Matthew Pennycook MP: speeches 2024

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Speeches

28 Oct 2024 · Planning Reform · Hansard source
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The Government are making rapid progress on reforming our planning system. We launched a consultation on proposed reforms to the national planning policy framework within our first month in office, and my Department is analysing responses with a view to publishing a Government response before the end of the year. As was set out in the King’s Speech, we intend to bring forward a planning and infrastructure Bill in this parliamentary Session to accelerate the delivery of high-quality infrastructure and housing.
28 Oct 2024 · Planning Reform · Hansard source
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I wrote to local leaders in the greater Cambridge area a few weeks ago to make it clear that the Government believe the area is a site where we should take forward nationally significant housing growth. We will set out further details in due course, but the hon. Gentleman will be aware that the Cambridge growth company is taking plans and pulling together an evidence base to set out precisely what the scale of development should be and how it should take place in that area.
28 Oct 2024 · NPPF: Fast Food Outlets · Hansard source
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I thank the hon. Gentleman for that question, which is as helpful as ever. I always look at the experience of other nations on planning reform. I recently met the Housing Minister from the devolved Northern Ireland Assembly, and I will happily contact him about this specific point to see what lessons we can learn.
28 Oct 2024 · NPPF: Fast Food Outlets · Hansard source
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The Government are committed to improving public health and reducing health inequalities. As part of the consultation on proposed reforms to the national planning policy framework, we sought views on how national planning policy could better support local authorities in promoting healthy communities and specifically in tackling childhood obesity. The framework already expects policies at a local level to aim to achieve healthy places, and we are considering how to ensure that a more consistent approach is taken, for example in relation to controlling hot food takeaways near schools.
28 Oct 2024 · NPPF: Fast Food Outlets · Hansard source
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As I said in my original response, we recently consulted on how the planning system could do more to support the creation of healthy places. I will continue to work closely with colleagues in the Department of Health and Social Care when considering next steps, as well as engaging with local authorities. As I said in answer to a previous question, my Department is analysing responses to the NPPF consultation with a view to issuing a Government response before the end of the year.
28 Oct 2024 · New Homes Accelerator Programme: Stretton Hall · Hansard source
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I thank the hon. Gentleman for his question. I have not had the opportunity to visit the site, but I intend to do so in the future, along with the other new homes accelerator sites. On the point of principle, to meet housing demand and housing need in England, every area of the country must play its part. The site in question is currently being promoted in both the Harborough local plan and the Oadby and Wigston local plan, as it crosses the boundary of both local authorities. Although I appreciate that it does face a number of planning and enabling challenges, the Government believe that it nevertheless has the potential to make a significant contribution to housing supply in Leicestershire.
28 Oct 2024 · New Homes Accelerator Programme: Stretton Hall · Hansard source
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Stretton Hall is one of seven sites that the Government have identified to date that we believe would benefit from support through the new homes accelerator, which is a joint programme between the Department and Homes England aiming to speed up the delivery of large-scale housing developments across England.
28 Oct 2024 · Property Management Services · Hansard source
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I thank the hon. Gentleman for that question, and I am sorry to hear about Paul’s experience with that particular property management company—an experience that will, I know, be reflected in the experiences of many others across the country. There are two existing routes to redress in such circumstances, the property redress scheme and the property ombudsman scheme, to which people can submit complaints. I will happily write to the hon. Gentleman to set out in full the various sources of advice and support and the avenues for redress that his constituent might pursue before we bring in more fundamental changes to the regulation of the sector.
28 Oct 2024 · Property Management Services · Hansard source
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I thank my hon. Friend for that question. I am more than happy to look into what more can be done by convening to get the various interested parties around the table. The Government are committed to implementing the provisions of the Leasehold and Freehold Reform Act 2024, which includes measures to increase the transparency and standardisation of service charges and empower leaseholders in that way.
28 Oct 2024 · Property Management Services · Hansard source
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The Government are committed to ensuring that those living in the rented and leasehold sectors are protected from abuse and poor service at the hands of unscrupulous property agents. The Government will set out our position on the regulation of letting, managing and estate agents in due course.
28 Oct 2024 · Green Belt Protection: Farnham and Bordon · Hansard source
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I am more than happy to meet the hon. Gentleman to discuss the matter further. On the principled point he raises, when local authorities are developing local development plans they can put a case forward to the inspectorate to be tested in examination, where they specify hard constraints of the type the hon. Gentleman has identified. When we talk about housing targets, we are talking about an identified housing need for a particular area, but those local plans will be tested by the inspectorate at examination to take into account some of the concerns he has raised.
28 Oct 2024 · Green Belt Protection: Farnham and Bordon · Hansard source
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The Government attach great importance to the green belt, including the more than 20,000 hectares in the borough of Waverley in the hon. Gentleman’s constituency. In planning terms, the green belt serves a number of specific purposes, but the fundamental aim of green belt policy is to prevent urban sprawl by keeping land permanently open. The Government do not intend to change the general purposes of the green belt or its general extent, but we are committed to taking a more strategic approach to green-belt land designation and release so that we can build more homes in the right places.
22 Oct 2024 · Renters' Rights Bill (First sitting) · Hansard source
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Q Thank you, gentlemen, for coming to speak to us this morning. It would not be a Bill Committee evidence session if every interest group was not telling us that it had a way to improve the Bill in some way and from different perspectives. We have heard a lot this morning about the various concerns and how they are being addressed. In general terms, however, particularly given your concerns about the previous Government’s Renters (Reform) Bill, do you think this Bill strikes the right balance and levels the playing field between landlord and tenant? Tom Darling: I will start by introducing the situation in the private rented sector as it is today. The Resolution Foundation said this year that “the UK’s expensive, cramped and ageing housing stock offers the worst value for money of any advanced economy.” The private rented sector is the worst of our ageing housing stock; in fact, it is the worst of the worst. It is the least secure, the worst quality and the most expensive of the housing tenures in this country, and we have the worst of any major country in the world. That is embarrassing and that is what we are talking about here. We need root and branch reform. We are happy that the Government have acknowledged that more significant reforms are required than those that the previous Government put forward, but we still need to see some changes to the Bill to go even further and deal with the scale of the crisis we are dealing with. Ben Twomey: We are delighted that the Government are pressing on with this work very quickly, and there is a promise in the manifesto to end section 21 immediately—as quickly as we can get this law passed. That is really welcome, as it will protect people from homelessness. There are also lots of things in the Bill that I have no notes on. For example, the bidding wars legislation seems well-written; it seems like it will make a genuine difference to people like me, who have experienced being invited to bid on homes just because we reached the front of a queue and the landlord realised that they could up the rent. Some of the provisions—including the introduction of Awaab’s law into private renting—are beginning to create more of an even playing field, as you say, for renters compared with other tenures. I want to take a moment to talk about someone I will call Ayesha from Hertfordshire. She is a schoolteacher and a single parent, and she has been struggling to keep up with the relentless rises in rent that she has faced in recent years. She says, “There are moments when I feel so overwhelmed and exhausted, like I’m carrying the weight of the world on my shoulders. I try to stay strong for my children, but the stress and anxiety are always there, lingering in the background. I just want to provide them with the life they deserve, but with the way things are going I fear that I might not be able to. It’s a lonely, terrifying feeling, and it’s hard not to feel defeated by this constant struggle.” It is important for people like Ayesha—given what is being said in this Committee, this Government and this Parliament as a whole; every MP in this room promised to end section 21 and, in more words or less, promised a fairer deal for renters—that this Bill takes the opportunity to resolve these issues. Maybe we will come to this, but we believe that that will involve limiting the ability for landlords to raise rents—not raising them to the market rate, but instead limiting them to the level of inflation or wage growth, so that rents begins to match the real, lived experience of people who are renting.
22 Oct 2024 · Renters' Rights Bill (First sitting) · Hansard source
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Your point about sifting is well made. We want to see only cases that require a judgment coming to court. Ben Beadle: Indeed.
22 Oct 2024 · Renters' Rights Bill (First sitting) · Hansard source
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Q To continue the theme around rent controls and rent stabilisation, the reforms introduced in Scotland have had lots of benefits, but they introduced rent controls in a way that we are not proposing to through this Bill. Given that you have said we should not worry in any way about rent controls of any form—if I have summarised you correctly—what would your explanation be for the fact that rents have risen faster in Scotland than anywhere else in the UK, including London, since those reforms were introduced? Tom Darling: I am happy to answer that. Obviously, we have been talking a lot about Scotland, and you will hear later about the “Rent Better” report, which has essentially written the book on it.
22 Oct 2024 · Renters' Rights Bill (First sitting) · Hansard source
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Q Let us come on to that, because the Government obviously will argue that the provisions in the Bill, and how we have overhauled and strengthened it from the perspective of tenants, are designed precisely to help people like Ayesha, who are struggling with the insecure and unfair system that exists. We take no issue with Tom’s analysis of the problem; that is why we designed the Bill in the way that we have. On rent increases, Ben, I understood that you were effectively talking about a cap—to the level of inflation or wage growth. A previous witness rightly drew our attention to the nuances around different forms of rent control. Given the evidence out there across the world, which I have looked at in great detail, do you not have any concerns about the potential negative impact on supply discouraging investment into the sector? We have heard about the supply challenges, impact on property standards and the very practical concern that if we implement an inflation-linked or wage growth cap, every single landlord in the country will raise rents every year to that cap, whether they would have done so under the current system or the system we propose or not. You must engage with the challenges on the other side from the measures you propose. Ben Twomey: I am very happy to. The idea of raising to the cap just does not happen in many countries; landlords do not do that. When you have a sitting tenant, I guess there are elements of the risk being reduced once you know that person, and that is not really accounted for when you take on the market rate. There is also an element of knowing the human being in the home, which changes the behaviour of landlords to some extent. The use of the market rate is flawed, to say the least. It is not real; it is a made-up number. It is not the actual rent, it is not a transaction, and it is not even an agreed rental price, but the advertised price that a landlord has put out there. More than one in five homes advertised on Rightmove in the last year had to be re-advertised at a lower rent before they were actually let. That really skews the figures, because landlords will seek higher rents to begin with, and what is actually agreed by the tenant is very different. Looking at actual rents would be useful, and that should be recorded on the property database. There is the matter of linkage as well, which relates to the first-tier tribunal if that is going to be used as the mechanism to challenge rent increases. At the moment, if you were looking at the market rate, you would have a lot of confusion. As a tenant or a landlord, you would not necessarily know where you were going to place the rent rise or whether you would come out the other end of the tribunal happy with the result, whereas if you link to inflation or wage growth—whichever is lower—you can place a number on that every year or every month, if you want to. With that number, all renters would be empowered to know their rights. Landlords would not risk going to court, because they would know that they were within the safe amount that they could raise the rent by, and it would become a much clearer process for everybody, rather than an obscure, complex and financially burdensome process for tenants and landlords, and for the Government to implement. Tom Darling: Can I briefly answer the point around supply? You heard my analysis of the situation in the private rented sector earlier. It is worth saying that since the year 2000, the private rented sector has doubled in size. Those are the outcomes that we are dealing with now. It is the worst tenure in the worst advanced economy, and that is after 20-plus years of investment ploughing into the sector and it growing massively. Right now, we are living the experiment of what happens if you try to cannibalise the existing housing stock and turn it into an ever-increasing private rented sector.
22 Oct 2024 · Renters' Rights Bill (First sitting) · Hansard source
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That was under the old system, and we want to transform the system, but I take your point. Tom Darling: Of course.
22 Oct 2024 · Renters' Rights Bill (First sitting) · Hansard source
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Q What do you think we should look at for options around improved alternative dispute resolution mechanisms? Ben Beadle: One of the things with section 21 is that you have an accelerated process because it is a matter of fact—if you have served all your relevant documents, it is “Tick, tick, tick. Away you go.” I think there is some merit in using that system for undisputed or very hard cases of mandatory grounds, such as where you have significant rent arrears and, although the landlord has tried, there is no chance of recovering that tenancy—hopefully the landlord has followed our pre-action protocol to signpost tenants where they need to go. There are some elements of the system that could be reused. The other part is away from the court system and into the first-tier tribunal. We have had extensive discussions with the first-tier tribunal. Not many people challenge their rents at the moment; I think we all accept that. We want tenants to be able to challenge their rent, particularly if it is unfair or subject to a significant increase. But the way the Bill is constructed means there is no barrier, or no disincentive, to challenging your rent, and I do not think it quite strikes the balance. First, the tribunal can only award or downgrade the rent so, as a tenant, I have nothing to lose. Secondly, with the way the implementation is being put across, you run the risk of a real deluge on a system that is, frankly, antiquated—you have to fill out a Word document and email it to all parties.
22 Oct 2024 · Renters' Rights Bill (First sitting) · Hansard source
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Q Could you quickly set out to the Committee the process of going to tribunal, for those who are not aware of it? There is sometimes in the commentary this idea that it is incredibly easy, which is put paid to by the very low numbers that go. What is the process? It is onerous in many ways, so am I right that it is a significant jump for tenants to take a case to the tribunal in the first place? Tarun Bhakta: Yes, absolutely. Before I talk about what the process looks like for tenants, which Tom can maybe add to, we need to understand that, for tenants who do not interact with courts or tribunals or anything like that in their daily lives, going through one of these processes, whether we know it to be arduous or not, sounds and feels scary to tenants. That is really important to understand. The vast majority of tenants do not want to go through these processes. It is not fun—it never has been fun—but there is also the fear of what might happen and of how it might damage the relationship with the landlord. All those things weigh heavy on tenants’ minds. That is a really important factor to consider. The proposals that we have for limiting rent increases would, in effect, do away with the need for tribunal decisions, but for a very rare and small amount of cases. When it comes to the actual process of tribunal, there is such poor data out there about rents in the wider sector that it is very difficult for tenants to gather that evidence. It is somewhat on them; it is also on the landlord, but it is somewhat on them to gather and provide that evidence. The tribunal will do some of that work, but tenants are expected to, or generally do, provide evidence at the start. Tom MacInnes: From our perspective, it is basically exactly that: people do not have the time or, really, the capacity to take these things to tribunal, and they often decide that it is not worth it. To the point about the data available out there about what a reasonable or market rent is, there are so many different sources. Even at an Office for National Statistics level, there is not complete agreement. We really welcome the end to bidding wars, for instance, for new tenancies, but our concern is that an unintended consequence might be that a landlord would put in a very high price to start with and then bring it down, and it is that high price that gets logged and sets the market rate. For us, the role of the portal is to establish what the actual rents are—a basis that everyone can proceed on together, rather than it being some debated fact. There is a real role there for making that stuff public and known. Then you get two well-informed sides of an argument.
22 Oct 2024 · Renters' Rights Bill (First sitting) · Hansard source
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Q Understood. By the way, there is no dispute on the Government side of the Committee as to the fact that the court system is on its knees after the past 14 years. I have one last general question, which maybe you could come in on, Theresa. There are broad framework powers in the Bill for both the database and the ombudsman. The database will be critical for landlords in understanding their obligations and demonstrating compliance, and the ombudsman will potentially provide routes to landlord-initiated mediation. As we come to flesh out the detail in secondary legislation, what do you want the database and the ombudsman to do? What is the most critical thing, from a landlord point of view? Theresa Wallace: I am very supportive of both, and I think we definitely need both. My fear is that the database could end up just being a landlord database, with the landlord’s name, the property details and the address, so that the local authorities know where those landlords are. That is part of it—I completely accept that—but I think that we have a huge opportunity with this landlord database, and so much could be done with it. We really could reach a situation where we could stop properties that are not fit for purpose being let, if the database is built with that end in mind and we can digitally upload certificates. I think that we absolutely need central registers for gas and electric, and we need one standard certificate for each so that they can easily be read digitally to see whether they are in date, whether there are any code 1s and all sorts of things. I think that that would be amazing, but I actually think that we should go a step further. A long time ago, the Lettings Industry Council came up with a model of a property MOT. Think about how you MOT your car, and it is checked in the background that you have got your tax and your insurance. We could do that with properties. We could have very easy and simple pre-let checks, so that a property is viewed visually. You have energy performance certificate providers that go and do their EPC checks, and you could easily have online or face-to-face training for providers to do a visual check so that you can see if you have damp and mould, slips and trips or other things. I think that it could be done very cost-effectively, and I think that the portal would pay for itself as well as providing local authorities with some income for enforcement. Enforcement is something that we absolutely need, and I know there is not the resource for it.
22 Oct 2024 · Renters' Rights Bill (First sitting) · Hansard source
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Q To be clear, that is because the tribunal is saying that the previous rent is so far below what it judges to be the market rent? Tarun Bhakta: That is exactly right, and 16 of the 100 cases we looked at saw an eventual rent increase of more than 40%. We know, both through our services and through our research, that that is not manageable for tenants. That is the kind of rent increase that pushes tenants out of their homes or into debt. The problem is using a ceiling of market rent to judge the eventual rent increase. Setting limits on proportional rent increases is commonplace across Europe. I know the Government have said they will not introduce any measure of rent controls, but it is quite unhelpful to lump all rent controls together when there is such a range. Rent controls is not a policy, but a category of policies. It is common across Europe to limit the proportion by which rent can increase during tenancies. The purpose of that is not to bring down rent or tackle affordability in any major way, but to protect people from those disproportionate rent increases that force them out of their homes. In the tribunal there is evidence of landlords, where they are not able to secure section 21 eviction for whatever reason, turning to rent increases. There are at least four cases in that 100—this is only where the tribunal have provided background notes, which is not very common—where a landlord has clearly sought to evict the tenant and has not been able to, so has turned to a very large rent increase, and all the tribunal has been able to do is permit a large rent increase. In many of those cases we assume the tenants will have had to leave the property.
22 Oct 2024 · Renters' Rights Bill (First sitting) · Hansard source
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Q But how would you improve the provisions in the Bill? Tarun Bhakta: First, we believe that the Government need to look at the proportions by which rents are increased. Currently, the tribunal is able to access only the eventual rent, whether or not that is a market rent, so in effect it works with a ceiling, rather than looking at the proportions of rent increases. This is really important, because through the tribunal and our services outside the tribunal we see very large proportional rent increases. This is what matters to tenants: they cannot afford large proportional increases in their rent because of that shock, particularly where they are on fixed incomes and receive housing benefit or pensions. The data at the tribunal is really telling. The average size of a rent increase permitted by the tribunal in the last hundred cases was 23%. The majority of renters tell us that they could not afford a rent increase of more than 10%, yet two thirds of cases in the last 100 cases in the tribunal ended with a rent increase for a tenant of 10% or more.
22 Oct 2024 · Renters' Rights Bill (First sitting) · Hansard source
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Thank you.
22 Oct 2024 · Renters' Rights Bill (First sitting) · Hansard source
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Q That is useful. So you accept the “not backdating” point. I thought you took issue with the backdating and wanted it at the point of— Ben Beadle: No, no—well, I take issue with it, in that it is not fair and it is not proportionate in the circumstances, and it will do nothing to help on court reform. That is why we have set out a managed implementation for these things. I totally get your point that it was held hostage previously, but there are some really fundamental points around the court system being on its knees, and I think there is a way of implementing regulations so that that is mitigated. The first-tier tribunal is a classic example of where you could make some nips and tucks to what is set out, to protect the first-tier tribunal from a steep rise in cases because it will not be able to cope.
22 Oct 2024 · Renters' Rights Bill (First sitting) · Hansard source
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But you do not dispute that rents have risen faster in Scotland than anywhere else in the UK since those rent controls were introduced—

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