(3 days, 7 hours ago)
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Lord Jamieson
To ask His Majesty’s Government what steps they are taking to ensure landlords, tenants and local authorities are prepared for each phase of the implementation of the Renters’ Rights Act 2025, including funding allocated; and what plans they have for communicating changes ahead of the tenancy reforms this spring.
The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, we have given the sector a clear timeline for reform in our implementation road map. Ahead of phase 1 of implementation in May, we have already published guidance for landlords and local councils, and launched our communications campaign using social and main- stream media and partners to raise awareness. We have also allocated £18.2 million in new burdens funding to local councils in 2025-26, alongside funding for the justice system and Shelter’s expert housing advice line.
Lord Jamieson (Con)
My Lords, I declare my interest as a councillor in central Bedfordshire. I thank the Minister for her response. Unfortunately, landlords are voting with their feet, exiting the market in ever higher numbers: 93,000 in 2025 and a forecast 110,000 this year, according to the Black & White Bridging report. The English Private Landlord Survey reports that 31% of landlords are looking to reduce their portfolio and 16% to exit completely. Can the Minister explain how this helps those desperately looking for a home to rent?
Baroness Taylor of Stevenage (Lab)
We know that landlords need time ahead of the implementation to make sure they are compliant with the reforms, and that is why we have published a full package of landlord guidance on GOV.UK to support the first phase of the Renters’ Rights Act on 1 May this year, including a draft written statement of terms so landlords know what information must be included in new tenancy agreements.
We continue to work constructively with the landlord sector. Officials recently spoke to over 1,000 landlords and letting agents at a webinar organised by Rightmove and attended the National Residential Landlords Association conference to speak directly to landlords impacted by the reforms.
Lord Carter of Haslemere (CB)
My Lords, the Master of the Rolls, who oversees the efficiency of our civil justice system, recently said that the Act creates an incentive for tenants to appeal every increase in rent to the First-tier Tribunal because, even if the appeal fails, the increase in rent will not be backdated. Ministers have said that they will intervene if the tribunal becomes “overwhelmed”, but, in response to a Written Question, they said they did not hold data on the average time the tribunal takes to process rent appeal cases. So how will the Minister assess whether the tribunal has become “overwhelmed”, so as to prevent the whole system falling into chaos, with longer and longer delays in the tribunal?
Baroness Taylor of Stevenage (Lab)
We are working very closely with the judiciary and the Ministry of Justice. We had lots of discussion about this during the passage of the Bill. We want to ensure that the First-tier Tribunal has the capacity to deal with any increase in cases as a result of the rent increase changes. In the Property Chamber, work is progressing to increase capacity, as well as reviewing resource and working practices in readiness for that increase in demand. To ensure long-term sustainability, we have concluded that there is a case for the use of an alternative body or mechanism to make initial rent determinations, and we are continuing to work with partners across government to develop a rent determination function as quickly as possible. Hopefully, that process will take some of the pressure from the First-tier Tribunal.
Lord Harper (Con)
My Lords, first of all, before I ask my question to the Minister, I congratulate the Government Chief Whip on continuing, on the excellent daily list, to refer to “His Majesty’s Government”, and on having no truck with the nonsense rebranding of “the UK Government”. Long may it continue.
I ask the Minister in His Majesty’s Government: does she think the changes in the Renters’ Rights Act are going to lead to more houses being available for rent or fewer?
Baroness Taylor of Stevenage (Lab)
It will lead to better conditions for renters and will remove some of the barriers that stop people renting, as well as barriers that can prevent renters maintaining a tenancy. We have banned rental bidding, levelling the playing field for renters; landlords will no longer be able to encourage prospective renters to stretch themselves beyond their means; they cannot discriminate against the prospective renter because they are on benefits or have children; and rent increases will be limited to once a year at market rate, with tenants able to challenge unfair rent increases at First-tier Tribunal.
The work we have done with landlords and with tenant bodies—we have worked with both, through the whole passage of the Bill—means that we have a fair system that rewards good landlords and tenants but makes sure that bad landlords are held to account for the bad practices they have had in place.
Captain of the Honourable Corps of Gentlemen-at-Arms and Chief Whip (Lord Kennedy of Southwark) (Lab Co-op)
We have plenty of time. We will hear from the Lib Dem Benches, then the Labour Benches.
Baroness Thornhill (LD)
My Lords, tenants are a group of people close to my heart. They have been promised that the Renters’ Rights Act will transform their security and will do so from 1 May this year. They will be relying on local authorities to enforce those rights. But I say to the Minister that there is still no evidence from government that local authorities have the staffing or capacity to use effectively the new powers in the Act that they gained at the back end of last year. So I ask the Minister: what confidence can the House have that on 1 May, tenants will not once again be left with protections only on paper that they cannot realistically enforce? Without that data, how do the Government know that the new burdens funding, designed to support enforcement activity, is actually sufficient?
Baroness Taylor of Stevenage (Lab)
I was with a group of over 300 councillors at the weekend, mainly council leaders and other councillors, who were very pleased to see the Renters’ Rights Act coming into force on 1 May. The noble Baroness is quite right to say that local councils will play a crucial role in making sure that this Act actually works on the ground. To help councils build enforcement capacity, we have provided new burdens funding for 2025-26 and a further funding allocation for 2026-27, which will be confirmed early this year. We have also funded the Operation Jigsaw network to deliver bespoke training on the Act, so that councils understand their new responsibilities. Detailed guidance covering the enforcement measures, like the new investigatory powers, has already been published.
Lord Spellar (Lab)
My Lords, has it not been the case over recent years that many young couples have been outbid by private landlords for properties and therefore have been forced to rent and denied the opportunity of owner occupation? If these properties are now being put on the market and are available for couples, should we not be welcoming that, as they will then have a real chance to have a home of their own?
Baroness Taylor of Stevenage (Lab)
We want to improve all parts of the sector and make sure that home buying is available for young people, as well as making the rental market fairer for them. I had a big round table last week with a group from across the sector —agents, conveyancers, the legal profession, financial services and developers—to see what we can do to make it both a faster and more accessible process for young people to be able to realise the dream, which many of us were able to realise, of buying their own home.
Lord Carrington (CB)
My Lords, I declare my interest in the private rented sector in Buckinghamshire and Lincolnshire.
The Minister refers to the Renters’ Rights Act as producing better conditions in the private rented sector. Surely, this very much depends on the ongoing consultation on the home energy model methodology for assessing existing dwellings and producing new energy performance certificate metrics. I gather that this will conclude at the end of March. Will the Government commit to publishing their response and detailed guidance within six months of this date, so that landlords can have the clarity and confidence to prepare and budget for the necessary improvements?
Baroness Taylor of Stevenage (Lab)
If the noble Lord is referring to the minimum energy efficiency standards implementation, we have published our response to the consultation on those standards in the private rented sector. We have listened to the voices from across that sector. The response confirmed our decision to set new regulations in the private rented sector for landlords to meet EPC C or equivalent by 1 October 2030 for all tenancies unless a valid exemption applies. The consultation also confirmed that landlords will not be required to spend more than £10,000 per property. Exemptions will last for 10 years.
Lord Watts (Lab)
It is nice to see that my fan club is still here. Has not the present crisis been caused by the Tory Government selling off social housing? This has led to a shortage of housing and also pushed up benefits, costing billions of pounds to the taxpayer.
Baroness Taylor of Stevenage (Lab)
My noble friend puts his finger on one cause of the housing crisis: there are many. Not building enough homes was a fundamental cause as well. We have taken steps already to address some of the issues around right to buy and to make sure that councils get the funding back for houses that they sell under right to buy. We are consulting on the other steps and will bring something forward later in the year. The Renters’ Rights Act was the biggest package of reforms to the private rented sector in nearly 40 years. It will improve the sector for 11 million private renters and 2.3 million landlords in England.