In an Opposition Day debate on the private rented sector on Wednesday, Labour’s shadow housing minister Emma Reynolds declared the private rented sector “no longer fit for purpose”.
Reynolds told the Commons the UK has "one of the most short-term, insecure and unstable private rented sectors in Europe", with tenants facing "exorbitant rates".
Reynolds said if Labour came to power the party would cap rent increases, ban letting agent fees and legislate for three-year tenancies to give greater security and stability to the UK's nine million renters.
However, planning minister Nick Boles accused Labour of recycling old ideas to tackle the problem and dismissed the policy as "idiotic", warning it would drive up rents and undermine confidence in the sector.
Reynolds said: “The opposition have called for this debate because we believe the private rented sector is simply not fit for purpose. It is in fact more suited to the 1980s than the 21st century.
“The sector has grown massively in size, but also beyond recognition in terms of the demographics and character of those renting from private landlords. Nine million people now rent privately, more than those who rent a social home.
“Over a third of those who rent privately are families with children and nearly a half are over the age of 35. However many people who are renting privately are not doing so out of choice but because they can't get on the housing ladder and they are being priced out or they can't secure a social home.”
Responding, Boles warned of the negative effects of rent controls.
He said: “They disinter a mouldy old policy from the 1970s, spray a bit of shiny new paint over it and present it as the solution to all of the ills of the modern market economy. We have seen them follow this script in relation to energy bills and now they are trotting it out for rental housing.”
Labour MP Lilian Greenwood invited those against regulating renting to come and see for themselves the ‘misery’ caused by an unregulated market.
Conservative MP Jackie Doyle-Price said letting agents encourage ‘churn’ in the rental market because they can charge fees each time a new tenancy begins, and that many landlords would prefer long term tenancy agreements – a point echoed by Labour MP Andrew Love, who said long term tenancies would assure institutional investors as well as tenants.
Conservative MP Angie Bray argued that young people prefer to move house often, saying Labour’s proposals for a three-year tenancy would not be popular with those who prefer the short-term lifestyle. Emma Reynolds explained that under Labour’s plans, tenants would have the choice to leave during the tenancy.
Several Labour MPs pointed at the damage done to children’s education when families have to move at the end of a tenancy. “Just ask primary teachers what effect it’s having on their pupils,” said Jeremy Corbyn, Labour MP.
Alex Hilton, director of Generation Rent, said: “If you’re in a damp flat that is making your children ill, or if your landlord suddenly increases your rent above what you can afford, it’s not a ‘choice’ to leave, it’s a necessity.
“As long as long term tenancies remain voluntary, letting agents will systematically deny renters a stable home as they seek annual renewal fees. Politicians owe the 9 million people living in private renting – including more than a million children – the right to a long term tenancy.”
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Comments
Yet another well meaning - but ill advised Politician who thinks she can solve the problem, but by only understanding about 10% of the whole picture, she can only make things worse for everybody. - If only the Politicians really did FULLY understand the PRS - the problems could be solved quite easily for all concerned.
Brian I applaud your comments....
I must pass comment on this though....
As for Alex Hilton’s comment about damp flats, perhaps he should take time to find out why properties become damp. In my experience the tenants’ own lifestyles are the primary cause, including inadequate ventilation, unauthorised use of non-vented tumble dryers or drying wet clothes on radiators, switching off the central heating system and isolating extractor fans to wet rooms in a misguided effort to ‘save money’, and the real no-no, unauthorised use of bottled gas heaters, which pump gallons of water into the air.
We have spend a fortune putting in "top end" extractor fans in bathrooms and kitchens, yet on an inspection last week we found a fuse had been taken out a fan and all vents taped up.... Obviously washing had been getting dried on radiators too. But how can this be the tenants fault??? lol....
Also on a political show I watched they quizzed the labour guy about rent caps. He didnt know how much they had risen as "he didnt have the figures to hand" the commentator said, "just as well I do... Its 1%... Yes that was 1%".... and this is their flagship policy.
A classic example of people in power making decisions on something they know absolutely nothing about...
It is abundantly clear that Labour hasn’t a clue about how the PRS works and, yet again, is simply trying to create a problem where none exists. What planet is Emma Reynolds on? There is absolutely no evidence in the real world to support her nonsensical statement, not that the likes of Shelter or Generation Rent would let that inconvenient truth get in the way of their own political agenda.
Labour says it wants to cap increases to the rate of inflation when all the evidence shows that rents have been increasing at well below the annual inflation rate. I have many long-term tenants and, in the 14 years I’ve been a private landlord, none of their rents have been increased by anywhere near the inflation rate. I’m sure most landlords would be delighted to enjoy annual increases in line with RPI or CPI, if that’s what Labour propose, but I’m equally sure it would mean more tenants being unable to pay.
Does Reynolds have no concept of the economics of supply and demand? She talks of exorbitant rates, but if rents are unaffordable properties won’t let and no private landlord I know wants to be left with an empty property.
Clearly Conservative MP Jackie Doyle-Price isn’t a private landlord, or she would know better than to accuse letting agents of encouraging ‘churn’ in the rental market. Agents must act in accordance with instructions from their client, the landlord. They have no authority to serve notice on tenants without such instruction and if any agent I employed tried that on they would be summarily sacked!
As for Alex Hilton’s comment about damp flats, perhaps he should take time to find out why properties become damp. In my experience the tenants’ own lifestyles are the primary cause, including inadequate ventilation, unauthorised use of non-vented tumble dryers or drying wet clothes on radiators, switching off the central heating system and isolating extractor fans to wet rooms in a misguided effort to ‘save money’, and the real no-no, unauthorised use of bottled gas heaters, which pump gallons of water into the air.
Nick Boles is entirely correct to dismiss Reynolds’ policy as ‘idiotic’. Labour would destroy the PRS and leave people wanting to rent with nowhere to go.
These moronic communists are devoid of ideas, so they revert to type and go for the landlord. If these clueless morons get in I will sell my portfolio and leave forever, we cannot afford another shambles fostered upon us by these idiots with no understanding of anything. Fit for purpose (what crap) no one set the PRS up its a marketplace people who take responsibility for their futures created despite the clueless interference from the govt and many many charities and do gooders who try to damage us at every opportunity.
F__k them all
Agree with John McKay....
I think it shows how far out of touch Labour really is with the public.
I have never met a landlord that wanted a good tenant out and never met a landlord that imposed rent increases on tenants who are good and pay their rent on time. Landlords simply do not want to rock the boat of a good relationship with their tenants.
"Conservative MP Angie Bray argued that young people prefer to move house often, saying Labour’s proposals for a three-year tenancy would not be popular with those who prefer the short-term lifestyle. Emma Reynolds explained that under Labour’s plans, tenants would have the choice to leave during the tenancy" So it wouldn't be a 3 year agreement? How will lenders react to this? A tenant would have the right to leave a property, but a Landlord would not have the right to move on a bad tenant till the 3 year period is up??. hmmm.
As they say in the den? If this shower gets in"I'm out"
"Labour MP Lilian Greenwood invited those against regulating renting to come and see for themselves the ‘misery’ caused by an unregulated market."
I would like to invite Lilian Greenwood to come and see the misery inflicted on landlords caused by rogue tenants who do not pay their rent and wreck properties. It is difficult enough for landlords to rid themselves of bad tenants without thrusting long term tenancies on them!
I have 5 properties and all my tenants have been in for at least 2 years. They all signed 6 month contracts and as long as they pay the rent and look after the property they can stay for as long as they like. I have no intention of evicting anyone but you have to have that option available should things go wrong!
Having said that, if Labour get in and do what they say they will do I would probably have to sell all 5 properties. What would happen to the PRS then? It will probably implode and Labour will have a major problem on their hands but Mr Millipede wouldn't care as he would have got what he wanted!
Another reason not to vote Labour. Not that any more were needed.
Emma Reynolds (who?) clearly has no understanding of the private rental market.
I rent property in London where housing is at a premium as it is. Any further interference by the government will simply see me selling up and investing my money abroad.
Luckily there are plenty of foreign investors who want to buy up housing stock purely for asset appreciation - leaving properties empty for years.
That'll do a lot for the poor, put upon tenants then, won't it?
Go away, Emma Reynolds. And come back when you are ready to talk sense.
Or - even better - don't come back at all.
These ideas will do incredible damage to the PRS and exacerbate the issues they're trying to combat. The real issue is lack of housing and now they expect landlords to suffer because of it.
The absolute fact is that most landlords want long term tenants and go out of their way to keep them. I know I am far from being alone in not putting up rents until a change of tenancy, indeed I believe that is a very common approach.
Landlords are already putting up with enough! The Government piles on the red tape and now the Courts have increased fees beyond anything sensible. I only ever go to Court when there are substantial rents overdue as I'm sure is the case with many others. We have these Court increases to cope with now too.
If yet more draconian legislation comes in to force it'll drive many Landlords out of the market, fed up with being 'picked on' by Government. What other small businesses have price caps and controls like this.
If Landlords pack up shop then who's going to house all the tenants that will be evicted? It just exacerbates the fact that we don't have enough housing stock.
If Red Ed gets in it's going to be another nail in the coffin!