18:12 - The House divided: - Ayes: 181 / Noes: 363 - Question accordingly negatived.
18:26 - The House divided: - Ayes: 118 / Noes: 434 - Question accordingly negatived.
18:43 - The House divided: - Ayes: 186 / Noes: 360 - Question accordingly negatived.
19:00 - The House divided: - Ayes: 440 / Noes: 111 - Question accordingly agreed to.
The Minister for Housing and Planning (Matthew Pennycook)
I beg to move, That the clause be read a Second time.
Madam Deputy Speaker (Judith Cummins)
With this it will be convenient to discuss the following:
Government new clause 14—Prohibition of rent in advance before lease entered into.
Government new clause 15—Guarantor not liable for rent payable after tenant’s death.
Government new clause 16—Limitation on obligation to pay removal expenses.
New clause 1—Limit on rent to be requested in advance of tenancy—
“In the 1988 Act, after section 14ZB (inserted by section 8 of this Act) insert—
“14ZBA Maximum rent to be paid in advance
No rent may be requested or received in advance of any period of the tenancy which exceeds the rent for two months of the tenancy.””
This new clause would prohibit landlords from requesting or accepting more than two month's rent in advance.
New clause 2—Impact of Act on provision of short-term lets—
“The Secretary of State must, within two years of the passing of this Act, publish a review of the impact of sections 1 to 3 on the number of landlords offering properties on short-term lets rather than in the private rented sector.”
New clause 3—Limit on rent in advance of tenancy—
“In Schedule 1 to the Tenant Fees Act 2019, after paragraph (1) insert—
“(1A) But if the amount of rent payable in advance of any period of the tenancy exceeds the equivalent of one month’s rent, the amount of the excess is a prohibited payment.””
This new clause would make it unlawful for a landlord to demand or accept more than one month’s rent in advance in respect of a tenancy or licence of residential accommodation.
New clause 4—Signature of lease for student accommodation—
“Where a tenant meets the student test set out in paragraph 10 of Schedule 1, the relevant tenancy agreement may not be signed before 1 March in the year in which the tenancy is intended to take effect.”
This new clause would prevent student leases being signed before March in the year in which they are intended to commence.
New clause 5—Review of tenancy deposit schemes and requirements—
“(1) The Secretary of State must, within 12 months of the passing of this Act, conduct a review of tenancy deposit schemes and tenancy deposit requirements.
(2) The review must include, but not be limited to—
(a) consideration of options for tenancy “passporting”; and
(b) measures to improve trust in the deposit dispute process.
(3) As part of the review the Secretary of State must consult with such parties as they see fit, which must include representatives of tenants’ and landlords’ interests.”
This new clause would require the Secretary of State, within 12 months of the Act passing, to review and consult on tenancy deposit schemes and requirements.
New clause 6—Duties of local authorities: care leavers—
“(1) Where it is requested of a local housing authority by, or on behalf of—
(a) a relevant child as defined by section 23A of the Children Act 1989, or
(b) a former relevant child as defined by section 23C of the Children Act 1989,
the local housing authority shall provide assistance to the individual making the request, or the individual on whose behalf the request is made, in paying or guaranteeing any deposit required to agree a tenancy.
(2) The assistance to be provided under subsection (1) may include, but not be limited to, the payment of a deposit on behalf of an individual listed in subsection (1), or acting as a guarantor for any deposit paid by or on behalf of an individual listed in subsection (1).”
This new clause would place a duty on local authorities to help care leavers pay or guarantee any required deposit to enable them to agree a tenancy in the private rented sector.
New clause 7—Rules for proposed rent levels—
“(1) The Secretary of State must establish a body to be known as the Independent Living Rent Body.
(2) The “proposed rent” referred to in section 55(2) must be calculated with reference to rules set by the Independent Living Rent Body.
(3) In setting rules to be applied to the calculation of a proposed rent under section 55(2) the Independent Living Rent Body will have regard to property type, size and condition, location, local incomes, and such other criteria as it sees fit.”
This new clause would require the Secretary of State to establish an independent body that would set rules to be used when calculating the proposed rent payable in relation to an advertised tenancy.
New clause 8—Mediated rent pauses (housing conditions)—
“(1) This section applies where–
(a) there is a tenancy to which section 9A of the Landlord and Tenant Act 1985 applies;
(b) it appears to the tenant that the landlord has breached the covenant implied by that section; and
(c) it appears to the tenant that the landlord has failed to carry out works necessary to remedy any such breaches within the timeframes set out in regulations made by the Secretary of State under section 10A(3) of the Landlord and Tenant Act 1985.
(2) A tenant is entitled to make arrangements to pay rent to an independent individual, rather than to the relevant landlord.
(3) The independent individual shall not pass any rent paid under subsection (2) to the landlord until there has been a determination or agreement between the landlord and tenant as to the landlord’s liability for any breach of the covenant implied by section 9A of the Landlord and Tenant Act 1985.
(4) Where a determination or agreement under subsection (3) sets a time by which works are to be completed, the independent individual will –
(a) release any rent paid under subsection (2) to the landlord if the works are completed by that time;
(b) release any rent paid under subsection (2) back to the tenant if the works have not been completed by that time.
(5) In this section an “independent individual” means the independent individual responsible for investigating complaints made against members of a landlord redress scheme under section 62.”
New clause 9—Home adaptations—
“(1) The Housing Act 1988 is amended as follows.
(2) After section 16 insert—
“16A Home adaptations
(1) It is an implied term of every assured tenancy to which this section applies that a landlord shall give permission for adaptations where a local council has carried out a Home Assessment and recommends adaptations which constitute reasonable adjustments under the Equality Act 2010. Tenants have the right to appeal a landlord’s refusal to adapt a property.
(2) This section applies to every assured tenancy other than a tenancy of social housing, within the meaning of Part 2 of the Housing and Regeneration Act 2008.””
This new clause would ensure that landlords give permission for home adaptations for people who have disabilities where a Home Assessment has been carried out.
New clause 10—Guarantor to have no further liability following death of tenant—
“(1) Subject to subsection (3), a guarantee agreement relating to a relevant tenancy ceases to have effect upon the death of a relevant tenant.
(2) Upon the death of a relevant tenant the guarantor in respect of a relevant tenancy shall incur no further liability in relation to matters arising under the tenancy.
(3) Nothing in this section shall affect the liability of a guarantor in relation to matters which arose before the date of the death of the relevant tenant.
(4) In assessing any liability under subsection (3), account shall be taken of any tenancy deposit paid in respect of the tenancy.
(5) Where there is more than one relevant tenant, this section shall apply only upon the death of both or all of the tenants.
(6) In this section—
“guarantor” is a person who enters into a guarantee agreement in relation to a relevant tenancy;
“guarantee agreement” is a contractual promise (whether incorporated in or separate from the tenancy agreement) to indemnify or compensate a relevant person in respect of an obligation under the tenancy if the tenant fails to perform or comply with the obligation;
“relevant tenancy” has the same meaning as in section 41, and “relevant tenant” is to be interpreted accordingly; and
“tenancy deposit” has the same meaning as in section 212(8) of the Housing Act 2004.”
New clause 11—Restrictions on the requirement for tenants to provide a guarantor—
“(1) A relevant person must not, in any of the circumstances set out in subsection (3), require a person, as a condition of the grant of a relevant tenancy, to provide a guarantor in relation to the observance or performance of the tenant’s obligations under the tenancy.
(2) For the purposes of this Act, requiring a person to provide a guarantor includes accepting an offer by that person to provide a guarantor.
(3) The circumstances are –
(a) that the person has paid a tenancy deposit or has been assisted under a deposit scheme;
(b) that the person is required to pay rent in advance equivalent to one month’s rent or more;
(c) that on a reasonable assessment of their means the person’s income (including state benefits received and any other lawful source of income) is sufficient to enable them to pay the full rent due under the tenancy;
(d) that arrangements will be made for housing benefit or the housing element of universal credit to be paid directly in respect of rent to the relevant person;
(e) that the relevant person has entered into a contract of insurance under which they are insured against non-payment of rent; or
(f) such other circumstances as may be prescribed in regulations made by the Secretary of State.
(4) In any other case where a relevant person lawfully requires a person, as a condition of the grant of a relevant tenancy, to provide a guarantor, the sum for which the guarantor may become liable under the relevant guarantee shall not exceed a sum equal to six months’ rent.
(5) In any case where a relevant person requires a tenant, as a condition of the grant of a relevant joint tenancy, to provide a guarantor, the sum claimed under the guarantee shall not exceed such proportion of the loss as is attributable to the act or default of the individual tenant on whose behalf the guarantee was given and, if such proportion cannot be proved, shall not exceed the sum obtained by dividing the total loss by the number of tenants.
(6) In this section–
a “guarantor” is a person who enters into a guarantee in relation to a relevant tenancy;
a “guarantee” is a contractual promise to be responsible for the performance of an obligation owed by the tenant to a relevant person under the tenancy if the tenant fails to perform the obligation;
a “deposit scheme” includes a scheme whereby a sum payable by way of deposit or a bond or guarantee is provided by a local authority, registered charity or voluntary organisation for the purpose of providing security to a landlord for the performance of a tenant’s obligations under a tenancy;
“tenancy deposit” has the same meaning as in section 212(8) of the Housing Act 2004.”
This new clause would restrict the circumstances in which a landlord can request a guarantor.
New clause 17—Use of licence conditions to improve housing conditions—
“In section 90 of the Housing Act 2004, for subsection (1) substitute—
“(1) A licence may include such conditions as the local housing authority consider appropriate for regulating all or any of the following—
(a) the management, use and occupation of the house concerned, and
(b) its condition and contents.””
This new clause would enable local authorities operating selective licensing schemes to use licence conditions to improve housing conditions.
New clause 18—Increases to duration of discretionary licensing schemes—
“(1) The Housing Act 2004 is amended as follows.
(2) In section 60(2), omit “five” and insert “ten”.
(3) In section 84(2), omit “five” and insert “ten”.”
This new clause would increase the maximum duration of additional HMO licensing schemes and selective licensing schemes from five to ten years.
New clause 19—Assessment of operation of possession process—
“(1) The Lord Chancellor must prepare an assessment of the operation of the process by which—
(a) on applications made by landlords, the county court is able to make orders for the possession of dwellings in England that are let under assured and regulated tenancies, and
(b) such orders are enforced.
(2) The Lord Chancellor must publish the assessment at such time, and in such manner, as the Lord Chancellor thinks appropriate.
(3) In this section—
“assured tenancy” means an assured tenancy within the meaning of the 1988 Act;
“dwelling” means a building or part of a building which is occupied or intended to be occupied as a separate dwelling;
“regulated tenancy” means a regulated tenancy within the meaning of the Rent Act 1977.”
New clause 20—Review of the impact of the Act on the housing market—
“(1) The Secretary of State must publish an annual report outlining the impact of the provisions of this Act on the housing market in the UK.
(2) A report under this section must include the impact of this Act on—
(a) the availability of homes in the private rental sector;
(b) rents charged under tenancies;
(c) house prices; and
(d) requests for social housing.
(3) A report under this section must be laid before Parliament.”
New clause 21—Appropriate insurance products to be available to landlords—
“The Secretary of State must, within six months of the passing of this Act, consult with representatives of the insurance sector to ensure that—
(1) sufficient and appropriate insurance products will be available for landlords wishing to let a property to a tenant who—
(a) is in receipt of benefits; or
(b) will be keeping a pet in the property during their tenancy; and
(2) such insurance products will not disadvantage landlords wishing to let a property to a such tenant or dissuade them from doing so.”
New clause 22—Requirement on landlords to pay for alternative accommodation—
“In section 9A of the Landlord and Tenant Act 1985 (fitness for human habitation of dwellings in England), after subsection(1) insert—
(1A) Where a dwelling—
(a)is found to be at any point in a tenancy; or
(b)becomes during the period of the tenancy unfit for human habitation, the landlord must pay any costs incurred by the tenant in obtaining alternative accommodation.
(1B) A landlord must hold appropriate insurance for the purposes of paying any costs under subsection (1A).
(1C) For the purposes of this section—
“costs” include—
(a) moving costs;
(b) deposits;
(c) rent, up to the amount of the rent for the original property;
“fitness for human habitation” is to be understood with reference to section 10 of this Act, but excludes any conditions caused by any damage or neglect on the part of the tenant.””
New clause 23—Permission for home adaptations—
“(1) The Housing Act 1988 is amended as follows.
(2) After section 16 insert—
“16A Home adaptations
(1) It is an implied term of every assured tenancy that a landlord shall give permission for adaptations where a local council has carried out a Home Assessment and recommends adaptations which constitute reasonable adjustments under the Equality Act 2010.
(2) A tenant may appeal a landlord’s refusal to give permission for such adaptations.””
This new clause would ensure that landlords of private and social tenancies provide permission for home adaptations for people who have disabilities where a Home Assessment has been carried out.
New clause 24—Discrimination relating to requirement for home adaptations—
“A relevant person must not, in relation to a dwelling that is to be let on an agreement which may give rise to a relevant tenancy—
(a) on the basis that a person does or may require home adaptations, prevent the person from—
(i) enquiring whether the dwelling is available for let,
(ii) accessing information about the dwelling,
(iii) viewing the dwelling in order to consider whether to seek to rent it, or
(iv) entering into a tenancy of the dwelling, or
(b) apply a provision, criterion or practice in order to make people requiring home adaptations less likely to enter into a tenancy of the dwelling than people who do not require home adaptations.”
Amendment 57, in clause 1, page 1, line 13, at end insert—
“unless the tenant meets the student test where the tenancy is entered into.
(1A) For the purposes of this section, a tenant who meets the student test when a tenancy is entered into has the same meaning as in Ground 4A.”
Amendment 58, page 1, line 13, at end insert—
“unless the landlord and the tenant mutually agree to have a fixed term during which period the landlord agrees to suspend the ability to seek possession under Ground 1 (Occupation by landlord or family), Ground 1A (Sale of dwelling-house) or Ground 6 (Redevelopment) of Schedule 2.
(1A) During a fixed term tenancy agreed under subsection (1) the landlord shall not be entitled to increase the rent as provided for by section 13.”
Amendment 60, page 1, line 13, at end insert
“unless the landlord acts as landlord for fewer than five properties.”
Government amendments 12 to 17.
Amendment 1, in clause 7, page 9, line 6, leave out from “determination” to end of line 11 and insert—
“(4AA) Where the rent for a particular period of the tenancy is to be greater than the rent for the previous period by virtue of a notice, determination or agreement mentioned in subsection (4A), the rent may not be greater than the rent for the previous period increased by the Bank of England Base Rate.
(4AB) Any provision relating to an assured tenancy to which this section applies is of no effect so far as it provides—
(a) that the rent for a particular period of the tenancy must or may be greater than the rent for the previous period otherwise than by virtue of a notice, determination or agreement mentioned in subsection (4A), or
(b) that the rent for a particular period of the tenancy, where greater than the rent for the previous period by virtue of a notice, determination or agreement mentioned in subsection (4A), must or may be greater than the rent for the previous period increased by the Bank of England Base Rate.”
This amendment would cap in-tenancy rent increases to the Bank of England base rate.
Amendment 9, page 9, line 6, leave out from “determination” to the end of line 11 and insert—
“(4AA) Where the rent for a particular period of the tenancy is to be greater than the rent for the previous period by virtue of a notice, determination or agreement mentioned in subsection (4A), the rent may not be greater than whichever is the lesser of—
(a) the rent for the previous period plus an increase equal to the rent multiplied by CPI; or
(b) the rent for the previous period plus an increase equal to the rent multiplied by the percentage increase in median national earnings.
(4AB) Any provision relating to an assured tenancy to which this section applies is of no effect so far as it provides—
(a) that the rent for a particular period of the tenancy must or may be greater than the rent for the previous period otherwise than by virtue of a notice, determination or agreement mentioned in subsection (4A), or
(b) that the rent for a particular period of the tenancy, where greater than the rent for the previous period by virtue of a notice, determination or agreement mentioned in subsection (4A), must or may be greater than the lesser of—
(i) the rent for the previous period plus an increase equal to the rent multiplied by CPI; or
(ii) the rent for the previous period plus an increase equal to the rent multiplied by the percentage increase in median national earnings.
(4AC) In this section—
“CPI” means the Consumer Prices Index 12-month rate published by the Office for National Statistics for 1 April preceding the date the notice is served.
“the percentage increase in median national earnings” means that calculated by the UK Statistics Authority over a three-year period ending on the date on which the notice was served.”
This amendment would introduce limits on the increases which could be made to rents by landlords. The limits would be calculated by reference to increases in CPI or median national earnings.
Amendment 5, in clause 8, page 11, line 16, at end insert—
“(aa) after “subject to” insert “section 13(4AA) and”;
(ab) omit from “concerned” to the end of the subsection and insert “should be let”;”.
This amendment would amend the Housing Act 1988 so that when determining rents tribunals must take into account the limits on rent increases introduced by Amendment 9 and need not consider existing market rates.
Amendment 6, page 11, line 17, leave out subsections (b), (c) and (d).
This amendment is consequential on Amendment 5.
Amendment 55, page 11, line 27, at end insert—
“(4A) In subsection (2), after paragraph (b) insert—
“(ba) any change in the value of the dwelling-house resulting from improvement works to the property facilitated by any means-tested energy efficiency grant scheme””.
This amendment would ensure that improvements to a property facilitated by means-tested energy efficiency grant schemes can be disregarded by a tribunal determining a new rent for the property, and can therefore not be used as grounds for increasing rent levels.
Government amendment 27.
Amendment 61, in clause 11, page 16, line 26, at end insert—
“(4) The Secretary of State must consult with representatives of the insurance sector before this section comes into effect to ensure that appropriate insurance products are available for tenants whose landlords have required insurance as a condition for consenting to the keeping of a pet.”
Government amendments 28 and 29.
Amendment 2, in clause 19, page 32, line 16, at end insert—
“(aa) where it is given by a tenant in relation to a premises in which they are the first tenants since its construction, not less than twenty-four months before the date on which the notice is to take effect;”.
This amendment would allow an assured short-term tenancy for the first two years after a premises is constructed.
Government amendments 30 and 34 to 39.
Amendment 7, in clause 75, page 101, line 6, at end insert—
“(2A) Information or documents to be provided under regulations under subsection (2) must include—
(a) in respect of a landlord entry—
(i) the address and contact details of the landlord;
(ii) the address and contact details of the managing agent;
(iii) details of each rented property owned by the landlord;
(iv) details of any enforcement action that any local authority has taken against the landlord;
(v) details of any enforcement action that any local authority has taken against the managing agent;
(vi) details of any banning orders or rent repayment orders that have been made against the landlord;
(vii) details of any reports that the landlord has failed to carry out works necessary to remedy any breaches of any applicable housing regulations within the timeframes set out by regulations made by the Secretary of State under
section 10A(3) of the Landlord and Tenant Act 1985.
(b) in respect of a dwelling entry—
(i) the address and contact details of the landlord;
(ii) the address and contact details of the managing agent;
(iii) details of any notices given to the previous tenant under
section 8 of the Housing Act 1988, including the grounds relied upon;
(iv) details of the rent that was payable at the commencement of the existing tenancy or, where there is no existing tenancy, the most recent tenancy;
(v) details of any increases in the rent imposed during the existing tenancy and the previous tenancy;
(vi) details of energy performance certificates required by
regulation 6(5) of the Energy Performance of Buildings (England and Wales) Regulations 2012;
(vii) details of gas safety certificates required by regulation 36 of the Gas Safety (Installation and Use) Regulations 1998;
(viii) details of electrical safety reports required by the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2010;
(ix) details of checks required under
regulation 4(1)(b) of the Smoke and Carbon Monoxide Alarm (England) Regulations 2015; and
(x) details of any features of the dwelling relevant to people with disabilities.”
This amendment would introduce specific requirements for landlord and dwelling entries on the Private Rented Sector Database.
Government amendments 40 and 41.
Amendment 11, in clause 96, page 114, line 22, at end insert—
“(1A) In section 40 (introduction and key definitions), in subsection (1) after “has” insert—
“breached a requirement imposed by sections 62(1) or 80(3) of the Renters’ Rights Act 2025 or””.
This amendment would enable a tribunal to make a rent repayment order where a landlord has failed to join a landlord redress scheme or have active entries in the private rented sector database.
Amendment 3, in clause 98, page 117, line 33, after “(homelessness),” insert—
“or that is provided by the Ministry of Defence for use as service family accommodation,”.
This amendment would extend the Decent Homes Standard to Ministry of Defence service family accommodation.
Amendment 8, page 117, line 33, leave out from “(homelessness)” to the end of line 3 on page 118.
This amendment would make the Decent Homes Standard apply to all homeless temporary accommodation provided under the Housing Act 1996 by adapting the definition of “residential premises” in the Housing Act 2004 to remove a requirement for such temporary accommodation to meet certain Government regulations.
Government amendments 42 to 52.
Amendment 56, in clause 142, page 151, line 9, leave out from “subject to” to the end of line 27 and insert—
“the publication of an assessment under section [Assessment of operation of possession process].
Amendment 10, in schedule 1, page 160, line 13, leave out subsection (a).
This amendment would extend the special provisions for purpose-built student housing to HMO student properties.
Government amendments 18 to 22.
Amendment 59, page 168, line 25, at end insert—
“20A After Ground 6 insert—
“Ground 6ZA
The landlord or superior landlord who is seeking possession intends to undertake such works as are necessary to ensure that the property meets the standards set out by regulations under
section 2A of the Housing Act 2004
and the intended work cannot reasonably be carried out without the tenant giving up possession of the dwelling-house because—
(a) the tenant is not willing to agree to such a variation of the terms of the tenancy as would give such access and other facilities as would permit the intended work to be carried out, or
(b) the nature of the intended work is such that no such variation is practicable, or
(c) the tenant is not willing to accept an assured tenancy of such part only of the dwelling-house (in this sub-paragraph referred to as “the reduced part”) as would leave in the possession of his landlord so much of the dwelling-house as would be reasonable to enable the intended work to be carried out and, where appropriate, as would give such access and other facilities over the reduced part as would permit the intended work to be carried out, or
(d) the nature of the intended work is such that such a tenancy is not practicable.””
Government amendments 23 to 26, 31 to 33, 53 and 54.
Matthew Pennycook
It is a pleasure to bring this important Bill back to the House this afternoon. Let me begin by thanking hon. Members on both sides of the Chamber for their engagement with it over recent months. In particular, I thank the shadow Minister, the hon. Member for Ruislip, Northwood and Pinner (David Simmonds), and other members of the Committee for the diligent and thoughtful line-by-line scrutiny of the Bill that they undertook over the course of many sittings late last year.
This Labour Government promised to succeed where their predecessor had failed, by quickly and decisively acting to transform the experience of private renting in England. Today, we make further tangible progress towards delivering on that commitment. Our Renters’ Rights Bill will modernise the regulation of our country’s insecure and unjust private rented sector, levelling decisively the playing field between landlord and tenant. It will empower renters by providing them with greater security, rights and protections so that they can stay in their homes for longer, build lives in their communities and avoid the risk of homelessness.
It will ensure that we can drive up the quality of privately rented housing so that renters have access to good-quality and safe homes as a matter of course. It will also allow us to crack down on the minority of unscrupulous landlords who exploit, mistreat or discriminate against renters. The Bill will also provide tangible benefits for responsible landlords who provide high-quality homes and a good service to their tenants. Not only will its provisions see the reputation of the sector as a whole improve, as we clamp down on those landlords whose behaviour currently tarnishes it, but the Bill will also ensure that good landlords enjoy simpler regulation and clear and expanded possession grounds, so that they can regain their properties quickly when necessary.
Although we have eschewed the previous Government’s habit of shoehorning swathes of new clauses into legislation following Second Reading, we needed to make a modest number of improvements to the Bill in Committee. Many of the amendments in question were minor and technical or consequential in nature, but I shall briefly explain to the House some of the more substantive changes.
To increase fairness for tenants being evicted because their landlord is at fault, we chose to make an amendment connected to ground 6A. As hon. Members will be aware this mandatory ground allows landlords to remove their tenants when eviction is necessary for them to comply not only with enforcement action, but as a result of separate changes that we made to the Bill with planning enforcement action as well. The amendment allows the court to require landlords to pay compensation to the tenant when they are forced to vacate their homes under such circumstances.
To provide greater flexibility for social landlords in meeting the demands of local housing markets, we widened ground 1B for rent-to-buy tenancies, ensuring that registered providers can take possession in all necessary circumstances. We also exempted assured tenancies from the 90-day rule, which protects housing supply in London and benefits permanent residents by preventing the conversion of family homes into short-term lets. Should a tenant give notice early in their tenancy, meaning that they leave before 90 consecutive nights have passed, these changes mean that the landlord will not automatically be found to have inadvertently provided temporary sleeping accommodation.
Lastly, we made changes to ensure that the introduction of a decent homes standard in the private rented sector works as intended.
Helen Maguire (Epsom and Ewell) (LD)
Last week, I asked the Government to ensure that all service family accommodation meets the minimum standards of social housing, as set out in the decent homes standard. The Minister for Veterans confirmed that this is already done, so will the Government support amending the Renters’ Rights Bill officially to extend the decent homes standard to Ministry of Defence service family accommodation?
Matthew Pennycook
I thank the hon. Lady for her question and I agree with the objective that she has in mind, but, as we discussed fairly extensively in Committee, we do not think that the Renters’ Rights Bill and the way that the decent homes standard will apply to assured tenancies in this sector is right for MOD accommodation. The MOD is undertaking its own review, and I shall touch on that issue later in the debate.
As I was saying, the changes around the decent homes standard will guarantee that the appropriate person can always be subject to enforcement action and they close a potential gap that may have been exploited by clarifying the types of accommodation that will be required to meet the standard.
Today, we are proposing a small number of further improvements, most of which are again minor and technical in nature. As I have made clear repeatedly, the Government have long recognised that demands for extortionate amounts of rent in advance put undue financial strain on tenants and can exclude certain groups from renting altogether. I am sure that many of us in the Chamber will have heard powerful stories from our constituents about the impact of such demands. The typical story is all too familiar. Tenants find and view a property which, as advertised, matches their budget only to find that, on application, they are suddenly asked to pay several months’ rent up front to secure it. Tenants in such circumstances often confront an almost impossible choice: do they find a way to make a large rent-in-advance payment, thereby stretching their finances to breaking point, or do they walk away and risk homelessness if they are unable to find an alternative?
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
I thank the Minister for the work he has been doing. He highlighted the issue of tenants being asked to pay up front. In my constituency and many other London constituencies, that up-front cost amounts in some cases to a deposit to purchase a home. Does he agree that we need to look into that issue and into estate agents effectively getting tenants to bid against each other for private rented accommodation?
Matthew Pennycook
My hon. Friend the Chair of the Select Committee is absolutely right and, as I will detail, that is precisely why the Government are moving to prohibit that practice. As she will know, the Government have already moved to ban bidding wars through the Bill, where desperate tenants are often pitted against each other so that a landlord can extract the highest possible rental payment. Demands for large rent-in-advance payments—in many parts of the country, they can be six, nine or even 12 months’ rent in advance—can have a similar effect, with tenants encouraged to offer ever larger sums up front to outdo the competition and secure a home that may or may not be of a good standard, or risk being locked out of renting altogether.
As I stated previously, the interaction of the new rent periods in clause 1, which cannot be longer than a month, and the existing provisions of the Tenant Fees Act 2019 related to prohibited payments, arguably provide a measure of protection against requests for large amounts of advance rent. As I made clear in Committee, however, there is a strong case for putting the matter beyond doubt, and that is what we intend to do.
Chris Vince (Harlow) (Lab/Co-op)
As the Minister will know, before coming to this place I worked for a homelessness charity in Harlow called Streets2Homes. Part of our role was to support homeless people—both rough sleepers and the hidden homeless—to get into rented accommodation, and often we provided deposits for that. Does he agree that the legislation will help charities like Streets2Homes provide more support to more people in need?
Matthew Pennycook
It absolutely will. I will detail some of the other changes that we are making to ensure that the Bill achieves our objectives.
Having listened to the concerns raised by numerous stakeholders, the views expressed on Second Reading and in Committee, and the representatives made to me by individual hon. Members, including my hon. Friends the Members for Darlington (Lola McEvoy), for Sheffield Central (Abtisam Mohamed) and for Leeds Central and Headingley (Alex Sobel), we have tabled new clauses 13 and 14.
New clause 14 would limit the amount of rent that a landlord can require to a maximum of one month. It would prevent unscrupulous landlords from using rent in advance to either set tenants against each other in de facto bidding wars or to exclude all together certain types of renters who are otherwise perfectly able to afford the monthly rent on a property. It does so by amending schedule 1 to the Tenant Fees Act 2019 so that any payment of rent made before a tenancy agreement is signed will be a prohibited payment. If a landlord or letting agent invites, encourages or accepts such a payment, they could face local authority enforcement action and a fine of up to £5,000.
New clause 13 would amend the Housing Act 1988 to ensure that tenants continue to be protected from unreasonable requests for rent to be paid early once a tenancy has commenced. Landlords will no longer be able to include any terms in the tenancy agreement that have the effect of requiring rent to be paid prior to the rent due date. Tenants will retain the flexibility to make payments of rent in advance within a tenancy agreement should they wish to do so.
The effect of the new clauses will be that tenants can be certain that the financial outlay to secure a tenancy will not exceed the cost of a tenancy deposit and the first month’s rent, and that they will not be required to pay their rent earlier than agreed. The new clauses will thereby reduce the barriers that stop tenants moving from substandard or insecure housing, and I commend them to the House.
Hon. Members with large student populations in their constituencies will know that the dynamics of the general student rental market in many parts of the country see students compelled to make important decisions about accommodation long before they have formed stable friendship groups, or have had time to properly judge a property’s condition or location, and to consequently pay substantial deposits at a point in time when they are already coping with significant additional costs. This arms race, in which students are pressured ever earlier in the year to enter into contracts for the subsequent academic year, clearly is not benefiting them, and it is arguable whether it benefits the student landlords engaged in it.
The Government have therefore tabled amendments 18 and 53, which will prevent the use of possession ground 4A in instances where a student tenancy was agreed more than six months in advance of the date of occupation, thereby helping to reduce the prevalence of the practice. I want to be clear that the amendment will not lead to an outright ban on contracts being agreed more than six months in advance. Instead, making the use of ground 4A conditional on not doing so will act as a strong disincentive against landlords who wish to use it to pressure students into early sign-ups, as many do now. I thank all those who have advocated for this change, including the former Member for Sheffield Central, Paul Blomfield, during his time in Parliament, my hon. Friend the Member for Leeds Central and Headingley, and organisations such as Unipol.
Having taken up the cause of a family in her constituency who were forced by a letting agent to continue to pay as guarantors for a property that had been rented by their son before he tragically took his own life, my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) has been campaigning for many years to protect bereaved families by prohibiting the practice. I pay tribute to her for her tireless efforts to secure a change in this area. She was unable to persuade the previous Government to make the necessary changes to the Renters (Reform) Bill, but this Government are determined to act to end the abhorrent practice where guarantors are held liable for unpaid rent owed solely as a result of the death of a tenant who is a family member.
We have tabled new clause 15, which will limit the liability of a guarantor of a tenancy agreement for rent in circumstances where a tenant has died. I should make it clear that if in a joint tenancy the guarantor is not a family member, their liability for rent will be maintained. We consider that fair because we do not think it is reasonable to remove the guarantor’s liability and therefore expose a landlord to additional financial risk where the guarantor is not related to the deceased. Our new clause strikes the right balance: guarantors will be protected from being held liable for rent when they are grieving; landlords will be able to reclaim costs owed prior to a tenant’s death; and guarantor’s liability for other costs incurred under the tenancy will not be affected.
I turn to amendments 40 and 41, which will amend existing powers to charge fees for the private rented sector database. The amendments will expand the definition of relevant costs that can be considered when calculating such fees and would enable fee revenue to include PRS enforcement costs incurred by local housing authorities. Hon. Members should be assured that database fees will be calculated and agreed at a later date, with further details set out in secondary legislation and developed on the basis that fees must be reasonable and proportionate. The amendments do not alter that position. In setting the fees, a range of factors will be considered, including the costs incurred by landlords. However, we need to ensure that when calculating fees, we can take into account all relevant costs, and the amendments will ensure that that is the case.
Enabling fee revenue to include PRS enforcement costs is also important. For the reforms to have the impact we all want, effective enforcement will be crucial, and that point was debated at length in Committee. As we have touched on frequently throughout our consideration of the Bill, local housing authority capacity and resourcing is a real problem. The amendments provide an additional lever to help ensure that every local housing authority has the tools and resources it needs to carry out its enforcement role, so that good tenants and landlords benefit from a well-regulated and enforced PRS.
Amendments 35 to 39 will expand the scope of what can be covered by the compulsory fee that private landlords will be required to pay to fund the new PRS landlord ombudsman. They will ensure that the fee can cover the set-up costs of the ombudsman and activities specified in the regulations beyond those strictly necessary for mandatory aspects of landlord redress. That will allow the ombudsman to set up the core redress service and to provide additional member benefits, such as landlord-initiated mediation or voluntary member redress, without the costs having to be borne by the taxpayer.
I turn to amendments 42 to 52. Rent repayment orders are an important and effective tenant-led enforcement tool. They deter landlords from non-compliance and empower tenants to take action against unscrupulous landlords. The Bill will significantly strengthen rent repayment orders, including their extension to superior landlords in rent-to-rent arrangements. But we intend to go further and ensure that those sorts of arrangements cannot be used to evade responsibility and escape enforcement action. We are also making it clear that tenants and local authorities can seek a rent repayment order against any landlord in the chain, regardless of who they paid the rent to.
Amendments 24 and 26 will limit the circumstances in which landlords can use ground 7 to obtain possession from a person who has inherited a tenancy following the death of a tenant. They will provide greater security for bereaved tenants by preventing them from losing their home, and I acknowledge the role that Marie Curie has played in advocating for change in respect of the matter. Landlords will still be able to use ground 7 if the original tenant had inherited it by will or intestacy, or if the inheriting individual did not live in the property before the tenant passed away. Landlords will also be able to use ground 7 for specialist tenancies, such as supported and temporary accommodation. That is in recognition of the critical role such tenancies play in supplying housing to those with specialist needs.
Private registered providers are currently restricted from using the possession ground for redevelopment—ground 6—apart from where they have a superior landlord who wants to redevelop the property. Other possession grounds, such as the suitable alternative accommodation ground—ground 9—can be used to move tenants, but only if clear conditions are met. Although we expect PRPs to work closely with tenants to facilitate moves to enable redevelopment work, the Government accept that in limited cases it is increasingly hard to meet those conditions, preventing PRPs from progressing with crucial redevelopment work. I thank the National Housing Federation for raising concerns about that matter with me.
Jeremy Corbyn (Islington North) (Ind)
I welcome what the Minister just said. Is he aware that a lot of landlords are using unreasonable arguments to terminate tenancies or raise rents ahead of this legislation coming into force, and is there anything he or his Department can do to protect tenants during this stressful period for them?
Matthew Pennycook
There is a lot of bad practice out there. That is the very reason why the Government have acted so quickly to introduce these reforms, and we are confident that once they are in place, they will provide tenants with the protection that they deserve. In the interim, I am afraid that there will continue to be bad practice of the kind that the Bill will stamp out.
For the reasons that I have just alluded to, we have tabled amendments 19 and 22 to give private registered providers an alternative route for obtaining possession for redevelopment and for decant accommodation. Where the landlord seeks possession on ground 6 or ground 6ZA because they intend to carry out redevelopment work or want to move a tenant on from decant accommodation, they will need to provide alternative accommodation that meets specific requirements. That includes the accommodation being affordable, in a suitable location and not overcrowded. The accommodation must also be let as an assured tenancy or equivalent, unless it is being let for a temporary period pending the tenant being moved to an assured tenancy or equivalent. To use ground 6ZA, landlords must give tenants prior notice to ensure that they are fully aware that the accommodation is provided for temporary decant use. If the landlord does not do that, they are liable for a fine of up to £7,000.
Where landlords wish to accommodate tenants temporarily in properties that are earmarked for redevelopment, social landlords must give prior notice, and set out in a written statement the intention to redevelop the accommodation and the timeframe for redevelopment. Under those circumstances, alternative accommodation will not need to be provided. Social landlords will also be required to pay removal expenses for social tenants when using ground 6 and ground 6ZA. We do not expect that the need to use those grounds will arise often in practice through the engagement of PRPs with tenants, but where needed, the amendments will ensure that significant redevelopment work is not unduly delayed.
Government amendments 12, 13, 17, 20, 21, 23, 28 to 30 and 54 are related and consequential provisions to reflect the new ability for landlords to gain possession for redevelopment and for decant accommodation. We think that this group of amendments gets the balance right, enabling PRPs to progress redevelopment and use temporary decant accommodation during redevelopment works, while ensuring that tenants are provided with appropriate alternative accommodation and removal expenses.
Let me turn finally to amendment 34. Clause 30 ensures that long leases can continue to function by excluding leases over seven years from the assured regime. Those leases are typically used in purchases of leasehold and shared-ownership properties. I am grateful to stakeholders for raising concerns about the possibility of some unscrupulous landlords using clause 30 to circumnavigate the new assured regime by issuing leases of over seven years with a break or early-termination clause that is operable in the first few years. Tenants must not be cheated out of the protections of the assured tenancy regime. The amendment will therefore exclude all leases over 21 years from the assured regime. That will act as a much stronger deterrent to landlords who seek to avoid the assured tenancy regime. The amendment also excludes existing leases of between seven and 21 years, to ensure that they can continue to operate as currently intended. It also ensures that regulated home purchase plans can continue to enable consumers to purchase properties using the principles of Islamic finance by adding them to the list of excluded tenancies in schedule 1 to the Housing Act 1988.
The amendments that the Government have tabled for consideration today are a series of targeted changes designed to ensure that the Bill works as intended, and I commend them all to the House. I thank hon. Members for their efforts to improve the Bill, and for the scrutiny and challenge that the Bill has received so far. I look forward to listening to the remainder of the debate.
Claire Young (Thornbury and Yate) (LD)
I am sure that all Members have plenty of examples in their inboxes of why this Bill is so needed. Recent cases in my inbox have ranged from someone who had to wait two years for a boiler to be fixed, to someone who has a home so damp that they cannot walk through it without shoes on, as the carpets are permanently wet. They have had numerous electrical appliances fail and have lost their property to mould. Worst of all, they are permanently ill. Even the ombudsman finding in their favour has not produced decisive action to address the problem. It is an outrage that people are living in such conditions in the 21st century and, after the inaction of the previous Government, I welcome the approach set out in this Bill to fixing hazards such as mould.
I also welcome the security of tenancy. So often when people approach their MP about homelessness issues, they talk about the importance of being in a particular location. They say it is because their children are settled in their school, because they need to care for a relative who lives there, and because they need the support of family and friends. Repeatedly moving around robs people of vital community links and stability. It also affects the life chances of children and young people. It is not only no-fault evictions that lead to people moving around; so too do rent rises. So I welcome the amendment of my hon. Friend the Member for Taunton and Wellington (Gideon Amos) to limit the maximum rent increase. Far too many people are forced out of their rental properties by exorbitant rent rises, and this Bill does not go far enough to prevent that situation.
The hon. Member for Cities of London and Westminster (Rachel Blake) asked where the properties will go. In some cases, as our new clause 2 sets out, they will go to people on short-term contracts. We therefore need to consider the impact on the market as a whole.
I wish to raise one small concern of a landlord about the impact that the changes will have both on them and on their tenants. They own a single, upper-floor, leasehold flat. They own only the inside of the flat—not the exterior, the wall gaps or the loft. The Bill’s provisions on energy efficiency and so forth are of concern to them. Obviously, we want people to have homes that they can afford to heat and that meet climate change obligations, but not all small landlords are scrupulous, and relying on them to be so is not appropriate protection for tenants. As the Bill progresses, I ask the Minister to consider how the Government will support small landlords who want to do the right thing, so that the private rental sector does not become the sole preserve of well-heeled, large landlords.
Matthew Pennycook
I wonder whether I might provide some helpful clarification: this Bill has no provisions in it that deal with minimum energy-efficiency standards in the private rented sector. The Department for Energy Security and Net Zero will shortly go out to consultation on those MEE standards for the PRS, but it is not within the scope of this Bill.
Claire Young
I thank the Minister for that clarification.
In conclusion, I welcome the Bill and the protections it provides, but I urge Ministers to accept the Liberal Democrat amendments put forward by my hon. Friends the Members for Taunton and Wellington and for St Albans (Daisy Cooper).
Tom Hayes
I never disagree with my hon. Friend, and his point shows why we need the Bill.
I welcome the Bill’s protections against unreasonable rent rises and rental bidding. My disabled constituent Tracey, also from Boscombe, got in contact with me about how a substantial hike in her rent acted as an effective eviction as she was unable to pay. Despite looking to use her personal independence payment towards her rent, she was forced to look for alternative accommodation, and we all know how difficult that is in the private rented sector for people with disabilities. I welcome the protections in the Bill against unreasonable rent rises because they will provide much-needed security for renters like Tracey who struggle to find appropriate accommodation in the rented sector to meet their needs.
I also welcome the introduction of a new ombudsman service, which will provide quick, fair, impartial and binding resolutions for tenants’ complaints about their landlord, bringing tenant-landlord complaint resolution on a par with established redress practices for tenants in social housing or consumers of property agent services. I welcome the move to make it illegal for landlords to discriminate against tenants in receipt of housing benefit or other benefits or with children when choosing to let their property. That particularly affects James in my constituency, who is homeless and cannot secure private rented housing because he is in receipt of benefits.
All of us who hold constituency surgeries week in, week out will know these stories. All of us have campaigned for better renters’ rights because we have heard those stories on the doorstep, and I commend the Government for bringing forward the Bill at such an early stage in this Parliament. We must of course make the point that not all landlords are bad, but the Bill is important because it weeds out those bad landlords so that the good landlords—those who care about their tenants and who provide an important duty to the housing market—can continue to have a good reputation, and so the overall market continues to have that good reputation.
I commend the Bill and the ministerial team for bringing it forward. I am thrilled that renters in Bournemouth and across Britain will finally, after many years of delay, get the renters’ rights they deserve—no, that they are entitled to.
Matthew Pennycook
Let me begin by thanking all hon. Members for their contributions. It has been a thoughtful and good-natured debate, and while there are many genuine points of difference and emphasis, there is a consensus across the House that reform of the private rented sector is long overdue and must be taken forward.
In the time I have available to me, I will respond to a number of the amendments and key arguments. In his contribution, the shadow Minister, the hon. Member for Ruislip, Northwood and Pinner (David Simmonds), suggested that Government new clauses 13 and 14 risk locking out of the rental market those renters who are on the financial margins and fettering landlords and tenants coming to fair agreements on tenancies in the assured regime that we are introducing. I gently say to him that he seriously downplays the imbalance between landlords and tenants, and the fact that requiring multiple months of rent from a tenant in advance when agreeing a tenancy is unfair, places considerable strain on tenants and can exclude some people and families from renting altogether.
Landlords will continue to be able to take a holding deposit of up to one week, a tenancy deposit of five or six weeks’ rent and up to one month’s rent in advance before a tenancy has begun. They will also be free to undertake the necessary referencing and affordability checks to give them confidence that a tenancy is sustainable for all parties. If and when they are not satisfied by the outcomes of pre-tenancy checks, options are available to tenants and landlords to ensure that rent in advance need not be used—requesting a guarantor or engaging in landlord insurance, for example. I hope that provides the shadow Minister with a degree of reassurance on that point.
The shadow Minister tabled a number of amendments—several of which we debated in detail in Committee. With regard to amendments 57, 58 and 60, I restate the argument that I made in Committee: fixed terms mean that tenants are locked into tenancy agreements without the freedom to move should their personal circumstances change, and compel tenants to pay rent regardless of whether a property is fit to live in, reducing the incentive for unscrupulous landlords to complete repairs. For that reason, the Government remain firmly of the view that there is no place whatsoever for fixed terms of any kind in the new tenancy regime that the Bill introduces.
A number of hon. Members referred to problems with short-term lets. The Government are cognisant of the impact that excessive concentrations of short-term lets can have on the affordability and availability of local housing and the sustainability of local communities. We are committed to monitoring that issue and, as the Liberal Democrat spokesperson, the hon. Member for Taunton and Wellington (Gideon Amos), knows, we are exploring what further powers local authorities need to bear down on it. However, putting an arbitrary deadline in law, as new clause 2 would do, is not the way to proceed.
Gideon Amos
I am grateful to the Minister for his response on that issue. Will he comment on the question of a use class order for second homes?
Matthew Pennycook
The hon. Gentleman tempts me to engage in an entirely different debate. I am more than happy to update him, at the appropriate time, with all the measures that the Government will take forward in response to that issue. He can be assured, however, that we are giving it serious attention, and this will not be a case of the Government kicking something into the long grass.
The Government are clear that we will not delay on giving renters the long-term security, rights and protections that they deserve by making the necessary and long-overdue transformation of the sector, contingent on a broad and undefined assessment of the possession process, as new clause 19 and amendment 56 propose. The shadow Minister knows that I fully agree with him that court readiness is essential to the successful operation of the new system. That is why my officials and I are working closely with the Minister for Courts and Legal Services and her team to ensure that the Courts and Tribunals Service is ready when the new tenancy system is brought into force.
The shadow Minister also pressed the Government to place in the Bill a legal requirement to publish an annual review of its impact on the availability of homes. He will know that the Government have published a green-rated impact assessment. We will, of course, closely monitor the impact of the Bill on the housing market, but setting an arbitrary deadline in law for doing so would, we believe, detract from that work. Although I do not begrudge him for tabling new clause 20 to make that point, he will know that no Government could accept such an amendment.
The Liberal Democrat spokesperson, the hon. Member for Taunton and Wellington, and several Members of his party raised the issue of military accommodation and tabled amendment 3. There is no dispute about that amendment’s objective—namely to ensure that all service accommodation equals or exceeds the decent homes standard. The Government have made that commitment. Where we do disagree is on whether the approach that we are taking in the Bill is appropriate for the unique circumstances surrounding Ministry of Defence accommodation. We do not believe that it is, for various reasons that we discussed at length in Committee, including the problems that local authorities have in inspecting accommodation that is behind the wire on sensitive MOD bases.
As the hon. Gentleman is aware, the Ministry of Defence is committed to reviewing its decent homes-plus standard for accommodation, with the aim of improving the standard of SFA across the estate, where it needs improvement, as part of its long-term strategy for service accommodation. That review will be informed by my Department’s work on housing standards, including our review of the content of the DHS, which Ministers in the Ministry of Defence are committed to aligning with. The Ministry of Defence will provide further information on the review of its target early in 2025.
Gideon Amos
The Minister is generous in giving way. On the question of accommodation behind the wire, to clarify, amendment 3 deals with service family accommodation. Service family accommodation is generally not behind the wire; it is on the street, where councils can access it.
Matthew Pennycook
That is only one of the issues; as the hon. Gentleman knows, we debated many others in Committee. I appreciate that there is a principled disagreement on this point. We share his objective, but we think that there is a different and more sensible way to go about meeting it. Addressing service accommodation through this Bill is not the way to proceed.
Calum Miller
I am very grateful to the Minister; I appreciate the time constraints that he faces. The critical question is when those in our communities who live in service accommodation can expect it to reach the standards that he and his colleagues intend to set out. I appreciate the co-operation with Defence Ministers, but can the Minister give us a date by which that standard will be in place?
Matthew Pennycook
I am sympathetic to the hon. Gentleman’s question and his desire for that information, but it is not for me to give a date from the Dispatch Box today; my colleagues in the Ministry of Defence will provide further information on the review of that target standard early this year.
The Liberal Democrat spokesman, the hon. Member for Taunton and Wellington, along with my hon. Friend the Member for Liverpool Wavertree (Paula Barker) and the hon. Member for Bristol Central (Carla Denyer), spoke in support of their respective amendments to introduce forms of rent control. I assure each of those Members that I entirely understand their concerns about the affordability of rent generally, and specifically the potential for retaliatory no-fault economic evictions. Once section 21 evictions are done away with, unscrupulous landlords will no doubt attempt to evict tenants who assert their rights by means of extortionate rent rises.
However, as we debated extensively in Committee, the Government sincerely believe that the introduction of rent controls in the private rented sector could harm tenants as well as landlords by reducing supply and discouraging investment. While I fully appreciate that there is a broad spectrum of regulation that falls under the title of rent control, there is, as we debated at length in Committee, sufficient international evidence from countries such as Sweden and Germany, cities such as San Francisco and Ontario, and the Scottish experience since 2017, to attest to the potential detrimental impacts of rent control. For that reason, we believe that we should proceed on the basis of the protections that the Bill provides against unreasonable within-tenancy rent rises, as well as wider action to improve affordability, not least support for the growth of the build-to-rent sector.
My hon. Friend the Member for Liverpool Wavertree also tabled new clause 5, which would place a duty on the Secretary of State to conduct a review of the tenancy deposit protection schemes and requirements. The contracts governing those schemes are due to end next year, and their re-procurement provides an opportunity for the Department to review their objectives and how they operate. I am more than happy to engage with my hon. Friend on that process; on that basis, I ask her to not divide the House on her new clause. I am also more than happy to ensure that she is closely involved in the development of the PRS database. We believe that there are good reasons for the detail relating to that database to be laid out in secondary legislation, rather than put in the Bill, as her amendment 7 stipulates. However, it is our clear expectation that the database will capture key information about landlords, and we recognise that there may be clear benefits in using it to collect a wider range of information, as her amendment suggests.
My hon. Friend also tabled new clause 6, which would require local authorities, if requested, to pay or guarantee the tenancy deposits of care leavers seeking to access the private rented sector. I am of the view that local authorities, rather than central Government, are best placed to assess the best way of supporting care leavers in their area. I reassure my hon. Friend that while local authorities maintain their ability to support care leavers in their areas, the Government are committed to putting in place the support that local government needs to do so effectively.
My hon. Friend the Member for Leeds Central and Headingley (Alex Sobel) made a strong case for new clause 11 on acting to limit guarantors. I appreciate fully that obtaining a guarantor can be difficult for some prospective tenants, and I understand the reasoning behind his amendment. However, I am also mindful that in some instances the use of guarantors can provide good landlords with the assurance necessary to let their properties to tenants who may otherwise find it difficult to access private rented accommodation. For example, there are those with a poor credit history—the kind of tenant who the shadow Minister worries our rent-in-advance amendments will harm. Having considered this issue in great detail, I ultimately concluded that limiting guarantors could inadvertently make life more difficult for certain types of renter. That said, I will keep the matter under review, and I am more than happy to engage in a dialogue with my hon. Friend about this in the weeks and months to come.
Several Opposition Members mentioned new clause 22, in the name of the hon. Member for St Albans (Daisy Cooper). The Government are clear that all landlords must keep their properties in a fit state, and that there need to be robust routes of redress when they do not. However, tenants can already take their landlord to court if their home is unfit for human habitation, and if the courts find that landlords have not met their obligations, they can award compensation, as well as requiring landlords to carry out repairs. For that reason, while agreeing entirely with the objective, I believe that the hon. Lady’s amendment is unnecessary.
I will briefly refer to two amendments on the amendment paper that were not spoken to by the Members who tabled them. My hon. Friend the Member for Nottingham East (Nadia Whittome) rightly called for protection from discrimination for renters who require home adaptations. The rental discrimination provisions in the Bill are specifically designed to protect victims of discrimination who may not be eligible to make a case under the Equality Act 2010, such as those who have children or are in receipt of benefits. People with a disability are already afforded protections from discrimination relating to the provision of housing or services under the Act. For that reason, we do not believe her new clause 24 is warranted, but I am more than happy to discuss the matter with her outside the Chamber.
My hon. Friend the Member for Warrington North (Charlotte Nichols) tabled amendment 11 to make rent repayment orders available for initial failure to be a member of the PRS landlord ombudsman or to register with the PRS database. She will recognise that we have significantly strengthened the RRO provisions in the previous Government’s Renters (Reform) Bill. However, I took the view that it would be inappropriate to extend rent repayment orders to non-criminal breaches of the kind that her amendment covers. Instead, local authorities will be able to issue civil penalties for the initial failures in question, with the possibility of higher financial penalties and RROs if landlords fail to sign up, having been fined.
Finally, I will mention the amendments relating to home adaptations—both new clause 9, in the name of the hon. Member for Bristol Central, and new clause 23, in the name of the hon. Member for Taunton and Wellington. Both amendments seek to require PRS landlords to permit home disability adaptations for assured tenants when these have been recommended in a local authority home assessment. The hon. Member for Bristol Central tabled the same amendment in Committee, and as we discussed then, the Equality Act already provides that landlords cannot unreasonably refuse a request for reasonable adjustments to a disabled person’s home. As I said in Committee, measures already in this Bill will improve the situation for disabled renters who request home adaptations. The abolition of section 21 notices will remove the threat of retaliatory eviction, empowering tenants to request the home adaptations they need and to complain if their requests are unreasonably refused. In addition, we are establishing the new PRS ombudsman, which will have strong powers to put things right for tenants where their landlord has failed to resolve a legitimate complaint.
I must say candidly to the hon. Lady that I remain somewhat unconvinced that these amendments are the way to address this absolutely legitimate issue—I recognise the problem she identifies—and for that reason, the Government will not be able to accept them. However, I can give her the assurance that we will commit to continuing to consider what more we may need to do to ensure that requests for reasonable adjustments cannot be unreasonably refused, including those recommended by local authority home assessments. I am more happy to engage with Members across the House, and to meet her, the hon. Member for Taunton and Wellington and other Members who have concerns on the subject, to discuss her amendment and the problem generally in more detail. I hope that, on that basis, she will consider not pressing her new clause to a vote.
Carla Denyer
If the Minister can confirm that the cross-party meeting will include the Chair of the Housing, Communities and Local Government Committee, and that it will take place before the Bill goes to the Lords, I will be happy to withdraw my new clause.
Matthew Pennycook
I will happily give the hon. Member that assurance, and I am more than happy to ensure that my hon. Friend the Chair of the Committee attends, as well as any other Member with an interest in this issue. It is important, and I understand the problem that the hon. Member outlines. There are reasons why we do not think the new clause is necessarily the best way to approach the issue, but I am more than happy to have a dialogue on that point.
In conclusion, today we are making targeted amendments that aim to ensure that the Bill operates as intended. In many cases, we think that the amendments pushed by hon. Members are unnecessary, because we think that the Bill strikes the right balance between the interests of landlords and those of tenants. On that basis, I hope the whole House can get behind the Bill this evening.
Question put and agreed to.
New clause 13 accordingly read a Second time, and added to the Bill.
Prohibition of rent in advance before lease entered into
(1) Schedule 1 to the Tenant Fees Act 2019 (permitted payments) is amended in accordance with subsections (2) and (3).
(2) After paragraph 1(1) (rent is a permitted payment) insert—
“(1A) But a payment of rent is a prohibited payment if—
(a) it is payable before the tenancy is entered into, and
(b) the tenancy is an assured tenancy.
(1B) This paragraph is subject to paragraph 1A.”
(3) For sub-paragraph (2) of paragraph 1 substitute—
“Increased rent
1A (1) If the amount of rent payable in respect of any relevant period (“P1”) is more than the amount of rent payable in respect of any later relevant period (“P2”), the additional amount payable in respect of P1 is a prohibited payment.
(2) That is subject to the following provisions of this paragraph.”
(4) After section 5 of the Tenant Fees Act 2019 insert—
“Other provision about rent in advance
5A Pre-tenancy payments of rent: prohibitions
(1) A landlord must not—
(a) invite or encourage a relevant person to make a prohibited pre-tenancy payment of rent to the landlord in connection with an assured tenancy of housing in England,
(b) accept an offer from a relevant person to make a prohibited pre-tenancy payment of rent to the landlord in connection with an assured tenancy of housing in England, or
(c) accept from a relevant person a prohibited pre-tenancy payment of rent in connection with an assured tenancy of housing in England.
(2) A landlord must not—
(a) invite or encourage a relevant person to make a prohibited pre-tenancy payment of rent to a third party in connection with an assured tenancy of housing in England,
(b) accept an offer from a relevant person to make a prohibited pre-tenancy payment of rent to a third party in connection with an assured tenancy of housing in England, or
(c) accept from a third party a prohibited pre-tenancy payment of rent in connection with an assured tenancy of housing in England.
(3) A letting agent must not—
(a) invite or encourage a relevant person to make a prohibited pre-tenancy payment of rent to the letting agent in connection with an assured tenancy of housing in England,
(b) accept an offer from a relevant person to make a prohibited pre-tenancy payment of rent to the letting agent in connection with an assured tenancy of housing in England, or
(c) accept from a relevant person a prohibited pre-tenancy payment of rent in connection with an assured tenancy of housing in England.
(4) A letting agent must not—
(a) invite or encourage a relevant person to make a prohibited pre-tenancy payment of rent to a third party in connections with an assured tenancy of housing in England,
(b) accept an offer from a relevant person to make a prohibited pre-tenancy payment of rent to a third party in connection with an assured tenancy of housing in England, or
(c) accept from a third party a prohibited pre-tenancy payment of rent in connection with an assured tenancy of housing in England.
(5) The Secretary of State may, by regulations made by statutory instrument, amend this section for the purpose of making provision about the descriptions of rent due in advance to which any provision of subsection (1), (2), (3) or (4) applies.
For this purpose “rent due in advance” means rent due before the period for which it is payable.
(6) Regulations under subsection (5)—
(a) may make different provision for different purposes;
(b) may make supplemental, incidental, consequential, transitional, transitory or saving provision;
(c) are to be made by statutory instrument.
(7) A statutory instrument containing regulations under subsection (5) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.
(8) In this section “prohibited pre-tenancy payment of rent” means a payment of rent that is prohibited by paragraph 1(1A) of Schedule 1.
5B Effect of a breach of section 5A
A term of an agreement between a letting agent and a relevant person which breaches section 5A is not binding on a relevant person.
Where a term of an agreement is not binding on a relevant person as a result of this section, the agreement continues, so far as practicable, to have effect in every other respect.”
(5) The Tenant Fees Act 2019 is further amended as follows—
(a) in section 6 (enforcement by local weights and measures authorities)—
(i) in subsection (1), in paragraph (b) omit “and” and after that paragraph insert—
“(ba) section 5A (pre-tenancy payments of rent: prohibitions), and”;
(ii) in subsection (3), for “or 2” substitute “, 2 or 5A”;
(b) in section 7 (enforcement by district councils), in subsection (1), for “and 2” substitute
“, 2 and 5A”;
(c) in section 8 (financial penalties), in subsection (1), for “or 2” substitute “, 2 or 5A”;
(d) in section 10 (recovery by enforcement authority of amount paid)—
(i) in subsection (1)(a), for “or 2” substitute “, 2 or 5A”;
(ii) after subsection (2) insert—
“(2A) But that obligation to pay the amount, or remaining part, of the prohibited payment is subject to subsection (3), unless it is a case where the payment is prohibited by paragraph 1(1A) of Schedule 1 (pre-tenancy payment of rent).”;
(iii) in subsection (3), for “But subsection (2) does not apply in relation to a prohibited payment” substitute “Subsection (2) does not apply in relation to the prohibited payment”;
(e) in section 15 (recovery by relevant person of amount paid), in subsection (1)(a), for “or 2” substitute “, 2 or 5A”.”.—(Matthew Pennycook.)
This amends the Tenant Fees Act 2019 so that rent in advance payable before the tenancy is entered into is a “prohibited payment” for the purposes of that Act. The new section 5A then also adds new prohibitions relating to that kind of prohibited payment.
Brought up, and read the First time.
Question put, That the clause be read a Second time.
The House divided: Ayes 372, Noes 114
[Division lists to follow.]
Question accordingly agreed to.
New clause 14 read a Second time, and added to the Bill.
Matthew Pennycook
I beg to move, That the Bill be now read the Third time.
It has been a real privilege to take this vital piece of legislation through the House. I want to thank everyone who has played a role in getting the Bill to this stage: my right hon. Friend the Deputy Prime Minister for her passionate commitment to improving the lives of England’s 11 million private renters; the Department’s Bill team who have worked tirelessly on the legislation for the past six months; my outstanding private office, including my fantastic private secretary Will Gaby, who has led the team on the Bill; the Clerks, Chairs and parliamentary counsel for facilitating its progress; the witnesses who gave evidence to the Committee; and hon. Members from across the House who provided valuable input today and at previous stages.
The current system for private renting is broken. While the Government recognise that the majority of landlords provide high-quality homes and a good service to their tenants, it remains the case that the private rented sector still provides the least affordable, poorest quality and most insecure housing of all tenures. This intolerable state of affairs is why renters have been demanding change for many years, and I am extremely proud that this Government have acted so early in the Parliament to deliver it.
The Renters’ Rights Bill will deliver on our manifesto commitment to overhaul the regulation of the private rented sector and to decisively raise standards within it. It is bitterly disappointing that despite not forcing a single Division in Committee, the Opposition decided today to set their face firmly against private rented sector reform on the basis of a series of specious and, indeed, spurious arguments. They may be intent on letting down England’s private renters once again, but this Labour Government will not put tens of thousands of them at risk of homelessness, nor will we prolong the uncertainty that responsible landlords across the country have experienced over recent years by hesitating. We will finish the job and give England’s 11 million private renters the greater security, rights and protections they deserve. I wish Baroness Taylor the best with moving the Bill forward in the other place, and I commend it to the House.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call Kevin Hollinrake, who has 35 seconds.