Private Rented Sector — House of Lords, 2022-06-20
Topic: Housing
Sue Hayman (Labour, Centre-left): My Lords, we welcome the publication of the Government’s White Paper and the recognition in the Statement that "conditions in our private rented sector are simply not good enough" I want to consider some of the 12 points of action that it introduces Section 21 evictions will be abolished, meaning that landlords will have to prove grounds to evict tenants. New grounds will be created to allow landlords to sell or move close family members in, while grounds around persistent rent arrears and anti-social behaviour will be strengthened. Landlords will be able to evict tenants on sale or moving-in grounds only after the first six months of the tenancy. If the landlord chooses to sell and is unable to do so, they will not be able to re-let the property for three months. Otherwise, tenancies will be indefinite and can be ended only by the tenant or the landlord giving legitimate notice. It is welcome that these changes should stop landlords from evicting tenants simply to re-let at a higher rent or to avoid making repairs after a complaint, but it must be made clear how renters or local authorities will be made aware of a property that is being re-let Indefinite tenancies will mean that tenants have the option of moving out with two months’ notice without penalty if their circumstances change or if the home turns out not to be suitable, which, again, we welcome. This should provide renters with more flexibility. However, there is a risk that if it is too easy to prove intention to sell or move family into a property, unscrupulous landlords could abuse this, creating Section 21 by the back door. Penalties for abuse should be easy to enforce. Scotland has wrongful termination orders, which can see tenants evicted on false grounds compensated. One of the big challenges for local authorities is the lack of skills and resources to enforce the law, so this must be addressed if we are to see success in this area. Can the Minister outline how the Government intend to deliver enforcement With fixed terms gone, automatic rent increases in the contract are also gone. If landlords want to raise the rent, they will need to use Section 13 notices, a maximum of once a year, which can be challenged at tribunal. It should follow that tenants can challenge Section 13 notices or negotiate with their landlord with less of a threat of eviction hanging over them. Extra notice of rent increases will give tenants more time to challenge if they deem it necessary. As things stand, landlords in areas with high demand for homes will still be able easily to use unaffordable rent rises to force tenants out, so does the Minister agree that there needs to be a limit set on rent rises based on affordability Does the Minister also agree that a key element in giving greater security, transparency and power to tenants is to ensure that letting agencies, which act on a landlord’s behalf, work to the very highest standards? Will he commit to looking at a code of conduct for letting agents, as has been done in Wales I turn to the welcome measure to require all privately rented homes to meet the decent homes standard and the new right to claim back rent on non-decent homes through expanded rent repayment orders. Private renting has grown as social housing has been sold off and not replaced, and, as a result, more people are paying more for less-regulated homes. However, the need to build more social housing is a debate for another day. Bringing standards into line with the social sector will stop private landlords from short-changing renters and, through the benefits system, taxpayers. Expanding RROs is welcome; they need to be a huge deterrent to criminal landlords but are currently underused. Can the Minister confirm that local councils will be given the resources they need to properly enforce the decent homes standard The new ombudsman that all landlords must join is a positive step, as this has been a huge gap in regulation. Currently, if you rent from a letting agency, you can pursue complaints through a redress scheme, but not if renting directly from a landlord. However, to be successful, it needs to be well-resourced so it can deal with the sheer volume of complaints that tenants will likely raise. Can the Minister shed any light, at this stage, as to how it will be resourced? A single ombudsman is better than the two-scheme system that exists for agents. So it is surprising that, despite acknowledging the confusion and perverse incentives resulting from competing schemes, nothing has been proposed about making changes for letting agents. Can the Minister explain why this is the case A digital property portal will be set up to help landlords demonstrate their compliance with legal requirements. This is basically what a landlord register looks like, so can the Minister confirm whether it is the Government’s intention to introduce a national register of landlords? Although councils will be responsible for enforcing portal membership, the Government should give tenants an incentive to take action if their landlord is not registered. This already happens with licensing schemes, and tenants with unlicensed landlords can get back up to 12 months’ rent via rent repayment orders. Is this something that the Government will consider One in three private renters lives with children, and nearly 40% of private renters rely on benefits, yet landlords are still able to deny both those groups a tenancy. So it is good to see this addressed with a proposal to outlaw blanket bans on children and benefit claimants. However, discrimination on these grounds often happens because many landlords do not trust the welfare system to cover their tenants’ rent, so the underlying problems still need to be addressed: universal credit delays and sanctions, the benefit cap and local housing allowance rates. Further, despite rapidly rising inflation, the Government are cutting funding available to local councils to support struggling renters through discretionary housing payments by £40 million. Can the Minister explain how he thinks this is going help the thousands of renters who are struggling with the cost of living crisis The White Paper also pledges to monitor private sector solutions to problems with deposits between tenancies and to keep the deposit protection system under review. Disappointingly, this is a retreat from the Government’s manifesto commitment to a lifetime deposit which would allow passporting of deposits between tenancies. Problems with deposits are probably the most common negative experience for private renters, so it is frustrating to see that it is only being kept under review. Can the Minister explain why this is the case I will say a few words on court reform. The Government are looking to digitalise the court process, but renters who are digitally excluded must still be supported. In addition, a digital approach will not always be suitable in some cases. Does the Minister agree that more funding could be provided to the courts so that they can deal with backlogs and more legal support could be provided to the renters who need it most I end by thanking the organisation, Generation Rent, for all its hard work on this issue. I look forward to this short debate and to the Minister’s response.