PARLIAMENTARY DEBATE
Rent Controls: Local Government - 20 February 2023 (Commons/Commons Chamber)

The Government do not support the introduction of rent controls in the private rental sector. Evidence suggests that they discourage investment, lead to declining property standards and may encourage illegal sub-letting, which would help neither tenants nor landlords.

In September last year, a survey by the tenants’ union ACORN found that 48% of private renters had received a rent hike from their landlord since January 2021. Some increases were as high as 67%. In a cost of living crisis, that is fuelling poverty and homelessness. Will the Government act now to freeze rents, allowing vital breathing room while more permanent solutions to tackle spiralling housing costs are devised?

In the UK, rent increased by 4.4% in the year to January 2023. We are clearly aware that there is a lot of pressure on household budgets, which is why the Treasury put together an enormous £37 billion cost of living package in 2022-23. A further £26 billion will be available in the coming year.

I call the shadow Minister.

More than 40 households have been served with a section 21 notice every single day since the Government first announced their intention to scrap such notices. That is a total of nearly 53,000 households, and the number is rising. I must sound like a broken gramophone record, but the situation out there, in the real world, is desperate for so many people at the sharp end of the private rented sector. The Opposition are ready to support them. Enough of the talking: when can we finally expect the Government’s renters reform Bill to be put to the House?

The Government have a manifesto commitment to abolish section 21, and we will do so as soon as parliamentary time allows. We have just finished the consultation on the decent homes standard, which concluded in mid-October. It is important that we get this legislation right, and we intend to do so.