to continue. No children? This is hardly a family-friendly policy, is it? I would be grateful if the Minister assured us today that this oversight will be reviewed and amended.

[Navendu Mishra]

I receive a lot of correspondence from people who have pets and are not able to get a secure tenancy. Often, they are people who live on their own with their pet, and they do not have a family member or are housebound. Does my hon. Friend agree that the Government need to strengthen the legislation in relation not only to people on benefits but to people who have pets? There is a whole other debate to be had about people who have no recourse to public funds.

[Sarah Owen]

I thank my hon. Friend for that really important intervention, and he is absolutely right. What we should see from this legislation is the removal of barriers to good housing for all renters, but what we are actually seeing is, unfortunately, opportunities being missed. I sincerely hope that the Minister takes on board some of the suggestions that have been made today.

When it comes to affordability—or, in reality, unaffordability—the freezing of local housing allowance has only exacerbated the problem, as my hon. Friend the Member for Liverpool, Walton explained. In many parts of the country—including, as we have heard, in the constituencies of the hon. Members for Brighton, Pavilion (Caroline Lucas) and for Bath (Wera Hobhouse); in the constituencies of my hon. Friends the Members for Stockport (Navendu Mishra), for Erith and Thamesmead and for Liverpool, Walton; and in my own constituency in Luton—rents in the private rented sector are surging and the costs involved with moving are soaring. By making the shameful decision to freeze LHA yet again, the Government have pushed millions of hard-pressed tenants to breaking point, with the risk of mass arrears and evictions that that entails—more evictions, more temporary accommodation and more people sleeping on the streets.

My hon. Friend the Member for Stockport highlighted the situation when it comes to affordability. It is becoming harder for our constituents not only to find an affordable place to rent but to stay for the long term. Some of our lowest-paid workers face rent rises of 30% to 40% within their tenancy. Labour is exploring options to address this, starting with consulting landlord and tenant groups on how best to stabilise rent increases within tenancies. I would be grateful to hear from the Minister what discussions she has had on the issue. We do not want to see people continually having to jump from place to place, finding somewhere affordable that turns out to be overcome with mould or somewhere decent that then has its rent doubled. That is no way to live.

It does not have to be this way: Labour has other ideas. Our housing White Paper, to be produced within our first 100 days if we are elected to government, will set out how longer-term tenancies will become the norm, because we know that tenancy security is key for a settled life and that home must be a place where we can relax, knowing that another catastrophe is not around the corner.

We are ambitious about revolutionising what “home” means in Britain. We stand for building new homes. That is why the Shadow Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Wigan (Lisa Nandy), proudly has the mantra of “council housing, council housing, council housing”, and it is why Labour-led councils, such as my own in Luton, are building homes. They are building eco-friendly council homes, fit for the future.

We will help more first-time buyers to get on the housing ladder; we will abolish the scandalous leasehold scheme; and we will introduce a national register of landlords and licensing for letting agents, as well as a legally binding decent homes standard, updated for the next decade. We will afford new rights and protections to tenants, including the right to have pets, the right to make reasonable alterations, the right to request speedy repairs and, as has been mentioned, mandatory longer notice periods from landlords.

Labour will tilt the balance of power back towards renters by introducing a powerful new private renters charter, to make renting fairer, more secure and more affordable. We will achieve this by finally bringing forward an effectively regulated private rented sector. This is what our constituents need and it is certainly what they deserve.

--- Later in debate ---

[Rachel Maclean]

I thank the hon. Gentleman. On his first point, we believe that we currently have the right balance. Of course, the Bill will proceed through the House. On his intention to table an amendment, I am of course happy to meet him to discuss that.

A number of Members referenced housing issues more generally. The Opposition Front-Bench spokesperson, the hon. Member for Luton North (Sarah Owen), referred to the affordable eco-homes being built by her local council. The House must be made aware—I am sure it is already—that those affordable homes are being built with support from the Conservative Government through the affordable homes programme. We are delivering homes all across the country.

[Sarah Owen]

Will the Minister give way?

[Rachel Maclean]

No. I need to wind up. This Conservative Government have made the provision of affordable housing part of our plan to build more homes across the country, including in Luton, so that we can provide aspiring homeowners with a step on to the housing ladder. The affordable homes programme is worth £11.5 billion and will deliver thousands of affordable homes to rent or buy.

The Government are committed to increasing the supply of social rented homes. A large number of the new homes delivered through the affordable homes programme will be for social rent. We have a strong record of building homes all over the country since we have been in Government. We intend to continue that.

I thank all Members for their contributions and look forward to working with colleagues from all parties as we take the Renters (Reform) Bill through Parliament.