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Private Rented Sector
09 February 2023
Lead MP
Clive Betts
Debate Type
Ministerial Statement
Tags
EducationTaxationHousingEmploymentForeign AffairsEnergy
Other Contributors: 9
At a Glance
Clive Betts raised concerns about private rented sector in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
Clive Betts, Chair of the Levelling Up, Housing and Communities Committee, presented a report on reforming the private rented sector in England. He thanked the Backbench Business Committee for providing time for the statement and acknowledged the work done by committee members and staff in producing the report. The report follows the Government’s White Paper 'A Fairer Private Rented Sector', which outlines long-term vision for security of tenure and housing quality improvements through a renters’ reform Bill planned this Session. Betts noted that 4.6 million tenants, representing 19% of households, live in private rented accommodation, often on low incomes or living with children, differing from the typical young professional profile twenty years ago. The Committee found issues such as inadequate housing quality and fear among tenants to complain due to eviction threats; 21% of homes are non-decent and 12% have serious category 1 hazards like damp and mould. Repealing section 21 of the Housing Act 1988, allowing no-fault evictions, is seen as crucial for tenant security. The Committee also recommended limitations on landlords selling or moving into their property during the first year of a tenancy to prevent exploitation. Introducing a specialist housing court was called for due to existing inefficiencies in handling possession hearings under section 8. Fixed-term tenancies should be abolished with an exception for student accommodation to avoid discouraging letting to students. A legally binding decent homes standard is supported, alongside a new property portal centralizing information on landlords and properties. The cost of implementing the decent homes standard was deemed proportionate but concerns were raised about energy efficiency issues not being covered by the £10,000 cap for improvement works. Additional financing solutions are recommended where energy efficiency improvements exceed this limit.
Desmond Swayne
Con
New Forest West
Question
Is it the hon. Gentleman’s estimate that driving relatively small landlords with a few properties out of the market is the intent of Government policy, or are we just collateral damage?
Minister reply
The reforms particularly hit smaller landlords who personally own their properties rather than larger landlords owning through companies and offsetting interest payments against rental income.
Greenwich and Woolwich
Question
Congratulates the Select Committee on their report, agrees with its conclusion that increasing housebuilding is necessary to solve affordability issues in the private rented sector. Asks what actions the Government can take given a net loss of 14,000 social homes last year.
Minister reply
Recommends building 90,000 social homes annually at an estimated cost of £10 billion per year and expresses concern that housing associations and councils may reduce homebuilding due to pressure from disrepair and safety defects.
Question
Supports the idea of a landlord portal, which he believes will connect landlords to advice and help with carbon emission reductions.
Minister reply
Agrees that the portal is important for collecting information on landlords and addressing issues faced by councils in enforcing standards.
Kerry McCarthy
Lab
Bristol East
Question
Highlights the gap between market rents and local housing allowance in Bristol, asks if the Committee will continue to pursue this issue.
Minister reply
Confirms that the Committee will follow up on the matter, suggesting a return to the previous 30% decile position for housing allowances.
Bob Blackman
Con
Harrow East
Question
Concerned about unintended consequences of abolishing section 21 evictions and suggests pre-legislative scrutiny by the Select Committee.
Minister reply
Supports the idea of pre-legislative scrutiny to ensure comprehensive reforms, suggesting mediation as part of small claims court processes.
Andrew Western
Lab
Stretford and Urmston
Question
Welcomes changes around section 21 but asks about deliverability given the frequent change in Housing Ministers.
Minister reply
Acknowledges the challenge of stability with short-term ministers, expresses hope that current Minister will bring some stability.
Question
Asks if additional regulatory powers are needed to remove rogue managing agents from the private rented sector.
Minister reply
Proposes a single housing ombudsman for landlords and agents as a potential solution, highlighting that this was not specifically addressed in their report.
Jim Shannon
DUP
Strangford
Question
Asks if agreements should contain clauses to protect tenants from rent increases and provide council accommodation alternatives.
Minister reply
Notes the importance of a mechanism for agreeing rent increases once tenancy is established, proposing built-in clauses in agreements that limit annual rent increases.
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