← Back to Westminster Hall Debates
Cost of Living: Private rented sector — [Dr Rupa Huq in the Chair]
18 July 2023
Lead MP
Andrew Western
Stretford and Urmston
Lab
Responding Minister
Rachel Maclean
Tags
EconomyTaxationHousing
Word Count: 13291
Other Contributors: 10
At a Glance
Andrew Western raised concerns about cost of living: private rented sector — [dr rupa huq in the chair] in Westminster Hall. A government minister responded.
Key Requests to Government:
The Labour party calls for substantial new rights and protections for tenants, including longer notice periods and a ban on no-fault evictions. They advocate for reforming planning rules, reintroducing house building targets, and restoring social housing to the second largest form of tenure to address the housing crisis.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The cost of living crisis is causing significant financial challenges for private renters, with average rents in the UK being almost 10% higher than in 2020. In Trafford, monthly rents have increased by 12%, reaching £1,093 per month in January 2023. Rent as a share of income is at its highest level in over a decade, with 40% of earnings going towards rent in London. One in seven renters report running out of food and being unable to afford more, while almost 2.4 million renters are behind on their rent or consistently struggle to pay it.
Pontypridd
Mr Davies-Jones highlighted the severe impact of inflation on constituents, noting that one in seven people go hungry due to financial constraints. He emphasised the urgent need for reform in the private rental sector, particularly regarding no-fault evictions and rent increases.
Beth Winter
Lab
Crewe and Nantwich
Questioned the lack of consultation with tenants in arguing on behalf of landlords and highlighted issues faced by low-income tenants like insecurity and poor property conditions. Private renters are five times more likely to struggle financially than homeowners, with rents increasing by about 5% last year. More than half of those receiving the local housing allowance have a shortfall. The evidence is clear: the Government must restore LHA rates and re-link them to rents. Inquired if the Minister was aware of the underfunding of devolved nations by billions of pounds and questioned why the local housing allowance had been frozen since 2020 despite a cost of living crisis. Also raised concerns based on the Levelling Up, Housing and Communities Committee's report.
Chris Stephens
SNP
Glasgow South West
Asked if MPs moving due to high rental prices indicates landlords are using section 21 notices excessively, questioning why legislation isn't scrapped if such practices exist for MPs. The private rented sector crisis should concern MPs from all parties as it affects people's wellbeing. Chris Stephens provided a Scottish perspective, highlighting measures like rent caps and eviction protections in Scotland. He cited the Cost of Living (Tenant Protection) Act 2022 and noted that despite some criticisms, organisations support these policies. Rent increases are capped at 3%, with enforcement of evictions paused for up to six months. Social sector landlords agreed to limit rent hikes below inflation by £5 per week on average. Stephens also discussed the Scottish Government's affordable housing initiatives, which have seen a higher delivery rate and spending compared to England.
Christchurch
Mr. Chope argued that the housing crisis is due to a lack of supply and emphasized the transformative impact of the Housing Act 1988 in boosting private rental housing. He criticized the Renters (Reform) Bill, suggesting it discourages property owners from renting out their homes, leading to reduced market supply and rising rents. Mr Chope has given way a lot, aiming to provide some balance to the debate. He reminded the Minister that they are in a Conservative Government and should not forget the success of the 1988 reforms. Asked the Minister about her aspirations to move from generation rent to generation buy and enquired when the Government would deliver the voluntary right to buy for housing association tenants, a promise made in 2015.
She noted that 14.5 million people in the UK live in poverty, including 4.3 million children. Claudia pointed out a 5% increase in private rents year-on-year and a 22% rise since March 2021. She criticised the Government for not capping rent increases and allowing landlords to take advantage of the crisis. Claudia called for urgent action on the Renters (Reform) Bill, highlighting additional burdens such as higher energy costs due to lack of improvements in heating systems.
Brighton, Kemptown
Emphasised that the housing crisis is not just about a lack of units but also the tenure issue, supporting his colleague's speech and highlighting the importance of addressing tenant rights. Supports planning reform and emphasizes the need for a national zoning code to ensure the construction of necessary housing types and tenures. 50% of former council houses sold off are now just rented out, leading to an increase in private rents above inflation and less stability. The reforms have caused the current crisis.
Greenwich and Woolwich
The shadow Minister welcomes the Labour party's commitment to end the hope value in land sales, introduce rules-based planning systems, and empower local authorities to build homes. Matthew Pennycook thanked his hon. Friend Andrew Western for securing the debate and commended other hon. Members' contributions. He expressed gratitude to organisations keeping renters' reform on the political agenda. He highlighted that private renters are nearly five times as likely to be financially vulnerable compared with mortgage holders or outright homeowners, noting a 5% increase in private property rental prices across the country in the year to May 2023 and a 9.4% rise nationwide in the past year according to Rightmove.
Munira Wilson
Lib Dem
Twickenham
Congratulated Lloyd Russell-Moyle for securing the debate and highlighted the severe impact on London key workers due to high rents, with an average expenditure of almost 50% of pre-tax income on rent. She called upon the Government to urgently provide funding for local authorities to build social homes. In London, one in 23 children is homeless, equivalent to one child per classroom. Constituents from far distances are seeking emergency accommodation due to the lack of availability in their own areas. The speaker advocates for urgent increases in local housing allowance as a short-term fix alongside building more social housing.
Birmingham Erdington
She highlighted the challenges faced by her constituents struggling with energy and food costs, noting instances of rent increases leading to financial hardship. She cited statistics from Shelter indicating over 20,000 homeless people in the west midlands and more than 14,000 in Birmingham. Paulette also mentioned the increase in no-fault evictions by 116% and shared a case of a constituent issued with a section 21 notice, facing uncertainty about their future accommodation.
Barnsley South
The cost of living crisis is exacerbating the challenges faced by those in the private rented sector, including rising rents, increased landlord repossessions, and insecure tenancies. One constituent was forced to move back with their parents due to property repossession, highlighting the stress this causes families. Private renters often face poor housing conditions such as structural issues and damp. The Labour Party's proposed private renters' charter aims to address these issues by banning no-fault evictions and introducing a code of practice for letting agents.
Government Response
Rachel Maclean
Government Response
The Renters (Reform) Bill will end section 21 'no fault' evictions, move to periodic tenancies, introduce fair grounds for landlords to regain possession of their property, simplify the rent increase process, allow one rent increase per year in periodic tenancies with two months notice. The Government do not support rent controls but are committed to helping generation rent become generation buy. Housing supply is up 10% compared to the previous year, with over 232,000 net additional homes delivered in 2021-22 and £10 billion of investment announced since Parliament's start. Discretionary housing payments have received almost £1.6 billion funding from 2011, and an extra £1 billion is being provided to extend the household support fund into the next financial year.
▸
Assessment & feedback
Summary accuracy
About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.