Contribution
I declare an interest: like one in three households in my constituency, I rent my home. As a renter and an MP who represents a large number of renters, it will come as no surprise that I rise to speak in favour of the Bill, which will bring in some important, long-overdue reforms to provide private renters with decent and secure homes.
Crucially, I am pleased to see the abolition of section 21 evictions, which was promised by the Conservative party, including in its 2019 manifesto, but never delivered. Close to a million people faced no-fault eviction notices in the last Parliament because of that failure, which added to the homelessness crisis that we now face.
I am happy to see measures in the Bill that focus on affordability. In my borough of Lambeth, renting a one-bedroom home now costs the average person more than half their take-home pay. When teachers, rail staff, nurses and other key workers went on strike to call for inflation-matching pay rises, the last Government attacked them and rejected their demands, calling them greedy, but that Government shrugged their shoulders as private landlords collected above-inflation rent hikes from some of those same key workers year after year.
In recent years, the situation has been particularly pronounced. In March 2024, the Office for National Statistics reported that monthly rents rose by 9.1%, the highest annual increase since records began in 2015. I am glad that the Bill brings some common sense to the situation, ensuring that rent increases can no longer be written into contracts and that landlords will be able to legally increase rents only once a year, and protecting tenants from egregious rent hikes.
Also highly positive are the new measures to strengthen enforcement against slum private landlords, to extend the decent homes standard to the private rental sector and to widen council enforcement powers while extending the range of financial penalties available to local authorities to fund enforcement activity.
I am pleased that the Bill legislates for a consultation on improving energy efficiency standards in rented homes. The UK has some of the most energy inefficient homes in Europe, with 2.6 million private rented homes falling below minimum energy efficiency standards in England and Wales alone. Almost a quarter of renters live in fuel poverty, the highest rate of any tenure.
The Bill contains important measures to provide renters with some basic security and to place some basic responsibility on landlords. However, so much more could be done to strengthen it. I am pleased to see that the Government are supporting the amendments tabled by my hon. Friend the Member for Leeds Central and Headingley (Alex Sobel), and I am pleased to support amendments 9, 5 and 6 tabled by my hon. Friend the Member for Liverpool Wavertree (Paula Barker), which would better protect sitting tenants from unaffordable rent increases. In its current form, the Bill caps rent increases only at market rate—the prices that landlords set. The amendments would instead cap them at the rate of the consumer prices index or wage growth, whichever is the lowest. I have yet to hear a compelling reason why landlords should see their incomes grow faster than people who actually work for a living. I place on record my support for the Renters’ Reform Coalition’s call for a national rental affordability commission, to investigate methods to bring down rents relative to incomes..
Although there are not many Members on the Opposition Benches, the few speeches that they have made have talked about homes almost entirely as assets, forgetting that people need to live in them. I welcome the amendments that remember that people with a variety of different circumstances are living in those homes, and they should be viewed with compassion. I welcome and support new clause 10 tabled by my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes), as well as new clause 9 tabled by the hon. Member for Bristol Central (Carla Denyer) on adaptations for disabled people.
It is welcome that the legislation would make it illegal to discriminate against benefit claimants and families for exactly the same reason. I would like further changes to prevent discrimination, such as scrapping right-to-rent checks and reforming the laws around guarantors more generally. I would like the legislation to go further on preventing illegal and back-door evictions. As the London Renters Union has pointed out, for the many families struggling with housing costs, a 20% rent hike is simply a no-fault eviction under a different name.
During my time as an MP, I have seen too many unscrupulous attempts to remove tenants to be unconcerned about a likely increase in illegal evictions in response to scrapping section 21. I welcome new enforcement powers, but we have to acknowledge the financial difficulties that local authorities face after 14 years of massive cuts. The Government must ensure that local authorities have the resources to use these enforcement powers.