Private Rented Sector White Paper

Russell-Moyle argues that section 21 of the Housing Act provides landlords with the ability to evict tenants without cause, leading to instability and insecurity. He points out that the current law is inadequate in protecting renters from revenge evictions due to poor conditions or complaints. The MP also discusses affordability issues caused by the use of section 21 for rent increases, citing examples such as a schoolteacher facing homelessness due to a 40% rent increase. Russell-Moyle emphasises the need for robust enforcement and access to justice through measures like an ombudsperson, property portals, and fair rental controls.

Ms. Elphicke emphasises the need for reform in the private rented sector due to pressures on housing and local services, particularly in Kent where there is a strain caused by the accommodation of migrants and asylum seekers. She discusses the impact of rapid growth in the private rental market at the expense of social rented and home ownership sectors, highlighting concerns over housing stability and the need to abolish no-fault evictions under section 21. She also mentions the importance of affordable council housing and addresses specific cases where tenants face eviction and unsafe living conditions. Additionally, she calls for swift implementation of proposed measures and questions the government's approach to rent management and landlord accountability.

This debate is crucial as more than 7,000 households in Stockport are on the waiting list for housing, and 11 million people rent privately in England. Navendu Mishra highlights two cases of no-fault evictions: a single mother with autistic children who were served an eviction notice after living in their home for 12 years, and another case involving a recently bereaved constituent on a protected tenancy whose landlord attempted to increase the rent from £350 to £800 per month. Research by Shelter shows that every seven minutes a private renter is served with a section 21 notice, and more than 200,000 renters have been evicted in three years since the Government committed to scrapping no-fault evictions.

North Devon has a severe housing crisis due to an overabundance of short-term holiday lets, which are more profitable than long-term rentals. This trend is undermining local businesses and public services that struggle to recruit staff due to the lack of available housing. The private rental sector has declined significantly in North Devon, exacerbating the issue. Government policies such as changes to landlord tax relief have further encouraged this shift towards short-term lets.

My constituent Katherine faced eviction in the midst of winter after her landlord decided to move back into the property. Such evictions are common in Vauxhall, where the rental market is unbalanced and tenants struggle to find stability. Rents have risen sharply, making it difficult for families to secure affordable housing. The Government's failure to ban section 21 notices has left many people vulnerable to sudden evictions and financial strain.

The private rental market has expanded beyond its original purpose, and all political parties have failed to build sufficient socially rented homes for the past three decades. To address homelessness, we need 90,000 new socially rented homes annually but this demand is currently being met by an overburdened private sector. Abolishing section 21 notices could lead to more expensive and damaging section 8 evictions which negatively affect tenants' creditworthiness for future rentals. The expansion of buy-to-let property investments under past Governments has contributed to market instability, with many landlords leaving the regulated rental sector for unregulated ones like Airbnb due to reduced profitability. Without a comprehensive overhaul, abolishing section 21 could reduce housing stock and increase rents, worsening tenants' conditions. Proposals include long-term tenancies, specialist housing courts, and measures to prevent exploitative rent hikes and evictions until new legislation is enacted.

I congratulate the hon. Member for Dover and my hon. Friend the Member for Brighton, Kemptown on securing this important debate. We need a long-term strategy to address the housing crisis, including raising standards in the private rented sector but also facilitating people’s ability to break out from it. Since the year began, we have seen a plethora of section 21 notices and increasing rental costs, leaving little for tenants to start saving for their home. In York, the average rental cost is £945 per calendar month, while someone on local housing allowance would receive only £650 for a two-bed property, leading many people with vital skills needed for our economy to leave the city due to unaffordable living costs. There are also deep-seated challenges because of the short-term holiday let market that is hollowing out streets and communities, causing real issues for tenants. I welcome the measures in the White Paper for greater accountability and power for tenants but emphasise the need for proper resourcing. We must consider international good practice, such as measures taken in Finland to empower tenants to access the property market. Additionally, there needs to be a focus on building social homes using public land, instead of housing to market.

The hon. Member for Putney highlights the pressing need for reform in the private rented sector, citing examples of injustice and hardship faced by tenants in her constituency. She acknowledges the Wandsworth Council's 1,000 Homes scheme but expresses concern over the lack of progress on renters' reforms promised since 2021. Anderson calls for immediate legislative action to end no-fault evictions and improve tenant security, emphasising the urgent need for a renters reform Bill. She outlines the financial strain faced by tenants in Putney, with average monthly rents exceeding £3,900 for two-bedroom flats. She also discusses the detrimental impact of poor housing conditions on health and public services, including an estimated cost of £1.4 billion to the NHS annually due to poor housing. Anderson supports measures to increase tenant security, protection from abuse, affordability, and fair rent regulation.

I congratulate my hon. Friend the Member for Brighton, Kemptown and the hon. Member for Dover on securing this debate. I find it disappointing that we are having a general debate on the private rented sector yet again, three years after we were promised legislation. The time is overdue for us to get beyond discussing policy in the round and onto discussing the substance of legislation and amending it. There have been devastating effects from short-term lets in several towns and coastal communities, including my constituency in inner London which has the largest private rented sector in the country. Renters are facing an affordability crisis with average rents in London now at £2,000 a month, and since last year, there has been a 20% increase in inner London and over 15% in London as a whole. Nationally, one in five renters have faced a £100 monthly rent increase, and many are trapped with no savings to cushion the blow. There is an inequalities dimension affecting women-led households and black and minority ethnic communities most severely who find themselves in substandard accommodation and paying disproportionately high rents. The competition for rental properties has become unprecedented, with stories of auctions and bidding wars, as well as deposits and moving costs piling on top of rent payments. Younger renters are locked out of the housing market due to rising rent and mortgage rates exacerbated by the Government’s mishandling of the economy. Additionally, there is a security crisis, with a section 21 notice issued every seven minutes.

Labour calls for a comprehensive new renters' charter with enforceable minimum standards, robust possession grounds that prevent abuse, and measures to address illegal evictions. The party highlights the urgent need for action given the increase in homelessness threats due to rising rents and costs associated with moving homes.

Adds that figures from the Local Government Association show private rented tenancy endings as the most common reason for homelessness, accounting for 37% of cases in January to March this year.

The Government have taken steps to improve living conditions in privately rented homes by strengthening local authorities' enforcement powers, introducing new regulations on smoke and carbon monoxide detectors, and overhauling the housing health and safety rating system. They are also consulting on a legally binding decent homes standard for the private rented sector.

The hon. Member questioned whether the lack of legal aid is a significant problem for those in the private rented sector and suggested a measure to provide £20 million in legal aid by using interest from rental deposits.

The hon. Member requested that the Minister's Department work with her to regulate short-term holiday lets, highlighting that DCMS is responsible for this issue.

The hon. Member sought cooperation between departments such as DCMS and LUHC to address issues related to second homes and holiday lets in her constituency, urging the Minister's Department to facilitate progress.

Expressed disappointment in the lack of a clear timetable for reforms despite previous warnings. Acknowledged contributions from fellow Members but criticised the Government's vague commitment to reforms outlined in the White Paper, stating that it is insufficient and leaves room for uncertainty.