Reforms to renters’ rights move a step closer to becoming law
There were warnings in the Commons that tenants are being evicted before the new protections can be introduced.
Rental reforms have moved closer to becoming law after they were supported by MPs, amid warnings that landlords are evicting tenants before the changes can take effect.
The Renters’ Rights Bill seeks to introduce several measures including an end to no-fault evictions, stopping bidding wars for tenancies, helping tenants challenge unreasonable rent increases and preventing landlords from demanding more than a month’s rent in advance from a new tenant.
The House of Commons supported the Bill at third reading by 440 votes to 111, majority 329, and it now progresses to the House of Lords to undergo further scrutiny.
But Conservative MPs warned more changes to the law could see an exodus of landlords, limiting the supply of homes for rent and driving rents up further as a result.
There were also calls from some Labour backbenchers and the Green Party for rent controls to be considered, although housing minister Matthew Pennycook said the Government would proceed with proposed protections to guard against “unreasonable” within-tenancy rent rises and wider action to “improve affordability”.
Mr Pennycook told MPs at third reading: “The current system for private renting is broken.
“While the Government recognises the majority of landlords provide high quality homes and a good service to their tenants, it remains the case that private renting provides the least affordable, poorest quality and most insecure housing of all tenures.
“This intolerable state of affairs is why renters have been demanding change for many years and I’m extremely proud that this Government has acted so early in the Parliament to deliver it.”
Shadow housing secretary Kevin Hollinrake hit back at criticism of the Tories for forcing votes on the Bill, adding: “We agree that tenants need a better deal but this is not the Bill that gives them that better deal.”
Former Labour leader Jeremy Corbyn earlier intervened on Mr Pennycook during the Bill’s report stage to say: “Is he aware that there seems to be quite a lot of landlords at the present time who are using unreasonable arguments in order to terminate tenancies or raise rents ahead of this legislation coming in?”
The Independent MP for Islington North later said: “I realise this Bill is not yet law, it’s got to go through the House of Lords, I’m not quite clear what date the Bill is going to finally be enacted, I just hope it’s soon.
“I would urge the minister to consider any kind of urgent action and advice he can give to protect existing tenants in the run-up to the introduction of this particular piece of legislation.”
Mr Pennycook acknowledged there was “a lot of bad practice in the sector” that the Government is keen to clamp down on.
Labour MP Bell Ribeiro-Addy (Clapham and Brixton Hill), who is a renter, called for price rises to be capped at CPI or wage growth.
“I’m yet to hear a compelling reason why landlords should see their incomes grow faster than people who actually work for a living,” she said.
Neil Duncan-Jordan, Labour MP for Poole, said: “There is nothing to protect tenants from extortionate, unjust rent hikes. The Renters’ Rights Bill doesn’t do enough to change that.
“Last year, a Government survey of landlords found rent increases of 15% or more when renewing or extending a contract were common. Despite the Bill’s passage, renters who cannot afford extortionate rent hikes will continue to have no alternative but to move, fall into debt or face eviction.
“The Bill’s provisions to allow renters the right to appeal to a tribunal that can determine a market rate increase are insufficient. By definition, market rates are already unaffordable for many renters. Only capping rent increases will give renters genuine security in their homes.”
Green Party MP Carla Denyer (Bristol Central) spoke in favour of amending the Bill to introduce rent controls, saying: “We have people on the streets and in temporary accommodation because they cannot afford their rent.”
She welcomed the Bill for giving renters a set of new rights, adding: “But rent controls are still needed because having the right to something you cannot afford and cannot access is no help to anyone.”
Ms Denyer did not move any of her amendments to a vote but welcomed a commitment from the minister to discuss measures to ensure that disabled tenants are able to adapt their home to meet their needs.
