In April, MN Blogger Fiona Elsted wrote a powerful guest post asking why renting a home has to be so tough on families – and plenty of posters shared their stories, too.
Here, Housing Minister Kris Hopkins and Shadow Housing Minister Emma Reynolds debate the best way to tackle the issue.
Emma Reynolds MP, Shadow Housing Minister:
"Last month, Fiona Elsted's frustrations and anxiety struck a chord with many people who are renting, had rented in the past or had close friends or relatives with similar experiences.
It also struck a chord with me, because, since I was appointed Shadow Housing Minister late last year, I've heard countless stories about the problems encountered by families and many other people who are renting privately.
That's why I'm proud that, last month, Ed Miliband announced that a Labour government would reform the private rented sector to provide greater stability and security for renters and families.
Under our plans, we will legislate to make three-year, long-term tenancies with predictable rents the norm, and, as part of our plan to deal with the cost-of-living crisis, we want to ban agents from charging letting fees to tenants. These measures would allow the nine million people who rent – including 1.3 million families with children – to live safe in the knowledge that their rents will not jump up from one year to the next, nor will they be evicted at two months’ notice.
Labour will reform the current system so tenancies would start with a six-month probation period - if the renter passes this period, the tenancy will automatically run for a further two-and-a-half years, providing the security that many crave. We will also pass legislation for predictable rents in order to stop excessive hikes in rents out of sync with the market.
Landlords and tenants will set initial rents based on market value as they do now, and conduct a rent review no more than once a year. Rents could be reviewed downwards, upwards, or stay the same – it will be subject to market conditions. But there would be an upper ceiling on any rent increases, based on a benchmark such as inflation or average market rents.
And it's not just about the rent. Giving people back the ability to plan the family budget is an essential part of our reforms, but it's also about something much deeper - giving people the confidence that they have a home in a community where they can put down roots.
As Fiona highlighted, families who rent privately are nine times more likely to have moved than home owners. Few people enjoy moving, it’s a stressful and anxious time for home-owners and renters alike. But imagine having to do it every few months or years. It's not just the time spent packing boxes and paying for removals, it’s the disruption, or, as Fiona put it, “the tears, the anxiety, and the genuine sadness”. Children who move regularly are faced with either the strain of changing schools or the burden of a longer journey each day.
As well as providing confidence and security, our reforms will remove the sense that a rented property is not a home. Why re-paint the bannisters and skirting boards or maintain the garden if you're not sure if you’ll be there in a couple of months’ time? Without that sense of insecurity, renters will not only have peace of mind, but they’ll feel able to take pride in a home that's really theirs, re-decorating the property and getting to know their neighbours.
Landlords stand to benefit from our reforms too. By encouraging a long-term approach, they are far more likely to have good tenants who pay the rent each month and care for the property as if it were their own.
There will also be strong safeguards for landlords. If their circumstances change and they need to sell the property or move back in, or if tenants fall into rent arrears or commit anti-social behaviour, landlords will be able to reclaim their property. We’ll make sure this is a streamlined process and that the circumstances for recovery of the property are fair on both sides - but the practice of evicting tenants because they've complained about the standards in their property is not acceptable and will be brought to an end.
We've come in for some criticisms for our proposals. The Conservative Party has dismissed our plans as “Venezuelan style rent controls”. This is a great shame, because the government had previously said it was in favour of longer-term tenancies, but has failed to make any changes to bring them about.
It's also a shame because our private rented market is one of the most unstable in Europe. In Ireland, similar changes were made ten years ago – with no adverse impacts on the market. And it's a similar story elsewhere: in France they have a three-year tenancy period, in Spain it's five years, and in Germany – where half the population rents, and 60 per cent of landlords are individuals – there is indefinite tenure.
And it's a shame because David Cameron has often claimed that the Conservative Party want to stand up for families. "Families are the most important institution in our society. We have to do everything in our power to strengthen them”, he tell us. And yet, he opposes Labour's reforms to the private rented sector, which will do just that, by providing renting families with security, stability, and peace of mind.
Of course, as well as reforming the private rented sector, we need to be building many more homes to ensure housing is more affordable and home ownership is a realistic prospect for young people and families. That's why Labour has committed to increasing house building to 200,000 homes a year by 2020.
But even if we build many more homes, I agree with Fiona that the "private rented sector needs to be fair and less precarious for all, but particularly for young families". The status quo is simply not working for the millions of people renting from private landlords. Fiona rightly asks why private renting has to be so tough on families - but the truth is it doesn't have to be. That's why Labour will reform private renting so the sector can provide decent, stable and affordable homes for all."
Kris Hopkins MP, Minister for Housing:
"As someone who has lived in a council house, I know exactly what it is like to experience the world of renting, but also to strive to leave it, too. It was the aspiration of my parents to own their own home, and they made sacrifices to achieve that. Holidays, meals out, treats; these were all carefully considered so that they could afford the mortgage. This was my own experience, too, after I left the army.
My parents wanted to better themselves, and for them, this meant making the long-term investment of home ownership. For today’s generation who share this same drive, Help to Buy is making the transition from renting to owning so much easier. So far, it has helped [[https://www.gov.uk/government/
news/help-to-buy-building-a-new-generation-of-homeowners 27,000 households]] turn their dream into a reality. [[http://www.telegraph.co.uk/finance/10862683/Help-To-Buy-not-driving-property-bubble-
Treasury-says.html 85%]] of sales have gone to first time buyers, and the vast majority have been sold outside of London. Property sales are at their highest level since 2009, and mortgage approvals were up 39% last year.
The very British tradition of home ownership is about much more than just having a nest-egg. Home is a place of sanctuary, a place most of us cannot wait to see at the end of the day. Owning that home can also be a source of pride, and in my opinion, it is that unique feeling that keeps the dream of home ownership alive.
We must remember, though, that whilst home ownership remains the desired choice for many – it isn't the full story. There are those who enjoy the flexibility and freedom of renting, or aren't in a position to afford or commit to a mortgage. It is our job to ensure that the system does not penalise those people for not being home owners, and that renters have access to affordable and high quality places, wherever they want to live.
The best way to ensure improvement of housing standards for renters is to increase the housing supply. Topping up choice and availability is the natural path to driving up quality. The £1 billion Build to Rent fund is one way we are achieving this - by progressing large-scale rental sites and producing up to ten thousand new homes. On top of this, we've delivered 170,000 new affordable homes since 2010 and our Affordable Housing Guarantee scheme (which enables housing associations to borrow money at more favourable terms, so they can build more homes), is providing real support. Up to £3.5 billion worth of guaranteed loans are available for affordable housing developments across the UK.
For those who call for rent control, I disagree. It is simply a sure-fire way to choke off supply. Those with a longer memory than Labour will remember that this was tried and tested – and it failed. It caused the rental sector to shrink, and a move towards rent controls again would hold back investment at a time when we need it most. Just last week, Jersey's Housing Minister, Deputy Andrew Green, reflected the exact same sentiment – that the best thing for the price of rentals is to increase supply.
Many renters have called for more protections – and this government has delivered. We're working on a Model Tenancy Agreement, which will support tenants who would like longer, family-friendly rentals, taking the edge off for parents who want peace of mind and a stable environment for their children. We want to encourage longer tenancies free from the fear of upheaval. Additionally, the code of practice will set the benchmark for a well-managed property.
Not only are we making sure that tenants (and landlords) are aware of their rights and responsibilities with the How to Rent guide we are publishing, we are also making it easier for them to complain when they do not receive the service they are entitled to. Complaints about a letting or management service will be heard by approved redress schemes, and if upheld, tenants will be entitled to compensation.
Lastly, we've been clear that exploitative landlords have absolutely no place in our rental sector. Local authorities can now take decisive action to prosecute landlords who do not comply with the law, and we have allocated £6.7 million to local authorities where this issue is particularly prevalent.
To make the private rented sector bigger and better, we have made our policies bolder. I have seen the frustration and upset that an unstable housing situation can cause, and hard-working people deserve better than that. It’s a legacy of uncertainty that we will not allow to carry on. Renting is not the second choice, nor the lesser choice. It’s a choice that deserves better recognition and support, because whether mortgaged or rented, everyone deserves a place that they can call home."