In 2014, fellow housing expert Calum Mercer and I published a then-seminal paper called “Nation Rent”. That paper challenged what was then the status quo, which was that generation rent affected only younger people and would be a passing phase. “Nation Rent” set out that it was a changing structural environment in the housing and financial markets that had occurred since 2003, which saw a rapid acceleration of the private rented sector—overtaking social rent—together with a fall in home ownership. That structural change started long before the credit crunch and financial crash, but accelerated after them.
A decade on, little has changed in structural terms, and it should concern Members of all parties that generation rent has now become nation rent. The percentage of people aged between 35 and 44 and between 45 and 54 who are renting privately has tripled over the past two decades, and has more than doubled for those aged between 55 and 64. Nation rent is now embedded, not just in the younger generation but through the generations. As I set out in my 2018 paper with the Housing and Finance Institute, “A Time for Good Homes”, that structural change towards private renting affected around 2.4 million homes, or around 6 million people.
The need for legislation reflects that long-term structural shift. The private rented sector is no longer a flex or transitory tenure: it is the main tenure for millions of people for much, if not all, of their lives. The current legislative framework—a short-term tenure for long-term living, one person’s pension pot but another person’s only home—is not fit for that purpose. That is why there is tension and strain, which is reflected in the design of the Bill and the comments that have been made about it. There is a need to find a new balance that reflects this new reality for millions of people in our country, acting in a way that is fair and responsible to those who are being housed as well as to those who house them.
It remains my view that although the principle of the Bill and its measures are very welcome, they do not go far enough in dealing with the fundamental challenges of an overweighted private sector. There needs to be a long-term plan for housing that rebalances the housing tenure mix—a plan to boost home ownership and expand affordable rented housing substantially; one that unblocks the financial and regulatory constraints on affordable home ownership and professional renting, and one that builds more homes. I continue to work cross-party and cross-industry, inside and outside of this place on those priorities, as I have done for many years and as is reflected in my entry in the Register of Members’ Financial Interests.
Given my long-term campaigning for housing, I was pleased to stand on a manifesto to build 1 million homes this Parliament, work towards 300,000 homes a year by the mid-2020s, and scrap section 21 evictions. We have done well on the first, the second is a work in progress and the third manifesto commitment is why we
are here today. I know at first hand the personal commitment that the Secretary of State and the Housing Minister bring to this matter, and how hard their commitment to it is.
This is a vital piece of legislation, because it seeks to provide greater security and stability for renters. This matters—and it should matter to everyone on the Conservative Benches—because housing instability destroys wealth creation, damages life chances, restricts educational prospects and harms health. I see this in my constituency inbox, as I am sure do all Members. In my MP surgery, I had a mother who had spent hundreds of pounds of her own money over many years building a comfortable home for her and her disabled daughter, only for them to be turfed out by their landlord with nowhere to go. Recently, I had to discuss with Ukrainian refugees how someone had complained to their landlord about the heating not working, only for them to find themselves served with a section 21 eviction notice. How do you begin to explain that that is just how things work in our country? They should not work like that; this needs to change.
That is why this reform is so important, but we cannot allow any delay, and that includes the proposed delay because, supposedly, repossession is taking too long. That is nonsense. There is already clear court guidance to deal with repossession claims in a timely manner, as set out in civil procedure rule 55.5, which states that the hearing must take place between four and eight weeks from the claim. Although there have been some spikes in court hearings over the covid pandemic, the timeliness of possession claims has remarkably improved. The latest available figures from the Ministry of Justice show that the average time between claims and orders is now back to under eight weeks. The average time between claims and warrants is the same as it was in December 2019, when the Conservative commitment was made to the nation. The repossession figures have collapsed from the post-covid high of 69 weeks, and are back on track to pre-covid levels. For landlords, every single median metric—be that for orders, warrants or possessions—has dramatically improved on the latest Government data.
Therefore, this landmark section 21 reform should not be delayed on the basis that court improvements are required. That was a concern of our Select Committee, and I think it has now been met in part by the improved data. Any change to the Bill that delays the implementation of these vital reforms cannot be supported. This issue affects millions of people in our country. That is why renters reform—specifically the abolition of section 21—was in the 2019 manifesto, on which all of us on the Conservative Benches stood. It was a manifesto that put the Conservatives on the side of the people, and a manifesto that secured such a huge majority. It would be a grave mistake not to honour that commitment, or to stifle it by delay.
To conclude, the Renters (Reform) Bill will provide security and stability to millions of renters across the country. It should be passed by Parliament without any further delay, but we must also do more to continue to unlock home ownership and other housing to deliver the homes and the housing stability that our nation needs.