Private Rented Sector — House of Lords, 2022-06-20
Topic: Housing
Stephen Greenhalgh (Conservative, Centre-right): My Lords, I thank the Opposition and Liberal Democrat Front Benches for a constructive critique of this important Statement. There is a recognition on all sides of the House that the private rented sector is the most expensive, least secure and lowest quality of all housing tenures. A fifth of renters are paying a third of their income to live in substandard accommodation, which is completely unacceptable. I think that is why the chief executive of Shelter described the proposals around the 12-point plan as a game-changer for the 11 million private renters in England This White Paper really is the biggest set of reforms in a generation. It seeks to ensure that tenants have access to safe and decent homes; to increase security and stability by abolishing Section 21, which I know is supported by the vast majority of people in this Chamber—I have not come across anyone who is against that; to improve dispute resolution but, importantly, ensure that there is better compliance and robust enforcement; and to improve the renting experience for private rented sector tenants I turn to some of the points raised in this short debate. The noble Baroness, Lady Thornhill, raised enforcement of the decent homes standard, which is a centre point of the reform programme. We will consult on applying the decent homes standard to the private rented sector shortly and carry out a number of pilot schemes across the country to explore different ways of enforcing the standards, because it is important that we do not have the decent homes standard just defined but with an inability to enforce The noble Baroness, Lady Thornhill, also wanted to know why these reforms have taken so long to come forward. It is a legitimate question, but we have had a global pandemic and in the last couple of years we have been focused on supporting tenants during the pandemic with longer notice periods, a ban on bailiff evictions and unprecedented financial support. We have made the very clear commitment to bring forward this renters reform Bill in the third Session, and this White Paper is an important part of getting this right. This is a once-in-a-generation opportunity to get these reforms right The noble Baroness, Lady Hayman, quite rightly wanted to know how these new reforms would be enforced. I have talked about the pilots, but equally the property portal will make sure that local authorities have the information they need to enforce the standards so that we are not relying, as we currently are, on tenants coming forward to point out when there is an issue The noble Baronesses, Lady Thornhill and Lady Hayman, both raised the cost of living issue. The Government do not support rent controls. When this was introduced in the 1970s, we saw a disincentive and a private rented sector that did not get the quality of housing and investment that we needed. That is why we feel that focusing on allowing an increase in rents only once a year and ending rent review clauses are ways of ensuring that we get a more reasonable approach to rent increases The noble Baroness, Lady Thornhill, raised an interesting question around the burdens on landlords and whether we are going to get the unintended consequence of more Airbnbs and fewer people wanting to let. The English Housing Survey says that we are seeing some landlords leaving but an equal number coming in, so there is no evidence from the survey yet of an exodus of landlords. It is important that we think about landlords in these reforms, though, and that is why we have strengthened the repossession grounds for landlords, including in cases of serious anti-social behaviour and persistent arrears, and for landlords who wish to move back to their property I think there was a strong element of a briefing from Generation Rent in some of the questions from the noble Baroness, Lady Hayman. Certainly, I am aware of the issues raised by the noble Baroness, Lady Kennedy, about the no-fault moving and selling grounds, wanting to extend that to 24 months and not seeing a Section 21, if you like, by the back door As a Government we feel that it is important to protect tenants, and that is why we are limiting the use of moving and selling grounds in the first six months of a tenancy. To mitigate any abuse, we are also restricting landlords from remarketing or reletting the property for three months when they use these grounds. It is about getting a balance between landlord and tenant Overall, it is fair to say that there is a fair wind behind these reforms. It is important, as they say, to get things done and better late than never.