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Live Debate
Lords Chamber
Lords Chamber
Tuesday 1st July 2025
(began 1 week, 6 days ago)
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This debate has concluded
14:37
Oral questions: Standard of hotel accommodation provided to migrants who have entered the UK in small boats from France
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First First Oral First Oral Questions, First Oral Questions, Lord Etherton. I beg leave to ask the question
standing in my name on the Order
14:38
Lord Hanson of Flint, The Minister of State, Home Department (Labour)
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Try again.
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I thought I was going to get to
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I thought I was going to get to there. This oral combination meet regulation requirements as well as
14:38
Lord Goodman of Wycombe (Conservative)
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regulation requirements as well as contractual requirements to be safe. The contractual standards are contained within the asylum
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accommodation support contracts. I think the Minister and
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I think the Minister and apologise for not being my Noble Friend, Lord Evans. Now, he has a
Friend, Lord Evans. Now, he has a contact who runs a series of hostels for backpackers. Many of whom are young men who must share facilities.
young men who must share facilities. But where my Noble Friend contacts
But where my Noble Friend contacts applied to the office to take illegal migrants in his hostels, he was told this was impossible because not all the facilities are ensuite.
not all the facilities are ensuite. My Noble Friend would like to know why it is shared facilities are suitable for young male legal
14:39
Lord Hanson of Flint, The Minister of State, Home Department (Labour)
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suitable for young male legal backpackers but not suitable for young male illegal migrants. That is a good question. Perhaps you could ask the previous minister under the last administration
under the last administration because of the contract with the current asylum seekers were signed by previous Ministers. I am very
14:39
Lord German (Liberal Democrat)
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by previous Ministers. I am very happy to look at the issue that he has got, but I am just repeating that all the contracts were signed by previous Ministers under the last
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administration. They are not suitable for either
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They are not suitable for either the community or for the asylum seekers. So, could the Noble Lord
seekers. So, could the Noble Lord tell us the two main ways we can improve the situation dramatically
improve the situation dramatically how are you getting on with reducing the backlog of cases being heard and
14:40
Lord Hanson of Flint, The Minister of State, Home Department (Labour)
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the backlog of cases being heard and whether you allow people to work so they can pay for their own accommodation. We are doing quite well,
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We are doing quite well, actually, if noble Lords will bear with me. The support and accommodation as of 31 March 2025 is
accommodation as of 31 March 2025 is 15% lower than at the end of 2024
and 22% lower than at the end of September 2023. We are moving people
who supported accommodation, trying to get the backlog down, we have used money saved from the wasteful
Rwanda scheme to put money into people examine asylum claims and process them quickly.
And I note
again his helpful suggestion that we
look at how people work. I think that is a pull factor. We have an honest debate on that issue, but, again, we keep all options on the table.
14:40
Baroness Lister of Burtersett (Labour)
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My Lords, report after report has documented what one describes as a
cruel and safe, and degrading treatment experienced by many asylum seekers, living in hotels,
especially LGBTQ+ women and children. Could my Noble Friend tell
me what steps the Home Office are taking to strengthen safeguarding
procedures so long as hotels, usually of low quality, continue to be used to house asylum seekers.
14:41
Lord Hanson of Flint, The Minister of State, Home Department (Labour)
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I am grateful to my Noble Friend.
Safeguarding is extremely important. It is the ambition of the Government to remove all asylum seekers from
hotels as soon practical. And we have reduced the number of hotels,
in fact I can tell my Noble Friend that we have fewer hotels now in this week of the anniversary of the
general election and we had last year when the Conservative party left office. It is about further ambition to reduce that. When the
Conservatives were in office, hotel costs peaked.
This time last, they
were in the half £1 million per day. This year, now, £6 million per day. Still too high, but on the right
trajectory downwards and working to continue safeguards in doing that. continue safeguards in doing that.
14:41
Lord Mackinlay of Richborough (Conservative)
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I have a pal who has a very good
job and he had booked many months ahead in a four-star accommodation
of a well-known hotel chain. Two days per week. He had a phone call out of the blue saying I am very
sorry, but your months ahead booked accommodation in our. Hotel has now been cancelled because the hotel of 150 rooms has now been taken over
for migrant accommodation. Would the Noble Lord agree with me that the pull factors of good accommodation
are obviously clear.
The pull factors of the ability to get one of
these delivery jobs is very clear in high street a number of illegal staff working. Until we get a grip
on these, and I am afraid we will not get any better. We need rather
more than the words of let's smash the gangs.
14:42
Lord Hanson of Flint, The Minister of State, Home Department (Labour)
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I am grateful to the Noble Lord.
I would be grateful if he wants to write to me with details of his friends hotel. Because it is a great
surprise to me that we are not opening new hotels. We are trying to
reduce hotels and reduce the bills from his Government from £9 million per day to £8 million per day to the
current six and half million pounds per day that I mentioned. And if he wants to tackle the legal working, I very much recommend it to support
the bill that is currently before this House on employment rights which is about reducing the pull
factors of illegal working.
Cracking down on illegal employers. As I recall, the proposition against the bill on several occasions has passed
no further.
14:43
Lord Sahota (Labour)
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I according to the report, migrant voice, in 2023, the Home
Office received 1,500 complaints about migrant hotels. And these are
lack of privacy, having to share rooms with strangers, even beds, sometimes. Overcrowding, dirty
rooms, dirty bathrooms, toilets,
little access to healthcare, sexual harassment, intimidation, and racism. And out of date food. All of
these conditions are dehumanising.
As the Government aware of their conditions in these hotels?
14:44
Lord Hanson of Flint, The Minister of State, Home Department (Labour)
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I am grateful to my Noble Friend.
He mentions the report from 2023.
This Government has been very clear that need to provide accommodation, as I said in the original answer to
the Noble Lord of Wycombe, that all contractual standards are safe, fit for purpose, properly equipped, and
the contractual standards that are
in asylum accommodation support contracts which meet decency levels that are maintained. That is the objective of the current Government and the figures he gave were from 2023.
2023.
14:44
Lord Davies of Gower (Conservative)
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My Lords, talking about the Government, perhaps he might like to
recall the fact that they voted 130+ times against the bill to avoid this
situation. But under the Conservatives the number of asylum
seekers being housed in hotels decreased prior to labour coming into office. Since Labour gain
power, the number of asylum seekers has risen by some 29% Houston hotels. So, at what point does the
Noble Lord the Minister think his Government will honour the election
manifesto? Given that the small boat arrivals is now touching over 20,000, something like a 50% 20,000, something like a 50% increase from this time last year.
14:45
Lord Hanson of Flint, The Minister of State, Home Department (Labour)
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The Government set a clear direction of travel in terms of
reducing hotels and tackling the backlog of asylum and trying to
prevent people coming to this country unfairly in the first place. And, when they do claim asylum,
processing those asylum claims very much quicker. I pointed to one figure, if I may, which I hope is helpful. That figure is 90,208. That
is the number of people that have been removed from the United Kingdom
up to the end of 2024 since the general election.
Compared with an
average of around 2004 the previous Government during its term of office. So, the question for the
noble gentleman is to say he has got, the Noble Lord, he has got us
into the position with his Government where we have a rise in
hotel numbers to a maximum of 400, a rising cost of £9 million, a record number of people coming to the country, and a failure to remove
people who are being denied asylum and a failure to process asylum claims in a speedy and effective
way.
We are clearing up his mess and way. We are clearing up his mess and
14:46
Lord Laming (Crossbench)
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I wonder if the noble Lord can
bring us up-to-date about the position of unaccompanied migrant
children who are in hotels and whether or not he is satisfied that their safety and safeguarding are
being properly protected?
14:46
Lord Hanson of Flint, The Minister of State, Home Department (Labour)
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And grateful to the noble Lord.
We took an early decision which he
knows to ensure that we worked with the local authority, Kent, to ensure
that the safeguarding was in place. That is in place now. There are still a number of unaccounted
migrant children which is this government responsibly. Gutting
efforts to track them down as best we can. I show him taking every step we can to ensure that situation does not occur again.
14:47
Lord Clarke of Nottingham (Conservative)
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Is the government making any progress in its search for safe
third countries or third country where applicants for asylum could have their case processed before
being admitted to this country at all? Which is the only policy they
have, which would avoid the need for hotel accommodation almost
completely. In future. And is this
still the government was not policy? And is there any prospect of progress being made in the near future?
14:47
Lord Hanson of Flint, The Minister of State, Home Department (Labour)
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The government as he knows has been discussing a number of matters with a number of countries and I
can't ring him up-to-date today with the final details of those projects
but what we have got is scrap the Rwanda scheme which did not remove people and we are continuing to work
without French, Dutch and Belgian colleagues to look at how we can
stem the flow of people who are coming here on a regular migration
so we can look at the proper asylum assessments and proper removals
accordingly in conjunction with those European countries that are most impacted in the European Community.
14:48
Baroness Hayman of Ullock, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Labour)
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Second Oral Question.
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Paper. The UK government is committed to securing agreement to the global
securing agreement to the global treaty on plastic pollution when the
treaty on plastic pollution when the negotiations resume in August. At the even ocean conference in June, the UK joined over 95 signatories of
the UK joined over 95 signatories of the Nice wake-up call statement to demonstrate support for an ambitious
demonstrate support for an ambitious treaty. Working with other countries including allies in the high
14:49
Baroness Parminter (Liberal Democrat)
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including allies in the high ambition coalition to develop text options to facilitate an agreement.
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In the last 20 years, global plastic production and plastic waste
plastic production and plastic waste has doubled, despite national and voluntary initiatives so it's
fantastic the government has signed up to that Nice declaration. Can I press the Minister to ask exactly what conversations and discussions
are being had to ensure that the minority of low ambition countries
minority of low ambition countries and narrow interests don't derail the opportunity for a legally binding ambitious plastics treaty in
14:49
Baroness Hayman of Ullock, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Labour)
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Geneva. That's a really important
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That's a really important question. We know that, we are high ambition but there are low ambition
ambition but there are low ambition countries that we are working very closely with, some in developing countries, others like the Gulf states. It is important that we continue to make progress and did
continue to make progress and did
make progress previously. But we are doing other things, particularly Mr Hardy as the lead on this, she is
working very closely with others to develop shared position on how we can finance the treaty, take the lead on engaging with the private
sector for example, they were doing some co-leading work with Chile to progress discussions on product
designs, co-leading work with Panama on leakages of plastic, Minister
Hardy hosted a ministerial event that UN ocean conference to bring ministers from a range of different countries and different positions together, different ambition.
It
actually look at how we can forward and in fact hosted an interesting roundtable last week which was attended by His Excellency, the INC
chair. There's a lot of work on behind-the-scenes to ensure we get
the best possible result out of next month's conference.
14:51
Lord Kirkhope of Harrogate (Conservative)
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Plastic pollution starts with packaging and I wonder therefore if the Minister would like to join me
in commending the British retail sector which has done so much
recently, physically, to produce packaging of a better environmental
nature for recycling but also to draw attention to all the customers
that visit retail outlets to show them the benefits of these
improvements.
14:51
Baroness Hayman of Ullock, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Labour)
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I'm very happy to commend any
producer, any retailer, who wants to reduce the amount of damaging plastic that goes into our environment and the noble Lord is
right, there has been a lot of work done in recent years by some very forward-looking companies. However,
there is still far too much plastic going into our environment. We have to do more to progress this. Others have to come on board which is why
I'm also really pleased that the UK has been absolutely clear that the treaty should address the full cycle
of plastic, that's including sustainable production and consumption.
14:52
Viscount Colville of Culross (Crossbench)
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A large amount of British plastic
waste is not being recycled because it's too complex to sort. What steps is the government taking to encourage innovative research which
will allow for new ways of recycling complex plastics and ensuring that more plastic is recycled and less
ends up in incinerators?
14:52
Baroness Hayman of Ullock, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Labour)
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Of course we need to do more to
ensure that this plastic ends up in
-- less plastic. Research isn't just about what you do with complex plastics but it is about ensuring the plastics being produced are recyclable in the first place but
also that that actually happens and they don't get dumped somewhere. What's really important is the work
DEFRA is currently carrying out on the circular economy which is going to be looking at exactly the sorts of issues.
14:52
Baroness Ritchie of Downpatrick (Labour)
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My noble friend the Minister on
the front bench indicate if the government has any plans to restrict
the export of plastics through powers under the Environment Act to encourage recycling at home rather
than offshoring the problem? than offshoring the problem?
14:53
Baroness Hayman of Ullock, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Labour)
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There, as I was saying, we need to move away from this because many
members of the public, myself included, put our plastic into the
recycling bins, very good faith, and we expected to be recycled. I buy things made out of recycled plastic.
But we have to look at how we can stop plastic that should be recycled
just being offshored and don't. We
have seen so many photographs of the appalling outcomes of that. That is why we want to get the treaty
finalised, why we need to be determined to move forward and while we are concentrating on having a genuinely effective circular economy
strategy within DEFRA.
strategy within DEFRA.
14:54
Lord Grayling (Conservative)
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One of the other major threats to marine life is illegal and
unauthorised fishing around the world. What steps are being taken by the international community to address that problem?
14:54
Baroness Hayman of Ullock, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Labour)
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Absolutely. I think anyone who
has been to a beach season abandoned fishing gear on the beach, particularly the twine, the right
stuff, that is the technical term,
the twine that fishermen use. Obviously abandoned lost and discarded fishermen gear is actually
one of the forms of plastic that causes the greatest harm the
environment and I know that the UK has been looking at ways that you
can use alternatives, I think there are alternatives that are being explored so that we don't end up
with constant blue bits of plastic scattered over every single beach
that we see in this country.
that we see in this country.
14:55
Baroness Boycott (Crossbench)
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... Microplastics that are now completely endemic in our water systems, in our bodies and indeed in our soils which are from a lot of
research is showing that crop facility, in other words crop yields, is going to go down quite
drastically in the next 10 years because of what is the microplastics
in the water system. While I don't expect an answer directly, I would love to know what the government is
doing in the way of researching this, working with people like the Geneina centre who are looking at
what we can do about this because it's pretty difficult now to get rid of.
14:55
Baroness Hayman of Ullock, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Labour)
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The noble Lady makes an extremely good point. I think we were all
quite shocked recently at the
figures of how endemic this tiny pieces of plastic are in our drinking and in ourselves. It is
extremely worrying and it's incredibly important that research is carried out. Another Jonathan to
do great work. -- I know the John in a centre do great work. I will go
back to her and find out what work we are doing to get back to that.
we are doing to get back to that.
14:56
Lord Roborough (Conservative)
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The UK throws away more plastic per person than every other country
in the world except the US. With 81% of this plastic consisting of Food & Drink packaging from supermarkets.
It is evident that effective
measures must be taken to reduce this way, she opinion shared by 74% of the public. Will she confirm
steps the government is taking to prevent further delays to the government proposed deposit return
scheme? scheme?
14:57
Baroness Hayman of Ullock, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Labour)
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First of all I would say that I'm very pleased we have actually announced we are doing a deposit return scheme. It's something that
has been discussed by many years by the previous government so I'm pleased we have acted quickly to
announce that we are bringing that in. However it does need to be brought ineffectively, it needs to work properly, so we are doing it in a way that we think is actually
going to have the greatest results. But it is also part of our bigger picture around the circular economy, it's part of our commitment to
producing plastic which comes back to the initial question from the
noble Lady about our support for the treaty.
Because although we want to
have our own ambitious plans for reducing elastic waist in this country, this is a global problem and we have to work globally. --
and we have to work globally. -- Reducing plastic waste. Reducing plastic waste.
14:57
Baroness Bennett of Manor Castle (Green Party)
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Returning to the plastics treaty, at the last round of talks, fossil
fuels interest sent to hundred and 50 lobbyists and they are known to
be the people who were fighting very hard against any plastic reduction targets, putting less into the
soils, into the water, into our bodies. What is the government going to do to block the influence of
these fossil fuels interests 's could we not do with what WHO has done with tobacco, ban fossil fuels interests from people who should
have no place in these talks?
14:58
Baroness Hayman of Ullock, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Labour)
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What we are trying to do is move
forward on a global scale, bringing people with us. This is a treaty
that will have more impact if every country is signed up to it. And
because of that, we were very disappointed that we were not able
to conclude negotiations last time around. However, behind-the-scenes
there has been a lot of work going on in order to try and move forward. My understanding is the countries
that the noble Lady refers to are more concerned about including method of production into the treaty and that is something we are looking
very hard to resolve.
We want to see the ambitious treaty that ourselves
and other ambitious countries want to achieve and we are working very closely with the middle to low and
low countries in order to get there.
14:59
Oral questions: Control over UK weapons systems without the need to consult other governments or third parties
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Third Oral Question.
Paper.
14:59
Lord Coaker, The Minister of State, Ministry of Defence (Labour)
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His Majesty government has complete control over the operational use of all that UK's
weapon systems without needing to consult or gain approval from other governments or third parties. This
includes the nuclear deterrent. includes the nuclear deterrent.
14:59
Lord Empey (Ulster Unionist Party)
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My Lords, I expected the Minister to say that he had operational control over all weapons systems but
all weapons systems require maintenance. They require to be
renewed. And it is my understanding that not all of that process takes
place in the United Kingdom. Therefore, third parties or other
governments must have an influence
over the maintenance of our weapons, so therefore the question is, how independent is independent?
15:00
Lord Coaker, The Minister of State, Ministry of Defence (Labour)
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Independent means what it says.
Let me just reassure the noble Lord but also to reassure the House that
we have complete operational use in terms of the independence. We can
use all of our weapons systems in the way that His Majesty's Government chooses to do that. Of course there are arrangements about
how you maintain that and what you do but independent means independent so we work to ensure that we maintain all of our capabilities to the standard noble Lord in this
the standard noble Lord in this They meant independent of the United
They meant independent of the United States, a British deterrent.
A British warhead under British
British warhead under British weapons delivery system. Since they had dependent on American missiles and the latest announcement of
and the latest announcement of airbase delivery will also have an American warhead. And I understand
American warhead. And I understand it correctly some of those warheads will be stored on US bases. How far
will be stored on US bases. How far does that mean we can depend on the
next American administration? Let
alone this one.
To give us permission when needed in what might be a prolonged war rather than an immediate crisis.
We need to unpick a little bit of that. It is a very good question that the Noble Lord answers, but let
me first just say that no Government will comment on the storage of nuclear-weapons, for obvious
reasons. The strategic nuclear deterrent is completely operationally ended. It cannot be
used without the agreement of the
United Kingdom's Prime Minister. As the F 30 5A, to which I presume this is referencing in respect to the
government's announcement with respect to that, that forms part of
the nuclear mission of NATO.
For that nuclear mission, for that
capability to be used, it will require the agreement through the nuclear planning group of the United
Kingdom crime minister in order for
that to be used, so in all of the cases with whether the Noble Lord is referring to the strategic deterrent
or to the fighter deterrent of the 12 F 35 is, that will require the authorisation of the United Kingdom. authorisation of the United Kingdom.
15:02
Baroness Goldie (Conservative)
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Given the answer that the Noble Lord the Minister has just given,
can I ask him to clarify that while
it may very well be the case that
the premise of the United Kingdom would be required to give consent, is it conceivable that the United States in that scenario might refuse consent? consent?
15:02
Lord Coaker, The Minister of State, Ministry of Defence (Labour)
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Let's deal with this. I apologise
to the House if this takes some time, as I spoke to the noble Baroness. First of all, let's deal
with the strategic deterrent. That
remains, as we have always had it, remains the United Kingdom crime minister, it is operationally independent. As for the 12 F 30 5A
that the Government has announced,
that forms part of the NATO nuclear mission. They are UK jets, F 30 5A
's, they are dual capable aircraft.
So, they can be used normally, or in a particular crisis or particular
sense in which we and NATO felt they should be used to become part of the nuclear mission, and in that sense at that time there would be armed
with American nuclear weapons. That of course that means the authorisation for those remains in terms of the use of those missiles
remains US controlled because the US in the same way as we control our UK nuclear-weapons, the US nuclear-
weapons remains subject to US
approval, but the point I was making to the Noble Lord which is something that is really important, of course
the authorisation for the use of those weapons within the NATO context has two go through and be agreed, that mission has to be
agreed by the NATO planning group.
As part of the NATO planning group,
the UK is part of that, so the Prime Minister in that sense would then have to authorise those UK planes
being used to deliver that capability. I hope that is clear to
the House, and to the noble Baroness. Because it is a really important point for us to make with
respect to the nuclear capability that this country has and also the working practice. working practice.
15:04
Lord Reid of Cardowan (Labour)
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And I first declare an interest along with Lord Robinson. We got rid
of the gravity nuclear comes back in 1997. But was a particular context and I fully accept that the world has changed and therefore I have no
objection whatsoever to now maintaining or restoring that capacity. I would like to know, however, since we are getting the 30
5A, what is the implication for any
offset arrangement in the previously
considered demand for 30 5B?
15:05
Lord Coaker, The Minister of State, Ministry of Defence (Labour)
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I am ever going to pass or fail
this exam. As it stands, we have 40
1F 35 bays which bite match 26 we
should have 48 of those. That is what is called the first procurement
phase. This was the second procurement phase which will take us
through the whole program to 75 craft so from 48 to 75, that is an
additional 27. Of those, 12 will be F 35 is and 15 will be 30 5B is Mac.
I will answer some more to that with the Noble Lord West's point, but
actually it will form part of the
group which will remain, so if 30 5A's will go to that operation which
will actually free up if 30 5B Max which that exercise with them, so the carrier will always have the
full complement of F 35 F 30 5B's that they need.
15:06
Lord Stirrup (Crossbench)
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The security of this country against major threats and high-
intensity warfare is based upon our membership data and in NATO we rely
upon so many of our partners to provide crucial capabilities, for
example the strategic capabilities that means only Americans required, so in terms of that fighting to be
too nice or purely national capability does not make sense. capability does not make sense.
15:07
Lord Coaker, The Minister of State, Ministry of Defence (Labour)
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I agree with what the noble and gallant Lord has just said. I do
think it is an important point to make and I should have made it to
the noble Lords in terms of that but of course, alliances matter. Our
alliances are really important and
we have a shared interest in the geopolitical threats that we face, so the noble and gallant Lord is quite right on that, but let me say
again as I quite often say that US is our prime ally.
It is our most
important ally. To guarantee our security across the globe and we
should celebrate that closeness of that relationship as we should celebrate the closeness of our
relationships with all of our friends. friends.
15:08
Lord Sterling of Plaistow (Conservative)
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One question I would like to ask is that anything to do with nuclear
does not take time and planning discussions, it is almost
immediately taking place and the military have to take a decision in
minutes as to what to do then.
15:08
Lord Coaker, The Minister of State, Ministry of Defence (Labour)
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The first thing to say is whether
it is nuclear or any capability, but particularly nuclear, they have to be calm and rational about it
unreasonable about it. And let me just say this, one of the important points, one of the successes of our
strategic deterrent has been the fact that it exists, people know about it, and understand the
situation and the concepts that we have for it. As I say, I think the
decision to go ahead with F 35 dual
capability that they have is in-line with the strategic geopolitical context in which we operate, and as
such I think it is a perfectly rational and reasonable decision for us to take with respect our NATO
colleagues in order to ensure we defend our country and the things that we stand for.
that we stand for.
15:09
Lord Foulkes of Cumnock (Labour)
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Whether in this context the SNP can described as a Government or a
third-party. Certainly, to be
generous, the policy in this area is best described as flexible and I wonder of the Minister could help by explaining what it actually is.
15:09
Lord Coaker, The Minister of State, Ministry of Defence (Labour)
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I would like to think I have been
able to answer most of the questions we have been asked so far, but I am not sure about my Noble Friends
question, but let me just have a go. First of all, it is completely and
utterly incoherent in terms of what the SNP stands for. Let me also just
say I remember Dave time when the
SNP a couple of years ago I think it was 2012 debated nuclear-weapons but also alongside the debated with that
they should be members of NATO.
They actually come at the time, agreed to
be members of NATO, and if I remember rightly, and others here will know, some SNP whatever they
are, SNP, MSPs, the resigned because
of that. And they said you cannot be
a member of a nuclear alliance and be against nuclear-weapons. It was incoherent. Let me say what the SNP
policy is, it seems to me that they accept NATO's nuclear and the
security that brings but do not want to nuclear-weapons themselves to
deliver it, so in George Orwell's famous terms, it seems to be NATO nuclear-weapons code, UK nuclear- weapons bad.
15:10
Oral questions: Whether the procurement of twelve F35A jets capable of carrying nuclear weapons will affect the planned procurement of F35B jets
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Fourth Oral Questions, Lord West.
Paper. Paper.
15:11
Lord Coaker, The Minister of State, Ministry of Defence (Labour)
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Can I just draw your Lordships attention also to my Noble Friends
point, a very serious point just
recently, last week, I was in And the Prince of Wales in Singapore harbour at the invitation of the Singapore Government with F 30 5B and helicopters all over it to see
the crew there to visit the other ships that are part of it. I just
wanted to say that. But let me also say in answer to my Noble Friends questions I can confirm that the second procurement phase will
consist of 12 F 30 5A, 15 F 30 5B which will remain in the third
frontline squadron focused on F 30 5B.
41 of the 40 8F 30 5B
procurement phase have been delivered. 617 Squadron and the naval espadrille, both currently
deployed on HMS Prince of Wales for operation. We remain committed to
130 8F 35's across the life of the program at the defence program to
examine options on further purchases in the coming months.
15:12
Lord West of Spithead (Labour)
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Thank my Noble Friends a minister
for his reply. My answer has been rather shredded by the previous
debate. I think it is worth remembering that 80 years ago, as we
speak, the British fleet was leading the water around Okinawa heading
towards Japan. And consisted of a 21 aircraft carriers, for battleships, and dozens of destroyers and
frigates but it was in the waters
by, causes that you could argue are the ultimate drone. I think whenever we discussed military rules, we ought to remember those that have
gone before and what they did for us to be able to stand here.
As regards
to my question, I now have two votes left after it has been discussed. The first one, does my Noble Friend believe that maybe it is now time
for us to review our nuclear
doctrine? And one could argue there
is time to do a proper review of our nuclear doctrine. The other one as I had understood that major investment decisions, and this is a major investment decision, very bearing in
mind the costs associated with the sort of thing, were going to be made in the autumn as part of the defence
investment plan to check out the National Armaments Director and the strategic importance.
Does the fact that this has now been made now and
not in the autumn impact decisions from the SDR that we were looking at
to be undertaken piecemeal beforehand?
15:13
Lord Coaker, The Minister of State, Ministry of Defence (Labour)
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And I think my Noble Friend for
his questions. Just in his very serious and important point about
those who made the ultimate sacrifice in terms of the far east and so on, he will be pleased to
know in my visit to Singapore I visited the War Graves cemetery
there and also when I was in Jakarta
a day or two later I visited the Wargrave war cemetery there and laid a wreath to remember those that had
gone before, just to say that it is really important.
On the issue of the nuclear doctrine, of course, one
always reflects on these matters stop it, as it stands, the nuclear
doctrine is as it is. On the major investment decisions, the major investment decision in terms of the
money and the direction of travel it just felt important given the
serious geopolitical challenges that we faced at this time, that although
the number of planes remained the
same, some of the variety in terms of the F 35 it is important that we make that decision at this particular time in light of the
threat that we faced.
15:15
Baroness Goldie (Conservative)
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I am grateful to the Noble Lord
the Minister for clarifying the procurement schedule for the F 35 a,
but, of course, delivery on the F 30 5B has not been free of problems, so does that Noble Lord the Minister
have confidence in the delivery schedule for the F 35 a to be
achieved?
15:15
Lord Coaker, The Minister of State, Ministry of Defence (Labour)
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Just to reiterate and clarify
again, 4830 5B 's have at the human face should be by March 2026 in
respect to that. In respect to the second procurement phase which is the additional 12 F 30 5A's under 15
F 30 5B's which would give us 75 in
total, our expectation is that would be procured by 2033, so we do have confidence and it is important that
we meet that schedule and I have
we meet that schedule and I have we meet that schedule and I have
15:15
Lord Houghton of Richmond (Crossbench)
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Could you confirm that the following precis rings true. The 35 days are not additional to the
programme. They replace 1230 5B. The
1235 a is cost $20 million less per
plane than F-35Bs the and therefore result in a saving to the programme.
We have no sovereign capacity to
refuel an F-35A and and therefore we will create... will create...
15:16
Lord Coaker, The Minister of State, Ministry of Defence (Labour)
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Yes to all of those, particular
point. F-35A The do come from F-35
the schedule. F-35A Our 20% also
cheaper than F-35Bs the so he is right, it creates money that can be used in a way the government feels
is appropriate and consistent with the SDR. He is right about the refuelling mobility that they will
need to be allied support so the noble Lord is right to point that
out. I would point out actually many of the capabilities that we have require allied support and allied
health to ensure they can function so I don't see a particular problem
with that but he is right to point out.
15:17
Lord Wallace of Saltaire (Liberal Democrat)
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The SDR and the National Security
Strategy emphasise the threats to us locally and regionally as opposed to global production of power to
Singapore and to the South China Sea
which is what the of carriers were
for. Are we sure we still have got our priorities right and wanting to be standing firm with our prime
ally, the US, in the Indian Ocean or should we be paying more attention
now to the North Sea, to Eastern Europe, the Baltic, and that part of
the world which is closest to our insecurity?
15:18
Lord Coaker, The Minister of State, Ministry of Defence (Labour)
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Understand the point he is making
but I just don't agree with it. We
simply ensure that without allies, we ensure the security of regions across the world, whether it be that North Sea, the Mediterranean or indeed the Indo-Pacific. If the Indo-Pacific, our carrier, and
through the Red Sea, through the ban, into the Indian Ocean, that was
under the threat of the Hooties. --
Houthis. They had to write an letter home saying what might happen and we
should celebrate the fact we have people who have a sense of duty that allow them to put their lives in danger to ensure that trade,
communication, all the things we depend on, and get through that narrow bit of C.
Because I tell you
what, if that didn't happen, we would soon have our shops empty, our
would soon have our shops empty, our
data would not work. Money of the things that are standard of living depends onward not function. That is why it's important we go to the
Indo-Pacific, stand alongside the Americans. Other countries want us to go there, Singapore, Japan,
Malaysia. All of these countries are asking us to go there because they
recognise the importance of ensuring trade routes of the global trade routes stay open because it's the prosperity and the trade upon which our nation and the nations of the
world depend.
15:19
Lord Beamish (Labour)
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My Lords, can I...
**** Possible New Speaker ****
It is the turn of the Labour benches. And I welcome the announcement of
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And I welcome the announcement of
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And I welcome the announcement of the cumulatively F-35As, 15% of them will be produced in the UK, every
will be produced in the UK, every single one internationally. Thus my friend agree with me that those that
friend agree with me that those that are calling for us to limit our involvement in this program to try
15:20
Lord Coaker, The Minister of State, Ministry of Defence (Labour)
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and restrict the export of these components will do huge damage to
**** Possible New Speaker ****
the UK economy and outstanding in the world. And I say to noble friend, he makes a really important point. He
makes a really important point. He points to F-35As the and the UK domestic production which is part of
domestic production which is part of that. And our exports are also
that. And our exports are also really important. And with that, to say, as I know he would, that I welcomed the court decision
15:20
Lord Soames of Fletching (Conservative)
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welcomed the court decision yesterday with respect to the judgement which was important for
our country.
15:21
Lord Coaker, The Minister of State, Ministry of Defence (Labour)
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Will he confirm that F-35As the is capable of being fully married
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eyes to? It is capable of a number of
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It is capable of a number of different capabilities. I just need to check soy don't misinform the
noble Lord. They say its dual capability, that in terms of the
capability, that in terms of the From airfield. If understand the noble Lord's?, Let me check it, I will write to him and put a copy in
**** Possible New Speaker ****
will write to him and put a copy in the library. I need to make sure I don't misinform him and the House. That concludes Oral Questions for the day. Members wishing to leave
15:23
Legislation: Renters’ Rights Bill – report stage (day one) - part 1
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Bill.
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My Lords, I beg to move this
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My Lords, I beg to move this report we now receive. -- Be now received. Question is that this report be
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Question is that this report be now received. As many are of that opinion say, "Content", and of the contrary, "Not content". The contents have it.
**** Possible New Speaker ****
contents have it. Before we start the debate I would like to give my reminders to
would like to give my reminders to the House and declaring interests. As we set out previously noble Lord
As we set out previously noble Lord should declare relevant interests at each stage of proceedings on a bill. That means in the first contribution
That means in the first contribution at report stage, noble Lord must declare any relevant financial
declare any relevant financial interests in the specific brief weight.
Declarations do not need to be repeated in subsequent speeches
be repeated in subsequent speeches at report stage. As my noble friend achieve remind the House, last week,
achieve remind the House, last week, it is no longer sufficient to say that interests as are set out in the
15:24
Lord Hacking (Labour)
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register. In clause 1, amendment one, Lord Hacking.
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Hacking. I start off my declaration which is to ruin retrospect that my wife
is to ruin retrospect that my wife and I own five one-bedroom flats in
the next house to us and we have been renting out those flats for the
last 30 years. As we approach the 125 amendments tabled for report,
before I moved amendment number one, I suggest we take stock where we are
after seven days of committee. I start by giving praise to my noble
friend the Minister.
She was always,
throughout committee, very well briefed. She conducted every
amendment with great politeness, naming and thanking every speaker
who spoke. She was always available to have meetings and discussions and
I know as her days as a councillor in Stevenage, her great concern that
the renting legislation on the
Landlord and Tenant Act is and should not make families homeless and she feels that very strongly. So
thank you, Sharon. My Lords, there
has been however a big problem.
Out of the 300 odd amendments taken in
committee, the government did not concede a single amendment. I think I'm right on that, if I'm wrong,
I'm right on that, if I'm wrong,
please somebody correct me. It's true that in the matter of the Minister on 24th June the government through the Minister has accepted
three amendments. Very grateful for that. But this is a very small
number against the rejection of 300 amendments. By applying normal
averages, it can't be right that the
government is always right, in committee, and on these amendments, and the rest of us was always wrong.
Moreover, in committee, there was considerable expertise in Landlord
and Tenant among members of the
House. Lisa Duffin of at least a dozen of us had that direct
experience. At least half a dozen of us declared landlords of the good
and honest variety. When I joined this House 53 years ago, there was good willingness in the House to
listen to the expertise of its members, that is what we are after all here to be. Now it's seems the
government are not prepared during the passage of this bill to listen
to the expertise of the House, to put it bluntly, the rejection of
300+ amendments is not listening to
this House.
I don't blame the Minister. I simply don't know who was responsible for the decisions
that resulted in these multiple projections. The consequence is
quite serious, as I will seek to show in amendment number one, and an
amendment number 41, that there have been occasions when the government
has got it plain wrong and plain wrong because it was not listening.
Isolating backbencher, I want the
government to succeed -- as a Labour backbencher I want the government to succeed but they would be much better if they were able to do
better listing.
May the government
start listing to us. I now turn to amendment number one. The purpose of
this amendment is to allow Landlord and Tenant Act, if they wish, to
agree affixed to tenancy. The experience of my wife and I is as
follows. I have always been letting,
nearly always, twelve-month tenancies to our tenants. I should
explain that our tenants are
currently, the whole, are couples in their 30s or sometimes in their
early 30s, who are planning to own a home of their own.
It therefore
suits us to agree a 12 month tenancy and it also suits our tenants to
agree a 12 month tenancy. After the
first 12 months, we meet and discuss whether our tenants want to stay on
for another 12 months and sometimes they want to stay on for three or four years or even more. If any of
them want to go early, within the 12 months, we give full cooperation we
seek immediately new tenants and the outgoing tenants pay their rent as
long as they are present in their flat and not thereafter when the new
tenant has arrived.
Indeed I don't think we have ever failed promptly to find new tenants, and this is
because the flats we let out our lovely flats with private use of the
garden at the back of the House. Under English contract law, it is
the right of any two parties or three or four parties, whatever the number of contractors, to agree what
they like, provided the contract is
a lawful contract. Is the noble Lord
all right? It is therefore quite wrong for the state to dampen and
say, do that -- for the state to
jump in.
And so we don't like fixed
term contract. There were several arguments made by noble Lords that
the short-term tenancies benefits the letting market. I'm very happy to adopt all of those arguments and
I leave it to the noble Lord Lord Jackson was very active on this
issue at committee. My principal
argument is that under English contract, parties, if they wish, are entitled to create fixed to tenants
and the state has no right to
Mackay assumed the Noble Lord would
like to move his amendment.
Amendment proposed, close one, line 13, insert the words as rented on the Marshall list. the Marshall list.
15:31
Lord Truscott (Non-affiliated)
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I rise to speak to Amendment one in the name of the Noble Lord and
the noble Baroness and Noble Lord Jamieson. As mentioned previously, I
have interest as a landlord of over two decades with private rented
sector for some 16 years combined experience in the PRF of 40 years. The amendment before your Lordships
housing as tenants and landlords
mutually agreed fixed terms as we have heard whilst restricting the landlords ability to regain
possession of the property.
It would further mean that the landlord would not be able to increase rent over the period of a fixed term. Very Merry terms would welcome such
increased security under the
proposed periodic tendencies of this tenants would have no security as the landlord can seek possession on a number of them. The majority of
tenants want to have fixed terms and his majesties Government has given
no reason why it thinks it knows best. The arguments against mutually agreed fixed tenancies are, frankly,
unconvincing.
They result in more, not less security for tenants and
less chance of familial disruption. The renters rights Bill rightly
cracks down on landlords to improve standards in the PRF and six to ensure a fair and workable
sustainable rental market. Noble Lord may recall the amendment 173 at committee which called for tenants to give notice not only than four
months after agreeing the tenancy, resulting in a minimum tenancy of
two months. And ensuring this would
be a disaster as under today's tenancies to months would be a
panacea.
And the exclusive two month tenancy would elastic you have a
. Whilst I accept the need for
flexible IT of tenants, do not see why an initial four months should be regarded as so unacceptable by the Government. Responsible landlords to require the certainty of a minimum
period differ in the cost of establishing the tenancy, many of these costs can be passed onto the
tenant act in 2019. This Government likely to need referencing, credit
checks. The higher turnover of tenancies under periodic tendencies
and the financial risks associated with it would otherwise put up rent.
And long-term tenancies could potentially turn into short
tenancies, and fact they have to factor into the rent. Another
concern of landlords would be if a 10" in the middle of winter when tenants are seeking rental properties, that could be a problem
for them and rentals are often seasonal and a longer period again, this would be reflected in the
higher rent. Ministers argue it is highly unlikely that tenants would
be in and out of rent out properties, in effect earning long let into short let properties.
But that is exactly what will happen in
many cases, especially in coastal resorts and city centres already plagued by Airbnb and short length
forms. Figures produced by Hampton show that figures marked as short-
term later advertiser prices on average 49% higher than the same
types of property for long term rent. In the London Borough of Camden, chocolate can be four times
higher to the cost of long lists. Deposits for shortly properties are about the same as those for long term rent.
This would make it
cheaper for tenants to just rent long-term property for two months and to secure a short let for the
same period. To suggest that people will not game the system is being naive. Why would short-term tenants
pay up to four times the amount when they could save themselves thousands of pounds taking a property
advertised for long-term rental for
just two months or even less. On day one of the tenancy they will have the legal right to two months notice.
Two months periodic notice
will give the floodgates to legal backdoor short term lets which will be impossible to reduce. This will
have other implications which we are already witnessing. Landlords will gravitate increasingly to short let
platforms like Airbnb which are more profitable than long let and virtually unregulated. With the
associated abolition of upfront
payments which will be vulnerable people, self-employed, students, including foreign students, unable to prove their income, why should many landlords continue to take the
risk when there is a more profitable alternative? In any event, only 7%
of tenants pay anything upfront, so I fail to see why this is an issue.
Banning upfront payments which the
House will discuss later was very much a last-minute Government
amendment in The Other Place and I suspect badly thought through. All this will result in less long-term rentals being available, less
rentals being available, less
security, and for long let in older people into as hotspot it is already
happening if you ask the people in combo, Devon, and Wales, for example. There is nothing in this bill will increase the supply of rented property in PRS which, by some estimates, needs an extra
50,000 rentals per year.
A six month minimum tenancy with the viability
of the PRS would ensure more homes, not less, are provided for those tenants who need and want a longer
term home, and it should be where people need homes. Landlords entering the market at the moment
tend to chase higher yields in the
north, ignoring the south and rapidly becoming unprofitable. A six month minimum fixed tenancy if
mutually agreed gives all parties flexibility, as the Noble Lord
mentioned, many tenants prefer to have even a 12 month fixed tenancy
to give them added security.
It is also an implemented recommendation
made by the levelling up housing
community in this report from 2023, chaired by the very knowledgeable Labour MP, Clark best. The committee
recommended that tenants be unable to give two months notice to leave until they have been in the property for at least four months and noted
this would give landlords the legal certainty of at least six months rent at the start of the tenancy. After this, the tenancy agreement is to continue on a periodic basis
before your Lordships house.
I fear
that unless they amend the bill or up front payment it will make the PRS unstable, uncertain and
increasingly expensive and less viable and that would be bad for
both tenants and landlords. Sadly, his majesties Government is showing no sign of the significant amendments necessary and the
Government listens and takes notice. As we have seen in The Other Place
as well, on 28 April Noble Lady the Minister who cannot be accused of
not listening told that house they are committed to robustly monitoring and evaluating the impact.
We retain
powers to amend these, should the evidence arise that they're having a
significant impact on a particular group. We retain the powers to
amend, should we need to. I hope this Government bears very much in mind the unintended consequences and
incredible flaws in this bill that see the light of day. Just one of 26
peers against his chest to in your chips house and it gives me very
little pleasure to say after the event. event.
15:38
Lord Fuller (Conservative)
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I rise to speak strongly in favour of amendment by one and declare interest, I properties in
Norwich and commercial properties in Great Yarmouth. And we live in a
free market economy, and the world in which we live is underpinned by the lot of contract by agreements
between consenting counterparties of course, we must have safeguards and regulated guardrails to ensure one
party does not hold the other over a barrel, but contracts that mutual
needs can be contracted is a fundamental part of the way that we live and is one of the reasons we
have so many learner friends in this place.
I want to give some examples of the type of person from my own experience as a landlord who value the ability to customise the
standard contract to suit themselves by integrating into a fixed term, but not the majority. But it is a
significant proportion that cannot just be wished away. The employees on a fixed term employment contract
engaged on a particular project. Students or more commonly in groups
that want to secure their ideal house in advance but are only able to do so if the current occupants
are sure to vacate in the summer.
As the busy doctor that gets passed around the hospitals and the foreign
person who is used to the concept of fixed terms in their home country
but just cannot understand what business it is of the state to interfere in these private
arrangements. Those tenants value contract certainty, so they can
focus on their work and their wealth of the nation. I like this amendment
because it gives the additional benefit of not just the fixed
tenancy but the fixed rent.
And that seems a fair compromise. Not least because the landlord does not need to price uncertainty into the contract. The uncertainty of the
void, as a landlord I value certainty. At the expense of locking out rent prices. Because if I know
they will not move forward I will not give them a present everybody wins. I cannot see what is wrong
with that. The Government boasts a commitment to transforming the experience of the private rent. They are doing that all right. They're making it harder for a significant
minority to make their reasonable needs and there are so many unintended consequences, I think we
have got to mention some of them and for a moment I thought I would have
to go on my own, but I am delighted to see that there is cross-party consensus on the importance of this amendment.
And I also was thinking
about the abuse in holiday hotspots where it is common ground that we want to encourage year-round occupancy for homes in these coastal
areas, although not the council tax
that appears to be emerging on the side. I fear the unintended consequences of this bill so let's
contemplate the tenancy in Cornwall. Taking on the proposed tenancies, yes, I will stay for one whole year,
and in the event that they leave
just after August bank holiday.
The problem is by giving two months notice, it is a clear abuse, and to counter that, landlords will factor
in the risk, so they are going to jack up rent, so the person who
genuinely does want to stay for the
whole year is disadvantaged and, of course, they may wish to show good faith by paying in advance, but that is going to be discarded as well. I
just cannot see how this helps anyone. I want to talk about
students in more detail later.
I am concerned that we are going to seriously disrupt the student market, not just for their
market, not just for their
convenience, but often you see and I have seen it in experience when I was younger, fresher's week of a freshers groups getting rent together, they quickly decide they
want to move into a house together, and why not? The purpose of the
fixed tenancy is that discipline that binds them all together. There
are not related or at least not when they start, there are cases where that does happen, but you get a
situation where one person may want to quit halfway through.
And it reverses the obligation on that
person, because rather than that person being forced to find another
student to take their place, it becomes the obligation of all former
friends to undertake that activity.
The responsibility is flipped, and I do nothing that is good either. There are so many other things I
could say, but this is a good amendment. It does not wreck the bill, it enhances the bill. It works
with the grain of the way any significant majority of people wish to conduct their affairs, consenting
adults to come to a sensible
contract.
And I do agree strongly with what Noble Lord said. There are
limits to where the states should interfere and to allow free to citizens into exercise the choices
they should be entitled to make. This amendment deserves our full
support. Thank you.
15:44
Baroness Thornhill (Liberal Democrat)
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We have been met with almost rocket what Noble Lord is missing because I feel living in an alternative universe. You live in
the cosy one where I smiled at Lord Hacking when you said about your
wife. I can absolutely believe your
tenants loved you and enjoyed living with you. But, sadly, that is not reality. That is not the situation,
have no right to interfere, the Government has no right to interfere
in making a roof over peoples heads the basic issue of having a home
part of Government business, then please tell me what it is.
Defence
of the realm, yes. But certainly ensuring that people can have a
safe, secure, affordable home has got to be the business of
Government. A point of this bill is
radical. It is scarily radical. And often I am guilty of seeing the rhetoric does not match up to the reality, but the rhetoric around
this bill, the changes since whenever, and radically changing the system is correct. The system is
meant to be changed because it is broken. Now, I think it is very brave, it is very bold, her majesties official opposition
probably think it is very stupid.
And they are entitled to, because that is their job. I think the real
issues around this bill the fact
that we are in the unknown. We do not know what the impact will be. We
have been told Armageddon will happen. We will have to see, which is why, minister, where the official opposition and ourselves on these benches agree is we do believe there
should be formal reviews on the face of the bill where the impact of this
bill can be scrutinised in Parliament in full.
Because it is
Parliament in full. Because it is
We support the abolition of no-fault elections and support the abolition
of fixed term tenancies and again I'm thinking, hang on, if I have a
periodic tenancy and I'm in Cornwall or wherever else, I can stay in that
house as long as I want unless I violate one of the grounds of
possession. So I'm not going to be a pain in about. I'm going to pay my rent. In such a exception.
And also the government have been fair to animals, they have bolstered up the
landlord side if the landlord needs to sell, with a family member in, antisocial behaviour, we will
discuss all that later. So actually, why have we lost the idea that
actually fixed term tenancy was the one where you are stuck, if you had
a crack landlord, things were bad or you complained about repairs, you were stuck. Period ick tenancies
allow you to go on until you decide as the tenant or the landlord has
the circumstances in the grounds of possession would allow I do want to move my daughter in, I'm giving you
the requisite amount of notice.
So I
think there's definitely been, I feel we are all understanding it differently, but I'm sure the
Minister will clarify. One thing I would say is, one person's
expertise, we talk about the expertise of the House, actually
could be seen at there is somebody's special pleading. And I think we
sometimes have to be aware of that. And the real root of the problem is
supply. We have got a massive
shortfall of private rented sector accommodation because, and we although the answer, we have not built enough social homes.
And my
fear about the bill is that a lot of the amendments that are coming
forward are going to disadvantage the people who buy rights to decade
ago would have been in social housing. They would have been scooped up by local authority landlord or registered provider and they will be having a safe and
secure home, in most circumstances. That is now not the case. So while
we have got an undersupply we will always have a power imbalance between tenant and landlord.
And
they are not all like Lord Hacking, the noble Lord. They are not. And
the noble Lord. They are not. And
the renters have formed their own coalition, around the big issues, and they are the ones dealing day in, day out with the failure of the
private rented sector. So I will end where I started, it is bold, it is
brave. And it may or may not work.
But we on these benches actually
hope that it does, so we will not be supporting any amendments that are tinkering at the edges, that want to
broaden the grounds for possession and little bit or widen this a little bit.
We think in order for the bill to work, it absolutely has
to stand firm and has to stick to those things and then let's monitor,
let's review, let's scrutinise, and make any changes if that's necessary because I regret to say, in this
instance with this bill, only time
will tell. Thank you.
15:49
Baroness Scott of Bybrook (Conservative)
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Can I declare my interest as vice president of the Local Government
Association. As we begin the first day of report I would like to start by thanking the Minister for the
meeting she has held with me and my noble friend Lord Jamieson on the bill, we really appreciate those
meetings. Since committee stage, concluded, I suspect few days have passed without members of your
Lordship's House receiving a steady stream of questions, concerns and
comments about this bill. Because despite the government was back amendments, this remains, in our
view, a flawed will.
It is a bill that uses the powers of government
to tell two consenting adults that it knows best. A bill that fails to
acknowledge the realities of the rental market and the consequences it may bring. We are united in the
belief that tenants deserve safe, secure and Decent Homes Standard a
price. But to deliver that we must
ensure a functioning rental market. One with enough good quality homes,
as we have heard, to meet growing demand, that means building more homes in the right places and encouraging investment in this
sector.
Regrettably, this bill puts
that at risk. Rather than increasing
supply, it threatens to pushed channels out of the market, reducing the number of available homes and
pushing pushing up rents even
higher. If we get this wrong, it will be the renters who pray the price. Balance is essential and on these benches we do not believe this
bill strikes the right balance. The government should have brought
forward a bill that targets rogue landlords, those who break the law, put tenants at risk, and undermine
the proper functioning of the rental
market.
Instead, we have this bill, a bill that risks driving out good landlords while allowing the road
once to continue operating
completely unchecked. -- Allowing the rogue ones. I thank the noble Lord Lord Hacking for leading this group and all noble Lords have
contributed to the debate. Diversity, choice and a range of tenancy contracts or contribute to
housing sector capable of meeting a wide variety of needs, as we have heard. In that context, it is reasonable to ask the government why
it is pursuing a one-size-fits-all approach through the proposed
abolition of all fixed to tenancies.
Having listened to the contributions from the committee, there is a clear and widespread concern about this
element of the bill. The noble Lord
Lord Hacking is right to challenge the blanket removal of fixed attempt
Did Did from Did from finding Did from finding a Did from finding a home,
Did from finding a home, excluded from getting on with their lives. These tenants include students
without parental support, young adults receiving care, and individuals with health conditions
or irregular employment.
They often rely on guarantors to accessible
housing, but those guarantors,
understandably, require the legal certainty of a fixed term contract.
That that assurance, the door firmly but widely closes. The Governments rebuttal is, by now, well rehearsed.
They claim there is no cause for concern because tenants will have the ability to give two months
notice, thereby shaping the tenancy to their preferred timeframe. At
this argument is weak and raises serious questions. How can they be
right to require landlords to fundamentally alter the contracts
they offer.
How is it reasonable to expect a landlord to accept a tenant who cannot demonstrate their ability
to pay, particularly in the absence of legal structure and certainty of
the fixed term agreements provide. Equally, why should tenants be denied the option of a fixed term
tenancy if they believe it is the best to serve their interests, removing that choice is not
removing that choice is not
Many actively seek fixed to arrangements because they offer
clarity, stability, and peace of mind.
For tenants in transitional
phases of life, that assurance is a
vital, fixed term tenancy could provide security that their home cannot be taken away even within the
grounds of possession remaining, this is particularly important for
those on temporary contracts such as nurses, relocating to hospital
placements, families seeking to remain within a particular school catchment area, or individuals from overseas who are required time
limited accommodation. To remove fixed term tenancies, is to ignore
the lives, lived realities of both
tenants and landlords, and to strip the sector of the very flexibility it needs to function effectively.
For landlords, fixed terms provide
the certainty required to plan and manage their properties effectively.
Removing that certainty could prompt many to accept, and is, exiting the
sector. Further reducing the already strange supply of rental housing.
Ironically, this is supposed fix ability could leave both tenants and
landlords facing greater instability. The abolition of fixed tenancies may lead to some homeowners who currently let their
properties on a fixed time basis to
withdraw from the market altogether.
Faced with the uncertainty of an open-ended tenancy, some may even choose to leave their properties empty rather than risk the loss of
control over future use. Why is the government not listening to
landlords smacked the very people who maintain the foundation of the
Participants in the market. They are
the backbone of the market. And on these benches, we support choice and freedom to decide a contract which
works for both the tenant and the landlord. And I hope the rest of the House agrees.
We will support the
noble Lord Lord Hacking if he were
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to test the opinion of the House. Can I thank my noble friend Lord
15:57
Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government) (Labour)
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Hacking, firstly for his very kind comments and also for this amendment, one with slightly more
enthusiasm than the other. But this amendment would retain a formal fixed term during which the landlord
could not use a number of the landlord circumstance grounds
including selling. My noble friend referred to his role as a landlord
and I agree with the noble Baroness on held that I'm sure he's a very good landlord and good and honest landlords really have nothing to
fear from this bill.
It's not them
we are dealing with here. The issue of fixed terms is one we have debated at some length which I know there's a great strength of feeling
about on both sides. Formerly noble Lords understand this is an issue of
free will, government should not interfere in a landlord's ability to agree terms between them and both parties should have the choice
between a periodic or a fixed term tenancy. In my view, this argument
mis-characterises the balance of power between tenant and landlord in
negotiation.
Here is where I agree strongly with unable Baroness
Thornhill. Landlords have the choice of many tenants, all competing to offer the most favourable terms. While tenants have far less
opportunity to choose between properties. Tenants cannot simply walk away if they don't like
landlord 's terms. Choice between homelessness and affixed to this no choice at all. It's symbolic of that
imbalance to speak to Lord Fuller's points but until this bill the
landlord had been able to issue a section 21 eviction notice and move tenants through no full to their
own, not only with the distress that causes, to families, but also it
places a huge burden on the state as hourly good and local authorities
pick up the cost of over 100,000 families in emergency and temporary accommodation.
It is therefore
incumbent on the government to ensure tenants do not lose out. We must step in to ensure tenants are not forced into agreeing on
favourable terms which act against the interests and remove fundamental
rights to move when needed. I do accept fixed terms have some benefit under the current system for tenants, because they offer some respite at the moment from the awful
thread of section 21 which hangs like the sword of Damocles over tenants heads. With section 21 gone,
this advantage will be extinguished and so there is even less reason that a tenant would agree
voluntarily to a fixed.
Even if freely agreed, there is nothing equal about a fixed terms. Under the current system, landlords can rightly seek possession fixed and if
a tenant reaches the terms of that rental. Position grants are available if a tenant 's rent
payments, damages the property, commits antisocial behaviour or breaches any term of the tenancy.
You would imagine in a fair contract tenant, too, could terminate the tenancy if the landlord fails to
fulfil their responsible thieves during the term but in almost all
cases, tenants do not have this choice.
Landlords can allow properties to fall into disrepair, leave properties and safety living
and still tenants must pay rent after month. This is fundamentally
unbalanced. It is critical the act to reset those scales. Removing fixed terms will also mean the
tenancy system finally reflects the
unpredictable of individuals lives and I note Baroness Scott talked
about this. I agree with her diagnosis of what is happening but I don't agree with her solution to it.
Despite our best intentions, life doesn't conform to year-long periods of certainty, it can as we all know too well, change overnight.
Relationships breakdown, people move jobs, difficult circumstances can
mean we must return home. I think it's fundamentally wrong we require tenants to pay rent, Mai Simba to
deliver a guaranteed return on investment. Tenants should not have
to choose between financial ruin and living where they need to. Other noble Lords including Lord Truscott have raised concerns tenants will
now move frequently between properties, increasing costs for
landlords. I do not think it is realistic that tenants will move home every two months.
Or anywhere close to it. We all know, any of us
who have moved, and I expect that as most of us, are moving home is
difficult, expensive and stressful. Tenants want stability and a home for the long-term, not to fit around living out of suitcases or
Both can use ring fencing and housing to understand if they're looking for a long-term home. Conversely, some have suggested tenants will no longer be able to
live somewhere for a short period of time that is both suitable for landlord and tenant.
The new tenancy
system makes this easier, not harder. Tenants will be able to give two months notice at any point, if needed. As I say, the vast majority
will want a long-term home. The long-term answer to this, of course,
is the plan to build more social homes than our Government is committed to doing that. But we do
not expect the bill to destabilise the market, but we will continue to monitor that. In fact, a number of new properties coming onto the
market in March this year was 11% ahead of the same period last year, and 18% overall on last year.
Other landlords know the bill is coming,
so if it was going to destabilise the market I would have expected that to be going in the other
that to be going in the other
direction. Fixed terms are blind and along with section 21 they must be consigned to history, that is by the Government is abolishing them in the private rented sector and that is
why we will not permit their return in the issue at system and for these
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reasons I would kindly ask my Noble Friend to withdraw his amendment. Before I reveal my answer to the
16:03
Lord Hacking (Labour)
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Before I reveal my answer to the
question just put to me, my Noble Friend that minister, I would just like to make a few observations. The centre of one I have already made
and that is that under English contract law, parties are entitled
to agree what they want to agree and entitled to agree to a fixed term
tenancy. I have illustrated the
Noble Lord Fuller illustrated the
value to the tenant to have fixed term and it has been so with many tenants over the last 30 years to
their benefit.
But I do want to
thank all of those that have taken part, Baroness Scott, Baroness Thornhill, the Noble Lord behind me,
Lord Truscott and the Noble Lord Fuller. And I was actually, it was
dangerous for me to deal with and I was thinking I should divide the House on this issue. But I do not
have the support of the Liberals, I do not have Baroness Thornhill's support. I am not quite sure about
the prospect that I have from the
Noble Lord Cromwell, so he has given me no comfort that I will get
support from the crossbenchers.
And, therefore, with great regret, I feel
I have to withdraw this amendment. But just as I do so, I believe that
this amendment was very carefully drafted and did provide all the
protections that were necessary on the agreed tenancy, and therefore it
was a good amendment and the good amendment alas is now being lost as
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I move to withdraw the amendment. Is ideologically that amendment one be withdrawn? Amendment is, by
one be withdrawn? Amendment is, by leave, withdrawn. Amendment two, Baroness Scott.
16:05
Baroness Scott of Bybrook (Conservative)
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Baroness Scott. At the heart of the ill is a duty
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At the heart of the ill is a duty to protect young people because it is primarily young people who rely
on the private rented sector.
Students are no exception. Many are leaving home for the first time, stepping into higher education with courage and ambition. For them, the need for clarity, stability, and fairness in housing is especially
pressing. Fixed term tenancies for
students as proposed in amendment to
our not a loophole. They are a solution that works.
They have brought order and predictability to a cyclical market. The Government recognises this themselves, having already made concessions for
purpose-built student accommodation.
That exemption only applies to the most expensive end of the market. What if the student cannot afford a
glossy new blog with a gym and working space but instead a modest
working space but instead a modest
flat and converted home. We urge the Government to take a consistent approach and extend this provision across-the-board, because at the end of each academic year, there is a
great student migration.
A releasing of homes and re-letting of homes. It
is finally balanced cycle, and if we tamper with it blindly, we risk
breaking it altogether. And, already, that cycle is under pressure. Student towns and cities
are seeing a decline in student appropriate housing. And if we continue down this road we can put
higher education out of reach, particularly those from
disadvantaged backgrounds that have
shared housing, that is why my amendment five is so vital. The current restriction on rent for a limited it to properties with three
or more bedrooms which is both arbitrary and unfair.
Many students, particularly postgraduates, international students and mature students, live in one two bedroomed
properties. At Committee stage, the Minister said that limiting HMOs
captures the bulk of typical students. And yes, the noble
Baroness was right, but the bulk,
not all of them. And when housing is scarce, we need all available options. When choices are limited, we must protect every viable home.
Let us be clear, this is not about throwing students out of their
homes. It is about ensuring that landlords can confidently relet for the next academic year and that
students can confidently plan their lives.
Amendment six rightly asks White six months has been chosen as
a cut-off point for ground for air. This blanket time-limit could disrupt rental cycles. Discourage landlords from letting to students,
This student housing supply even
further. The Government worried that students may rush into housing decisions too early. That may be true for some, but many students want to secure accommodation early
to avoid the stress during exams. Many student tenancies begin in late summer. And students typically start looking well in advance, limiting
the searches up to six months before
and August move in means starting in February.
And under current proposals, properties may not be listed until much later in the year,
forcing students to house during
their final exams. That is necessarily not fair. The Government should let students decide whether
they wish to sign the contract.
Without fixed terms and without a workable ground for a, students will face prolonged uncertainty. It will be harder to plan, how to budget,
and harder to study. And we must also remember that eviction
proceedings are exceptionally aware in the market.
The problem is not to
think students out, to students facing necessary delays and stress when trying to secure accommodation.
The current proposals simply do not
And this seeks to include apprentices in the definition of students. Like university students,
they will benefit from a fixed term
tenancy aligned with training periods, offering much-needed stability, having listened to the government's arguments in committee I hope they have reflected and we
can agree it is only fair that apprentices and their landlords have access to the same arrangements as
university students.
The Government has already made partial
concessions, but now we need the principle of wholehearted approach
to reserve functioning, fair, rental
markets, and mince two, five, six and seven are constructive and proportionate. They reflect that
what is already working, they address what is currently broken, and they will help ensure that going
to a university remains a viable choice for young people across the country. I would urge the Minister
and the House to support these amendments and we would be reminded
to test the opinion of the House for the reasons I have underlined and I beg to move that the ill they moved in my name.
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Amendment proposed, close one, then 30, at the end insert the words
then 30, at the end insert the words on the Marshall list.
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My Lords, I declare once more my interest as a landlord that rents properties often to students I will not be jumping at that group on this
not be jumping at that group on this
16:11
Lord Fuller (Conservative)
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not be jumping at that group on this day, but I do want to challenge the obstinate prevention of fixed
tenancies for students and, importantly, groups of students, many of whom will be moving into
their first home outside of the home. I want to outline some of the consequences of this bill if
enacted. It is going to reduce the supply of rental properties by discriminated against the private
landlords and Baroness Thornhill in the earlier group seems to fail to understand the dynamic effect that
if landlords leave the market and
there is lower supply, the costs will rise and students will pay.
It
is going to reduce the choices of the property available to students because this bill only allows student tenancies in halls of
residence. Which does not suit everyone. It reduces the choice of landlord, but it favours the
accommodation. It is going to create an overheated market, that is for
sure. It is going to cost more for students and it is going to cause a massive inconvenience to second year
students at university if I agree with my Noble Friend that this should not just be about
universities, they can also benefit from these amendments, but it means
that the second and third year there
going to fly back and they have may be able placement oversee and have to come back early to secure a home when they could have sorted it out
well before.
The consequences of this bill it is going to be harder for friendship groups to get the
certainty they have with their friends, it is going to prefer established students backgrounds
with parents with sharp elbows who
understand the ability to transact more quickly and aggravate the difficulty of getting guarantors
lined up at pace. And whilst it introduces protections for current
students Baroness Thornhill said in the previous room it is balanced with the disadvantaged to students
one year behind who also want to
secure a place in their final yeah and of course by forcing students in
student blocks, some of them are
very luxurious, cinema rooms, the whole thing, but it is costing a
fortune, and not everyone wants to
go to that expense, but for the private amount you can make savings.
I spoke earlier about the importance of the fixed tenancy, it is the discipline that keeps everyone together and protects everybody's
interests. And I think it is really important we dwell on this particularly for students because unlike in the wider private rented sector were family relationships or
other stronger forms of relationship
exist, friendship groups at university can be more transient. I do think that the balance of power,
we have spoken a lot about the balance of power between tenant and landlord already.
The balance of
power between them, apart from a friendship group in a house that want to cut and run and leave their
former friends high and dry is a real perverse situation that runs
against natural justice and good
order. We should be surprised and not that the bill introduces new discrimination for foreign students
in particular and diversity is and
our own local university relies on the extra fees paid by foreign students and yet without covenant
strength or guarantors, they are
almost un-rentable.
For UK
universities, for those people who halls of residence do not suit, it makes them unlivable and put us at a
It discriminates against a certain
type of woman, who I know because in
my own experience I rented to Muslim women whose mothers like to accompany them and they lived
accompany them and they lived
together in the house. That tight family group, they really want to
have the certainty, because it's in their culture, of a fixed tenancy, it suits them.
And this is being taken away. I pointed out at
committee stage, it took my daughter 10 seconds to work out that we are
going to have a side market here, a secondary market developed between potential students who are looking
for a house and landlords. An unrelated secondary market and
contracts and options and fees to secure tenancies, pre-tenancies if you will, agreements to rent rather
than the rent themselves. This complexity is a natural consequence
of the bill as we see it insofar as tenants who really want to back the
best homes as concerns.
All those contrivances between cohorts and in
an outgoing tenants, this is where we are going to end up. And the people who need our help and support the most going to be disadvantaged.
Everyone is going to get pay more,
it is going to destroy what is a stable market that works well for everybody and it is going to make our country harder to get the brightest and best people who we
need to grow our economy in the
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supported. I rise to speak in support of the excellent amendments proposed by
Baroness Scott. A particular support amendment five which resembles very strongly amendment which had cross-
strongly amendment which had cross- party support at an earlier stage of our deliberations on this bill and I
our deliberations on this bill and I very much hope it will continue to
have cross-party support, from representatives across the House. It does seem that the proposals we have
does seem that the proposals we have before us will lead to a two tier system in which advantaged students who can afford the high rents will
go into the purpose-built accommodation, at the lower cost,
accommodation, at the lower cost, more flexible accommodation, often smaller private lettings will be much reduced and that will be very
much reduced and that will be very bad news for access to university.
I
bad news for access to university. I don't buy in large believe conspiracy theories. But perhaps on
conspiracy theories. But perhaps on this occasion I could just observe I do think the interests of the Department of communities and
Department of communities and Housing and local government are very different from the interests of the Department for Education. If
the Department for Education. If students are no longer travelling universities so much, if some students are deterred from this
accommodation, if other types of
tenant move in instead, it is a problem for the Department sponsoring the bill, in fact it
might always be help, they might say other people have been able to find private rent accommodation and the
adjustment has been borne by a composite group students.
Meanwhile
in the Department of education in its commitment to social will be facing the consequences of fear students who cannot afford the high
rented environment which is now being promoted, going to university at all stop I am concerned that this department steering this bill is not
taking proper account of the
legitimate interest of a different perspective in the interest of education and of social mobility. I
very much regret that the Minister despite her courtesy in meeting up with myself and others in meetings
we have appreciated, has not been able to make any concessions, event moving from three rooms to two-room
or one-room.
I hope at least however she will be able to flush out a statement she made a few minutes ago
statement she made a few minutes ago in the debate on previous amendments
in the debate on previous amendments when she said the government would continue to monitor the market. Will she assure the House that this
monitoring of the market will include monitoring student access to
include monitoring student access to the private rented sector as part of their participation in higher education?
16:20
Baroness Wolf of Dulwich (Crossbench)
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I would also like to offer strong
support amendment five and in that context declare an interest as an employee of Kings College London. I
think that the profound change to the rental market in varying ways
that this bill will introduce is one that is not very well understood
outside this chamber. But some of the people that have become very
aware of it in my experience are people who currently let to students. And I myself first became
aware of this when told by a number of people, that they don't see themselves letting students in future, thank you very much.
These
are people who have small rental properties. And I note that noble
Lord Lord Willis was amendment I was happy to support at committee stage
is also very aware of this and has highlighted the fact that what we have now is a bifurcated system in
which the government has quite rightly acknowledged that student
housing is a major issue and has introduced some very clear provisions which cover purpose-built
student accommodation and indeed the student holds about a mixed cover
anything that does not have at least
three bedrooms, which is being let to students.
The problem with this is that a large proportion of that
cheaper student housing outside major cities is of this type and it
somewhat astonishes me that what we see a situation where there is not
likely to be any harmful impact on the provision of student housing,
but of a major impact on smaller,
cheaper rental properties at the lower end, which are those that are
of course the ones taken by students from low-income families and people
who are not in the major cities.
And I'm also somewhat puzzled that the
government has been so determined
not to extend clause 4, A, to at least properties with two bedrooms. I really don't understand it and I
therefore strong support this amendment. I would just like to say something very briefly, perhaps it
is saying something to the future about Amendment seven. I notice this
is a probing amendment and of course apprentices are not students, they are employees, many of them are
rather adult employees but I do think that in the future, if and
when we revisit this issue making
accommodation easily available to who are ineffective students and that will include apprentices, that we really pay this considerable
attention because if you look back to hundred years or 300 years to London, especially London, it was full of apprentices who had come
from elsewhere in the country who
have served their partnerships in London and then went back out and they could do so because part of being an apprentice was that she lived with your master.
We don't
have that anymore and the result is again enormously reduced
opportunities for people who live in less economically advantaged places.
If you are a low-income individual, school lever, you will have far fewer apprenticeship opportunities
open to you and we are not doing anything to make accommodation easily available to apprentices who
might want to be employed by
employers in economically more favoured regions. Student, so it is
favoured regions. Student, so it is
too late to do anything and wasn't possible but I would like to just flag this issue as something which if we ever do come back and review
the consequences of this bill, if we ever do make some changes, I hope
that perhaps government might put something about that conundrum on the table at the same time.
16:24
Lord Shipley (Liberal Democrat)
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I should just remind the House the time vice president of the Local Government Association. And at
committee stage I was one of those probing the government 's intentions on students and purpose-built
student accommodation and houses in
student accommodation and houses in
HMOs and the application of four, a, to those properties but not to smaller units in the private rented
sector, that some students might use to live in. And I listened very carefully to the Minister's replied at committee stage.
I have thought
further and indeed I listened
carefully to the debate so far and I'm very sorry to have to disappoint the noble Lord Lord Willetts, although I want to agree with him
that it will be very important for
the government to monitor the impact of the student market on the private
rented sector. But let me just explain why I take that view. I have
reached the conclusion that there is
a good reason to restrict the application of ground for, A, to purpose-built student accommodation,
the five large blocks, and houses in multiple occupation.
The danger of
not doing so is that some in
scrupulous landlords renting smaller units of accommodation, to someone's
which do not qualify for the term HMO, they might decide to call
tenants students, when they are not students, to get around the
provisions of this bill. And I think that would a serious defect in this
bill. Indeed as the Minister said, in her reply on this issue at committee stage, the Minister said
this, the core principle of the bill is that tenants should have marked
security in their homes and we think it is right that these groups should
not be exposed to potential eviction using ground four, A.
I have come to the conclusion the Minister is right
on that matter and for that reason,
round for a should be restricted to student accommodation and houses in
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multiple. It is quite straightforward that
we know who students are. Universities issue certificates, though certificates are handed to the local authority, in the case of
the local authority, in the case of council tax, so they can get their 100% because of tax allowance. It is
100% because of tax allowance. It is not hard to identify who students are. Does he agree or has he thought
whether the existing statutory process, to determine who student is
process, to determine who student is would be sufficient to avoid the
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jeopardy that you have suggested? I do not think it would be sufficient. And indeed when I spoke on this issue at committee stage, I
suggested that the council tax register, because student households
register, because student households don't pay council tax, would be
don't pay council tax, would be sufficient I just don't think that is the case and it's not just about university accommodation, it's about students more generally, indeed
students more generally, indeed there's an amendment coming up to
define university students.
So I think it is a great deal more complicated than the noble Lord full
complicated than the noble Lord full has indicated. I have concluded that
those students since smaller units of accommodation will be protected
anyway under the act as tenants, and I have concluded that the government should on this matter be given the
benefit of the doubt but I hope very much indeed that the Minister will be able to meet the point made by
the Lord Willetts which is that they have to keep this matter under
review.
16:28
The Earl of Lytton (Crossbench)
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This is the first time I addressed the House at this stage of the bill, I will just remind your
Lordships that I'm a chartered surveyor and I think that is probably the only interest I need to
declare other than being the father of three children now long out of
university, but have witnessed the process of them living in hall and
in subsequently living in private rented sector, two of them within
the city of Bristol. And I got to
know one or two of the people who let, as a business model, to
students.
And the properties are not
necessarily large. Some of them are very small. It depends on what model
they are using. Now, I'm worried
about what seems to be an acceptance of what the noble Baroness the Minister has said will be a process
of review. Review done by government
is an incredibly blunt and ponderous
instrument. I predict that if there was a review looking at a particular
problem that had arisen, it would be a lot of serious damage would have
occurred by the time that review had been completed on the matter had been actioned and put into
regulation or whatever other form is
going to take.
The whole process of
the private rented sector is one of
the private rented sector is one of
very great flexibility, and I fully understand the concerns that have been expressed by those who support
renters and I suppose although I don't have any student
accommodation, I am in a private rented sector landlord, with my
rented sector landlord, with my
The variation in terms of what people ask for and what they wish to
do and what letters put prepared to
do doesn't necessarily start at the beginning of the term, it may stop
when both parties are happy that they have got somebody decent they are dealing with, somebody they can talk to, somebody who is not going to fleece them.
The risk is that
this flexibility is going to be lost
and we particularly talk about the student in here and I would be fearful of that. The only thing that
makes me less fearful than that and Lord Willis may well wish to challenge me on the point
afterwards, is whether what seems to
have been a decline in the number of foreign students that are coming to these shores and possibly the degree
of distance learning that is now taking place elsewhere, whether in
some way demand has fallen.
But my experience of dealing with the
private sector landlords in Bristol was this. The students very often
only occupied the property for eight
only occupied the property for eight
or nine months of the year, from September until perhaps May whenever they were doing a study for the final exams and they would have gone
home, got their brains into gear in order to take the exam. In between
times there might be a refurbishment because there is sometimes quite a
lot of attrition on the condition of the property but also very often
these things were let out to people in foreign student summer schools which of course filled all the halls of residence in places like Bristol
and others with people who were sponsored by overseas educational
bodies in other jurisdictions.
To say that there is this continuum and
therefore there must be a guarantee of this continuum for the smaller
units, I'm afraid in my experience
defies the gravity that is the norm
of dealing with this particular section in the market, that is all I wanted to say on the matter at this
16:34
Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government) (Labour)
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wanted to say on the matter at this
Can I thank Baroness Scott for amendments on students and all noble Lords up participated in this
Lords up participated in this debate. As noble Lords will be aware proposals on student accommodation have been subject to a great deal of consideration and debate both in
this chamber and outside of it in the other place Mike and I thank all of those who have written to myself
of those who have written to myself and I'm sure to other noble Lords on
and I'm sure to other noble Lords on the subject.
Starting with amendment to, this seeks to retain fixed term tenancies for students living in private rented accommodation. I can
private rented accommodation. I can
private rented accommodation. I can only repeat I said before that fixed terms serve only to lock tenants in. There Brighton to pay rent even if
the condition of the property is poor or if their circumstances
poor or if their circumstances change and the need to move out as a result. In the current system of fixed term tenancies we often hear of students who have dropped out of
university but are still obliged to pay rent for their accommodation.
I could mention some examples of that but probably not appropriate to do
so. This is not the right approach, we all we want all tenants including students from whichever demographic
group they come from to benefit from the increased security and flexibility that the Renter's Rights
Bill provides. Students pay the same rent, often they pay higher rents as other tenants and so should have the
same rights as everybody else. We've introduced a new possession grant to allow the cyclical nature of the student market to continue and
provide landlords with confidence.
I recognise that the noble Lady is trying to create parity between
students in the private rented sector and those in purpose-built student accommodation as there
tenancies will be exempted from the issuance system and landlords will be able to offer fixed term
tenancies will stop however the reason we have accepted DVSA, purpose-built student accommodation
is due to its unique business model. Often DVSA cannot be let to non-
students due to its location the services it provides alongside
accommodation. You have also only exempted the sector from the protections of the assured tenancy
system because we are satisfied that the unipolar codes of management
practice provide an alternative route to ensuring that tenancies are at a high standard.
There is no such code for private student landlords
and it would be wrong to mirror the exemption. In answer to Lord Willetts who asked about
monitoring...
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Does the Minister except -- accept that purpose-built student accommodation is for the more
accommodation is for the more wealthy? Young people who are
struggling to go to university will go to the private rented sector not the expensive specific
the expensive specific accommodation. Has she done any work on that and does she realise that
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on that and does she realise that that is what has happening out there? What I do feel is that students who take up accommodation should have the same rights as anybody else who was taking up accommodation,
who was taking up accommodation, that's why we don't want to make an exemption for those students who want to rent in the private rented
want to rent in the private rented sector from the benefits of the Renter's Rights Bill. To come on to
Lord Willetts point about monitoring, we will monitor this
monitoring, we will monitor this element of the bill along with all aspects of the bill and I'm going to give you some more detail about
give you some more detail about that.
It does come up under a future set of amendments but I think it's important as you've asked the
important as you've asked the question to respond to it. We will be evaluating the process, impact
and value for money of the reforms in line with the departments published housing monitoring and evaluation strategy. The evaluation
will involve extensive data collection through interviews, surveys, focus groups and a range of stakeholders as well as trusted data
sources. We will be talking to tenants, landlords, letting agent, third sector organisations, delivery partners, the court service and
government officials and I will say more about the court service later
on because that means to some extent
much more immediate and dynamic monitoring service.
The primary data will be supplemented by monitoring data from existing surveys in new
data produced by the reforms report
will be produced for publication at approximately two and five years after implementation in line with commitments made in the Bell's impact assessment to publish
findings and therefore they will be available for parliamentary scrutiny. I think it's important to
say that that we do want to make sure there is a process by which we can review the provisions in the
bill.
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I'm grateful for that very full explanation of the monitoring, in her long list of organisations consulted I don't think she actually
consulted I don't think she actually had universities on the list. She assure the House they will be included as well?
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included as well? My apologies, that was probably my speedy reading rather than a omission on part of the information
omission on part of the information I have so yes I agree with him that that is part of the monitoring process. Turning to amendment five
process. Turning to amendment five which seeks to expand round for a
which allows students living in HMOs to be evicted in line with the academic year. We seek to address
academic year. We seek to address the concerns that scope of the ground should extend to all
properties.
It allows students living in self-contained accommodation one and two bedroom
properties for example to be evicted each year for the thought carefully
each year for the thought carefully A thank Lord Shipley also giving it thoughts, we want to ensure the cyclical nature of the typical student market is maintained and we
student market is maintained and we therefore believe limiting it to HMOs achieves this by capturing the bulk of typical students, that is groups living in a house share. Meanwhile students you need more
security of tenure such as single parents living with their children, postgraduate couples living together who have put down roots in the area will be protected.
The core
principle of the bill is that tenants should have more security in their homes and we think it's right
that these groups should not be exposed to potential eviction using ground for a. Self-contained one and
two-bedroom homes also easier to let in on students and student HMOs, so why while I don't agree with the conspiracy theory that Lord Fuller
was speaking about, if a landlord cannot gain possession in line with the academic year they are more likely to be out to let the property
out to non-student tenants.
That gives another way through the
landlords. As you remember on amendment six you may remember the committee evidence in the other place it was evident that Mike highlighted the students are often
pressured into signing contracts of the next academic year very early in
the term before they've had a chance
to store form stable friendships or assessor properties proper condition and location. To discourage this
practice we amended the bill to prevent landlords from using ground for a if they had agreed a tenancy more than six months in advance of tenant screening getting the right
to possession.
The six to extend
this to allow landlords to sign tenancies up to nine months in advance. I'm not convinced this will
be the right approach, as I've highlighted in many cases students are expected to commit to properties
within just months of arriving university before having the opportunity to form lasting friendship groups or evaluate
whether a property meets their needs in terms of condition or location.
The purpose of this measure is to
access strong disincentives to this access while striking the right balance.
It avoids pushing students into signing tenancies before
Christmas when students are still settling in but continues to allow Plex ability. And you prefer to
secure accommodation in advance of the summer. And doesn't interfere
with typical example. Is. Extending this limit to nine months would undermine that balance and risk reinforcing the practice this
measure is intended to discourage. For example tenants in a competitive market may be forced to search for tenancies starting in September
during the January exam period. Turning to amendment seven, this six to expand the student ground for possession so it can be used to
evict a tenant undertaking an apprenticeship.
Why understand support for apprenticeships and
share the noble Baronesses wish to support people who are undertaking apprenticeships I don't believe this would be the right approach. Round
for a was created in recognition of the unique cyclical nature of accommodation for those in
traditional, higher education. Those
in other types of education like apprenticeships are less likely to live in cyclical accommodation and
need the security of tenure the Renter's Rights Bill gives to tenants. Those apprenticeship
schemes and a wage and tend to hope to stay at the company once the apprenticeship is completed.
They
live lifestyles much more akin to the working population than to university students and they will therefore benefit from all of the
increased security of tenure that this rent is built would give them.
For the reasons set out I would ask Baroness Scott to withdraw her
amendments.
16:43
Baroness Scott of Bybrook (Conservative)
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I thank the Minister for her
responses and I thank all noble Lords with such considerable interests and knowledge of the
sector. Have spoken today. Having
listened carefully to the debate and given the House has rejected the principle of fixed term tenancies for all I intend to withdraw
amendment to. On amendment six concerning the timing of student tenancies and amendment seven on
expanding the definition of students I recognise there is sympathy for
the concerns I have raised, I don't believe there is enough support in the House to carry them I therefore
the House to carry them I therefore
will also withdraw those amendments.
However, we have listened over the past number of months to student
organisations and to universities
across this country. About the issue of supply of student housing and the types of housing that students of
many different types want in the
sector and want available. I have
listened to this issue of monitoring, but what worries me
about monitoring is when you eventually find out that it has a detrimental effect on a sector, then
a cohort of young people have suffered in that period of time and
we don't think that is correct.
The other issue is that you take out
certain types of accommodation from the sector and what's going to
happen? The rest of the accommodation is going to get more
expensive for the students that need it and that concerns us as well.
There is an issue of capacity and supply in the market and that
remains we believe very pressing. We believe the government's response
could have been better, it's pretty unconvincing and therefore we will
test the opinion of the House on
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amendment five. Is at your Lordships pleasure that amendment to is withdrawn?
16:45
Lord Jamieson (Conservative)
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Amendment by leave withdrawn. That leads into clause 2 amendment three Baroness Scott of Bybrook.
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Thank you. I declare my interest as a counsellor in central
as a counsellor in central Bedfordshire. Antisocial behaviour
Bedfordshire. Antisocial behaviour is a scourge on our communities for this particularly devastating from a housing perspective. It undermines community spirit, it leaves tenants
community spirit, it leaves tenants feeling trapped and helpless. It strips away the very essence of what
strips away the very essence of what makes a house a home. Too often we overlook the consequences, it's not
just the cost of repairs, increase security, time consuming administration of complaints placing
administration of complaints placing an unsustainable burden on housing associations and local authorities,
associations and local authorities, but the misery and social break down
but the misery and social break down it can cause in communities.
As currently drafted the bill weakens the powers available to local authorities and social landlords in
authorities and social landlords in tackling antisocial behaviour. That is why we have sought to bring back amendment three today. To preserve
amendment three today. To preserve the ability of social landlords to demote tenancies in response to such
demote tenancies in response to such behaviour. The motion is not about punishment for its own sake, it's a
punishment for its own sake, it's a vital tool. A proportionate deterrent that enables landlords to
uphold community stability.
Whether it's loud noise, vandalism or intimidation of tenants, engaging in
persistent antisocial behaviour must know there are consequences. Without
the option to demote, how are landlords expected to maintain safety and harmony in their
communities? Those with experience in local government will know that
when a tenant causes disruption it's
often the landlord he receives the enforcement pressure from the council. If landlords are to be held to account they must also be
empowered to act. Amendment three ensures that social landlords retain
this power, it is not a radical departure but a practical necessity to deal with the real world
situations where one tenants behaviour causes misery to many
others.
This is about protecting the quiet minority, the families, the elderly and the vulnerable who rely
on the homes being a place of safety. It's about ensuring that
social landlords are not left powerless in the face of persistent disruption. I urge the government to
reflect on the value of the motion as a tool of last resort. And the message it sends that antisocial behaviour has consequences. And that
the community cohesion does matter.
In conclusion if we are serious about supporting tenants and local authorities we must ensure they have
the tools to act decisively and fairly.
I beg to move.
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Amendment proposed clause to line
16:48
Baroness Thornhill (Liberal Democrat)
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to line 30 leave out paragraph 8.
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Every single thing that Lord James said of antisocial behaviour,
ditto. We all know it blights people's lives we all know how difficult it is to stem that, we
difficult it is to stem that, we have arrangements where councils work with the local strategic partnerships to deal with this,
partnerships to deal with this, nobody is disputing that. The reason we have come to the conclusion that
we have come to the conclusion that we don't think demoted tenancies are neither literally simple, I contacted the National Housing
contacted the National Housing Federation which other people who are actually members are social
are actually members are social housing providers, they genuinely don't see a need, they are
don't see a need, they are comfortable enough with the bill and how it deals with antisocial behaviour, what they are not, what
behaviour, what they are not, what they are concerned about is that
they are concerned about is that they want to know they have the effective tools to deal with antisocial behaviour and the need to, they are concerned about the
to, they are concerned about the capacity of the courts to deal with evictions based on antisocial
evictions based on antisocial behaviour, so the actual demoted tenancies, my instinct straight away
were to support your amendment but when they said actually we don't see the point of this, but we do want to
know that we are going to get the tools to deal with things and many
of them the ones I know personally feel they do effectively deal with antisocial behaviour including my
antisocial behaviour including my
They were concerned about having those tools in the capacity to do a
background when they do choose to
use it.
16:50
Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government) (Labour)
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I thank the noble Lord for this amendment. It seeks to be introduced social landlords ability to apply
for demotion order in regards to
social behaviour of a tenant. One of the most frustrating things I dealt
with in 27 years as councils antisocial behaviour so we all share the absolute priority of tackling
the blight of antisocial behaviour there can be on both individuals and communities I cannot accept this
amendment. As a way of dealing with it. It fundamentally go against one of the core principles of the
Renter's Rights Bill.
To improve the security and tenure for renters. There is also a technical reason
which I will come to in a minute. This amendment seemingly unable landlords to denote social tenants to a less secure form of tenancy. As
I raised a committee, as drafted the amendment would not work. The Renter's Rights Bill removes tenants
to simpler tenancy structure where assured tenants sure tenants by section 20 will be abolished. There
will no longer be a tenancy with lower security to which you can demote tenants. For this to work it
would require measures in the bill
to remove devoted tenancies.
Tackling antisocial behaviour is a top priority and a key part of our
mission. As the noble Baroness said, many councils already and housing
associations do a great job now in tackling this in partnership with
each other. But I accept it could still be an issue. The bill will
shorten the routers period and the eviction ground with lentils being
able to make a claim to the Court immediately in cases of antisocial behaviour. The bill also amends the
matters that judges must consider when deciding whether to award the possession and that discretionary grant.
This will ensure judges give
particular regard to whether tenants
have engaged with efforts to resolve their behaviour. And the impact on
other tenants within HMOs. For all these reasons we feel this amendment is unworkable and unnecessary and we would kindly ask the noble Lord to withdraw the amendment.
16:52
Lord Jamieson (Conservative)
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My Lords, I thank the noble
Baroness the Minister for have reply and also the comments from the noble Baroness Thornhill and the wide recognition that antisocial
behaviour and the problems it causes. While I will not move this amendment today I do hope the
government has truly heard the problems this does cause. I would
also add going into eviction and
going to Court in a very Draconian thing -- is a very Draconian thing and this would provide the opportunity of an interim step without having to actually evict
someone is a very useful tool.
I also do recognise the comments. With that, we hope the government will
reflect, consider how this bill can more robustly support those affected
by the system and by social behaviour, with Leader of the House I withdraw the amendment.
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Is at your Lordships pleasure amendment three be withdrawn? Amendment by leave withdrawn. That brings us on to amendment for,
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Baroness Scott. We are tag teaming here. We
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We are tag teaming here. We returned to the issue of people and identification issues across the
identification issues across the bill. Notice the consistency before fairness. During the definition of family is the same when it comes to guarantors and grounds for
guarantors and grounds for possession is not about expanding the law, it is about clarity and equity. We wanted to place on record today and state clearly we believe
today and state clearly we believe government is making a mistake of
resisting this change.
Turning to amendment 21 my Lords, this is a sensible and necessary amendment. The possession for the purpose of
The possession for the purpose of housing and care is an issue of growing importance. Many families are already making plans the future.
are already making plans the future. Care needs. With social care under increasing pressure, we believe this
amendment is timely and proportional. We must allow older or
less able people to stay in their own homes if that is what they choose. Having a carer close by or
even in the annex next door would enable them to do so.
I hope the noble Baroness, the Minister understands the value of this
ground. Finally, amendments 22 and
23, the first in the name of my noble friend, the Earl of Leicester and the second in my own name speak
to the need of a clear message around redevelopment. Not for
commercial purposes but for private regeneration as well. Really good regeneration in urban areas requires
a certain scale when a large site is available something truly transformational can be achieved as we have seen by the King's Cross
redevelopment.
But large sites like King's Cross are the exception. They
just do not exist. Many forwardthinking investors and developers seek to build up a sign
of sufficient scale to a piecemeal acquisition approval over many years
and continue to rent the housing and commercial properties in the meantime. My Lords, we believe we
should support and encourage those who seem to do these high quality regeneration projects. As the covenant seems the suggesting that
tenancy should be terminated on change of ownership and a home left vacant potentially for many years
not only reducing the rental housing stock but undermining the viability of such large-scale regeneration projects and blighting the
neighbourhood? Would it not be far better to allow property owners to
continue to rent their homes until such time as the property is needed
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for redevelopment. I beg to move. Amendment proposed, schedule one,
16:56
Lord de Clifford (Crossbench)
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page 107, leave out beginning of line start to end of 26 and insert suspended on the Marshalled list. I rise to speak on amendment 21
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I rise to speak on amendment 21 in my name. I thank Lord Jamieson for his support. Baroness Bowles and
for his support. Baroness Bowles and Berkhamsted and Baroness Neville- Rolfe for their support also. This amendment makes a very small change to the bill. The change can make a
significant difference to the lives and individuals that need long-term
full-time care due to their age or disability. I am also thanking the noble Minister for Health time in
meeting with us -- Baloosh Mr Noble Minister for her time in meeting
Minister for her time in meeting
with us.
Those who need care do not see that it would create a loophole which is one of the government concerns although it treats tenants
and value in trying to ensure tenants have security of tenure and have not moved on unnecessarily from a home they enjoy or are unsettled
in. For a loophole to be abuse there must be an opportunity within the wording or the functional clause of
this to happen. We have addressed this we believe as the property needs to be within close proximity of the landlord's residence e.g.
An
annexe, a flat within the same block, in the same street or a
village. So daily and emergency care can be provided to the person who needs care. Due to the proximity,
the tenant will be aware further landlord lives. -- Of where the
landlord lives. If notice was given on the grounds of the need for a
carer, they could investigate, ask neighbours or visit the landlord for confirmation. If there were not
confirmation. If there were not
satisfied that requirement would not be met.
They could use processes within the bill to challenge the
notice. One of the principles of the bill is to provide more security for tenure. This will only change the
bill in a very small way. It would only apply to a small number of properties that are very important
and valued reason for a family. We
support -- we have spoken to a number of Carol Ganesan's -- of care organisations that support our
amendments. They pointed out
problems that may arise if the carer does not live nearby.
Continuity of care is so important. Carers do have
private lives and this separate property would give them the care but opportunity to live their lives and down space. So improving
retention and their own mental and physical health. Also it gives
private space to the family and -- family in their own homes which can only help with the whole families
health needs. In COVID a lot of live in carers suffered from loneliness
when living in the same property as the person they are caring for.
Allowing them their own house would
be a big advantage. Caring is a professional and skilled job and therefore when carers provide -- care is provided it should be done
by the most skilled appropriate person. Surely this could be a skilled carer. Caring for a family
member living with them could have a potential... Living with them could
be the potential carer. It not be more appropriate if that individual
went out to work with the skills they have in an appropriate job rather than doing the job of the
carer when a professional carer may be more appropriate or provide
better care? It is not one of the coveted -- governance priority objective is to get people into work
but surely this must be doing roles in which they are most productive
in.
Many people at different ages work hard and full-time care and
this can be for many reasons and can come unexpectedly at times due to age, significant health reasons or
sometimes sadly an accident. If there is a need for long-term care, surely if you have a property in
proximity you should be able to gain possession. If you have a family
member coming to care for you, you can gain possession. Is it not reasonable and fair to extend the grounds to allow professional carers
to live at the property rather than the reluctant family member providing care services.
In terms of
care, surely keeping people in their own home rather than in a care home
or another institution would benefit not only them but society in general? This is what this amendment achieves. It does not have pressure
to the already stretched social care sector. We acknowledge sometimes
this will suffer disruption but to leave the property is the same as if
the landlord should sell the property or move a family member in. This is for a specific reason and I believe most tenants would
understand why notice has been given.
The amendment is all about
family and landlords gaining possession for the use of the property for the family. That is why
that is what Grande lists. -- Grand
a list. Exceptional services for a
family in a time of need. We hope the covenant will consider this amendment and make the small change for the benefit of those in care. If
they are reluctant to do so, it may be I need to test the opinion of the House.
17:01
Baroness Bowles of Berkhamsted (Liberal Democrat)
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My Lords, I added my name to this amendment and I also spoke during
the previous bills stages. I need to declare my interest as a private landlord in my own right and also as
a trustee. And that I have a relative who purchased the flat
above there is for when a carer was
needed. It was going to be the case in due course. That planning is now of course in some disarray. We have
been wondering whether they have to evict the present tenant now and
bring forward the employment of the carer.
Even though the time is not
yet necessary. Since the discussion
at Committee stage and speaking with the Minister and I thank the Minister for her time, I have spoken
to various care organisations who are all supportive of the amendment
and they have actually made some recommendations behind the changes
in language since the one that was submitted at Committee stage. What
this care organisations have taught me like these care organisations
have taught me is there is a very wide array in which there are carers used.
Both in the regulated sector
and outside that. But on which many
people rely for vital tasks, health
and personal care. Absent actually in the voluntary sector, there would be a lot more cost that would fall
be a lot more cost that would fall
It's not so easy to always find family member who can do this. Families are much smaller nowadays,
in fact my husband and I were adding
up what has happened in our own family, we chase it back and then
there is 14 at our age level end up being replaced by many fewer at the
grandchild level.
With those kinds of circumstances and also the fact
of many more people working, women
not wanting to stay at home and family spread much further from where they grow up and whether
parents or others needing care within the family might be, then the reliance, this is what care
organisations have told me, reliance
comes in what they term loved ones but that's a very wide phrase to mean quite often it is friends, people, and neighbours, people they
have lived close to and have helped one another during their lives and
one another during their lives and
then when one of them falls ill or becomes disabled, in many sad cases survivors of cancer but left with
life changing circumstances, then
they become the carer that helps them and as the condition deteriorates it may be necessary for
them to be nearby.
The care organisations I spoke to which
support this amendment are the Homecare Association, care England,
the national care forum, National Care Association and Carers UK and I
thank them for their time and for
their recommendations. We are quite aware that the Minister does not want to create loopholes, this was
the main feature of the discussion that we had. For that purpose we
have made it so that regulations can be made around the definition of the
carer.
In many ways I prefer that we didn't have that there so that the
Minister could take anything useful away but I am actually hoping it
would be done in the light of experience if one did find that in
fact the terms were somehow abused. We also need to look considering carers, about the care patterns.
carers, about the care patterns.
Many people who need serious care of several carers and they have to operate in shift systems, whether
that be daily or whether it be weekly or monthly.
Many of these sometimes come for maybe six weeks
from overseas and then they go back
and somebody else comes in. There is this rolling pattern of carers and it's going to be very difficult if
they cannot necessarily be
conveniently located. I do ask the Minister to think again, yes it is
maybe not a great number of people that are going to be helped by this
amendment in the same way as the huge number of renters that are
going to be helped, but being a minority has never been grounds for
discrimination in a civil society.
Therefore I ask the Minister to
think about this and to understand
that like her we don't want there to be cheaters using this but we do
want people who are in need of the service to be able to avail themselves of properties that often
they have bought in order to plan for their care and indeed in order
not to be a burden on the state. Should they not be allowed the peace
of mind that they are going to be
able to fulfil those plans?
17:07
Baroness Neville-Rolfe (Conservative)
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I also rise to support amendment 21 in the name of Lord de Clifford
and Baroness Bowles to which I have
added my name full stop I'm particularly grateful the warm words Lord Jamieson and for the front --
supported the various carer organisation to do such important
job in our society. The bill allows a landlord to take possession of a
property for a family reason. Our small extension would allow a nearby property to be taken back in hand if
it were needed to house a carer.
In the meantime it would be available,
for example as a dwelling for struggling local couple, or an
individual seeking a home. With
ever-growing numbers of the aged and disabled, with the move to smaller
homes and smaller families and with the scarcity of care homes and hospices the provision for short-
term housing of professional carers often changing at short notice as we
have heard will become more and more important in coping with our ageing
population. This is particularly true in rural areas which are being
so battered by other changes the government has felt necessary to make.
I declare an interest in the
register as the owner such a cottage bought specifically for a carer and
generally let to a local short hold
tenancy. Such tenancies have expanded the rental market hugely in
this country and are being can sweetly -- completely swept away by this bill. We need to do what we can
together in this House to moderate the perverse consequences, notably in this case to make things better
for carers. Fortunately neither my husband nor I yet needs a carer.
But
we named -- may need one eventually
and my concern like Lord Clifford's is a general one. I can guarantee
that I'm not alone. I have no idea
how the government is going to find the one million more rented homes Savills believe we need by 2031. That is unless the government makes
some sensible technical changes to this bill being debated, very
constructively here in this House by knowledgeable experts our amendment
21 falls into that category and I hope others will join us in the
lobbies and in calling on the government to think again on this
issue.
17:10
Lord Cromwell (Crossbench)
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I was not intending to speak to this amendment but since I am I should declare that I do not rent
out any residential property,
although I do have children who are tenants and also who rent out
property in their own right. Very briefly there are two sources of potential misery here. One is
turning out a tenant and the other is being unable to provide care for
a family member. I know how I would
feel if I was in a situation where I had to deny a family member professional care despite owning a
property that could accommodate a
carer.
I would be very interested to see what the Minister feels about this, what she would do and what other members of this House would do
in the circumstances if Lord Clifford called the vote on this
matter.
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I rise to speak to my amendment 22. Also to support amendment 21 in the name of Lord Clifford and amendment 23 in the name of Lord
amendment 23 in the name of Lord Jamieson. Firstly my declaration of interest as a property owner of both
commercial land and residential
commercial land and residential houses. This amendment seeks, if one achieves planning permission on a parcel of land, and that land might
parcel of land, and that land might have let's say in a brownfield example it might have a few
17:12
The Earl of Leicester (Conservative)
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example it might have a few workmen's terraced houses or in a
rural setting may be a farm worker's cottage which might be in the middle
of said proposed development, it
seeks to allow the landowner or developer to gain possession of said
property or properties. When I look
out of my flat window here in King's Cross alluded to by Lord Jamieson,
developed by Argent who are brilliant place makers they have
worked in Manchester creative and marvellous area in Tottenham Hale.
They have produced a really high
They have produced a really high
quality mix of leisure, retail, accommodation, high-end accommodation, medium accommodation
and affordable accommodation. But they take decades to assemble said
land. When I look out of my window I
see commercial property that has been sold up, bought by developers
and converted into flats, many of course of these will have a high proportion of affordable
accommodation. This to my mind seems to be the largest amount or the greatest amount of development that
is happening in Britain at the
moment.
It should go both ways. Because we hear in this country
about how we are losing industry, we
are only a service economy, we should be doing everything in our
utmost to produce jobs, already the
unemployment figures are rising. If
these examples that I have mentioned
achieve planning permission and the tenant is removed, and the reality is the developer or landowner would
do this my negotiation and try and find suitable alternative accommodation for said person. But if that person is going to say no
I'm not moving, I'm not leaving at all, then the whole opportunity of
all, then the whole opportunity of
growth ceases.
And of course work the development to go ahead because of the planning permission is
achieved, a great number of jobs will be created in the short-term and construction and that might take
two to four years but then in the occupation of said commercial
buildings. So it is a win-win. The government says it wants growth but
it doesn't allow these amendments
that Lord Jamieson and I am talking about, then it really is not acting
about, then it really is not acting
in the best benefit of growth.
I support Lord Clifford's amendment on
providing accommodation for a carer, it's a very well thought through
amendment and we shall be supporting it and it does seem to be there is a great deal of support around the
House for that. Lord Jamieson's amendment is somewhat wider than mine, redevelopment and regeneration
but effectively they are the same
I have sat in much of this debate today and it is a shame the
government is not listening. Good government listens to differing views and takes note.
There are many
good amendments being put forward. Government through ideology and a
large majority does not lead to good law.
17:16
Lord Carrington (Crossbench)
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My Lords, I rise to support the
noble Lord, the Earl of Leicester in his amendment, number 22. I declare
my direct interests in the private rented sector with lettings in Buckinghamshire and Lincolnshire.
Buckinghamshire and Lincolnshire.
With cottages and indirect farming -- in direct farming and agricultural lettings. I said at
committee there are a number of bills, reviews and reports in motion
which cover the whole issue of farm and other diversification in rural areas. Which the government is keen
to encourage in the light of falling profitability and farming that subsidies are withdrawn or
concentrated on environmental activities and concerns.
Farmers are
therefore looking carefully at their assets to see whether they can be put towards more profitable use.
Obviously this can involve forms of
cottages and buildings rather than
just stand alone farm buildings. The planning and infrastructure bill is relevant in this context together
with the Rural England Prosperity Fund which specifically targets facilities and building conversions
which help rural businesses to
diversify this amendment insists in enabling diversification if the necessary planning permission has
been granted or there is a permitted development right.
I am thoroughly
aware the noble Lady, the Minister is keen to protect all assured tenants from eviction. For whatever
reason. And not to reduce the
housing stock. But in granting that planning permission, the authorities will already have given due
consideration to the potential version and indeed any loss of residential buildings through change
of use. And they will have agreed the merits of the plan development outweigh the retention of the
residents. I therefore hope the noble Lady, the Minister will include this ground today as a
sensible grounds...
Rather than in
the Commons. the Commons.
17:18
Baroness Thornhill (Liberal Democrat)
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RIs Maiden speech amendment for and amendment 21. I think it is
fairly obvious we will be supporting amendment 21 in the name of the
amendment 21 in the name of the
With number 24 and then I took legal advice because it was asserted we needed clarity and consistency
across the bill so we have more lawyers in this House than any other profession I suspect. And guess what, I had got slightly different
answers but the message was quite consistent.
You do not need to have the same definition of family in this case across the whole bill.
Because you are dealing with very
specific different things. My understanding is and I am absolutely
certain the noble Lady, the Minister will correct me if I have got this slightly wrong. The amendment
underground one -- under ground one does deal with the diversity of the
modern family and it is actually about the repossession ground. So it has been drawn fairly tightly for
obvious reasons.
But the definition
in clause 20 is clearly broader because it creates the removal of the guarantor liability for rent
after a family member in a joint tenancy dies. So it is actually a
sympathetic amendment and a
sympathetic broadening past in the net -- casting the net a little bit more widely that seems to protect
the reef. Where is the definition underground one is necessarily
actually wanting to keep it fairly
tight so we have resolved our position on that.
We will be supportive of amendment. The last
two amendments, 23 and 24 I really want to hear what the noble Lady,
the Minister says that because I believe there are grounds to do that
already within the bill. So I am genuinely very interested to hear
the Minister's response to those later two amendments. later two amendments.
17:20
Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government) (Labour)
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My Lords, I thank the noble
Baroness, Lady Scott, noble Lords, Lord de Clifford, Lord Jamieson,
Lord Lester for their amendments and Baroness Bowles, Baroness Neville- Rolfe, Lord Cromwell, Lord
Carrington, Baroness Thornhill for all of their contributions. To the
debate. Starting with amendment number four, this amendment seeks to expand the definition of a family
member for the purpose of moving in ground. Round one. To a much wider range of relations. This mandatory
position ground is available if the landlord or their close family member wishes to move into the property.
This amendment would allow
landlords to evict their tenants in order to house nieces, nephews,
ants, uncles and cousins. It would
enable the ground to be used and how is the equivalent relatives and their spouse, civil partner or cohabiting. The family members we
have chosen that can move in underground one -- under ground one aim to reflect the diversity of
modern families that balance this with the security of tenure of the existing tenant. As Baroness Thornhill as indicated I appreciate
this draws the line short of where some might hope to go too far would
open up tenants to evictions from a wide range of people, particularly very significant numbers of cousins,
nieces and nephews for example.
I know this depends on families. It would certainly be a large number in
my family. Where families are large. This would provide more opportunity for ill intentioned landlords to abuse the system. It is right the
definition used here is narrower than the definition in clause 20. Which removes guarantor liability
for rent after a family member in a joint tenancy dies. This is because
this clause is position ground. So it results in people actually losing
their homes. Rather than the other clause, closed 20 which is protecting bereaved where the net
should be cast more widely.
In terms of amendment 21 this aims to
introduce the new ground for possession and this will permit the landlord to seek possession of the property for the purpose of housing
a carer for the deaf for them or a
member of their family. This is qualified with the requirement properties payments sufficient proximity to the landlord's
residence to facility emergency callouts. I thank all the noble
Lords are particularly Lord de Clifford and Baroness Bowles for their considered and passionate engagement on this subject regarding
this proposed ground.
The committee
and when I met with peers to discuss
the proposal in the run-up to report. I recognise the difficulties highlighted that may be faced by landlords who wish to evict the
tenant in order to house a carer. We are all aware of the importance of carers and the absolutely remarkable work they do in supporting
individuals and families. In difficult circumstances. These amendments clearly come from a very
good place and our very synthetic like I am very synthetic to noble Lords concerns.
There are some
practical considerations however that we can the rationale for this intervention. Adding more possession grounds increases the opportunities
for abuse by those in scribblers landlords who sadly do exist in the
market. We are committed to giving renters much greater security and
stability so they can stay in their homes for longer and that is why we have developed very specific grounds. We also think there are
very few landlords who will both be in the position of needing a carer
and owning a second property close to their homes to accommodate that carer.
I appreciate the examples both the noble Lady have given.
Given the potential risk of abuse and the very narrow group of people who might benefit from this ground, we do not think the additional
ground is warranted. However you is that it is not -- our view is that
it is not intentional it should have all the disruption it entails to house another did person in the
circumstances. The noble Lord de Clifford talked about supporting people into work but this amendment might involve another local worker
being evicted house that carer.
Indeed if the evicted tenants were also a carer, it would likely deprive one of the very
organisations that is being -- that has been contacting noble Lords, a
key member of their staff. We do have to be careful we do not cause those kinds of circumstances. Amendment 22 seeks to create a new
ground for possession to enable landlords to convert a residential
property to long residential use. I would like to say to the Earl of Leicester I too visited the King's
Cross development when I was looking at the development of the central
part of Stevenage and it is fantastic the work that has been
done there.
As I stated a committee in response to a similar amendment tabled by the noble Lord, Lord
Carrington I do not believe this is the right approach. The government has thought carefully about where landlords should be able to take possession of their properties.
Particularly where it would lead to a tenant losing their home through no fault their own. Encouraging residential let's to be converted to
other uses at a time of such chronic pressure on housing supply would not be right. It is for the same reason
this bill abolishes ground three which enables landlords to evict
long-term tenants in order to turn a
dwelling into a holiday let.
Where landlords wish to convert their property to non-residential use it
is right they should do this as tenants move out rather than by evicting a tenant who has done nothing wrong. It is also worth
noting as I think noble Baroness, Lady Thornhill referred to the existing redevelopment ground, ground six could potentially be used in some circumstances. This is the
right approach, not the approach put in the amendment from the noble Earl
of Leicester. Turning to amendment 23, this well-intentioned amendment would create a new mandatory
possession ground to allow landlords to evict tenants in order to redevelop the property.
If they receive planning permission in the
works and they cannot be carried
out. I am very pleased to reassure the noble Lord, Lord Jamieson that landlords will already be able to evict in the circumstances, they can
do this by using existing broader mandatory redevelopment grounds ground six. This also does not require the landlord to approve
planning permission which may not be necessary in the circumstances. This
proposed new ground would merely duplicate ground six but with additional constraints. For the
reasons I have set out I would ask noble Lords to withdraw their amendments.
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Just before the Minister sits down, can the Minister be absolutely categoric that anybody seeking to redevelop their property would be
redevelop their property would be able to terminate a tenancy in order
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able to terminate a tenancy in order to do so? You can use the existing
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You can use the existing mandatory redevelopment ground, ground six when you are arguing
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redevelop the property. I just ask her in respect of
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I just ask her in respect of amendment 21, does she accept denying someone the ability to move in a carer to look after their
in a carer to look after their family in the way that is outlined is going to be an enormous temptation for abuse? And secondly
temptation for abuse? And secondly that the best form of that is likely
that the best form of that is likely to be simply people will hold a property empty for very very many years in case they need it? That is
not really going to create much help in the rental sector.
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in the rental sector. I would just reiterate my comments, evicting one tenant to put
comments, evicting one tenant to put another tenant in and you may very well be evicting somebody else's carer to put your carer in, of
carer to put your carer in, of course we do not want to see properties sitting empty but that is people's choice. If they have a
property. But the idea that you would evict one carer to put another carer in for example is just not
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acceptable. I did mention that, saying one is pushing out one tenant in order to
pushing out one tenant in order to put carer in. I think there, she is touching on a very specific case where you are putting a tenant out
where you are putting a tenant out who happens to be a carer but in order to put a carer in, that is a
order to put a carer in, that is a very timely example. I do think the sheer emotional impact of not being
sheer emotional impact of not being able to careful somebody, to put a
able to careful somebody, to put a carer in is simply going to invite people to abuse the system, to use ways to get around it or to simply
ways to get around it or to simply hold the property empty rather than face and I wonder how members of
face and I wonder how members of this House of this House would reactive they were in that situation, to not be able to provide care to a loved one because they
care to a loved one because they were unable, despite owning a property, to put a carer into it.
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I would simply end to the noble
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I would simply end to the noble Lord say it does not have to be another carer, it could be any of the key workers that we talk about. So often. You are in need of
So often. You are in need of housing. -- Who are in need of housing. They are in need of other options, if they are receiving rent
options, if they are receiving rent for that property, they will be a further shortage -- there will be a further shortage but there will be
the option to use the rent securable property to use the rent for another carer.
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I am sorry those of us who deal with economic matters will have to point out there will be tax paid on
point out there will be tax paid on the rent so there would not be a
the rent so there would not be a great deal left to be able to rent the next home. That is not a sort of economically viable solution. Even
economically viable solution. Even if there were another adjacent
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if there were another adjacent I'm sorry I can only come back to my point, it just does not seem
equitable to evict one family to
equitable to evict one family to I'm sorry I should have repeated
I'm sorry I should have repeated that I would ask noble Lords to
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withdraw their amendments. I thank all noble Lords for their thoughtful contributions in this debate. Turning to my first amendment I recognise that the
17:31
Lord Jamieson (Conservative)
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amendment I recognise that the Minister has given some serious consideration to the definition of
family and is satisfied with the government's position. We are
respectfully disagreeing but I will not press the amendment and therefore withdraw it. We've had an
excellent debate with regards to
amendment 21 and I thank Lord Clifford for introducing this amendment and the many noble Lords
who have raised issues on it. They have spoken with clarity and conviction and we believe that allowing a property to be used to
house a carer in the time of need is not only reasonable but can be vital to the well-being and living standards of the property owner will stop from these benches we are
pleased to support this amendment.
Finally we turn to the issue of
redevelopment and regeneration, I thank the Earl of Leicester for his amendment and also Lord Carrington
for his contribution. Revitalising
areas is key to improving living standards and supporting the long- term well-being and development of
communities. Delivering the growth that this government has said is its
number one priority. It is also crucial to delivering the homes that
both Baroness Thornhill and Baron -- the Minister have said earlier in the debate are so vital.
I will
therefore, I appreciate the Minister
has made some comments that this may already be covered, we are not satisfied it is covered and if I may
say the comments from the Minister
were not conclusive when I sought clarification. I will therefore test the opinion of the House on
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amendment 23. I beg to move. Is at your Lordships pleasure
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Is at your Lordships pleasure that amendment four is withdrawn? As many are of that opinion say, "Content", and of the contrary, "Not
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content". The "Contents" have it. Amendment five, Baroness Scott. On behalf of the young people looking for student accommodation in
17:33
Baroness Scott of Bybrook (Conservative)
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looking for student accommodation in the future at a reasonable rent, I wish to test the opinion of the House.
**** Possible New Speaker ****
Amendment five agreed to. As many are of that opinion say, "Content",
and of the contrary, "Not content". The question will be decided by a
17:33
Division: Renter's Right Bill, Report, Amdt 5
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division. I will inform the House
Voting Voting is Voting is open, Voting is open, clear Voting is open, clear the Voting is open, clear the bar.
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The The question The question is The question is that
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The question is that amendment five is agree to. As many are of that opinion say, "Content", and of
that opinion say, "Content", and of the contrary, "Not content". The Contents will go to the right by the throne, the Not-contents to the left
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The The question The question is The question is that The question is that amendment
There There have There have voted, There have voted, content, There have voted, content, 221.
Not-contents, 196. The "Contents"
Amendment Amendment six Amendment six Lord Amendment six Lord Evans Amendment six Lord Evans not Amendment six Lord Evans not moved.
Amendment six Lord Evans not moved.
Amendment seven Baroness Scott not moves. Amendment eight, Lord
Carrington.
17:45
Amendment:8 Lord Carrington (Crossbench)
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Eight, nine, 11, 13, 14, 15, 16 and
17 and I apologise for so many, I actually only tabled one but the Table Office divided it. The amendments cover the possession, the
grounds for possession to include self-employed agricultural workers
in this amendment. It is clearly understood that the key aim of government is to provide more
security for tenants in the private rented sector, hence the abolition
of section 21 no fault of actions. I
thoroughly support this policy but reforms must be implanted carefully when it comes to the rural economy -- evictions to take into account the particular circumstances of the agricultural sector in order to
avoid negative impact such as the necessary housing of farmworkers who are crucial to the nation's food
security as well as a thriving rural Accordingly special protection specific to agriculture are required
and this is already part of the -- partly recognised in ground five A.
Limited to direct employees.
Agriculture is unique in terms of
tenant teen housing is often agricultural workers are provided with accommodation to enable them to be close to their place of work. A
worker can often be required to work long hours during certain seasons
such as landing or harvest or unsocial hours such as early
mornings and late evenings in the case of dairy farming. There are
also welfare considerable -- animal welfare considerations which require animal workers to be close at hand
at all times.
Following the Lord's Committee stage I withdrew the
original amendments to address the noble Lady, the Minister's concerns. She said at committee there were
other arrangements that a landlord could use to help their contractors
with accommodation when they are
working away from their homes such as paying expenses, using licences to occupy paying for them to be housed in their B&B. She is
absolutely correct as contractors can be somewhat different to employed or self-employed
farmworkers. I have therefore removed contractors from this
amendment.
Her suggestion the same could be achieved by allowing self-
employed workers to occupy a property under licence would not be appropriate for longer term workers
which this amendment seeks to
address. I would also point out licence agreements are generally unsuitable for long-term occupation.
And can in some instances actually come might actually be considered as a tenancy. Especially where the
a tenancy. Especially where the
occupant of a dwelling has an occupation suited to all or part of the dwelling.
I know the Minister was actually -- was worried these
amendments could open up an exemption for a wider group of workers and I hope I have reassured her this specifically covers only
genuine full-time agricultural
workers. The revised amendments which add only self-employed agricultural workers to this
category also deems the nature of the self-employment should be
genuine and meaningfully full-time.
Hence references made to working a
minimum 35 hour week. Furthermore the revised amendment confirm there is no intention to alter security of
tenure afforded to assured agricultural occupants.
This is
because the bill states ground five a and 5C do not apply to this type worker. We believe the ground for
possession should be available where there is a need to house self-
employed agricultural workers. For example the self-employed party to a
share farmed arrangement on a farm or a self-employed Shepherd for
instance. It is increasingly common in the agricultural industry for
workers to be self-employed. But given the nature of their work,
especially if with livestock, they need to live on site.
Some examples
of workers in my -- who might fall
into this category are dairymen, sheep shears, milk relief workers, tractor drivers. It Karenni provides
a means of getting possession where dwelling is required to how someone
who will be employed by them not
house someone who will be employed by them as an agricultural worker however it does not cover a situation whether workers self-
employed. On the same theme of self-employed work ground five C does not adequately provide for
possession where a self-employed worker has been provided with the
dwelling.
And work contract has ended. It only applies where the tenant has been employed by the
landlord. In summary we would like to see an extension to both 5A, 5C
to see an extension to both 5A, 5C
to reflect modern farming employment practices and cover situations where the worker is self-employed as well as employed. I very much hope the
noble Lady, the Minister will be able to accept this amendment which
purely reflects current employment practices in farming. It is
nonpolitical and it is not designed to cover nonagricultural workers.
Can I then move on to my two other
amendments in this group. Which cover the status of service of key
workers. These are amendments 10 and
12. Much of the debate, both in this chamber and beyond is rightly focused on the bill's impact on the
private rented sector in urban rather than rural areas. These amendments seek to address two
critical concerns, firstly how we ensure rural businesses can continue
to function effectively and house employees and secondly how to
support the housing needs of key workers both in urban and rural
areas.
In many rural communities
landlords typically also have been a major employer in the area. And the convention is a house employees of
their businesses. -- They house employees of their business. This was typical in agriculture and is
reflected in the specific legislation for agricultural working tenancies. As successive governments have encouraged rural diversification, we have seen a
growing number of businesses beyond farming employing and housing
workers. This has become more
frequent as affordability challenges have met with accommodation that is often needed to be offered as part of an employment package to attract
and retain staff.
Alongside this,
more properties have been let to non-employees on assured shorter tenancies. Which have maintained
flexibility. This system has allowed landowners to regain possession at
the end of a fixed term, enabling them to house new employees as
business needs evolve. Without a
clear right to repossession in such cases we risk seeing vital rental properties in rural areas, either
being sold or left empty. This is not hypothetical, we have already seen the consequences in Scotland
following the ending of their equivalent of section 21.
These
amendments aim to ensure Royal, that rural businesses can continue to
house the workers they need whilst also supporting the broader
functioning of rural and urban communities. At Committee stage the
Minister raised to objections to a similar amendment. First the ground
5A already covers this issue and second most protect tenants in critical local jobs. However ground
five a while welcome does not go far enough. As the Minister acknowledged
the agricultural sector has needs hence the inclusion of grounds five A but 85% of rural businesses are not relating to farming or forestry.
Many of these businesses still require staff to live on or near the
site to perform their duties effectively. If the lodgings the
high ground five a works to agriculture, it should also work for
these other rural enterprises. These amendments would extend repossession rights and cover incoming service
occupancy workers, those who are required to live in a property for the better performance of their
duties. A good example is a rural business that diversify into hosting
say weddings in order to maintain and remain viable and changing
agricultural policies and profitability.
It now needs to hire
a full-time wedding planner, someone
who must be on the site at short notice, working regular hours and take on responsibilities for security. However the business
cannot require because there is
housing available nearby. One of the rural businesses cottages is currently let to non-employee. If
the business were to seek repossession in this property to house this wedding planner, ground
five A would not apply. And they would be unable to take possession.
Amendments 10 and 12 would allow repossession of this property to protect the viability of the
business.
My Lords, I appreciate the ambition of this bill is to protect
the security of tenure and more households however if we do not
strike the right balance and make it more difficult for businesses to employ house staff they will simply
hold properties vacant for potential future employees or self. This will
further restrict the availability of
private rent housing in rural areas.
Turning to the second point which is the protection of tenants in vital local rules, the amendment is needed to address the efficient functioning
of the rural economy which includes the housing of those in vital local rules.
The principle has been
accepted for housing and this is simply an extension of that. The
government is concerned about housing vital key workers in rural areas and so I have strengthened the
amendment to include a provision allowing repossession where the property will be used to house
incoming key workers. Such workers
are broadly defined as NHS workers, carers, teachers, police, security
staff et cetera. In many rural areas key workers face long commutes due to a long of -- a lack of suitable
housing.
This undermines recruitment, retention and ultimately harms local services.
These amendments would allow rural landlords to offer housing to key
workers, ensuring the viability of rural areas. While my focus is
primarily rural benefits extend to
urban landlords such as NHS Trusts, housing providers and also to key workers like firefighters on the
call, Cara's -- carers and the like is Park City to work is essential.
These amendments would make the private rented sector more responsive to the needs of both rural businesses and urban
communities.
They strike a balance between protection and operational
necessity. I urge the noble Baroness, the Minister to support
17:57
Deputy Lord Speaker. Baroness Pitkeathley (Labour)
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them.
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Schedule 1 page 79, line 36 after insert seasonal or permanent
insert seasonal or permanent
employee worker or self-employed.
17:58
Baroness Grender (Liberal Democrat)
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employee worker or self-employed. My Lords, I thank the noble Lord for bringing what is quite a small
for bringing what is quite a small technical issue if there are many amendments related to it,
particularly with regard to farmers and tenants of farmers. We
and tenants of farmers. We
understand technically, particularly amendment eight, nine, 11, 13, 14,
15, six and 17 are related to one very small specific technical issue.
very small specific technical issue.
And it is one that if say a dairy farmer, is on a contractor as a
freelancer, that needs to be moved in and moved into the site then that repossession should be able to
happen. So it is about viable
businesses and it is about ensuring
someone who was highly relevant is next door to someone when they are
working. We understand we thought we understood licence to occupy would
cover this. We also kind of worry about the hours relating to this although we do know in one of the
amendments it specifies a 35 hour
week.
However I would kind of want to know if Lord Carrington knows
whether it would be a possible to
apply and I'm happy to sit down and make way for him to answer, for someone to work for just one hour and then get through the loophole
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that has been applied by these amendments -- implied by these amendments? The answer to that is no. The
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The answer to that is no. The whole reason for putting 35 hours a week in there is to make sure there is no loophole. It is drafted as
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such. I thank the noble Lord. With
regard to the other amendments, amendments 10 and 12 on these
amendments 10 and 12 on these benches we are concerned it does technically widen the scope beyond
technically widen the scope beyond
where we are comfortable to go. But regarding the amendments eight,
nine, 11, 13, 14, 15 and 16, we would hope the noble Lady, the Minister will have heard the
Minister will have heard the technical detail that is required for a very specific profession and
for a very specific profession and look favourably on taking this away
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look favourably on taking this away The agricultural sector of this country and its workers are without
18:01
Baroness Scott of Bybrook (Conservative)
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country and its workers are without doubt the lifeline of this nation and I would therefore like to thank
Lord Carrington for his proposed amendments make provision for agricultural landlords and agricultural workers, bringing the
welfare of the agricultural sector into overdue consideration. Today
the British agriculture industry
contributes £14 billion to economy and put food on our plates three times a day. Agricultural landlords like the heart of this, they provide
the means for this essential lifeline by providing on-site
housing for workers who are required to be at hand to fulfil their duties 24-hour today.
From milking cows
daily at 3 o'clock in the morning to delivering lambs throughout the night in the spring. On site and
proximity housing ultimately facilitates workers ability to
produce the food upon which we all depend. It is therefore crucial that we consider the effects of the Renter's Rights Bill upon these
agricultural workers, and in the case of the bill's failure to
protect their livelihoods, consider proposed amendments of the bill does not obstruct one of Britain's
lifelines. As currently drafted this bill clumsily allows for occupants to remain in a dwelling house even if they no longer work for the
landlord.
The requirement for which the occupancy of such housing is
usually intended. Similarly as Lord Roborough stated on 12 May, the wording of this bill also does not
allow for the possession of a house dwelling as long as the occupant
remains in agricultural, in agricultural employment. With no
indication as to the specific type of agricultural work that the occupant carries out or whether
proximity to certain facilities or animals are necessary. This
ultimately risks the deprivation of housing for current full-time
workers who may depend on the occupied dwelling house to be able
to fulfil their duties, not to mention simultaneously risking the inability for the agricultural
sector to function effectively due to an inefficient proximity to work that this lack of provision may
cause.
Amendment eight, nine and 11
through 16 therefore ensures that such damage may be averted by
allowing agricultural landlord to possess the property for the use of its own full-time agricultural
workers, and thus to retain the
efficacy that fuels this industry. Amendment 11 is a particularly important, because a modern
agricultural industry that we have in this country is changing. One of
those changes is that many of the
employers are self-employed, particularly in jobs in the dairy
industry and in the sheep industry.
Where milkers and shepherds are
often self-employed. So we would
support Lord Carrington if he was to
move his amendment 11 in this group. As previously emphasised to go to that saying that the agricultural
sector serves to provide for
everyone of us and it is in the same vein that the proposed 10 and 12
also serve. In the Bill's current form the absence of provision for
service occupants overlooks the reality that many agricultural workers contract express, that the
worker must live in a particular residence where they can better perform their duties.
This is of
particular relevance to the contracts of agricultural workers who, out of both beauty and British
custom, often housed by their employer. This being the landlord.
By allowing possession to be made for service occupants and key workers with Amendment 10 and 12 Lord Carrington rightly seeks to
uphold the implements and customs
that facilitate effective and key agricultural operations, and the welfare of agricultural employees.
However with its more comprehensive inclusivity that service occupants and key workers entails, this amendment also makes provision for
workers of other vital sectors in which similar contracts exist,
including but not limited to the NHS healthcare, education professionals
and emergency service workers.
With Amendment 10 and 12 in place whether
one of those key workers needs to
raise in the early hours to check lambs that are alarming in the lambing season whether that worker provides immediate care for an elderly person whether that workers
putting out a fire there crucial duties can be carried out with due
expediency granted only by the
proximity and not hindered with the limitations this bill is putting on
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it. I rise to support Lord Carrington's amendment eight and
Carrington's amendment eight and nine et cetera about treating the self-employed agricultural staff has
18:06
Lord Cameron of Dillington (Crossbench)
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self-employed agricultural staff has full-time members, full-time staff members for the purposes of this
bill. As this is the first time I
have spoken in this bill probably the only time I will speak in this bill I should declare my interest as a farmer and someone who has a
dairy, because it is about dairies that I want to speak. Cows have to
be milked twice a day. It's not only for the point of view of the welfare
of the farmer and his bottom line, but also for the pert point of view
of the welfare of the cows.
The cows have to be milked twice a day or they really suffer. Cows can
actually die from not being milked. So it's really important that they are milked twice a day. Most dairy
farmers now employ their dairymen or
Derry women, please say there were considerably greater number of women who are dairy farmers these days,
than there were in the past, they employ them through an agency because it is the duty of the agency
because it is the duty of the agency
if the dairymen...
If the dairymen suffers heart attack or gets run
over or something terrible, the agency's job is to produce a
dairymen literally the next day so the cows can continue to be milked, it really is very important to the
welfare of the cows on the farm. So the staff who are self-employed
through an agency and treated on the
farm as part of the farm team, they must be treated as in theory
although they are self-employed technically they must be treated as being employed members of the farm
for the purposes of this bill.
They
usually occupy a vital house close to the diary. This is not only milking twice a day but a good Derry
person has to spend two or three hours a day in addition to the milking watching the cows, seeing
that their welfare is OK, think that they are not, they are in full
health, sing that the feet don't need treatment, seeing if they are on heat which is really important
role. Though I'm only speaking about dairymen here, I'm sure the same
applies to herdsman in a beef herd or shepherds looking after a flock.
The point is these people are employed through an agency therefore they are self-employed and it really
would not be at alright if you exclude that stop I'm talking about the welfare of the cows apart from anything else, these people were excluded from being treated as ordinary members of staff for the
ordinary members of staff for the purpose of this bill.
18:09
Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government) (Labour)
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I thank Lord Carrington for these
considered amendments which reflect the debate we had around his similar
suggestions that Committee stage and two Baroness Grender, Baroness Scott and Lord Cameron for speaking in our
discussion. As noble Lords will be aware we have responded to the needs of agricultural community and incorporated ground five a in the
bill, we appreciate the agricultural sectors stink requirements and is often vital for workers to live on site to carry out their duties. However this must be balanced with
the needs of the wider rural We believe this ground balances both permit allows agriculture employees to be housed while protecting other
tenants who may work in critical local jobs widening the ground to include for example self-employed workers could open the ground to abuse and decrease rural security of tenure.
For example a landlord could
engage someone on a self-employed basis to do a nominal amount of our cultural work and on that basis use the expanded round vector tenant in
respect of whom no other grounds available. Members eight expands
ground five a which is currently drafted will allow landlords to evict short tenants in order to
house an agricultural employee. This amendment would mean that landlords
could evict their tenants to house self-employed workers and other types of workers engaged in agriculture. As we have made clear a key aim of the bill is to increase
tenant security and the grounds for possession have been designed narrowly to reflect situations in
which we think it is right that the tenant could lose their home often through no fault of their own.
Expanding the types of workers tenants can be evicted in order to house goes against this principle
and would reduce the security of
tenure in rural areas. Men and nine works with an eight to ensure that tenants can only be evicted in order
to house workers who would be the working for the landlord at least 35
hours a week. I understand the intent behind this comet aims to address the concerns I did express at committee that the similar
expansion of the ground Lord Carrington proposed then would open
up grounds to abuse however I'm still not convinced that any expansion of the ground is the right
approach.
Amendment 11 is purely
consequential and amendment eight removing a reference to seasonal or permanent employees which amendment eight has moved so it appears
I asked the noble Lord not to push these amendment to divisions the
reasons I set out above, in short we don't wish to degrade the security of rural tenants in order to house a wider categories of workers, the narrow drafting of the ground
proposed by the government is proportionate and by focusing on agricultural employees it achieves a fair balance for all.
Moment 10 seeks to expand the agriculture worker possession ground five a,
this would permit a landlord to seek eviction of a tenant house key workers and service occupants as
well as culture, agriculture employees which the ground is
currently drafted allows. Round five
a is designed to allow landlords to house employees working for them in agriculture. This ensures workers who genuinely need to live on site can be accommodated and recognises
that employees may only need to live on site for a limited period.
We
have balance this with the needs of all tenants for security and stability in their homes. Expanding this ground to other types of
workers from different sectors would not be right, it would allow tenants to be evicted through no fault of
their own to house a wide range of employees for example a teacher or a healthcare worker who is an employee
of the landlord. This wider group of employees we don't believe that landlords directly provide
accommodation on a large-scale or that in most cases such individuals
need to live on site comment like this might see one key worker being evicted how is another, points made under previous amendment.
Amendment
12 works with Amendment 10 to clarify the definitions for both key
workers and service occupants. It also seeks to give power to the Secretary of State to amend the key
worker definition by regulations. This would allow future government
to potentially expand the definition to include many other types of workers without suitable scrutiny. This could significantly degrade
tenant security. I would like to
point out that employment ground 5C may be available to landlords who need to provide accommodations to tenants as a consequence of their
employment now view if the landlord needs to accommodate someone on site
it is right that housing is kept for this purpose and the other tenants do not see their lives disrupted after a short period in the
after a short period in the
property.
Amendment 13 works together with the other members in this group to expand ground 5C in order to allow landlords to evict a wide range of workers rather than
just tenants who are employees. This specific amendment changes the conditions within the grounds that
the dwelling was let to a tenant as a result of their employment by expanding it to include work as well
as employment. I'm clear my view that expanding the ground for possession is not the correct
approach. Ground 5C is narrowly drafted to allow employer landlords to evict tenants when the accommodation is no longer required
for their employment.
Expanding this ground further reduce security of
tenure for a much wider group. I'm not persuaded that opening the
ground will widely is justified for more informal working arrangements. If a tenant is an employee indicates a long-term relationship which could
require accommodation, as this is much less likely to be the case for
other types of worker. Amendment 14 works together with the others in
this group to expand ground 5C as I have described. The specific amendment expands the condition that the tenant has ceased to be employed
by the landlord to include circumstances in which they have
ceased to work to the landlord and a much broader definition.
The reasons I've explained are not convinced and have not been persuaded that any
expansion of the ground is the right approach. I turn now to amendment 15, this also works with other amendments in the group to expand
around 5C. In parallel to amendment 14 this expands the condition that the tenancy was granted for an early
period of employment, for example to help with relocation to include circumstances where the tenancy was granted for an earlier period of tenants work, much broader
definition. Expanding the employment ground to allow landlords to house
and evict non-employee workers is
not the right approach as I've explained, workers who are not employees also much less likely to require the long-term accommodation a tenancy entails.
Other arrangements such as licence to
occupy or service occupation may be more suitable for shorter term contractors or self-employed
contractors or self-employed
Amendment C works with the grand of amendment 5c as it states that a tenant worker can be evicted. With a
current or future employee in the definition we have now include future workers and a self-employed
person. Expanding the types of people that can be evicted in order to House detracts from one of the
main purposes of the bill, ridding the private rented sector in England of chronic insecurity.
We have
thought long and hard about where it is right to allow tenants to be evicted through no fault of their
own and created grounds where we think this is reasonable. I'm not of
the view that this means the bar. Finally I turned to amendment 17 which works with the other proposed
amendments to expand on 5c. This expanse of the definition of
employers for the purpose of the ground to include a person who a contract for work was entered into, reflecting the wider changes to the
ground and allowing landlords to evict tenant employees and other workers in order to House future
employees or other workers.
I am always happy to discuss these important issues further with noble
Lords, for the reasons I set out I hope the noble Lord will feel able
to withdraw his amendments.
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Can I ask, on this issue of self-employed workers in the
self-employed workers in the agriculture industry, has MHCLG
agriculture industry, has MHCLG discussed this issue with DEFRA because DEFRA would know how the industry has changed over the past
industry has changed over the past years and how critical it is to have
years and how critical it is to have self-employed workers on these
specific jobs in agriculture. It is going to be very difficult for farmers, particularly livestock
farmers, particularly livestock farmers, to manage as we have heard from the noble Lord opposite in
from the noble Lord opposite in certain circumstances on a farm.
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certain circumstances on a farm. I have not personally discussed the issue with DEFRA, but I'm sure officials in the MHC LG will have
officials in the MHC LG will have done so.
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done so. If my noble friend discusses it with DEFRA, she will find they have
with DEFRA, she will find they have nothing like the numbers of people with the experience of farming that they had 10 years ago. She would not
find the answer to the question
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asked by the noble Lady opposite. I was about to say before the
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I was about to say before the noble Lord intervened. I am always happy to discuss these important issues further with noble Lords and
issues further with noble Lords and refer back to colleagues in DEFRA or
refer back to colleagues in DEFRA or other colleagues. I would ask the noble Lord to withdraw the amendment.
**** Possible New Speaker ****
amendment. Thank you very much indeed. I appreciate your response but I'm
appreciate your response but I'm afraid I somewhat am disappointed by it. It does demonstrate a lack of
it. It does demonstrate a lack of understanding of the farming industry and a lack of understanding
18:19
Lord Carrington (Crossbench)
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industry and a lack of understanding of the rural economy. I greatly
appreciate the words of Baroness Grender and Baroness Scott and also
Lord Cameron of Billington who brings practical experience as a
dairy farmer where as I am only a
sheep and arable farmer. One thing I would pick up on what the noble
Baroness has said is this is a
loophole. The whole point of my amendment says it has to be a genuine worker, working 35 hours a
week, is surely sufficient to deny that claim.
I think I reluctantly
that claim. I think I reluctantly
would like to test the opinion of the House.
18:20
Deputy Lord Speaker.
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As many are of that opinion will say, "Content". Of the contrary, "not content". The question will be
decided by a division. I will advise the House when voting is open.
18:20
Division: Amendment:11
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the House when voting is open.
The The question The question is The question is amendment The question is amendment eight The question is amendment eight is
amendment 8B agreed to -- the question is amendment eight be
question is amendment eight be
agreed to. The content will go to the right by the thrones the not
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My My Lords, My Lords, they My Lords, they have
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My Lords, they have voted
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My Lords, they have voted contents 253, not contents 150, so
My My Lords, My Lords, I My Lords, I understand My Lords, I understand it My Lords, I understand it has My Lords, I understand it has been
My Lords, I understand it has been agreed that a number of amendments now are regarded as consequential on amendment eight, so I will put
amendment eight, so I will put amendment nine formally, if Lord
amendment nine formally, if Lord Carrington moves it.
The question is that amendment 9B agreed to. As many as are of that opinion, say,
"Content", Of the contrary, "Not
content", The contents have it. Amendment 10, not moved. Amendment
10, not moved. Amendment 11, moved formally. The question is that amendment 11 B agreed to. As many as
amendment 11 B agreed to. As many as are of that opinion, say, "Content", Of the contrary, "Not content", The contents have it. Amendment 12, not
moved. Amendment 13 to 17 en bloc,
moved formally, Lord Carrington, the question is that amendments 13 to 17
B agreed to en bloc.
As many as are
of that opinion, say, "Content", Of the contrary, "Not content" The
contents have it. Amendment 18, Baroness Scott.
18:34
Baroness Scott of Bybrook (Conservative)
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My Lords, I rise to speak to group 6 and to amendments 18 and 19 standing in my name. These amendments concern the points at
which rent arrears become a valid
ground for presenting, an issue of considerable importance to landlords
and tenants alike. Let us be clear the most recent English private
landlords survey shows that 45% of landlords own a single rental property and a further 38% own
between two and four. That means over 4/5 of landlords operate on a
very small-scale.
Far from the image of institutional landlords with deep financial reserves, these are
financial reserves, these are
individuals and couples, often retirees who rely on rental income
for their own stability and they may form the backbone, they do, in fact, from the backbone of our rental
sector. And with that in mind I turn to the limits in the group under the proposals of the bill landlords
would be prevented from initiating possession proceedings. Weeks of arrears in the case of weekly or
fortnightly rent or three months where the rent is paid monthly.
That
is a significant extension from the
current thresholds of eight weeks or two months, respectively. Amendments 18 and 19 in my name are not about undermining the protections. Far
from it. They are about maintaining the status quo which, for many
years, has struck a workable balance
between supporting tenants through temporary losses and allowing landlords to respond promptly when
rent is not being paid. When landlords are prevented from acting until arrears have been built up to such a degree that financial
consequences can be severe.
Not only for landlords themselves, but for tenants also, who may find the
ultimate possession proceedings more inevitable and traumatic as a
result. Early intervention can help avoid escalation. Amendment 20 in
the name of Lord Carter is fundamental in principle. Landlords
who provide a private service in an
open market in exchange for a fee should not be penalised for Government failure. If the Government fails to make payments, that is not the fault of the
landlord, and they should not be made to suffer as a result.
Therefore, if the Noble Lord was to test the opinion of the House on this issue we would support it.
These amendments speak to a broader principle that must end up this
bill. Balance. Yes, we must protect rental from unjust eviction, but we must also enable landlords to operate viably, to maintain confidence in the sector and to
continue providing the homes that so many people depend on.
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Amendment proposed, schedule one page 193 line 40, leave out
18:37
Lord Carter of Haslemere (Crossbench)
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subparagraph a. The amendment in this group, amendment 20, and I should declare
amendment 20, and I should declare an interest as a format landlord. Amendment 20 tabled in committee and
Amendment 20 tabled in committee and I read tabled because I do not feel
I read tabled because I do not feel I have had an adequate answer from the Government. The amendment would continue to permit rent arrears
continue to permit rent arrears which arise from non-payment of Universal Credit to be taken into
account as ground for possession.
Not to do so is unworkable and
Not to do so is unworkable and unfair. And taking unworkable first
unfair. And taking unworkable first since this is the point that must surely concern the Minister, it is unworkable because unlike in the social sector, private landlords are
social sector, private landlords are not allowed to know under data protection rules that the tenant is
protection rules that the tenant is in receipt of universal credit, the
in receipt of universal credit, the Department for Work and Pensions is not allowed to tell them.
As such, the landlord will have no idea if rent arrears are due to a non-
rent arrears are due to a non- payment of Universal Credit and, unbeknownst to them, they will be
unbeknownst to them, they will be legally prevented from taking action. The landlord might only discover that rent arrears were due to a delayed Universal Credit
payment and were therefore unenforceable once the case reaches
court. Thereby piling further and
unnecessary pressure on the justice
system. This creates significant uncertainty in the face of irresponsible landlord, particularly
small landlords, disregarding non- payment is therefore completely unworkable.
It will lead to
unnecessary enforcement action, which is surely the last end the new
system needs. Turning to why it is unfair, why should the landlord be
penalised for the non-payment of Universal Credit if it is the fault
of the Universal Credit system breaking down in some way? This is
especially problematic for landlords renting out just one or two properties who rely on timely
payments to meet their own financial obligations. If the Government is
serious about sustaining tenancies and addressing the root causes of
delayed benefit payments, in other words, protecting tenants from
administrative delays should be the job of the welfare system, not
landlords.
The upshot could well be that landlords are much more cautious about taking on tenants on Universal Credit. Is that with the
Ministers really want? In response to this amendment at committee stage, the noble Baroness the
Minister told the House on 24 April,
it is important for tenancies that are otherwise financially stable to
continue with tenants protected from one of financial shocks. For
example, it is feasible that a tenant that lost their jobs and had to apply for Universal Credit could
reach the arrears threshold while waiting for their first payment.
If
acting the tenant and potentially making them homeless would not help the situation. Whereas giving them
chances to resolve the arrears would ensure the tenancy could continue
benefiting both them and the landlord and ensuring that landlord
was able to claim the arrears once the payments were made. That is what the noble Baroness told the House on
24 April. With great respect to the Minister, I can't help but feel this is slightly naive. Would it really
have benefited the landlord to ensure the tenancy continues when a
tenant has accrued three months
worth of arrears and, in the process may have seriously damaged the landlord's financial position? For example, being unable to support
their family or unable to pay the mortgage and being forced to take
enforcement action and why should landlords be penalised for the state's failure to pay Universal
Credit promptly and schedule should be omitted.
It is unworkable and unfair. If, however, the noble
Baroness, the Minister, continues to think that paragraph 20 4D is fair
not on landlord country at least
give some assurance that landlords notwithstanding the data protection laws will have some way of finding
out whether rent arrears are due to delays in payment of universal credit, so as to avoid clogging up
the tribunal with unenforceable claims. And I can help the noble Baroness here because there is a
section 16 of the data protection
act, the Henry VIII power, in fact, which enables the Data Protection
Act to be amended, so that the list of exemptions in schedule two of that act is expanded, and it could
be amended in that way by regulations to enable the landlord to know if rent arrears are due to
delays in Universal Credit.
This
would not deal with the fairness points I have made, but it would deal with the unwelcome ability
points I have made. And if the noble Baroness the Minister were able to give that assurance that the
tribunal system would not be clogged up unenforceable claims then I would
prepared to withdraw my amendment. prepared to withdraw my amendment.
18:43
Baroness Thornhill (Liberal Democrat)
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My Lords, much of what we have been debating is about balance. We
have heard that word used a lot today and I guess it is fairly
obvious to noble Lords by now that
when it comes to balance we do come down in favour of the tenant because we believe that the balance has been
very much tilted the other way, for time immemorial, due to what we
refer to earlier which is a complete lack of supply, lack of social housing, and the beauty parade
whereby landlords can choose who they want to let their properties
too.
We feel that the bill intentionally aims to give tenants
more time to address their financial difficulties, and therefore avoid
this and we believe that is the right and the moral thing to do, but
because of the additional cost in society of more homeless and more effective people, more costs on local authorities and that really
nasty and vicious circle, but we
have not totally got rose coloured spectacles on. We do seek reassurances from the Minister that
landlords have got robust grants for
possession when necessary when it comes to arrears, because we all know that arrears are painful for landlords.
Especially if they still
have a mortgage. At the good news is that most of them do not. Almost
half of landlords in the situation that the Noble Lady outlined the couple having one or two houses for
their pension, generally properties that were inherited and left by
their parents and they decided to
rent them out, so a lot of the landlords do not have a mortgage, and a further 20 something %
actually only have small mortgages, so 70% of our landlords are not in a
dire financial situation, where
somebody rather flamboyantly said
feeding their families.
I do not see
feeding their families. I do not see
Universal credit. You will not be surprised that we disagree that tenants should be subject to
eviction due to circumstances beyond their control. They talk about
government inefficiency but it has gone through several governments. Nobody is on the right side of this
one. It can often be many weeks before tenants get universal credit
sorted. Several years ago it was
actually months which is why the exemption was introduced and why we believed it should be kept because
we believe it is unjust to be
evicting tenants on those grounds.
The good news is the proportion of
universal credit tenancy arrears is actually reducing and landlords
acknowledge and recognise the process for addressing areas is
improving and an increasing number of cases are resolved with an eight
week period. It is about improving administrative efficiency of
universal credit, not putting people
out on the streets due to eviction or homelessness. That is out of
their control. Especially given once the universal credit is sorted,
reliable. reliable.
18:47
Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government) (Labour)
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I thank Lady Scott and Lord Carter for their amendments and
Baroness Thornhill. Amendment 18 and
19 seek to decrease the threshold for mandatory if fiction from ground
arrears where it is paid weekly.
Believe this is the right approach.
We restore it to the level originally set by the party opposite in the Housing act 1988 before they were reduced in the 1990s. Three
months we believe is the right balance. Landlords facing significant arrears and uncertainty
of possession but allows tenancies facing one-off financial shocks time
to get their financial affairs in order to ensure that their tenancy is sustainable.
I reassure Baroness
is sustainable. I reassure Baroness
Thornhill that ground a is not a mandatory ground but it is not the only route to possession. Landlords facing frequent arrears like Lake
facing frequent arrears like Lake
payment of rent can also pursue eviction by the discretionary grounds 10 and 11 and for these
reasons I ask Baroness Scott to withdraw these amendments. Turning to amendment 20, this seeks to
remove a key protection for vulnerable tenants from the bill. It allows tenants to face mandatory
eviction when they have breached the three month rent arrears due to not receiving a universal credit payment
to which they are entitled.
This would not be right. We want to protect vulnerable tenants who have
faced Rhondda -- redundancy by
helping them stay in their home. It would not help to face another and stabilising event being evicted and
then becoming homeless as they wait
for universal credit. Not being able to pay rent on time because you have not received universal credit does
not mean you are a bad tenant. It is right they are given time, but also
important that tenancies otherwise financially sustainable should continue.
This will benefit the tenant and the landlord. We've heard
the concerns of landlords who face
uncertainty in pursuing possession claims if they do not realise arrears are caused by an outstanding benefit payment. This is
subsequently used as a defence in ceilings. Of course we strongly
encourage tenants and landlords to communicate. It is in their interest to explain the situation before it
reaches court. This requirement is
not unusual in that regard. I will
take it back to the department.
I hope the noble Lord agrees they are
justified in the approach and the men will will be withdrawn.
men will will be withdrawn.
18:50
Baroness Scott of Bybrook (Conservative)
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Amendments before 18 and 19 seek to preserve a workable and fair framework that supports tenants and landlords and current thresholds
landlords and current thresholds
allow them to move it to eight weeks or two months of arrears stood the test of time because they offer a
sensible compromise. Moreover, early interventionism often in the best
interest of tenants themselves. Addressing arrears sooner rather than later can prevent problems
escalating to the point where it can be unavoidable. A consequence that benefits no one.
Our goal must be to
craft legislation that is fair and
balanced and one that ultimately safeguards renters while ensuring stability for landlords. It is
imperative to safeguard tenants from unfair evictions, we must ensure the protections do not inadvertently place landlords in an untenable
position. Thereby threatening the very housing supply we all seek. But
we will not be moving these
amendments to a vote. But we do think Lord Carter of Haslemere is
amendment 20 does represent an improvement of the bill and we
support him if he chooses to divide the House.
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We need Baroness Scott to
withdraw amendment 18. Not moved? Withdrawn? Withdrawn. Is it your
Withdrawn? Withdrawn. Is it your pleasure that amendment 18 be
pleasure that amendment 18 be withdrawn? The amendment is by leave withdrawn. Amendment 19, not moved? Amendment 20, Lord Carter of Haslemere.
18:52
Lord Carter of Haslemere (Crossbench)
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Haslemere. I'm very grateful for the support
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I'm very grateful for the support amendment 20 has received. It was
amendment 20 has received. It was genuinely meant this amendment. I was concerned about payment, but
was concerned about payment, but
also work ability. The last thing I anyone wants to happen is for the tribunal system and we will come
onto that in more detail in later amendments, it must have the cases that must be resolved before it and
the last thing we want is to have it clogged up with unnecessary cases.
I
have listened to what the Minister
said and I'm grateful she is going to look more carefully at data protection which I think is a better
way than relying on it tenants and landlords to speak to each other. On that basis and if she would be so
grateful as to write to me once she
has had those discussions with the department so it is on record as to what the position is, then on that
basis I will not move my amendment.
basis I will not move my amendment.
18:53
Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government) (Labour)
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I will confirm to Lord Castle I will respond to him in writing.
Amendment 21, Lord Clifford.
18:53
Lord de Clifford (Crossbench)
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I thank the many peers who have supported passionately this
amendment. I have listened to the Minister and feel the concession with regards to possession of a
House for carers is not forthcoming and therefore I would like to test
**** Possible New Speaker ****
the opinion of the House. The question is amendment one be agreed to. As many are of that opinion will say, "Content". Of the
opinion will say, "Content". Of the contrary, "not content". The question will be decided by
question will be decided by division. I will advise the House when voting is open. Voting is now
18:54
Division: Renter's Rights Bill: Amdt: 21
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the the question the question is
the question is amendment the question is amendment 21 the question is amendment 21 be
agreed to. The content will go to the right by the throne, not content
the right by the throne, not content
The The question The question is The question is that The question is that amendment The question is that amendment 20 The question is that amendment 20 1B
My My Lords, My Lords, they My Lords, they have My Lords, they have voted My Lords, they have voted contents
230, not contents 137, so The
230, not contents 137, so The
22 the Earl of Leicester, not moved.
Amendment 23, Lord Jamieson.
19:05
Lord Jamieson (Conservative)
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My Lords, we should be supporting
regeneration, enabling more housing and employment for the renting of property in the meantime. While I appreciate the comment from the
noble Baroness the Minister, I am not reassured, therefore I would like to test the opinion of the House.
**** Possible New Speaker ****
The question is that amendment 20 3B agreed to. As many as are of that
3B agreed to. As many as are of that opinion, say, "Content", Of the
19:06
Division: Renter's Rights Bill: Amdt: 23
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contrary, "Not content", to be decided by division. I will advise
the House when voting is open.
The The question
The question is The question is that The question is that amendment The question is that amendment 20 The question is that amendment 20 3B agreed to. As many as are of that
opinion, say, "Content", Of the
contrary, "Not content", the contents will go to the right by the throne, the not contents to the left
The The question The question is The question is that The question is that amendment The question is that amendment 20 The question is that amendment 20 3B
There There have There have voted.
There have voted. Content, There have voted. Content, 169.
There have voted. Content, 169. Not content, 176. The not contents have
it.
**** Possible New Speaker ****
I think this would be a good
point to adjourn consideration of the report and the planned statement
**** Possible New Speaker ****
the report and the planned statement will not resume before 19:55. As many are of that opinion will
**** Possible New Speaker ****
As many are of that opinion will say, "Content". Of the contrary, "not content". The contents have it.
19:16
Statement: G7 and Nato Summits (dinner break business)
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"not content". The contents have it. We now come to questions on a statement made in House of Commons
statement made in House of Commons on the 26th of June on the G7 and
on the 26th of June on the G7 and NATO Summit's.
19:16
Lord True (Conservative)
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NATO Summit's.
**** Possible New Speaker ****
I apologise to the House as I did not realise the statement was going to be read so I thought I would get
to be read so I thought I would get to my place in case you had to adjourn the House during pleasure. I
apologise. Apart from seeing the Leader of the Opposition arriving late, it can be illuminating when a
late, it can be illuminating when a statement repeat is delayed. I
statement repeat is delayed. I better go on because the clock has
better go on because the clock has started.
The Prime Minister began his statement with grand claims about fixing Social Security. We all
about fixing Social Security. We all know what has happened since. Can
know what has happened since. Can the noble Baroness tell the House where the savings lost in this fix
where the savings lost in this fix of Social Security since the statement will come from? I think we
all know it will be taxed and taxed
and taxed again on the owners and savers of Britain. Homeowners, farmers, small businesses and the
dividends that pay our pensions.
As we heard this week potentially more
we heard this week potentially more controls on ISAs. Gordon Brown
created Cash ISA the and Rachel
Reeves is after it. It is the UK's boast that they have always been for
working people. Thanks to the Chega steel, it is the working people of
Mauritius who are quids in, not the working people in Britain whose real disposable income is down 1% this
year and would have to stump up 30 billion in taxes.
They use what they
already own. Amazingly, Diego Garcia
wasn't even mentioned in a big statement on defence. The statement was on rhetoric on the botched
welfare of. The central truth laid
bear in the last two weeks is abroad and increasingly sidelined on the
world stage. On the gene the 17th after sitting next to president
Trump at the G7 dinner, the Prime Minister declared there is nothing the president said that suggest he
could get involved in this conflict.
The Foreign Secretary to Washington
and then Geneva and then called the US and five years later they struck
US and five years later they struck
the nuclear sites. The British Government response was not to congratulate the US on executing
this brilliant action. They had the
30 billion base was not used and that did not sound like leadership
to me. It wasn't even followership.
I do wonder if the government made the advice of the Attorney-General
saying it would be illegal.
I'm not sure if he did and if the president
would pin that in the Oval Office to reap in the past of Winston
Churchill. In the Attorney-General
injunction. It is surely indicative
that in this late stage the Prime Minister did not once mention the UK US strike that resounded around the
world these last week. The only mention is the US-UK to deal signed
on what they look like, a conspicuously windy day in Canada.
This is what we welcome as the first
step.
It still leaves carmakers
admitting facing a tariff on exports. Can the noble Baroness say anything about how the government
intends to build on the trade deal with the US that I hope was discussed at the G7. The statement
spoke about stepping out, but where were we as major arrangements were
unfolding. Britain was out of the
loop. It was unsurprising when two men were sanctioned in the Israeli
cabinet. The government has seemed equivocal at times. I do thank the
Prime Minister for his action
against anti-Semitism.
I associate this with the strong condemnation of
the BBC for its shameful broadcaster that called for the killing Israeli soldiers. The government was
absolutely right there. The statement says that the UK is using every diplomatic lever to keep
written and the Middle East save, and we support them on that. We all
pray for a just and lasting peace. But where are those levers and what
are they? Can the noble Baroness tell us what progress we will be
making in addressing the humanitarian situation in Gaza? Also
ousting Hamas.
This does concern
members across the House. Will the urge sanctions on Syria? What of Iran? We agree they should not have
a nuclear-weapons, but had they had recent discussions with the regime.
We welcome the commitment to defence spending and the British new deterrent. We welcome the decision to buy 12 F-35 aircraft with new
capabilities, but can she confirm exchanges earlier that this will cut
the defence budget rather than increase it because they are less
expensive planes. If that is incorrect, I withdraw it because I
misunderstood the question in Hansard.
We continue to back the Prime Minister's strong commitment
on Ukraine which is rightly underlined in the statement. Can the
noble Baroness explain why the NATO communique was weak on the condemnation of Russia? On defence,
could they say why they spent 5% on GDP and what that actually means.
The only solid commitment is to
spend 2.6 on defence by 2027. The 4.1% target is adding 1.5% spending
of the resilience and security already stated in the 2.6% target. What does it mean? The Italian
government said it might include a bridge.
The Prime Minister spoke of
energy networks. Would it include spending on pylons to enable green
energy? Will the spending on the Chega steel amount towards this expenditure? Will the noble Baroness
tell us when this promised to the House last night and stirred Lord Purvis tweed as he pledged to the
Chagos Islands to be made. The Prime
Minister has done much we support in foreign and defence and we will continue to support that. Over the
last two weeks, we have looked unsure and a little behind the game.
19:24
Lord Newby (Liberal Democrat)
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The statement begins by discussing the words on Social
Security. Absolutely nothing to do with the subject matter of Israel
with the subject matter of Israel
and we welcome the statement because
I'm afraid I cannot keep up. I'm
afraid this measured agreement that the UK faces greater and more
diverse security threats and we are greatly indebted to the Armed Forces and other government agencies
working so hard in affecting to combat them. The headline outcome of
the NATO's was the commitment to
spend 5% on national security.
In the statement, this is referred to as a defence investment pledge. But
it clearly includes expenditure on many non-defence items -- Nato
summit.. In the National Security Strategy, the definition of national security concludes the health of the
economy, food prices, supply chains, safety on the streets, and the
online world. This definition seems so wide as to be virtually
meaningless. Can the noble lady explained within the definition? The
Prime Minister says we will reach
4.1 spending in 2027 so we must know how they reach that figure.
Will the
government speak of the 4.1% breakdown and then explain how it
gets to the 5% by 2035? One obvious
item to include in the definition of expenditure amounting national security is Overseas Development Assistance particularly in areas
like conflict prevention. Can the
noble lady explain to what extent ODA is included in the new definition of national security and whether the government has any
intention to increases at it increases the other aspects of
security expenditure. The statement goes on but UK foreign policy answers directly to concerns of
working people.
Can the noble lady
explain what specific concerns of working people are meant by that
phrase and to what extent are working people affected by foreign policy in different ways to the rest
of the population? One of the biggest challenges ahead is not just to increase expenditure on national
security, but also ensure the money is spent as effectively as possible.
In that context, can the noble lady explain why we are prioritising the
purchase of 12 F35 jets capable of carrying nuclear-weapons? These planes are extraordinarily expensive
even if they are not quite as
expensive as the F35 b and the decades we did not consider it
necessary to have this capability.
As Lord Best said earlier today,
this change means presumably that at the very least we need to update our nuclear doctrine. Does the
government plan to do so and will it publish any new doctrine when it has
been adopted? On Ukraine we welcome the commitment to keep the
commitment -- under on expenditure and also air defence missiles. These
are to be funded from frozen Russian assets. Can the noble lady confirm
this funding has been from the interest of those assets and that no progress has been made on freeing up
capital which could be transformative in Ukraine's success.
In the Commons, the Prime Minister
said it was difficult to access capital because not all countries were in agreement with how to
proceed. Estonia has proposed a way
forward on this and can we commit to looking at those proposals as a matter of urgency? We stress the
need to build up the Armed Forces. Does the noble Lady accept there is a crisis of recruitment in the army?
Will the government therefore sympathetically look at the LibDem
proposal to pay £10,000 signing on bonus for new recruits as a way of rapidly boosting recruitment.
On
Iraq, we welcome the current ceasefire but it needs to be made permanent. The Foreign Secretary recently met the Iranian Foreign
Minister with EU counterparts to promote a ceasefire. Does HMG see any future roles for the UK in
securing a longer term solution? Finally, on Gaza we agree on the
need for a quick ceasefire, but there is absolutely no sign of this and in the meantime deaths and
starvation continue. Our ability to affect Gaza is limited, but we could at the very least recognise the State of Palestine which is a
necessary precursor to a two-state solution.
The Prime Minister says the government is waiting for the
right time to do this. The fear is
in the government's view there will never be a right time and we should act now.
19:30
Baroness Smith of Basildon, Leader of the House of Lords and Lord Privy Seal (Labour)
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I am grateful to both noble Lords
for their comments and I say that the noble Lord made an elegant
entrance. He's enjoying himself to
much as he focuses on what we are looking for in the statement as we look at the G7 and NATO. I do not
think we have seen such a complex
and difficult international situation in a lifetime here and it is not an easy time. Across the
world we have existing conflicts, new conflicts, and they seem to escalate quite quickly and they
change quickly and the focus on those on what we can do nationally
and internationally to help win peace trumps any other issue we may want to discuss and I will focus on
I have to say to the Noble Lord it
was uncharacteristic that the Minister has played that on the international stage.
I can recall very early on on the days of the Government facing criticism from the
party opposite about the Prime Minister going to the international conferences, building relations with other countries and leaders of other countries and I said at the time and
it still holds true and has proved to be true it is only by building relations and building up a good relationship that you can have the difficult discussions when they are
needed. And I think that myself and
my party have played a role that our Prime Minister has played on the
international stage and can think that they would be less proud about the premise doesn't Foreign Secretary's role on the international stage, so I make no
apologies for that role he has played and I and grateful to him for
doing so.
The issue of I think the
transformative and generational increase in defence spending by the
NATO summit was really important.
0.5% for many years and I am
surprised that they queried this, I think the Noble Lord raised this as
well, it really is almost impossible to divorce national security from
resilience. They are both our security and our safety in the country are dependent on both and
the idea that we could spend national resilience money on pilots for green energy is, frankly, a
ridiculous point to make but what we
do have to do is ensure that we have supplies and energy throughout the country for business, for domestic
cover for military use.
We have seen what has happened in other countries
where there has been a failure of supply of energy and it is absolutely vital that we maintain
that and I think to try and maintain a political point about green energy
and the environment is what this is about and I hope the Noble Lord will understand how important these issues of supply chains of energy,
all of these, play into the role of
national security, and I hope he understands and if he does not we can find more information that he
might find useful to look at.
He asked specifically about finance and
I think we went through this last week but we will have fully funded plans to increase defence in this
Parliament from 2.6% from April 2027
and 4.1% of GDP collective defence and security by 2027. That target, I said before, is 5% encore spending
said before, is 5% encore spending
and 1.2% or 5% on security. I also I have no apology for the Chagos deal.
I have said this before. The idea that a country would spend a lot of money, and it is a lot of money, if it did not consider it absolutely
vital and essential to national security is, quite frankly, a ludicrous argument to make because it is so essential the Government
has to be prepared to spend the money and I think that we should recognise that and recognise the importance of it.
As we talk about
cost of living I do not think I take any lessons with the party that gave
us the Liz Truss budget and did more damage to people in the country and
the cost of living, noble Lords count motor away but it is actually
something that really affected this country and working people up and down the country who see their bills and their mortgages rise quite
dramatically. He also asked about
the trade deal with the US.
And yes,
I think the tariffs were an enormous concern and we should get them down to the levels that they are, that is something that has been achieved by
negotiation and would not have happened otherwise. The Noble Lord has also made a rather strange point
about the F-35A, and I think that part of the noble Lords comments
earlier, he did say that yes, they are less expensive than the F-35B. That means that the money is
available for other defence spending and I think he made that point earlier today, so I think indeed
they are cheaper that is an asset rather than something to complain
about.
Can I thank the noble Lords for their comments about the
government's comments on the BBC. I think that those that watched were quite shocked at the comments that were made by one particular group,
and I think they do have questions to answer for why they did not act
more quickly and lessons should be learned on that. Just trying to read
my own handwriting which can
sometimes be difficult. The Noble Lord I think you be asked about the
crisis that has been a really serious issue and I can remember days where you would go down to the
high street and to schools and colleges looking to recruit the
Armed Forces, we have not picked up his suggestion for the golden
handshake as it were, but I sure my Noble Friend there working on this
issue and recognising it is something that the numbers that felt
to such a dangerous level under the
last Government I also think I have addressed most of the questions, so if I have missed anything, I am sure
we welcome back to it, but I do think that these summits are just so important in working together, countries working together, and what is clear is that some of the most
dangerous places in the world, the conflict, the only wafer would is
going to be the negotiating arrangements and settlements and
just working towards them at pace.
19:37
Lord Beamish (Labour)
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I attended last week's summit in
The Hague and I have got to say that
is not the position that I saw to the UK standing, I saw a country
that is now being respected and is working very closely with all its allies to engage in the important
fight against Russia, in meetings
with heads of delegations, they all commended the UK and the leadership
it has taken including the Prime
Minister. Can I ask my honourable friend that the position of increased spending is welcome but
one of the issues which is very important in terms of the fight
against the Russian invasion of Ukraine is its financial ability to
rearm, so what more can be done to ensure that the sanctions do bite and that we ensure that the rearming
of Russia is thought of?
19:38
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I am grateful to that Noble Lord
and certainly his impressions of the leadership terms what I have heard
from other people at similar
conferences. In fact, if you recall our support for Ukraine the Prime Minister was able to bring European leaders and others into London in
support of Zelinsky immediately
after the NATO statement came to London and the Prime Minister and the speakers of both houses since
and the leadership that is shown and also how close our relationship is
with Ukraine.
And firstly he will be aware of the transport that has been
spent and that Noble Lord Newby said for the assets I will come back to
that point and it has been used to
provide more weapons and missiles
for Ukraine which is really important that we do that and I will just come back it is for the assets
but we are still working at pace, we are looking at anyway to do that, the Government has not ruled out legal action and to ensure we can
get access to Ukraine where it is needed.
He raised the point about sanctions and I think it is an important point, the UK has now
introduced new sanctions that target
Russia's shadow fleet, 20 additional vessels, as well as 10 individuals.
And, again, we have seen other
partners also taking decisive action with 200 vessels and the EU has moved forward with I think it is the
sanctions package at some page as
well, so sanctions are important as a tool in the armoury of tackling what has happened in supporting
Ukraine against Russia, we must
never forget the danger that is posed to the Ukrainian people and that Ukrainian people are at the forefront of the fight for freedom and all of us have to respect that
we can also be at danger like Ukraine.
19:40
Lord Ahmad of Wimbledon (Conservative)
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I agree with the Noble Lady.
Leadership on the international stage is crucial. And I welcome the
prime Ministers agenda at both conferences, because it does show
that you have to be present and the senior most level to ensure that your voice is not only heard but
there is a deep symbolism as well in the role that the United Kingdom plays on the world stage. If I could
pick up on the point specifically beyond Ukraine I sure the Noble Lady will equally recognise the leadership of the previous Government of the successive
Government and the solidarity across all parts of your Lordships house on the importance of standing with Ukraine.
And, in that respect, can
the Noble Lady share with some of the specific conversations that have
taken place with our colleagues in
the United States on getting peace in Ukraine? Particularly, in the role the United Kingdom continues to play in our leverage and the respect
that we have. And also, the new relationship that President Trump
has forged with President Putin to bring this conflict to an end. And I draw attention to pipework as The
Chair of International communities organisation, an organisation committed to resolving the conflict around the world.
19:41
Baroness Smith of Basildon, Leader of the House of Lords and Lord Privy Seal (Labour)
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I think the noble Lords and his
work yesterday was particularly
respected by this House. I think it is the strength of the response that whoever has been in Government, we
have been united across the divide but also across both parliaments. And I know he was also there when President Zelenskyy visited
Parliament. He spoke to both parliaments and some of us had the
privilege to meet him afterwards. And I think you get a sense of not
just the huge pressure but for a man that could never have been expected
in the position he is in how he has responded to that, that is why he has got affirmation around the world for the stand he has taken.
And it
is vital the symbolism of the role
of the UK on this. I think it is important that we maintain that special relationship with the US. Because that is so important in the
support for Ukraine, and those ongoing dialogues and conversations,
not -- ongoing meetings the they have had with officials has been
really important in that regard. They will continue, and I think the whole house will say we should not,
at any point, detract in anyway or retract our support for Ukraine.
And
we will urge others constantly to ensure that support remains solid, remains robust, and it remains
united.
19:43
Lord Dodds of Duncairn (Democratic Unionist Party)
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I would thank the noble Baroness the Minister for what she said about
Glastonbury and the BBC but it should be remembered that there was more than one act which engaged in
pro terror remarks and this Kneecap
outfit from Belfast also needs to be condemned and called out for their
pro-terrorism activities. In relation to what the Prime Minister
said about aligning with security objectives and plans for economic growth renewing industrial
communities, I welcome that as well.
But given that Northern Ireland aerospace sector contributed estimated 2.2 billion to the
economy, would she decry the remarks
today of the Sinn Fein economy minister that said the money should
not be spent on defence at all, it should be spent on public services, whatever that means. Can she ensure that despite the ideological
nonsense of Sinn Fein and the way they behave, that Northern Ireland
will be worked with. Vital defence industries and the people contributing so much because this is
important for our security and our economy.
19:44
Baroness Smith of Basildon, Leader of the House of Lords and Lord Privy Seal (Labour)
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My Lords, heard both at noble
Lords and has previously when the issue of Kneecap was raised, but I
strongly condemned their behaviour at the time and continue to do so. On the other issue he raises, it
seems to me that the greatest public
service that any Government does is to keep its citizens safe. And that includes, as I have said before, defence spending and includes resilience. Those of us, those of
them that work in the Armed Forces in the defence industry are taking
on a public service to key people in this country safe and we should support them in doing that.
And I
know that Northern Ireland has an important defence industry as well,
but to say that is less important and does not recognise the threats that have faced the world at this
time, and yes, I think we would all love in an ideal world where there are no threats, no violence, no
areas of conflict, and we did not spend money on defence, that is the real world. We have to protect our citizens, and if we fail to do that,
we are feeling in the first duty of any Government.
19:45
Lord Harper (Conservative)
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The Prime Minister, in his
statement that inked economic security, national security, and, what he called, social security, he
said that welfare reform was urgent. He said the system was failing
people every single day. And isn't what has happened at the other end
of the built-in demonstration that the Government could ability shot to pieces? It is literally taken out of
that legislation, almost all of the reforms are proposed. It's critical of is damaged on that important
issue, and that matters because in the rest of the statement, our defence commitments and our
credibility of our promising that
increase in expenditure is something that is now damaged because the Government has demonstrated it cannot find those savings.
And I
think that demonstrates that those things are connected. The government's credibility is damaged,
it is not just damaged welfare reform, but it is damaged reputation early on these important national
early on these important national
19:46
Baroness Smith of Basildon, Leader of the House of Lords and Lord Privy Seal (Labour)
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I fundamentally disagree with the point he made. Every time the
government makes a commitment to defence spending, it keeps to it. That is the commitment now. He wants
to tighten up welfare. What is really important to understand, I
have not heard anybody say that the situation this government inherited
on Social Security or welfare spending is not one that needs to change. Within that bill today there
are so many measures that practically everybody in the other
supported.
The idea that somebody
who gets PIP and is disabled and
wants to try to work, if it fails they should go to the back of the queue and try again. They want to
see if it is suitable to do so. The system inherited is one that needs to change and that change will
continue. The bill has passed, people agreed on the issue, and what they want to do is look at the
detail and that is the purpose of legislation. He knows how the
process works.
He lost that himself and recognises how difficult it can
be. What can never be accepted is you write people off in the system
and say even though they want to work we will not help them to do so and that is the measure we will put
in place. To link it to economic and national and social security, all of
these things make up what is good about life, the importance of life, the resilience we all need. If we
think about safety, resilience and how we treat the nation, these
things in it together and that is how you have a healthy society and one that supports each other.
one that supports each other.
19:48
Baroness Royall of Blaisdon (Labour)
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We should be relieved we have a Prime Minister that takes a leading
role in the world where we are and we seem to be a force for good. The UK is a leader on the world stage. I
welcome the statement including the fact there is now an opportunity to
push for a ceasefire in Gaza. In the meantime, my noble friend may be
aware that more than 170 charities and NGOs called for the controversial age distribution
controversial age distribution
scheme in Gaza.
-- aid. I trust that my government or the government will
be making the case to ensure that in future aid is once again distributed
by UN organisations.
19:49
Baroness Smith of Basildon, Leader of the House of Lords and Lord Privy Seal (Labour)
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The noble lady is right on this
and noble Lords will know that this was raised in a question I answered
a few weeks ago that we had grave concerns about trying to set up an
alternative to the tried and tested methods where aid agencies working in Gaza desperately trying to get
aid in not being used and were
struggling to get aid in and we know there was devastating consequences
in some of the actions that they
took.
We are focused on dealing with that part of the region, the hostages must be released, aid must
get into Gaza and there must be negotiations. The only way these
issues will resolve is negotiation, discussion, and it is actually hard
work. I side with the point she
made, the aid agencies are right. They know what happened and they know to get aid to those that needed and they need to be allowed to do
**** Possible New Speaker ****
so. I thank the Leader of the House for that statement. The statement
for that statement. The statement says that we need to ensure a complete verifiable, irreversible
end to around nuclear programme. Israel identified 2X essential threats arising from Iran, one was the nuclear programme and one was
the nuclear programme and one was the ICBM programme. -- Iran's nuclear programme. First, what is
19:50
Lord Verdirame (Non-affiliated)
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nuclear programme. First, what is our assessment of the extent of the damage caused by the Israeli and
Iranian strikes? Secondly, is it
also our policy that Iran should not resume the production of ICBM on the scale he was doing before the
**** Possible New Speaker ****
strikes? The answer to the second question is yes. We say that. The assessment
is yes. We say that. The assessment has been rightly covered and it is
has been rightly covered and it is significant, the damage done was significant and of course it does
significant and of course it does have two... We are very strongly of
have two... We are very strongly of the view and it is a worldwide view that Iran cannot have nuclear- weapons. The danger to the world is
weapons.
The danger to the world is enormous and therefore the point he
19:51
Lord Liddle (Labour)
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**** Possible New Speaker ****
makes about the damage done to those facilities is pertinent. I want to welcome what The Lord
**** Possible New Speaker ****
I want to welcome what The Lord Privy Seal said about Ukraine, about
Privy Seal said about Ukraine, about the role of the Americans in Ukraine and if I might add the role of the
and if I might add the role of the British in keeping the Americans on
British in keeping the Americans on side in support of Ukraine. Isn't it the case that if one looks at this
the case that if one looks at this as a historical period, historical
as a historical period, historical episode, what is most significant is the agreement to European
the agreement to European rearmament.
That all nations with the exception of Spain have agreed
the exception of Spain have agreed to this very bold defence target,
to this very bold defence target, led by Chancellor Mertz of Germany,
the new Chancellor. This European rearmament is controlled and
rearmament is controlled and something that we have to be a part. There are industrial opportunities,
There are industrial opportunities, jobs, very interesting to see that Europe has opened its defence markets are Canada. Can I have an
assurance that we will be working
closely with our NATO, EU allies, making sure the best use is made of
the funds for rearmament and the
threat of Putin can be repelled?
19:53
Baroness Smith of Basildon, Leader of the House of Lords and Lord Privy Seal (Labour)
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The noble Lord makes a really
important point. I think it comes
down to if we were to select Putin succeeding in Ukraine, the deterrent effect of NATO's plans would be
fatally compromised. We must harden our resolve and the work we do, there are industrial opportunities,
but I think the work around NATO,
the UK-EU pact, the work we are doing with that shows real
determination. We are not going to let Putin succeed and this is something that is a change.
For many
years now we have taken defence and security for granted and people
realise the world is becoming a more dangerous place. The role that we
play as a nation has been
thoughtful, considered, to broker piece to try and get negotiations,
but there has to be the defensive capabilities to back that up. capabilities to back that up.
19:54
Lord Harris of Haringey (Labour)
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I'm grateful to the Leader of the House for bringing forward this
statement. What strikes me is some
of the carping we have heard from the Leader of the Opposition here
today rather misses the point of what has been happening in the last few weeks. We've had a series of
strategies and statements issued by the government in a number of
different areas. Following on from the defence review and the industrial strategy, the National
Security Strategy, all of these are beginning to form a cohesive whole
which demonstrates that what we are trying to do as a nation is bring
all of those policies together in the interest of protecting our country and its people.
Is that not
a very positive element and something we should read in the way the government is able to operate on
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the world stage in these areas? He makes an important point of
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He makes an important point of how these strategies full together.
how these strategies full together. The changes across the world in the
The changes across the world in the strategic defence of how we respond to that is important, but looking at the industrial strategy and National
the industrial strategy and National Security Strategy which I spoke on last week, you can see the linkages of how they work together. I do
of how they work together. I do think the Spending Review, defence
Spending Review, is something we should be really proud of as we can take that, use that, don that, use
take that, use that, don that, use our strategy to deliver it and as they link together you say a
19:56
Baroness Smith of Basildon, Leader of the House of Lords and Lord Privy Seal (Labour)
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they link together you say a
cohesive whole. They work together in how we protect our nation. If we do not draw these things together we
will be weaker and poorer for it.
19:56
Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government) (Labour)
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We return to the report of the Renters' Rights Bill. Baroness
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I I beg I beg to I beg to move I beg to move this I beg to move this bill I beg to move this bill be further considered on report. Question is that the bill be
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Question is that the bill be considered on report. As many are of that opinion will say, "Content". Of the contrary, "not content". The
contents have it. The contents have it. We now come to Amendment 24 in
19:57
Lord Jamieson (Conservative)
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it. We now come to Amendment 24 in clause 6, Baroness Scott of Bybrook,
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Lord Jamieson. I would like to thank the Minister for taking the time to meet
Minister for taking the time to meet with Baroness Scott and I to discuss the context of these government
the context of these government amendments. -- Content. We are grateful she returned to the House
grateful she returned to the House with what has been referred to as a break glass provision, finally
break glass provision, finally acknowledging the government policy may indeed lead to a significant
backlog in the tribunal system.
However, from these benches, we struggle to understand why the government having recognised the
government having recognised the problem has not decided to take proactive steps to prevent a backlog in the first place. Waiting until
in the first place. Waiting until the system is overwhelmed is not
the system is overwhelmed is not good policy. It also cannot be right that rent determination can only
that rent determination can only result in rent being revised
downward creating a clear adverse incentive. There is no risk to bringing a case if the rent cannot
bringing a case if the rent cannot go up and can only go down.
Why not
try your luck? You may as well. It encourages unnecessary speculative tribunal pains and that is why I
want to thank Lord Carrington and
Lord Howard of Rising for their consistent work on this issue and for the thoughtful amendments they tabled today. Both noble Lords
highlighted the problem with clarity. The current system gives tenants an incentive to challenge
rent knowing they've nothing to
lose. We are therefore here to support amendment 31 should my noble friend decide to press it to a vote.
It corrects the imbalance to allow for rent to be revised upwards and downwards restoring fairness to the
process. Amendment 32 stands in my name and requires the Secretary of
State to conduct a review on the system responsible for rent determinations. We look at the
tribunal backlog that the break glass amendment is supposed to address, but we don't believe that
that will be the case and we believe it is necessary to help us understand the true pressure placed
on the system and how best to
mitigate it.
I am grateful to Baroness Wolf of Dulwich to
recognise how it is working. This
adding an additional filtering step rather than seeking to induce the
incentive to go in the first place, especially when there is no downside to doing so we think would be the
more appropriate way of addressing the issue. Finally, a word on
amendment 24 which concerns preventing the Secretary of State from expanding the definition...
Excuse me, of a relevant low-cost tenancy by regulation. This is
important.
Such a power affects us without scrutiny can it significant broaden the scope in unintended
ways. It is vital that any change to this definition comes before
Parliament not simply through ministerial discretion. From these
benches, we look forward to hearing from noble Lords across the House on
these issues. I beg to move.
20:00
Baroness Wolf of Dulwich (Crossbench)
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My Lords, I shall speak to
amendment 29 in the name of Baroness Thornhill stop before doing so, I
would like to say thank you to the Minister for the courteous way in which she has discussed this issue.
My amendment seeks to provide for the pre-appeal assessment process to filter out those that have no prospect of success, and thus avoid
overburdening the tribunal's. In specific, and I would suggest a
highly practical suggestion is that the Government should take advantage of the technical expertise through the valuation of this agency.
They
should regress through the courts if
the valuation of the agency considers that they have a chance for success, and if not, not. It
seems appropriate to be making this suggestion on what is the 100th anniversary of that 1925 evaluation
act. A measure which ensured
property ratings across the country and the use of professional
evaluation offices. I would like to commend this act to noble Lords. It
is quite possibly because it is a piece of legislation that is
relatively reef and in language that normal people can understand, but the main reason that I have commended it is that what it did was
it set out the decentralised but uniform system that give people
across the country consistent decisions on irregular predictable
timescale, and clarity on who was making those decisions and how they can be contacted.
Now, this sort of
clarity of consistency issue of what
we would like for all tenants. But I have to say the current drafting of
the bill which loads more work onto tribunal system that we know is
needed is really not in a position
to deliver this. As I explained at Committee stage, my proposal was prompted by current Scottish
practice. It does not, in anyway, reduce the right of tenants to appeal against rent increase and I unnatural it increases the incentive to appeal on the off chance, but it
does reduce likelihood that the courts will be overwhelmed very soon
by appeals and, in particular, by appeals that do not succeed and
which swamp the courts, to the detriment of those cases.
Now, onto
the government's current proposals, tenants will enjoy a number of new
and important rights. It cannot be increased as often. Most importantly, in the context of this
group of amendments, tenants who wish to challenge what they see as the successive rent increase have
access to a tribunal. The tribunal cannot propose an increase that is any higher than the one initially
proposed by the landlord as the Noble Lord has already pointed out.
It can endorse the landlord's proposal as already charged.
Now,
obviously, these charges were with great assistance when proposing major increases in line with the
protection of the market, but, equally, they have maybe that they
have a large number on the off chance and I do not think that there
is any doubt that this would be disastrous. In The Other Place
through the public committee, the Minister observed there is no
dispute in the Government and the Government side of the committee that the court system is on its
knees.
He also, of course, added after the last 14 has, but the relevant point is the court system
is on its knees. So, as first introduced, the bill provided that
the tenant against rent increase in the tribunal was allowed. The increase only from the date of the
tribunal decision which could be many months on. And this clearly
hugely increased the percentage appeal and I think it would also
have been seen as massively unfair by any tenant who accepted an increase without it and then saw a
fellow tenant getting it at a lower rate, so I was very pleased to recognise this risk and look forward
to the Minister explaining how the Government amendments will actually
work in practice, but I do not think that this is enough to head of the
tribunal, which is why I have re- tabled my amendment.
And while still
for many people who have nothing to
lose if I want officer in a student union fixable and asked my opinion I would have to say it would be something of a no-brainer. I would
have to say the same if I was on a radio program, why wouldn't you and
I think I therefore remain convinced that in the absence of some prior screening that is I suggest that the
courts will be overwhelmed. Now, in Scotland, the first stage in any goes to Scotland and apparently on
average that takes just five days to
respond, and most things stop there, very few things go further.
No, obviously, the Scottish situation is
very different from ours, but it is also obvious that on this particular point providing tenants and
landlords with quick feedback rather than months in limbo it is very effective, and it is also obvious
given the volumes that rent services Scotland deals with that without
this prior system there would be a
very large number of cases that are effectively a waste of time. It would be very easy for us to introduce similar first stage
processes.
There is a large amount
of expertise on that outside the tribunal's and the courts, the Valuation Office Agency already gives the office valuations and property advice but it needs to
support taxation and benefits. Social Housing Act and tightly to,
registered riders must comply with regulatory social housing standards or rent settlement which is
effectively set by Government and
its annual increases would be an obvious and simple yardstick to use when a fully waiting with that appeal should go on. Rent offices
also still set rents for the remaining tenants, so the basic infrastructure is there.
And in
order to see what we are facing, I do think, as I thought at committee,
that a little bit of info is in
order. The Government does not think that there will be a huge growth in
appeal. Well, if appeals in the private sector tenants track the numbers going to run services Scotland and the all proceeded to
the tribunal and we would end up with another 40,000 cases per yer.
And that compares with 909 cases heard by the tribunal's under current legislation in England, so
current legislation in England, so
that would be a 40 fold increase, but suppose it was only 1/4 of that level.
Still, a tenfold increase, 10,000 extra cases per yer hitting First-tier Tribunal's under enormous
strain. We hear a lot about
pressures and backlogs in criminal court, but if you look at the
statistics for the tribunal's, the statistics are the least. In the year 2040 25, the open case total,
excluding immigration, rose to
745,000, which was an increase of 14,000 over the course of a single
year, 14% it is single year. The Minister was kind enough to discuss
my amendment following Committee stage and to recognise that initial
streaming could be very help if tribunals were, indeed, overwhelmed.
In the absence of any Government amendment to that effect, I look forward to hearing from her about the government's current thinking,
and I also would like to highlight the enormous importance of reviewing
the impact on the judicial system which we will be returning to later. which we will be returning to later.
20:09
Baroness Jones of Moulsecoomb (Green Party)
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My Lords, I rise to speak to the
amendment in my name. And I take the
noble Ladies point that it is going to be easy to read. I would say that this is very easy to read because it
immensely Housing Act of 1988 so that the tribunal's most this regard and improvements funded by
Government grants for a two-year period. Now, the amendment, which I
feel quite strongly about, is designed to help renters and to help
Government.
It aims to improve the food policy that creates warmer homes and cheaper bills. The climate
benefits from a warmer home with grants, as do the landlords, so why not guarantee that tenants get
cheaper bills without a rent rise for a couple of years. I met with
the Noble Lady that Minister and she is very, very generous with her
time. And I was grateful for her comments, but I am still not seeing the problem with passing this amendment. There are complexities, and the tribunal's would have to
sort out any details if the property owner added some of their own money along with the taxpayer.
The
tribunal's make for a more difficult calculations every week. I have also
heard from several people privately just how difficult it is with tribunal's, but I do think that is
the sort of thing that must be fixed. It really cannot be allowed
fixed. It really cannot be allowed
to wallow and not be the tribunal start they need to be. The important
thing for me in this amendment is the taxpayer funded improvements are not used as an excuse to raise rent.
And we need force of law backing this up. While the guidance is
slightly more explicit, it will be ignored, and that will discredit the
policy. Generation of rent recently did a poll of renters, asking them about their support for the Government policies in this area.
This support increase from +40% +55% went renters were presented with the scenario that the Government would protect them for rent increases.
Now, I do not want to suggest that the Government should be run by opinion polls, but it is a wonderful thing when you can do something that
is right and it does not cost any extra money and it leads to a 40% jump in popularity of that policy
and also the popularity of the Government.
And we hope that the
Government will put this forward in some form or another. I have been
told privately it is not new
interest enough. That is also a fault of my nature but I do think it is a good amendment and I would hope
that the Government treated with due attention. attention.
20:12
Lord Howard of Rising (Conservative)
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I rise to speak to amendment 31, 32, and 33 in my name, and I declare
an interest as a landlord of rented property. When I pointed out to
committee that is drafted the bill will create a conservative one
million applicants for rent tribunal's. The Noble Lord the Minister commented this was unlikely
to say the least. In a recent letter from the noble Baroness, recognition
was given that there is an inherent uncertainty on the volume of rent
charities.
The proposed new elite delegated power to backdate rent
increases acknowledges the potential difficulties. Welcome as this proposal is, it does not start to
address the fundamental problem. At
best, it provides some temporary window dressing. If the Government
recognises the system may be overwhelmed, the noble Baroness Wolf
has pointed this out very cogently, and indeed promotes appeals to the
and indeed promotes appeals to the
tribunal in the first place, this is the crux of the problem.
The bill still provides that the tribunal can
only confirm or reduce the rent, not
raise it. That creates a no lose situation in front of us. Amendment
31 addresses the most fundamental of
the structural flaws. It removes the restriction that the tribunal may
only reduce or uphold imposed rent, but not increase it. If a tribunal
can only confirm or lower a rent,
never raise it, that is a one-way. As my Noble Friend Lord Jamieson
pointed out, if things can only get better, what possible reason is the
better, what possible reason is the
not to try at all? No loss and until that Secretary of State regulates the rent increases, how speedy that
will be with two Government partners having to consult, there will be a
decent delay in any increase, it
becomes a virtual necessity for a tenant to challenge.
Amendment 32
ensures that in the event that the tribunal determines that the rent
initially agreed was too high, landlords are not retrospectively liable for backdating payments to
tenants of an agreed rent. This is
simply a matter of fairness, and
legal certainty. If a tenant has agreed rent at the outset of a tenancy, it should not be open to
the tribunal to rewrite an agreement in the imposed retrospective
liability on the landlord. It would
Amendment 33 ensures any rent
increase upheld by the tribunal may take effect from the date originally
set out in the landlords notice.
Not merely from the date of the tribunal's determination. Unless to
do so would cause undue hardship to the tenant. This retains protection
from vulnerable tenants by removing the automatic procedural advantage
currently afforded to any tenant who appeals. As drafted, the bill all
but guarantees delay as a consequence of referral and again
reinforcing the incentive to appeal every rent increase as a matter of
course. This group of amendments
form a coherent and necessary package of reforms.
They do not undermine the right of tenants to
challenge increases. That right is reserved in full. What these
amendments do is avoid a situation
where there is an incentive for tenants to challenge increases
regardless of the likelihood of
success. At Committee I made the point to the Minister that rent
tribunal's do not allow rents to go
above current market rate. Cap This
would mean market rates are never
able to rise.
Nothing in our reform stops or prevents a landlord from
charging a market rate. If the rent
tribunal on day one caps any rent increase to the market rate, the
market rate can never go up above that rate which will have been
decided on day one. Any proposed
increase would be capped at this
level, ie, the market rate. Fine initially but given time and
inflation and unreal situation, to say a landlord can charge the market rent is going round in circles.
I would be grateful if the Minister
would be grateful if the Minister
could help me with this. could help me with this.
20:18
Lord Carrington (Crossbench)
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I rise to speak to amendment 34 and associated amendments 35, 36 and
40 in my name and kindly supported by Lord Hacking. I would like to
thank the Minister Baroness Taylor
for her ongoing engagement with me and other noble Lords and Baronesses throughout the steps of this
important bill as it has gone so
far. My amendment concerns a vital part of the bill, the right of renters to challenge the annual rent
increases. There remains strong consensus across this House and in
the other place that stands with the government in ensuring unreasonable
and exploitative rent increases are avoided.
Such increases in this way
should not be used across the private rented sector as a means of
eviction through the back door. However, despite the government's own recent amendments which I will
turn to in due course, I remain strongly of the opinion that the government is current drafting of
the law will not work even with the new failed mechanism added in the
name of Baroness Taylor. It remains the case that under the current
wording of the bill renters would have the universal right to
challenge any and every rent increase they receive in all circumstances and without
qualification.
Moreover, increases that the first-tier Tribunal agrees
will only come into effect once the
tribunal has given its ruling. This wording continues to have the very
real and dangerous potential to undermine the supply of new rental homes in England and at the same
time overwhelm the courts. The government believes that renters
will only apply to the tribunal if they believe a rent increase is
above market rent. I'm afraid like others that will not be the result
of this legislation.
The legal text of this bill still sets out that a
rent increase could not come into force until after the tribunal rules. The result of this drafting
is to create an artificial incentive
for all renters, all 4.5 million of
them, to submit a challenge to proposed increase in rent from their
landlord however legitimate because this would prevent the increase coming into force until the tribunal
decides. There is no risk to the renter in this as it provides a guaranteed delay.
Once this is
widely understood, as I think has
been pointed out by Baroness Wolf, renters will exercise their right as
a matter of course. Indeed, I expect a celebrity like Martin Lewis would immediately go for the opportunity
to delay rent increases as a money-
saving tack for renters. This incentive risks the efficacy of the
first-tier Tribunal by burdening a struggling court with thousands of
cases and would result with those in real need waiting potentially months
longer for access to justice from exploitative landlords.
The
government rightly once renters in
genuine redress have access to the courts, but the current injustice will be too long to prove realistic.
My proposed amendments seek to ensure if a rent increases challenged but the increase is
upheld by the tribunal, the rent
increase becomes effective from the original date of the section 13 notice. This important detail
removes the incentive of spurious challenges and is only used as a
delaying tactic by challenging a rent increase because they simply
want to delay payment.
By removing
this incentive, only those renters with real cause are being exploited and are more likely to get the support of the tribunal decision and
will challenge rent increases. These are the very people who should be at
the front of the queue when it comes
to these challenges. Let me now turn to the question of the amount of money we are looking at when it
comes to rent increases. I want to explain how my amendments while deterring spurious challenges also
support renters who do challenge
rent but with whom the tribunal is not in agreement.
The office of
statistics notes the average rent per month in the United Kingdom in
the 12 months to April 2025 was
£1339. The average rent increase across the UK in the same 12 month
period was 7%. Therefore, if you
take 7% as a marker for the rent increase in the next 12 months, we
will be looking at the average rent across the UK increasing by around
£93 per month. £93 can be a good deal of money to many across the
country, particularly as the cost of living crisis continues.
This
pressure on household finances has
not been overlooked. The amendments cover the concerns of the Minister and others that renters may be put
under undue financial pressure if they are unsuccessful in their
wrench challenges and are required to pay back a large lump sums and backdated rent at once. Under the
bill as it stands, every rent from the time the bill is implemented
would have the ability to challenge the £93 per month increase without
the need to provide the reason, financial or otherwise.
However, if
the tribunal when it eventually gets
to each and every challenge judges in the landlords favour, my
amendments would ensure that instead of that renter needing to pay that landlord a backdated amount of rent
immediately, a 12 month payment plan
would be put in place. This means that if it took six months for the
challenge to be reviewed by the court, and a decision made, the
renter would not need to find the extra rent immediately but would only need to find the extra £46.50
each month over the next 12 months to pay their landlord in backdated
rent.
This seems entirely reasonable and I hope the inclusion of this
amendment has been carefully considered. Let's turn to the government assessment that renters
will only apply for the tribunal if they believe the rent increase is
above market rent. The government is placing a great deal of faith and
has commissioned a new burden assessment adjusted impact test
which is referred to many times throughout this bill. The impact assessment from November last year.
However, we have not been able to
review or scrutinise these two important documents as they have not
been published.
Were we able to see these documents and scrutinise them ourselves in this place, many of us
may be reassured by the government's commitment or levels of renters who
will challenge their rent, but while the government restricts access to these documents, we must rely on
what the bill says and our understanding of renters and the PRS
as it stands in a time where household finances are tight and there is every incentive to delay a
rent increase. The government has tabled a failsafe amendment in
clause 7, but there is a lack of
detail here.
In amendment 37 in the name of the Baroness Taylor, we were
not given clarity of when the power
would be used and what triggered this would be. What level of caseload with the tribunal need to
face before the government stepped in and introduced backdating?
Therefore, while I applaud the government of including clause 7 of the bill I fear it will do nothing to reassure the sector. It is
interesting to note that in the event of the introduction of failsafe mechanisms, rent will be
charged from the date of the section 13 notice.
Quite a reversal of
policy from the tribunal decision
date. If we had the detail around when such a Statutory Instrument
would be enacted, we might be able to agree with the government on
this, but as it stands I sadly cannot. To sum up, taken together I
believe amendment 35, 36, and 40 in my name will deliver a fair result.
They are technical changes that keep the vital rights of renters to challenge from being exploited while
reducing artificial jeopardy free
incentives to take any and all landlords to court for reasonable increases in line with the market.
The amendment giving protection to
those renters who lose their challenge with a 12 month payment plan should also be strongly
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considered by the government. I put my name down to amendments
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I put my name down to amendments
of Lord Carrington, 34 and 35. The
20:29
Lord Hacking (Labour)
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noble Lord has given such a precise, detailed reasoning for all of those
amendments. There is nothing I can add to what the noble Lord
Carrington said, but I would like to remind the House in particular my noble friend the Minister the point
I made earlier when I was speaking
about amendment one. That is the value to the House of having
expertise that Lord Carrington
presents in supporting his argument. Indeed, I ask particular attention
from my noble friend to his points
he raised relating to higher amendments before us in this group.
If she does nothing else, I hope my noble friend will take careful note
of the improvements that Lord Carrington suggests should be made
to her own amendments. to her own amendments.
20:30
Lord Carter of Haslemere (Crossbench)
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I rise... I'd like to rise to support strongly Lord Carrington's
amendments supported by Lord
Hacking. That is not just obviously fair that the tribunal should be
required to backdate rent, but it also removes the incentive for
tenants to challenge every rent increase come what may. Landlords who increase rent to market value
should not be penalised by being unable to backdate that rent to the
date of increase where there is an unsuccessful challenge. Otherwise it
makes a mockery of the tribunal process which is there to determine
the legal right of the landlord to increase the rent to the amount proposed.
If that right is upheld by
the tribunal, then like other legal rights that are litigated
successfully in civil court, it should be upheld from when it arose with the remedy backdated
accordingly. It is how our civil
accordingly. It is how our civil
For example, if I successfully make a claim against the defendant for negligence, nuisance or breach of
contract, the damages will generally be assessed from the date the claim arose, that is how justice is meant to work.
It should be no different
here. The correct market rent, upheld by the tribunal, should be
backdated to the date of the original increase. The noble
Baroness's amendment 37, which gives the Secretary of State the power to enable a tribunal to backdate the
rent, does not achieve this. In the words of her letter to all peers on 24 June, the power to backdate rent
will be used only if the Lord Chancellor and Secretary of State consider it " Absolutely necessary to avoid lengthy delays for genuine
cases to be heard." So, landlords
will get a just outcome only if it is absolutely necessary.
My Lords, this is not likely to sustain
tenancies. That is really the
tenancies. That is really the
20:32
Baroness Eaton (Conservative)
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I will declare my interest as vice president of the Local Governance Association and also a
part owner of a small number of rented properties in West Yorkshire. I rise to speak in support of
Amendment 29, 34, 35 and 36. In the names of the noble Baroness,
Baroness Wyld and the noble Lord,
Lord Carrington. Noble Lords may recall at second reading, that I am deeply concerned about the impact of
the on -- Of this bill on rented housing supply.
I remain concerned about this issue, however, the amendments of Baroness and Lord
Carrington's in their name, do provide me with reassurance that I
know that the rental market is also
looking for amendments 29, 35, 34 and 36. They are technical but sensible and clearly thought
through. If the government is to get anywhere near reaching its ambitious
1.5 million new homes target, then we need to be supporting and giving
clarity to the responsible institution built to rent landlord
sector, who are building thousands
of new high quality rented homes each year.
This part of the rental market I know is supportive of the government's aim to raise standards
across the private rented sector. But with the uncertainty they face
around how much rent they might reasonably receive and how many rent
increase challenges they may receive, I worry that the
development pipelines will slow or at worst completely hold. Whilst
they assess this new landscape, where any renter can challenge any
increase without any jeopardy. The
amendments 29, 34, 35 and 36 allow
for those providing a new high
quality rental homes to the market to continue to do so without undue impact from section 13 rent increase challenges.
The amendments allow the
institutional landlord sector to continue delivering the net
additional rental homes we need
without uncertainty. But crucially, these amendments, in my view, will deter spurious rent increase
challenges and allow vulnerable renters the access to Justice they
rightly deserve to. I acknowledge
the government's amendments on section 13 notices in the amendment
papers. But they also leave me concerned that in this place, and
indeed in the rental market, we in this sector are being asked to place
a significant amount of faith in the government, and the data it has, but will not publish, on how many
renters may challenge their rent
increases.
If a renter can save themselves months of rent increase for free and without any jeopardy,
why wouldn't they? And therefore, strongly of the opinion that the
amendments in the name of the noble Baroness and Lord Carrington provide the requisite amount of clarity to the sector whilst ensuring renters'
rights are improved and I/O is the government to take them abroad to
give everyone clarity while improving renters' rights and access
to justice for vulnerable renters.
20:36
Lord Young of Cookham (Conservative)
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I want to vNet to support amendments 29, I recall when we
debated this committee, the noble Baroness got a favourable response
from the frontbench. It may be that
of this amendment, the ice is beginning to melt. I was also struck by the contrast between the
certainty that we get with amendment 36 from the noble Lord Carrington, with the absence of any clarity and certainty from the government
amendments 37 onwards. As the Lord
said, it is procedure in law if a rent increase is valid to backdated from the date it was due, so the government is introducing a wholly
new concept in law, in their amendment 67.
Which doesn't actually take the trick. As I understand it,
they're going to wait until the system is gummed up until they
activate the process. But I have to
say, this is simply no way to govern, what they ought to do is accept amendment 36 clarity, certainty. Rather than this doubtful
procedure, whereby there remains every incentive, and only when the
system becomes even more clogged than it is, do they then intervene.
Now, that cannot be good government. I urge the noble Lady, the baroness, to think again about amendment 36,
or the other amendment that achieves the same objective in the name of my
noble friend, Lord Howard.
Because I just don't think this takes the
trick.
20:38
Baroness Thornhill (Liberal Democrat)
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My Lords, I don't know which end to start with really, let's start with the least contentious. We absolutely agree with 42, that a
review is imperative and should
definitely happen. Baroness Jones'
amendment 30, it seems absolutely right to us that at least the tenant
that is in the House when the taxpayer funds lovely significant improvements, that will raise the value of the landlord's assets
should at least be protected from a rent rise, at least during that
tendency.
-- Tenancy. It only seems
right and fair. The Baroness' amendment 29 which I supported at
committee and have co-signed is an absolutely sensible amendment.
Several noble Lords have also said they would support it and I think she has explained it at length and
with clarity. So I need say no more.
But anything that acts as a triage system in this process should be looked at seriously. So, to the
controversial bits. Well, the rent tribunal is clearly causing concern.
In fact, I think that there was an
invitation in the last speech to actually revisit this and look at it again, minister. Yes, there will be
third reading. It seems to me that a
lot of work has gone into these amendments, and justify perhaps a
little bit more time and effort than we have actually got now. Minister, you do have a lot to justify in order to gain support from the
House. But we are minded to support the government but clearly dances to
the very detailed and very sensible
proposals that have been put forward
today.
Let's look at 31, 31 risks allowing a tribunal to actually determine the level of rent
increase. That actually could be
very unaffordable. I think the idea that a rent tribunal can just say, well, I think the rent should be
such and such, is fuelling a market
that is already 'rents are rising!' rents are rising exponentially more
than they have at another time, yet we want to seem to fuel that. We certainly do not agree with rent
-- We believe some breaks could be
put on this, that would seem eminently sensible.
Perhaps we are looking at this through the wrong lens but I thought that the rent
tribunal would be if a tenant is expecting an annual rent rise, I'm in my rented apartment, I know the
landlord is going to put up the rent
in a year, I am kind of expecting that, I know what's going on in the area around me and I kind of sort
out how much it might be. Look at it the other way, if all the other things noble Lords have said about
everybody is going to apply, Martin Lewis is going to say applied, the Chancellor, the students union are
going to be on it.
Well, why would a landlord, knowing all that, put a
stupid rent rise in? If he knows his tenant could actually appeal against
it, that should put an instinctive break on unjustified, unrealistic
rises. The system should work in the natural sort of tensions, the
tensions of this way. So, we are kind of not happy, minister, but
have had conversations and thoughts about this and would ask the government to look again at some of
the details, and perhaps with some assurances from the Dispatch Box, we
could avoid a load of votes now and at third reading, because I think
certainly, we would want to be looking in more detail at this, then I personally admit that we haven't
already.
If that is fair to say.
already. If that is fair to say.
20:43
Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government) (Labour)
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I thank the noble Baronesss and the noble Lords, and Lord Hacking,
Lord Carter, and Renesse Eaton and Baroness Thornhill, for their contribution to the debate if I can
turn to the government amendments first of all. Grid amendment 37 allows the Secretary of State to
make regulations to change the date from which tenants are required to
make -- Pay a new rent, following a challenge to the impose rent increase, and government amendments 38 and 39 are consequential to this.
My Lords, our government was elected on a clear manifesto promise to empower tenants to challenge unreasonable rent increases.
It is
unreasonable rent increases. It is
essential that we deliver on this commitment, not only to protect tenants from undue financial pressure, but also to prevent rent
hikes from being used as a form of backdoor eviction, since section 21
notices have been abolished. During the bill's passage, as we all know, the house has debated at length the capacity of the justice system to
enable the smooth implementation of reforms in the bill. This is
particularly the case on the subject of rent increase challenges.
In
relation to which noble Lords have expressed very serious concerns that
struggling tenants rights may lead to the First-tier Tribunal being overwhelmed by sharp increase in challenges. Set against that
concern, we have heard powerful testimony from many tenant groups
that private renters, many of whom are struggling to juggle family life, multiple jobs, and financial challenges, are unlikely to spend
what little time they have navigating the justice system, unless they have got a really
compelling reason to do so.
Given
cost and effort that challenging a rent increase at tribunal would require, as well as the risk it
poses to a tenant landlord relationship, there is good reason to doubt a significant number of tenants will bring rent increase challenges, which have little
prospect of success. Who knows what will happen if Martin Lewis gets involved, but we will wait and see.
We also know the majority of landlords act responsibly and don't
expect many would see to serve
The likelihood of tenants challenges at tribunal.
If landlords don't impose rent increases, they will not
get taken to tribunal for supper recognise however there is an inherent uncertainty as to the volume of rent increase challenges that will be brought when a new
tenancy system comes into force. As the Baroness Pidgeon, the system in Scotland, she will know, the system,
there were very different changes in Scotland than the ones we are
proposing. We are working closely
with the Minister for Justice, it is well prepared for our reforms come in a poppy chamber, work is progressing to increase capacity, as
well as reviewing resource and working practices and readiness for any increase in demand.
However, we
have listened very carefully to the concerns expressed by a number of your Lordships, the government has
decided to put in place a proportionate safeguard for use in circumstances, where it has become
clear that the tribunal system is on
course to be overwhelmed. This safeguard helps the creation of a new power that would enable the Secretary of State to make
regulations to change the date from which terms are required to pay a new rent, in instances where the
First-tier Tribunal has set one following a challenge to the proposed rent increase.
In other words, it would enable the backdating of rent increases
following determinations by the tribunal, in respect of new rent
amounts. The Secretary of State by
regulation will specify the date by which the new rent should be paid, providing this is no earlier than the date first proposed by the
landlord in section 13 notice, the notice by the landlord. I want to make it clear the government's... That it is the government's
intention not to make use of this power unless or until the First-tier Tribunal was at risk of being overwhelmed, by the sharp increase
in challenges.
And it became necessary to avoid lengthy delays
necessary to avoid lengthy delays
I heard the points about what the numbers concerned are about. I think it would be determined by continual
monitoring to see how the process is working. This change will be subject to the affirmative procedure, to
allow appropriate parliamentary
scrutiny. On amendment 29, fundamentally, the government has given considerable thought during
the passage of the bill to whether the tribunal is the appropriate body to determine all rent increase challenges.
I am particularly
grateful to Lady Bull for her constructive engagement on this
matter. After careful consideration of the points made by noble Lords, and after reviewing the experience
of similar reforms in Scotland, we have concluded that there is a
compelling case for the use of an alternative body or mechanism to make initial rent determinations. This will ensure the long-term
sustainable of the of the system, relieving pressure on the tribunal,
and has the potential to deliver longer term savings.
Contributing to more efficient states delivery. Within such a system we know that
some judicial function continue to be necessary in relation to the small proportion of challenges, and
to ensure that Landlord and Tenant Act have appropriate access to justice they always must have. We
therefore in tends to establish such an alternative body or mechanism as
quickly as possible subject to competing a full viability
assessment of this. We will confirm final details of this in due course.
In exploring this we will carefully consider the arguments put forward by the House.
I am sympathetic to the intent of amendment 29 tabled by
the noble Baroness. I'm concerned the amendment in its current format would not achieve the desired
result. It would require the VOA to
take up the function immediately alongside their existing responsibilities without fully assessing the viability of this
proposal or how it would work in practice. That risks creating an inoperable system, one which does
not achieve a fair result for landlords or tenants. I'm sure noble Lords will agree this is too
important a matter to take a risk given the potentially damaging effects on access to justice for
tenants and landlords.
With this in mind I would ask the noble Lady to withdraw her amendment. We are
minded to create a mechanism but not the VOA that she spoke about.
**** Possible New Speaker ****
$$CAPITALISE... I would like to thank the Minister for constructive
thank the Minister for constructive engagement and I will withdraw amendment.
**** Possible New Speaker ****
amendment. I am grateful for that. Now I turn to the other amendments in this group. Regarding amendment 24,
group. Regarding amendment 24, present private registered providers of social housing can grant secure or assured tenancies and the
or assured tenancies and the majority of these are let social rents. They are regulated by the
rents. They are regulated by the regulator. The definition and the bill reflects these arrangements. If the government or social housing
sector were to change the way in which rent is determined are regulated in the future, power would
regulated in the future, power would enable the Secretary of State to make technical amendments to reflect this or other changing circumstances.
As the power relates
circumstances. As the power relates only to the definition of relevant low-cost tenancies, I want to
low-cost tenancies, I want to reassure your Lordships that the Secretary of State would not be able to use that power to change the legislation to affect market rates
legislation to affect market rates tenancies. Based on this I would ask Lady Scott to withdraw the amendment. Turning to amendment 30,
amendment. Turning to amendment 30, I thank Lady Jones for her engagement on this issue. The
engagement on this issue.
The government fully support the cause for efforts to improve energy
efficiency of homes in the private rented sector particularly where
tenants are proactive in accessing support to government backed schemes. The amendment as drafted would mean that any increase in value arising from these improvements will be disregarded
even if it were partly funded by public money. Therefore if the landlords have made sizeable
investments themselves in improving energy efficiency of their property,
without government grants, under this amendment they would not be able to increase rents to reflect
the improvements.
The tribunal has experts who will assess what the landlord can expect to receive if re-letting the property on the open
re-letting the property on the open
market. Both landlords and tenants would have the opportunity to submit evidence as to why they think the rent increase is either justified or
not justified, and the tribunal already ignores any improvements to the property made by the tenant to avoid inflating the rent. However it
is likely to be more challenging in practice for the tribunal to differentiate rent levels based on whether energy efficiency upgrades
were funded through specific grant schemes, to clearly where the tenant
was not directly responsible for the
work.
We recognise it is very important that means-tested energy efficiency grant schemes are used to benefit tenants. That is why for
that Warm Homes Local Grant which was launched in April, the Department for Energy Security and
Net Zero have set a clear expectation that landlords should
declare they do not intend to raise rents as a direct result of the updates being made. During the committee debate, Lady Jones rightly
highlighted the importance of ensuring that landlords do not unduly profit from government funded improvements. That the value of
improvements.
That the value of
these schemes should flow primarily to tenants given the impact on many people living in poverty. And the
threat of eviction. We have carefully considered these points and believe the measures already being introduced strike the right balance. In conclusion, the landlord's declaration introduced
and overseen through the Warm Homes
Local Grant will include a commitment for landlords not to increase rents as a result of improvements made using the grant
funding. I hope this offers the noble Baroness Lady Jones reassurance the government is taking
this issue seriously.
And for those reasons I respectfully ask her to withdraw her amendment. The noble
Lords Lord Howard has proposed two amendments to the process for challenging rents within the first six months of the tenancy Tribunal.
On amendment 31, the ability to challenge rent in the first six months of the tenancy is a vital
safety valve and ensuring tenant cannot continue to be ripped off if they have been pressured into unfair
rents. Landlords who have agreed a fair market price have nothing to fear from this mechanism.
This
amendment would exacerbate the worry
of tenant already facing about going to a tribunal to enforce their rights. Tenants will not challenge
rent they risk being worse off following tribunal ruling. The bill encourages tenants to engage with the tribunal they have legitimate
concerns, by reinforcing the rights
of tenants to do so, we are dis- incentivising the minority of landlords from pressurising tenants into unfair rents at the beginning
of the tenancy. On the way for landlords to avoid this clearly is to make sure their rent affair at
the start of the tenancy.
Turning to amendment 32, the government is
clear that tenants should only submit an application to the tribunal in the first six months of their tenancy, where the rent is
above market rates, or if they believe they have been pressured into an unjustified initial rent. In
the first instance we strongly encourage Landlord and Tenant Act to communicate about what adjustments
to rent might be reasonable. I would like to answer the noble Lords
question about how tribunal determined a fair rent. In order to
determine the market rates, the Tribunal considers a wide range of evidence such as the price of similar properties being advertised
online, and evidence omitted from both parties justifying or arguing against the rent increase.
The First
Tier Tribunal has experts who are experienced in understanding the different factors which result in
the market rates. In determining
whether the rent is reflective of this. And the First Tier Tribunal is best placed to do this in the tenancy system. It is also worth
noting that the tribunal has power to adjudicate rent levels in line with market rate and has had this since the 1988 Housing Act. Since
then, the market rate has continued to increase. However if the rent is
challenged and the tribunal determined that the rent exceeds the open market rate, it is right that the tribunal be able to backdate the
lower rent to the date it was
challenged, and the landlord repaid a difference to the tenant.
I therefore ask Lord Howard to
withdraws amendment. Turning now to amendment 33, 34, 35, 36, and 40, government recognises that some
tenant avoid challenging and reasonable rent increases out of fear they may be saddled with significant amounts of backdated
which they will be unable to afford. By removing the ability of the
tribunal to backdate a rent increase, tenants, particularly vulnerable tenants, will be empowered to challenge what they
believe to be an above market rate rent increase. This reduces the risk
of an unreasonable rent increase causing a tenant financial hardship or even being used to force someone
out of their home.
I think this is a really important measure to
encourage people to challenge and
reasonable rent increases. Amendment 34, 35, 36, and 40, particular may
only heighten the risk of vulnerable tenants being able to challenge an
increase. We know tenant and landlords are eager to maintain a positive relationship and won't bring the other to court or tribunal
without good reason. As such, I would ask the noble Lords to
withdraw these amendments. Turning
finally to amendment 42, the tribunal has over 30 years experience of making determinations of unfair rent increases, having
carried out this function since the 1988 Housing Act.
We have full confidence in the tribunal's ability
to carry out this function in a fair way. I appreciate the need for the justice system to be ready for our
reforms if landlords and tenants want to access justice in a timely
way. We are working in partnership with the Ministry for justice to assess the impact of the reforms of the tribunal, and to lesson these
were ever possible. This close collaboration has been ongoing for a number of years and had a great
amount of detail.
The amendments we have tabled to a rent increase measures shows were listening to the concerns of the sector and this
house about tribunal workloads. Put in place to safeguard in case it was needed. We will be already
collecting extensive data to assess the impact of these reforms. As set
out, the impact assessment for the bill and in debate we have committed to monitor and evaluate our reform
to monitor and evaluate our reform
program. We use a range of sources to support this will stop existing datasets will be used and new data will be collected.
As I said earlier
we are committed to publishing the evaluation findings at the two and five year points after the build
implementation. Can I respond to Lord Carrington's request about the justice impact test. We are
undertaking this with the Minister of this will identify additional burdens on the justice system. They
are internal government documents and are not published. The test is
ongoing and regularly reviewed to make sure reflect any changes to legislation as the bill continues
its journey through Parliament.
We are fully focused on making sure the justice system is prepared for
changes to court's caseload. In procedures which will be required for our reforms and we are working
with the Ministry of Justice and HM Courts and Tribunal Service to that effect including investing
additional court and tribunal capacity to handle any extra hearings generated. In this context,
I don't believe, and the context of
the review that I have already outlined both in the course of discussing these amendments and
earlier on today, I don't it is necessary to commit to undertake any further review.
On that basis I hope
the noble Baroness will agree to withdraw her amendment. I would like to move the government amendments.
20:59
Lord Jamieson (Conservative)
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My Lords, I thank the noble
Baroness the Minister for her reply. And for setting out the government amendments. However, we remain disappointed that the so-called
disappointed that the so-called
break glass power is reactive in nature, and fails to address the underlying incentives that drive
unnecessary cases. Noble Lords across the house have raised the risk of the tribunal system being
overwhelmed. While I listen carefully to the Minister's comments
on a mechanism there are no firm proposals.
Therefore, on that basis,
we will support my noble friend Lord Howard of Rising on amendment 31 if
he is minded to push this to the vote. As Lord Carrington has raised, and we requested that Committee
stage, the government has failed to publish the justice impact test. I had the comments that the Minister
made, but I again ask the Minister
to publish this before we reach report stage. Given the importance and concern across the house of the
impact of the justice system of this bill.
Amendment 42 six review of the impact on the tribunal system. As we
have another amendment later on reviewing the impact on the justice system in its entirety, we will not
system in its entirety, we will not
system in its entirety, we will not
Serious concerns remain regarding the definition of low-cost tenancies. I urge the government to
reflect carefully on the breath of the powers they are granting. That said, I will withdraw this amendment.
**** Possible New Speaker ****
Is it your Lordships pleasure that amendment 24 be withdrawn?
21:01
Lord Best (Crossbench)
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Amendment is by leave withdrawn.
**** Possible New Speaker ****
Amendment 25, Lord Best. I rise to move amendments 25, with the related amendments 26, 27
with the related amendments 26, 27 Lord, Lord Kirkham, noble Lady, Baroness Grender, I declare my
Baroness Grender, I declare my interest as vice president of the Local Government Association Charters Trading Standards Institute, Town And Country Planning Act Association, past Chair of the
Affordable Housing Commission and my wife owns rented property in Dorset. I fear the bill still retains a fundamental flaw in its provisions
fundamental flaw in its provisions for rent increases.
Quite properly,
for rent increases. Quite properly, the bill seeks to ensure tenants are not subject to huge rent rises, which can have the effect as the renters reform coalition and shelter
renters reform coalition and shelter made so clear. Of evicting them from the property. The bills way of
the property. The bills way of solving the problem creates hazards for tenants and landlords alike, to prevent exorbitant rent increases,
prevent exorbitant rent increases, the bill relies on the renter taking
the bill relies on the renter taking their case to the First-tier Tribunal, which will determine a market rent that cannot be exceeded.
My Lords, this arrangement is fraught with difficulty. The first
problem with a system dependent on the tribunal's judgement is that
deciding on a market rent is not a science. The outcome of tribunal hearings can be unpredictable but
sometimes appear arbitrary. The second drawback is that renters must
take on a daunting task. They are likely to fall out with their landlord on whom they depend on a continuing service, to appear in
person, they may need to give up a day of work, incur travel expenses
and endure intimidating process.
Third, the tribunal's decision on what is the market rent may still
involve a big rent hike, well ahead of rises in incomes, and can thereby
present an impossible affordability obstacle for the tenant, the very problem the process was intended to
avoid. From the perspective of the
landlord, many of your Lordships have been concerned that the tribunal will get clogged up with
thousands of time-consuming appeals. I was pleased to hear the noble Baroness, the minister, is looking
at an amendment to make use of the Valuation Office Agency, to weed out
appeals that are likely to fail.
The noble Baroness the Minister is also introducing an amendment that
reduces incentives for renters to appeal, by enabling the Secretary of State at a later date, to allow
backdating of the rent increase,
that is determined by the tribunal. By making the appeal process more risky, this new measure could deter
renters that do have a good case for pursuing an appeal. In any case, it
is a fallback, a long stop, that may not be introduced for some time. If at all. More helpfully, I believe,
amendments 25, 26 and 27 would
provide clarity and security for the renter and the landlord, and give
confidence to responsible investors.
The amendments would mean rent increases being capped on an index
basis, using either CPI or the rise in earnings averaged over the
previous three years. The indexation would be limited to three annual increases, after which the landlord
could charge a market rent, if
necessary determined by the use of process to appeal to the necessary
tribunal. This presents a fair solution for the need for moderation and rent increases, without reliance
on appeals to the FTT and all the
problems that brings.
My Lords, in
returning to this matter at report stage, I have added a new amendment, 28, which addresses a criticism of the indexation approach. This
amendment tackles the valid objection that there may be exceptional circumstances in which
an indexed increase would not be fair to the landlord, for example,
the landlord may have spent substantial funds to improve the property, and could justify a rent increase that contributes towards
the cost. The new amendment enables the landlord, not the tenant, the
landlord, to ask the tribunal to improve the setting of a rent in excess of the otherwise automatic
indexation.
My Lords, the amendments cut out the need for renters to take matters to the tribunal and
therefore to enter into a battle
with their landlord. Most tenancies do not last more than four years, so for most tenants, the arrangement
would be in the uncertainty of indexation of rent increases. Whereas, the fickle market might have meant much greater rent
increases. I believe this is a far better way of limiting increases than currently in the bill. And it
cannot be described as rent control.
It is time-limited. And not
comparable for failed rent control measures in other countries. It is fair to landlords and entirely
preferable to the hassle and uncertainties of them being taken to the tribunal. It avoids the clogging
up problem that may mean the tribunal system is going to be
overwhelmed. My Lords, here is a package that has real benefit for
landlord and tenant alike. With thanks to my co-sponsors for the
**** Possible New Speaker ****
amendment, I beg to move. Amendment proposed, clause six,
21:07
Lord Young of Cookham (Conservative)
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**** Possible New Speaker ****
Amendment proposed, clause six, page 8, line 18, at end insert the words as printed on the Marshalled list.
**** Possible New Speaker ****
list. I have added my name to that of Lord Best, a footnote to what he has
Lord Best, a footnote to what he has just said. There has been considerable concern about the
capacity of the courts to handle the volume of appeals that will go to the tribunal's, when the bill becomes an act. The backlog has
actually been going up at the moment, and in the first quarter of 2025, the average time of landlords
submitting a claim and getting possession was over seven months.
32.5 weeks, up from 29.8 weeks a
year ago. The Minister uses a different figure, eight weeks, but that only covers getting a
possession order, not actually getting the property back. In earlier debate, the minister implied it was quite difficult for a tenants
to challenge an increase in rent. I would respectfully disagree with that, there are a whole range of organisations that will give tenants advice on how to challenge an
advice on how to challenge an
increase from the landlord.
Now, this government have made it clear that unlike the previous administration, they are not prepared to wait for the necessary
reforms to the core processes are in place. Before they activate the
bill. That is a position entitled to
take, and welcomed by tenants. However, there should be a process to minimise the chance for the
courts being overwhelmed. In the
interest of another tenant or landlord, that is what amendment 25
does. The likelihood of rent, of course, a market rent when it was fixed, diverging significantly from
CPI or RPI over four years is actually quite small.
At the
certainty that goes with that guarantee will be welcomed, I think,
by tenant and landlord. And if after four years, there is a divergence, or best to just explain, the rent
can then catch up. Now, someone who actually voted for the Housing act
1918, which abolished rent control,
I see no problem with this measure simply smooth increases over a four-year period, and again, speaking personally, if at the end
of the four or five years the courts have shown themselves to be up to
speed and there is no backlog, I would be happy to see this provision laps, but in the meantime, I hope the government will smile on it.
the government will smile on it.
21:10
Lord Cromwell (Crossbench)
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If I may just add one note to what the noble Lord has just said,
it is very common in commercial contracts to have a CPI over a
series of periods, followed by a reset to market level. Because, in
part, a CPI may take it up too high, and it comes back down to market level. I think that needs to be part
of this amendment.
21:10
Baroness Grender (Liberal Democrat)
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My Lords, we support the amendments in this group, concerning rent affordability, and after the
strikes to the heart of millions of tenants. As Shelter, in a release, only this week rightly says for every day the government doesn't pass the spell, another 70
households will be threatened with homelessness because no-fault eviction is being kept on life
support for no reason. I hope you later part of the report stage, we will get some reassurances about
when this key measure will begin. To overcome some of the rumours of late, in the media, about it being
delayed.
We also welcome all of the work to fix the issue of supply of decent homes, across all tenures.
But private renting is persistently outpacing both wage growth and
general inflation. According to the
latest data, and we heard some of it from the noble Lord Carrington earlier, average rent prices in
England increased by 21%, meanwhile, wages continue to grow slower than rents. With the most recent data showing annual growth of 5.2%, rents
have outstripped wages every month for nearly 2 years now, since
September 2023.
Over the past three years, the average annual rent has
increased Over the past three years, the average annual rent has
increased by 2,000 x 2006 and 50, rising to 15,450, 21% increase, compared with, for all those
occupiers here, a growth in house prices over the same period, this relentless rise is not just a
statistical anomaly. It is a driver of poverty, hardship, and in some
cases, way too many, homelessness. Amendment 25, tabled by Lord Best,
supported by myself and Lord Young of Cookham proposes a mechanism to smooth in tenancy rent increases by
limiting them to the lower wage
inflation, it restricts rent increases to once per year would allow tenants to challenge above market rents at the First-tier
Tribunal, as we have heard a previous set of amendments.
However,
the so-called term market rent is often calculated based on arbitrary information. Such as advertise rents
for new tenancies, figures that will inevitably and typically be
inflated, and do not reflect the
actual rent paid by sitting tenants. This methodology leaves tenants exposed to rent hike evictions.
Section 21 in all but name into --
Undermining the civility this purports to deliver. For the Merry
renters -- Many renters who have no
alternative, the cheapest place they can find, market rents are already, by definition, unaffordable.
The tribunal process itself will help
put not fix this problem, and certainly not soon. Generation
rent's analysis found that while 73% of tenants who challenge the
increase through the tribunal succeed in reducing the proposed rent, the average increase awarded
it is still 14%. And only a small minority of cases result in increases below wage or rent
inflation. The processes are also
own arrest and complex. -- Are also complex. Deterring many tenants from
proceeding at all.
It is therefore not just a technical fix, it is a vital safeguard during this period
of transition. It will provide tenants with the predictability and
stability needed the budget and remain in their homes, free from the constant threat of an affordable
rent hikes. For landlords, it offers an index yield, without the administrative burden and
uncertainty of the tribunal proceedings. I would ask in particular, that the opposition
front bench at the government front bench resisted the temptation and
allure to comment on these proposals as rent controls.
That would
suggest, my Lords, that the years of knowledge and experience of the noble Lord Young and the noble Lord
Best have rented them somehow incapable of being able to
understand the difference between rent control and something else. This proposal is fundamentally
different. It is time-limited. It
different. It is time-limited. It
does not set market wide Caps, not to stall the market or stifle investment. Beyond these immediate
protections, we must look to the immediate term, whilst we wait for
the much-needed and the long-awaited additional supply of homes.
That is why I have tabled amendment number
114. Requiring the Secretary of State to conduct a comprehensive review of rent affordability, with
the express aim of establishing a national rental affordability commission. And I thank the noble
Lady Lister for her support and the
Renters' Rights Publisher for their work on this issue. That same
coalition found that nearly 1/3 of private renters, an estimated 3.8 million people, always or often struggle to afford essential slight
struggle to afford essential slight
groceries, due to the amount they
spend on rent, and nearly one in 10 have sold personal items in order to afford rent.
The current builder
welcome in its focus on security of tenure and housing quality, does not address the fundamental issue of cost. The number one issue for most
private renters when surveyed, incremental tweaks to the tribunal
system will not resolve the scale of affordability crisis that we have
today. A national commission would be quick to analyse the full convexity of the crisis. The
interplay of supply and command. -- And demand. The shortage of social
housing, the effects of different
rent measures, in comparative nations, and the impact of fiscal policy on the sector.
While increasing the supply of affordable
home. This is all essential. The reality is that such measures will take years to affect rents. We need
urgent evidence-based interventions
The evidence is compelling. Research
from the Mayor of London shows a 1% increase in housing affordability in London alone could generate an
additional £7.3 million in economic output in the next decade. The
Chancellor of the exchequer love that right now? Enhanced affordability, not only improves
housing well-being but also boosts productivity, support job creation,
and reduces the financial strain on public services, at a time when one in 50 Londoners is experiencing
homelessness.
The amendments before
us today, that proposal for the comprehensive affordability review, they are essential to ensuring that
the Renter's Rights Bill delivers on its promise of security, fairness,
and genuine affordability. Without them we risk replacing one set of
insecurities with another. In failing the very people this bill is meant to protect.
21:18
Baroness Lister of Burtersett (Labour)
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I draw attention to the role
played by high housing costs in driving poverty. I was pleased to
add my name to amendment 114 tabled by the noble Baroness. I supported
also the other amendment in this group and hope that what I have to say will add to the case for them
also. Evidence from the Joseph Rowntree Foundation illustrates the
extent to which high rents in the private sector are associated with poverty. Shockingly they point out that around half of the private
renters are only in poverty of their
housing costs are factored in.
Two more reports about child poverty published this year reinforced the
point. The first by IPPR argues that housing costs are called to
understanding child poverty. The notes number of children counted at in poverty is about one third higher
when housing costs are factored into the measure. And though the private
rented sector has become increasingly significant in the lives of children. The second is
also published by IPPR together with CPG of which I am the honorary
president and changing realities which involves lived experience of
people in poverty.
It notes that rent increases are stressful to families to manage, and that the
Renter's Rights Bill will continue to enable large increases in rent provided they are reflecting market
rents. This risks exposing tenants
to unaffordable hikes in housing costs undermining Bill's day-to-day,
and fairness for renters. They quote
one tenant, " I'm getting really worried about my rents going up this year. Keeps rising every year at the Local Housing Allowance is frozen
for this year. It is frightening. "
The reports underline how the situation is aggravated by freezes in the Local Housing Allowance about
the operation of the benefits cap which affects larger families and those paying higher rents in particular.
The amendment states,
any review of rent affordability must include its remit the
effectiveness of policy interventions to improve affordability relative to incomes. I would argue this would need to
include promises on the income side making it impossible for some families to meet their rent commitments alongside other
essentials. It seems to me a very
modest amendment that would complement the government's welcome commitment to an ambitious child
poverty strategy. I know that that Child Poverty Taskforce is very
aware of the importance of housing to the strategy.
But it is unrealistic to expect it to carry
out the thorough review of rent affordability post in this
amendment. I hope therefore that my noble friend will be able to give a more positive response from that
which he gave in committee which I have to say I found rather disappointing. What is needed is
something more robust and holistic than the regular monitoring to which
he referred, as important as that might be. A review of this kind
would be very much in the spirit of the bill and would help ensure its impact is not hunted by the
continued damage created by excessively high rents in the
private sector.
21:21
Lord Fuller (Conservative)
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I rise briefly just to try and
understand what the different
definition of rent is if we are to tell the increases. Because there are certain things, the base rent,
which you can see just by googling one of the property website. It is
probably a good idea to get a feel for the basic low-cost unfurnished
property in the worst part of town. But of course that is not necessarily the marketplace. The
market price is determined by a number of factors.
Serviced
accommodation, furnished, there may
be other benefits, I'm not going to go as far as people in gyms but I know they are available in some
circumstances. And parking would be another one. All of these different elements have different cost
pressures and inflationary increases which may be determined by factors
outside the landlord's control. A property that has inclusive parking,
it may somehow become significant in more valuable if the local council
applies permits on the streets around.
So I can anticipate here that when one looks at the rents,
and I'm very tempted to support
amendment 25, but I'm reluctant to do so because at the moment, when
rents are sorted out, all these extras are rolled into the single price. I think the logical
conclusion of where this debate is going is that we are going to get
menu pricing, rather as we see other low-cost airlines. Where there is an
attractive flight, £5.99 to fly to
Spain whatever, by the time you've got the baggage of the booking fee and anything else, it rolls up to a significantly higher value.
Of
course in that example, the £5.99,
the risk of that going up maybe somewhat extenuating. But it is
those other extras, the what I would call that landed price, the total
cost which is something that could
vary accordingly. The other points we need to take into account, a significant point, maybe section 20
repairs, there may be improvements particularly in the case of
furnished accommodation, where the landlord is prepared to improve and
upgrade either the fixed furnishings like tables and chairs or possibly
soft furnishings as well.
So all of these complicate what is at the moment a rolled up finger. I think
we have to suggest to ourselves that the logical conclusion of all this is that all those extras are going to be disaggregated and obfuscated,
and it will be harder to compare. But it is going to be hard to
compare for the potential tenant, but it will be essential for the
landlord to obfuscate in this way.
In the circumstance that we go to the First Tier Tribunal, which is really concerned with the underlying
rent, the £5.99 figure, so I think it is difficult and I have huge Amata simply with Lord Best for his amendment.
I can't support it
because I think the logical conclusion of it is that we will get a fragmentation of those elements of
rent, the landed rent, so that if you like the tail wags the dog. The
landlord is so focused on restricting the base rent that the
other things get lost. other things get lost.
21:25
Lord Jamieson (Conservative)
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My Lords, we have concerns on a number of amendments in this group. On the basis that they are in our
view unduly prescriptive and risk the introduction of what could be regarded as ineffective a form of
rent controls. The amendments in the name of the noble Lord Lord Best
seek to protect the tribunal from being overloaded due to this bill.
While we agree that there is a significant risk of overloads, we have concerns about how the
arrangements would function.
Particularly, we do not feel able to support systematised rental increases to CPI. CPI is a generalised index, reflects the
price of bread, fuel, clothing, but not rental market dynamics. What
happens in areas where market rents have fallen but inflation is high,
when incomes are stagnant CPI rises. This approach is a national economic measure to benchmark against the
highly localised rental markets. The result would almost certainly be a distorted rental market. That said
we do share Lord Best's concerns about the impact of this bill on
tribunal's backlogs which we discussed at length at Committee
stage.
Amendment 114 in the name of the noble Baroness raises some important points which I shall
briefly speak to. There is no doubt that rent affordability is a serious issue. This amendment rightly draws
attention to a range of important factors, regional disparities in
rental costs, the strain of high rents placed on household finances,
the need to understand how effectively the First Tier Tribunal is working in practice. However, I
must also sound a note of realism, we do not need another report for
its own sake.
What we need is actual change. Change that improves the
lives of renters and restores fairness to a housing system that too often feels stacked against
ordinary people. If this review is to go ahead, it must not become just
another document left to gather dust on the shelves of the Department. It must lead to action. So I would urge
the Minister to use the opportunity to outline how the government will
respond to the concerns raised by the noble Lady in her amendment, which we all agree are all points
which matter in this debate.
which matter in this debate.
21:28
Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government) (Labour)
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I thank Lord Best and the noble Baroness Lady Grender for their
amendments relating to rent affordability and rent controls, and the noble Lords young, Baroness
Lister and Lord Fuller for speaking in this discussion. Can I say, I do
have that deepest respect for Lord
Bester, Lord Young, and for Baroness who also has experience in this
area. I don't intend to visit the detailed discussions we had at
Committee stage, they had informed deliberations and I know how
strongly some noble Lords and groups feel about helping those who
struggle to pay high rents.
I have sticky understand the pressure that rents put on the budgets of individuals and families, and to
come back to the earlier point made in the debate, that the solution to this is to create a lot more social
and affordable how for people. But I realise that is not going to happen
overnight. I must start by reiterating the government's concern
that rent controls as proposed would risk reducing housing supply, discouraging investment and ultimately lowering property
standards. The case of this
amendment, amendment 25, the most relevant international comparator is
that of Ontario, an example which I
cited that committee.
The Ontario model, whereby rent increases are According to a measure of inflation I'm afraid has not led to desirable outcomes. In fact analysis suggests
has been higher rents for new tenants. In respect to expenses in
Scotland, a recent nationwide foundation report found that rent
control measures in Scotland had not protected the majority of private rented sector tenants against excessive rent increases. Or against
higher advertise market rents. Considering average advertiser
enters the system as a whole. But the measures in Scotland don't appear to have impacted rental price
growth in Scotland has consistently been one of the top regions in the UK in terms of the highest growth in
asking rents.
According to Superlano, in the year to January
2024, when the renting increase was in place, Scotland was the only UK region with a double digit annual
rent growth of 11.6%. I'm also aware of inadvertently incentivising
landlords to raise rents each year
to the level of a cap when they otherwise may not have done so. The most recent data from the English
private landlords survey which was published in December last year tells us 44% of landlords renewed and extended the tenancy did not
increase the rent when they extended
the tenancy.
There is a risk that in setting a cap, we may, albeit inadvertently, be setting a target
for this group of landlords and making things harder for renters. If the House will allow weird like to
introduce an example. In the year to May 2025, rents in the city of Bristol fell by 1.1% of the CPI rate
for the UK was 3.4%. And the percentage increase in the median
national earnings calculate of a three-year period, was 6.7%. This
means that CPI or earnings linked increase could inflate rents beyond local market conditions.
Increasing affordability pressures for tenant
not studying them. This example highlights the risk of applying strict one-size-fits-all rent
controls, regional disparities in both housing and labour markets demand more flexible and locally
responsive approach. That is why the bill allows landlords to adjust rents annually in line with current
market conditions. In doing so it delivers a strengthening of rent regulation, the broader context of
the system as a whole, putting security of tenure, enforcement and
quality standards. In the second the amendments, 26, this would create an
unequal system where tenants are treated differently based on the length of time of the property.
Those with longer tenancies would
face an unfair choice, except the increase will move. Such an outcome
represents a limitation in rights and the government cannot endorse
I will turn out of the third
amendment, as I have made clear, the government cannot support proposals
that would encourage tenants from challenging rent increases, however,
, we have talked about that this evening. I assure noble Lords our work will continue in that regard,
in addition, I hope the noble Lord is reassured by the amendment we have tabled, which I have already explained in detail.
Turning to
amendment 28, I must express concern regarding this amendment, this could result in tenants securing an
Of proposed amendment under the Lord
Best's name, to counter increases over a four-year period, only to find it rendered unaffordable due to subsequent enhancements. Moreover, it must be noted this amendment
leaves it up to the tribunal to determine whether exceptional circumstances apply in each case.
This, rather than reducing the burden on our system, would, we fear, create a significant
additional work for the system.
It must be stressed that the amendment would afford the landlords the right to challenge the tribunal's decisions while denying tenants the
same opportunity for recourse. This is not an acceptable outcome and I hope on the basis of these points,
the noble Lord Best will consider not pressing these amendments to a vote. I also thank the noble
Baroness, Lady Grender, for amendment 114, recognising this as a development on the amendment she
brought forward a committee forced I will not repeat the details set out in committee on the government's commitment to thoroughly monitoring, as I've explained again today,
however, I think it will be helpful
to just reiterate that the extent to which the government will be monitoring and evaluating this process.
We will publish our
evaluation reports on GOG.uk, in
line with the policy we have set out in our evaluation strategy. And we will publish those to Parliament.
They will be deposited, copies will
Of both Houses of Parliament, as soon as they are published and we
are committed to carrying out a robust evaluation and disseminating its findings widely, furthermore, we will continue to tracker elements across the rental sector, using a
broad set of data sources and work closely with colleagues in other departments, to monitor the pressures on low income renters.
This ongoing analysis allows us to identify and address unintended consequences or emerging challenges in a timely manner. Therefore, I
wholeheartedly share the noble
Lady's and -- Determination to review how the legislation is working and to support the struggling tenants we are all
concerned about. I don't believe a separate review mandated by law is necessary or proportionate and I asked she withdraw her amendment.
21:35
Lord Best (Crossbench)
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My Lords, I am very grateful to noble Lords for their support for my
set of amendments. Grateful to the noble Lord, Lord Young of Cookham,
for his support. He makes the point that the First-tier Tribunal already
faces a backlog and there is the danger that it gets a lot worse in
the future. I was grateful to the noble Lord, Lord Cromwell, for his
inside knowledge that in the
business world, indexation is relatively common, as a way of stabilising increases over a period of time.
Of course, the market rate
of time. Of course, the market rate
may go down when it regimes. -- When it resumes, in comparison to what happens on an index basis, so rent
could go down at the end of a four- year period. Grateful to the noble Baroness, Lady Grender, who makes
the point that renters are still exposed after this Bill is passed to
much greater insecurity and uncertainty from potential rent increases, we are seeing increases at the moment of 14%, which is miles above inflation.
This is very
unsettling for tenants and I think the stability of index system would
be infinitely preferable. I support the noble Baroness's own amendment 114 for a government commission on affordable housing. This would match
the voluntary sector supported commission, which I have the honour of sharing a couple of years ago, ready for a review. That was
supported by the noble Baroness, Lady Lister, who points out how
housing costs increase exponentially almost, the number of children and
families in poverty.
It is housing costs what done it very often in creating poverty. The noble Lord,
Lord Fuller, was yet to be convinced
of the merits of my case. And it is
true that there could be complications but I think any other
system is more complicated than the one we are proposing. Lord Jamieson,
I am sad to say, compared this to rent control. Not again. We thought
we were at pains to point out something that hits the market level on a regular basis cannot be called rent control.
Control of the
marketplace. But I thank him for his contribution. The noble Baroness,
the Minister, I am afraid I have not convinced, despite her great generosity in having meetings
outside of the chamber. I am grateful to her for listening
intensively for the case I make, it has not been sufficient to win her
over. I can only say that there is
now, on the record, an alternative to the government's formula, the
bill's formula, and if that proves as unsatisfactory as I suspect it will be, maybe this amendment's time
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will come. In the meantime, I beg leave to withdraw the amendment. Is it your Lordships pleasure this amendment be withdrawn? The
amendment is, by leave, withdrawn. Amendments 26, 27 and 28, Lord Best?
Amendments 26, 27 and 28, Lord Best? Not moved? Lord Best? Not moved.
21:39
Baroness Jones of Moulsecoomb (Green Party)
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Amendment 29, Baroness Wolf, not
Hiawatha noble Lady, the Minister
says about the government taking it seriously and I accept there is a move, for example in the Warm Homes
Local Grant, putting in a clear expectation, but that isn't compulsory, guidance isn't compulsory, landlords do not need to
do it. It is not OK that tenants
suffer the noise and disruption of improvements and then they don't
actually benefit financially at all and have rent rises immediately. I am not precious about how it is
done, it could be in the ground conditions.
I imagine there is also some ways of making this happen, so
that tenants can have some benefit without increased cost. I do thank
the Liberal Democrats for being prepared to support this amendment.
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Although I bitterly resent saying it, I beg leave to withdraw. Amendment 30, not moved.
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Amendment 30, not moved.
21:40
Lord Carrington (Crossbench)
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Amendment 31, Lord Howell, not moved, and amendments 32 and 33? Not moved. Lord Carrington, amendment
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34. ... The noble Baroness of the
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... The noble Baroness of the Minister, for answers to my various questions. However, I also would
questions. However, I also would like to point out that I think her
agreement to work on Baroness Wolf's amendment is extremely positive step and I look forward to the results of
and I look forward to the results of that. However, with considerable
that. However, with considerable
that. However, with considerable sadness, I'm very disappointed by the lack of clarity on amendment 37.
The drafting of that amendment is so vague, with the judgements being
called only when absolutely
necessary and when significant et cetera, there being no data to back
cetera, there being no data to back this up, I want to pursue my amendment because my amendment 34, together with the associated
together with the associated amendments 35, 36 and 40, all provide great clarity to this
provide great clarity to this particular issue. As they are, in a
sense, technical amendments.
They are not in any other way political.
are not in any other way political.
They also point out in amendment 36,
I propose this delayed payment for any rent increases the tribunal
any rent increases the tribunal
comes up with. A 12 month delay. These financial pressures I recognise, and we have done something to try and ameliorate
them. On that basis, I would like to
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test the opinion of the House. Should amendment 34 be agreed to? As many as are of that opinion, say,
As many as are of that opinion, say, "Content". Of the contrary, "Not
21:42
Division: Renter's Rights Bill: Amdt: 34
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"Content". Of the contrary, "Not content". I think the not contents have it. The question will be
decided by a division, I will advise the House when voting is open.
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The The question The question is The question is that The question is that amendment The question is that amendment 30 4B agreed to. As many are of that opinion say, "Content". Of the
opinion say, "Content". Of the contrary, "Not content". The contents will go to the right by the
contents will go to the right by the throne. The not contents to the left
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The The question The question is The question is that The question is that amendment The question is that amendment 34 The question is that amendment 30 4B
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My
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My Lords. My Lords. They My Lords. They have
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My Lords. They have voted
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My Lords. They have voted Contents 45, not contents 126. The
Contents 45, not contents 126. The
Contents 45, not contents 126. The 35 and 36. Lord Carrington not
35 and 36. Lord Carrington not moved. Thank you very much.
moved. Thank you very much. Amendment 37 Baroness Taylor, and 38 and 39. Move formally. The question
and 39. Move formally. The question is that amendment 37 The question is that amendment 3737 38 and 39 38 and
that amendment 3737 38 and 39 38 and 30 9B agreed to en bloc.
The content
30 9B agreed to en bloc. The content habit. Amendment 40 Lord Carrington
habit. Amendment 40 Lord Carrington not move. After clause 7 amendment 41.
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I will explain how this amendment
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I will explain how this amendment came about. In committee, I should
came about. In committee, I should be more definitive, this amendment
21:54
Lord Hacking (Labour)
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be more definitive, this amendment relates to the proposal in the bill, I think it is in clause 7, that when
a landlord has obtained possession
principally on the grounds of a proposed sale of the dwelling, and
that the landlord then withdraws from the sale of the property that
wants to put the property straight onto the market. Then he is
prevented from doing so for a period
of 12 months. The noble Lord
supported by Lord Pannick, that
moved an amendment in committee to reduce that period from 12 months
down to six months.
I will leave him
to produce the arguments again because he has tabled amendment 58
and this comes part of the group. I will leave him to develop the
argument. But basically Lord
Cromwell and Lord Pannick argued that that 12 months was oppressive, far too long, and also that there
would be a sufficient deterrent
against the rogue landlords seeking
to put the property on the market
for the purpose of raising the rent. I did not move an amendment in
committee on the subject but I thought about it and I decided to write a letter to the Minister which
I did on 19 May.
My proposal was a much simpler proposal, there should
be a prohibition on all landlords
raising rent at all during the immediate period following the
putting of the property onto the
sale, and when that did not go
forward, seeking to let it out again. I never thought that was a very sensible amendment. I had hoped
my noble friend would congratulate the and say what a good solution I
was providing, that the immediate advantages of my proposal was one
that it dealt directly with the problem of the rogue landlords
raising the rent.
That is going to be forbidden. It would also have the
advantage that the landlord was not penalised for a long period, he
could immediately put the property on the letting market and then
collect rent. The other great
advantage was that the property itself would be on the market and
there wouldn't be the absence of properties on the market which is
always regrettable, and it would therefore help the housing of people who needed rented property.
Unfortunately, my noble friend did
not congratulate me on this proposal as I made it in the letter, and she
as I made it in the letter, and she
expressed caution.
The caution she expressed was there were other tenant landlord situations like a
landlord getting fed up with the tenant constantly asking for repairs
to the property, or another which she gave which was a simpler
example, and that is the landlord had come to a point that it did not
like the tenant, and therefore that
he could use. Remember, in either of those situations, the landlord has
got to enter into a ruse, a ruse pretending he wants to sell the
property or possibly a ruse of finding a phantom member of his family that did not exist so he
could get possession under the alternative of placing a member of
his family in that house.
And therefore I suggest, and this is
what I'm asking the House to do, is to measure up the difference. The
difference between the advantage of just imposing a ban on any rent
increase, and the advantages I just
outlined of having the property on the market, and the landlord thereto
collect his rent as soon as the property is rented. And how to
balance that. Because the measure as contained in the act is a measure
affecting every landlord.
The good
landlords and the bad landlords. It seems to me that you should have a balance between that, and the
extraordinary circumstances, after
all when a landlord dislikes
attendance, can't successfully evict them simply because it is not like
the tenant. And equally well, when he is fed up with the tenant who is
constantly asking for repairs, he can't bring an action because the
tenant is pestering him about repairs. So in both of the
situations they have to enter into a ruse.
I am suggesting the proper
balance is to look at the market as a whole, and everybody in the market is affected by these measures.
Therefore, to release everybody else
on the market from the measure
proposed, that serves it so it is a balance and I suggest the balance
goes to the market and not to the particular circumstances of a
landlord disliking his tenant or getting fed up with the number of
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requests for repairs. I beg to move Article 7 insert the clause, restrictions on rent increase as
22:00
Lord Cromwell (Crossbench)
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restrictions on rent increase as I rise to speak to amendment 58
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I rise to speak to amendment 58 in my name and would like to express my gratitude to the noble and learned Lord Pannick you apologises,
learned Lord Pannick you apologises, he is not able to be with us today but has added his name to the
but has added his name to the amendment, and of course, the noble Lord Hacking, and the noble Lady, the Minister command her officials
the Minister command her officials for the time taken to discuss this with me. This amendment is, at
with me.
This amendment is, at heart, a simple but technical one.
The bill says if you ask a tenant to leave on the grounds you are selling the property, but then the property
the property, but then the property fails to sell, as happens in about one third of cases, then you are not allowed to rent the property out for
allowed to rent the property out for a period of 12 months, it simply has to stand empty and impossible to rent out for a period of a year.
rent out for a period of a year.
That means that numerous properties would, for the crime of not selling, be punished by standing empty and
be punished by standing empty and non-rentable. My amendment does not seek to change the principle of any other element or clause of the bill,
other element or clause of the bill, it simply introduces a rational and
it simply introduces a rational and balanced obligation to stand empty in this way for six months, rather than 12. That is all about it does.
I will now set out the reasons why.
Financial logic. When I and others
have suggested 12 months is too long, the answer given was 12 months
lost rent would prevent evil landlords from claiming they were selling, simply as a means to reject
a tenant and then re- let the property at a higher rent. The theory was after the tenant had left, the landlord will jack up the
rent to a high level, both to recoup their interim losses and make profits. My Lords, let's look at that proposition rationally. First,
if the landlord has a valid claim to increase the rent, then the bill
already provides for that.
The landlord would simply seek a normal rent increase, rather than going to the dramatic and expensive process
at risk of acquiring a tenant to leave, and then hoping to relet at a
leave, and then hoping to relet at a
much higher rent. Second, my Lords,
at committee stage, I set out the mathematical calculation behind the six-month void period, and you will be relieved to know I do not propose
to repeat the numerical details here tonight. All those that are provided subsequently in a meeting with the noble Lady, the Minister, and her officials.
However, the numbers are
demonstrated clearly, the landlord, even having the property empty for six months, as proposed, rather than
12, would have to put the rent up by a substantial amount, in excess of 200 or even 300%, to recoup their
rental losses and I say nothing of the other costs, including council tax surcharge bills at the risks of
leaving a building empty. Such a
huge rate hike would be impossible. The rent asked would be completely uncompetitive against other properties not carrying such an
inflated rent level.
In short, being obliged to leave a property empty
for six months is more than enough of a financial burden and a barrier
to make the strategy so feared by the noble Lady, the Minister, simply untenable. Third, it was suggested
that those nasty landlords might lie about selling a property or put it
on the market at an absurdly high price, inclusion, presumably, with a disreputable superstate agent. There
are some, I believe. -- Estate agent. I draw the noble Lords attention to the second part of the
amendment.
This requires the landlord to provide, if necessary to the local authority, hard evidence
of pricing, office, et cetera. Landlord flighting these
requirements would be breaking the law and punishable accordingly. I understand that an agent colluding with them would also be acting
contrary to the law. I remind noble Lords that any landlord taking this approach would face not only the
legal risk of a false sales process, but also ending up with the property
back on the rental market, at an absurd and uncompetitive level of rent, and on top of that, losing six
months rent.
Turning to other reasons, having, if I may say so, made the argument on the rental
conspiracy theory advanced in defence of the 12 months standing empty, I then heard the landlord
might have other reasons for wanting to get rid of the tenant, such as those the noble Lord Hacking has
touched upon. My Lords, let us also examine this argument. Whatever these other reasons might be, the
bill at the noble Lady, the minister, has confirmed this, it
makes perfectly clear, the landlord
has four and only four grounds for requiring a tenant to leave, sale, antisocial, moving in a relative, or
persistent failure to pay rent.
If the landlord cannot demonstrate that
one or more of these cases applies, for example through not providing conclusive evidence of a genuine sales process, then that landlord
would be in breach of the law, as well as financial penalty of the months lost rent. My Lords, it's a
fundamental of this bill to block any attempts to get around section 21 by other means and I entirely
agree with that. But my Lords, this amendment is, as I hope I have
demonstrated, simply no such thing.
They know renting out mechanism for preventing abuse remains, but the
amendment makes it proportionate, rather than excessive, and heavy-
handed. So, my Lords, standing back from the detail, we are frequently
issued that most landlords are good landlords. Perhaps some in this House even have friends who are landlords. Perhaps even some members
of this House let out property themselves. My Lords, this provision to leave a property unless it -- Not
let, would not just apply to a
subset of bad landlords, it would apply to anyone who rents out a property who genuinely wants or indeed needs to sell the property
that doesn't manage to do so.
It also, for the same 12 months, deprives the market of rental
properties. That is a market already bedevilled by a lack of property
available to rent. That does not help tenants. This is not unnecessary, it is not only
unnecessary, it is manifestly unfair. And will harm the sale of a
rental property. The noble Lady has said, landlords will lose out, but
it will be in a small number of circumstances, whereas the evidence for that? The six-month penalty is
not enough.
In closing, my Lords, I would like to underline that I am no lobbyist for landlords. I have
spoken repeatedly in this House
about the need to protect the most
vulnerable tenants abused and evicted by genuinely unscrupulous landlords and I have another amendment in this bill about preventing illegal evictions that is
specifically on that theme. But, as the noble Lady, the minister, has stressed this, successful rental
sector is about a balance of rights. The amendment I am addressing now
does not do away with the relevant
part of the bill, it simply moves the punishment, and it is a punishment, for not managing to sell a property from 12 months to six
months.
That is six months of cost
and no income. It is, as I demonstrated previously, more than sufficient punishment to make unworkable the avoidance strategies
that so vexed at the noble Lady, the minister, and meet the objectives of the bill. To be frank, a prohibition
on renting out for 12 months is an impractical and disproportionate
sledgehammer level of overkill that does not belong in a bill creating a set of checks and balances to produce a new fairer environment for
property rental. It also works against its objective, by artificially restricting the
artificially restricting the
artificially restricting the
For rent, and I feel strongly this amendment is proportionate and needed.
I will listen carefully to what any others at the noble Lady what any others at the noble Lady the Minister have to say but I may need to test the opinion of the House in due course.
22:09
Lord Young of Cookham (Conservative)
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My Lords, I want to speak to
amendment 59 in my name, and I'm grateful to the Minister for the time she has spent with me, as a
representative of the shared owners network after committee stage, when we discussed, in further detail, the problems facing shared ownership in
blocks that have been blighted by the cladding disaster. Now, my
Lords, this amendment is needed to protect shared owners who are accidental landlords from their
financial problems that they will face if they are not able to
finalise a sale after pursuing a groundwater letter a notice.
Many shared owners of course continue to live within the property that they half brought from the registered
social landlord. Many shared owners have simply had to move to get on with their life, they have been
unable to sell the property in the meantime, and have sublet. Shared owners are allowed to sublet. They
have to get permission from RSL to do this, but the rent they receive
from the subletting may not be enough to cover costs, with a mortgage, the rent, the service
charge, the insurance charges, on a block affected by the cladding
disaster.
And those costs may well exceed the local market rent. Many
shared owners who have been subletting for a number of years have seen their financial situation considerably weakened. With many
effectively losing hundreds of pounds every month as a result of
subletting. These are people who employed all professional people that they should have employed when
they bought the property, owned by a registered social landlord. They
took every precaution available to them and bear no responsibility at all for the problem that has
engulfed them.
When we met, while expressing sympathy with this group,
the Minister could not offer any mitigation for the unsustainable
costs, which a 12 month ban on re- electing would -- Re-electing would create for these share owners. This
is not the outcome for a cohort who qualify for an affordable home, because their income was not high
enough to buy in at the open market. This was a first step on the ladder. The Minister argued the proposed ban
would protect tenants, but it failed
to protect shared owners who are actually also tenants.
Shared owners face a much riskier sales process
with this bill. They have to give four months notice to their tenants
and that means they have no
certainty at all that the offer to buy the flat will actually result in
exchange or indeed a completion. And shared owners actually have to give the first option to buy their flat
back to the registered social landlord, so they can find another shared ownership owner, under strict qualifications. So they are fishing
qualifications.
So they are fishing
in a relatively small pool. Prospective buyers need to meet the criteria for shared ownership. And
that means the risk of a failed sale, even at a late stage, is actually much higher for a shared
owner, particularly high if you are
selling your flat in a block with unsafe cladding. Now, should a full through, as is frequent, particularly for these type of
properties, then shared owners, like other landlords under the bill, face the prospect of a 12 month void,
when they will be banned from relating their property and.
To cover its costs without any rental income. These people never plan to
become landlords. It was not part of
their vision at all. They would have no ability to plan for this outcome.
Or make provision for extended void periods. And this will become completely unaffordable for the
first majority of shared owners.
Who, as I have said, are not as financially resilient as other leaseholders, otherwise they would not have bought a property on the
open market. And they will have to pay for the property they now live in.
As well as the property they
have been unable to sell. Of course, they will continue to market their
property for sale, after the first sale has fallen through. It facing
the mounting unwed consequence of a rented property, that will put their homes at risk of repossession. They
will fall into arrears, as is very likely. But also, worse, it was
incredible pressure on them to accept any offer from a buyer as soon as possible. Even if this was
an offer below the RICS presale evaluation.
And if they do that, due
to the rules of the scheme, they will have to compensate the registered social landlord for the
loss of value on their share, as well as losing out on their own
share. So the unintended consequence
of the 12 month ban unrelenting, it was shared owners selling a property on the back foot, unable to wait for a suitable offer at a market value.
My Lords, it is unacceptable to punish shared owners, who have had
to become accidental landlords.
Including, as a result of the building safety crisis, and have already suffered central financial
harm. But in correspondence, the Minister explained shared owners
would have the option to ask the
provider whether a buyback would be possible, rather than leaving the property empty. This could provide a solution, but it will need the
Minister to make some changes. As the Minister knows, buybacks are
currently very much at the discretion of the registered provider. At the moment, they only
have limited access to funding to do
this, other using their own funds or recycle funding? Now, if the Minister is unable to accept my amendment, will the government ring fence some of the dedicated funding
to registered providers in its Affordable Homes Programme? So they
can swiftly buyback properties from those shared owners who fail to sell
after pursuing a grant one notice.
This would enable housing notifications to add to the stock of
affordable property rent, and below the cost of new build, and avoid
leaving the property empty. If the Minister can either accept the
amendment or a guarantee, I am minded to test the opinion of the House at the appropriate time. Probably next Monday. I briefly
raised a subsidiary issue. Shared owners also need clarity on how the bill will affect the current licence
to sublet regime. Unlike other landlords, shared owners only have a
time-limited licence to sublet, and
such a licence usually names their tenant.
If there is a requirement for them to get a new licence every
time there is a new tenant and the shared owners network says the typical cost of a new licence to sublet is approximately £1000, a
high turnover of tenants would lead to further unacceptable cost for shared owners. The Minister
helpfully clarified that fixed term licences to sublet that are in place
when the bill is commenced will
become open-ended and all fixed term tenancies will become periodic, however, the Minister has not said
that.
What type of licence will be offered to a shared owners in the future, and at what cost. Can the Minister clarify, if not now, then
Minister clarify, if not now, then
22:17
Baroness Thornhill (Liberal Democrat)
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My Lords, an interesting three amendments here. The noble Lady is
well aware that we share the same concerns as Lord Young of Cookham
regarding shared owners. I have to
do admit that it was eye-opening for me. I was obviously aware of the issues around shared ownership, but what shocked me was the actual costs
incurred and the amount of money lost, which the member has amplified
superbly. And so I do hope the noble
Lady can give us some way forward on this and other issues that seriously affect shared owners, both
accidental landlords who are trapped
into situations as the noble Lord has accurately described, and they
see no way out.
What I came across
is the kind of "What can I do? ". It was quite revealing. So it is no surprise that people support
amendment 59. We know that the not
able to sell situation applies to thousands of shared owners. Far
greater numbers than I suspect will apply to Lord Cromwell's amendment.
Amendment 58. I think this is yet another area within the bill that we
don't actually know the numbers. We don't actually know how many homes will actually be affected.
But I
have to pay credit to the noble Lord because amendment 58 has been
patiently worked on and lobbied for by Lord Cromwell. And I completely
understand where he's coming from. But perhaps don't agree that the
detriment of the relatively few landlords who find they cannot sell the property is worth the abuses
that might occur if prohibition on re-letting is reduced to six months
rather than 12 as in the bill. So perhaps this is an area, minister,
for some compromise.
I have a simple question and I'm sure someone will
tell me I'm wrong, if I wanted to sell my property, I generally wanted to sell my property and realise my
capital for whatever reason, given
the amount of time to evict, I would probably not serve notice to my
tenant until I had sold my property. And therefore I can serve the notice, the process of selling and
conveyancing and everything else carries on. The tenant leaves at the
appropriate time and the buyers exchange contracts and say you can't
move in until that time.
I don't see how that would be unachievable but I'm sure somebody will tell me why
that would not be the case. I certainly would not evict them
before I put it on the market or have some sense of the market or some sense of the idea of how things
were. And I certainly feel and this is definitely from talking to estate
agents, as I quoted in Committee stage, a letting agent saying to me,
all houses will sell it just depends
on the price.
With regards to amendment 41, it is clearly designed
to act as a disincentive to landlords trying to abuse this
ground. But maybe if this is genuine from the landlords, it is just a
little bit too Draconian. We broadly agree that the bill has got this
right as far as we can tell now. right as far as we can tell now.
22:21
Lord Jamieson (Conservative)
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My Lords, I rise to speak to this group of amendments, to offer my full support to my noble Friend,
Lord Young of Cookham. Amendment 59 addresses a significant and much-
needed gap in the bill by providing a vital exemption for shared ownership, leaseholders from certain
provisions within clause 14. Shared ownership is an important model that
enables many people to take their first step onto the housing ladder. It is not without its challenges to
clearly when sales fall through, as
Lord Young has highlighted.
It is a sensible and necessary provision that recognises the realities faced
by shared ownership landlords, protecting this group helps to maintain confidence in shared ownership and prevent unintended
consequences that could undermine the original intent of the bill. If my noble Friend is minded to test
the opinion of the house, your position will support him without
hesitation. Thank you my Lords. hesitation. Thank you my Lords.
22:22
Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government) (Labour)
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My Lords, I thank the noble Lords
for their amendments and for the engagement on these issues, and the noble Baroness. I will start with
amendment 58. We want to strengthen
tenant security and prevent abuse of ground 1A. A 12 month no relet
period will be a problem. If tenants are asking for repairs the landlord does not want to do. We understand
this is a strict measure and it is meant to be, it is intended to ensure that only landlords who genuinely wish to sell the property,
will wish to use that ground and deters those landlords who are
looking to evict a tenant in order to rent out to a higher rent or get a different tenant in.
Not only will
landlords have to do not have rent
for 12 months after this, but they could be fined £40,000. It is right that we have strong tenant
protections in place will stop the amendment would bring significant complexity to the system and I
struggle to see how it will work in practice. Would allow the courts to require evidence that the dwelling
has been on the open market for six months, and no suitable offers have been received. It is unclear how the
courts would become involved.
In addition it could place undue burdens on courts who may have to
follow up on any ground -- 1A evictions. The court will have to determine what a suitable offer was,
another undue burden. The no relet rule is a clear and simple rule that would not benefit from further
complexity. I believe this amendment would open the no relet period to abuse using tenant security and
contradicting the aims of this bill. As the noble Baronesses indicated, if the landlord is generally
planning to sell the property, you can market it to gauge interest
before upending the tenant's life by evicting them.
This would be more effective for all parties then
evicting as soon as they decide to sell. And only then putting it on the market and waiting for suitable offers. And for all these reasons I
would ask Lord Cromwell to withdraw this amendment. Turning now to amendment 41, I understand from a
helpful discussions with my noble friends, it is to remove the period
during which the landlord cannot relet the property after using
ground 1 and 1A. And prevents the rents being increased in the new
tenancy was the one this.
It does
not address the key reason to prevent abuse. Even if an unscripted landlord could not profit from
abusing the grounds, they can still use these grounds with no intention
of moving or selling to pursue retaliatory eviction. This means abusing the grounds to get the tenant has done nothing wrong but
for example a simple do not like who they considered raises too many issues with the property. The abuses of the system are exactly what the
12 month no relet period aims to prevent.
The current system under Section 21, we often hear of tenants
afraid to ask for repairs because the landlord has made it clear that
we evict them if they do. Under the proposals, this could still happen. The opening up of the grounds to
abuse must be resisted. The 12 month no relet period is a strong
disincentive for landlords to abuse the grounds and I believe it strikes
the right balance. I would ask my noble friends not push the amendment to the division.
I turned to
amendment 59. I'm grateful to the noble Lord for the engagement on
this issue and for introducing me to the shared owners network. These clauses implement critical protections for tenants. The
landlord is using the ground they cannot relet or market the property
for 12 months. It starts from the date of possession as specified in the notice to the tenant. These sections include other important
landlord behaviours. The government
is very aware that some shared owners with building safety issues facing difficult circumstances through no fault of their own.
The
shared owners network has provided invaluable insight into this issue. We are continuing to engage with
them, to determine how best to support these shared owners. We will
have a dialogue with the registered providers as well I'm grateful to the noble Lord for his suggestion in
that regard. Can I also respond to him and I will clarify the licence
points in writing as well. I don't agree that by helping in one area, other blameless tenants should have
reduced security of tenure will be exposed to the risk of wrongful
eviction just because of who the landlord is.
We have to get the balance right somehow to support
those who find themselves in the awful position but not at the expense of other tenants. We will continue to work on that. Because
all assured tenants must benefit from the new system. I would therefore ask Lord Young to withdraw
the amendment.
22:27
Lord Hacking (Labour)
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My Lords, I think my amendment is
first in line in this group. I still think that my amendment was a good
amendment, and would produce all of the right result without creating
the right result without creating
the sorrow by having to wait for the full 12 month waiting period. It is
now very late in the evening and I'm
not going to press for a division.
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But I think my amendment was the best of the three. You are withdrawing the
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You are withdrawing the amendment. Is your Lordships pleasure this amendment be
pleasure this amendment be withdrawn? The amendment is by leaf
withdrawn? The amendment is by leaf with. Baroness Cox not move. In clause 8, amendment 43.
22:28
Baroness Scott of Bybrook (Conservative)
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clause 8, amendment 43. My Lords, the payment of rent in
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My Lords, the payment of rent in advance can provide significant benefits to tenants that go beyond simply avoiding late fees or
demonstrating financial security. Many tenants choose to pay rent in advance for financial planning, to
ease the stress of monthly payments, or to manage up-and-coming financial
burdens. Amendment 43 in this group recognise and affirm this choice.
Firmly rooted in mutual agreement between tenant and landlord. My
Lords, we did consider introducing a
12 month period at Committee stage.
But in the spirit of compromise and having listened carefully to the views expressed in committee, we
instead brought forward a six-month proposal. We hope the government
will recognise this is a reasonable and constructive step, and we hope noble Lords can support it. If a
tenant does not wish to pay rent in advance, they are under no obligation to do so. However there
are particular groups who will benefit from this flexibility, including overseas students, and
those with poor or limited credit
histories.
Many tenants with lower credit ratings face barriers to securing housing that are often no
fault of their own but by paying rent in advance, these individuals
can demonstrate responsibility and financial reliability improving their chances of obtaining a
tenancy. Similarly, overseas student often lack the UK credit history,
and therefore require UK-based guarantors. This is something that
is not always possible. For the students, paying rent upfront for a
term or even an entire academic year, this is a practicality and a common solution.
I asked the
minister to clarify what impact these amendment might have on the
overseas students ability to secure accommodation, and whether the landlord will maintain incentives to
rent to these tenant despite the
limited credit history. Moving on to amendment 45 which seeks to limit the Secretary of State's powers
under clause 8 to expand rather than narrow the definition of permissible
rent payments. This safeguard is crucial to preventing future regulations that might unduly
restrict tenants or landlords
restrict tenants or landlords
By restricting the Secretary of State cause manpower in this way, amendment 45 promotes security in the market, giving all parties
confidence of mutually agreed rent payment agreements, such as paying
rent in advance, will remain lawful and accessible.
This is a proportionate and pragmatic measure, that respects the diversity of the
rental sector, where one size rarely fits all. And where flexibility is often essential to securing and
maintaining tenancies. It also supports innovation in the rent
payment options, which can benefit both tenants seeking to manage their finances and landlords aiming to maintain steady rental income. In closing, these amendments promote a
balanced approach that recognises the diverse needs of tenants and
landlords alike. Mutual agreement on
rent in advance can foster stability and greater security in tenancies.
Especially, my Lords, for vulnerable
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groups. Amendment proposed, clause eight,
22:32
Lord Fuller (Conservative)
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Amendment proposed, clause eight, page 12, line 23, after four, insert
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'more than six months'. I rise briefly once again and it
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I rise briefly once again and it feels like I am going back to amendment one at the start of this debate. Back to that essential freedom to contract, between
freedom to contract, between consenting parties. It's a theme
that has, on both sides of the House, support of Lord Hacking and
others. It is a practical solution and it provides a route, whereby an
otherwise non-rentable tenant can
find a path to tenancy. It provides an expression of good faith.
We have had some examples of whether freedom to offer, that is a freedom, not an
obligation, up to six months rent in advance can be helpful. My noble
friend from the good bench Baroness
Scott, mentioned the case of students, especially foreign students. Foreign students often want secure accommodation before they get on the plane to come to
this country. At that point, they may not even have a UK bank account. They certainly won't have references. And they haven't got a
track record either.
The only practical way in which they can
secure tenancy, with that impaired
record, is to pay in advance. Earlier in this debate, earlier
today, we spoke about the case of the potential abuses in any holiday hotspots in the West somebody may
contract and say, I'm going to stay
the whole year, then contract in June and immediately go before the
August bank holiday. The noble Lord, who isn't in his place, told the
House that the differential between
the Airbnb rate and the year-round rate, is about 49%.
So, a way for someone who is sincere about
entering into a long-term, say, six month, but wouldn't have to be
exactly six-month, arrangement with a potential landlord to demonstrate they weren't just the carpetbagging
holiday hotspot, trying to think of
an alliteration, but can't, you know I am coming from on this one, people who can pay in advance. That would
be helpful there. My noble friend has mentioned about those with an impaired record, and it would be
possible to have a guarantor who could stump up for those people with
a week covenant strength.
And of course, those who have cash, and I appreciate not everybody who does,
but those that do, sometimes coming to an accommodation with the
landlord, paying upfront results in considerably less rent, and in those cases, both landlord and tenant
benefit considerably. This amendment 43 would help both the landlord and
tenant. And come to an arrangement to their mutual advantage. I know it is not for everybody but without
this provision, the non-rentables will remain non-rented. The bill's objective as we have heard from the noble Baroness and the Minister is
to get people into safe, secure, good accommodation.
I for a small
number of people, this clause
provides the otherwise provided, -- Non-provided ball.
22:36
Lord Hacking (Labour)
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If I may support amendment 43 and amendments 45, moved by the noble
Baroness Lady Scott, supported by
Lord Jamieson I could give actually a practical example of this very
nice couple from Chile wanted to
rent one of our flats. They had no credit record at all here in
England, so there was no way to
check that. There was no efficient way to check the previous landlord, which was that the other step that
the landlord normally takes to ascertain whether these are suitable
tenants to go into the property.
And
therefore, the offer and they have the money there, they were coming for academic reasons, both of them
to work in London for a year for
academic purposes, and therefore it
was very sensible, enabling them to put some money in advance. I have
forgotten whether it was six months, or further money in advance, but that was a sensible compromise. They turned out to be delightful tenants.
I'm highly reliable. And we were delighted to have them as tenants in
our house.
My Lords, I also want to speak to amendment 46, in this
group. This is an amendment to
better protect landlords when a
tenant has signed up to take the
property on a certain date, but has failed to pay either the first month's rent in advance or failed to
pay the deposit. It would be entirely wrong, I would suggest,
that the landlord was then applied,
because the tenancy agreement had been signed and so forth, was obliged to take that tenant into the
property.
Do remember that a landlord cannot chase unpaid rent
for three months, then of course, it is getting a hearing in the County
is getting a hearing in the County
Court. And it is onerous for the landlord to deal with and if the
tenant hasn't paid in advance either the first months rent or deposit, hasn't got the money available, and
the hypermobility is the landlord will have to suffer that tenant in
his property, for three or four months without any payment at all.
And therefore, I thought it would be
sensible to... My amendment starts with four avoidance of doubt, to make it quite plain that the
landlord does not have to give the
tenant keys to the property to another tenant to get into the property when the tenant hasn't paid
either the first months rent. And I also had a further bit of this
amendment to enable the landlord, if the tenant for a further 28 days
failed to pay for the first months
rent or the deposit, then the landlord can take the next step to
landlord can take the next step to
have the lease an -- And old.
-- An
old. To make it quite plain in this bill, what is the position of the landlord, having entered into an
agreement with the tenant, a tenant then not paying either first months rent or deposit.
22:40
Lord Carrington (Crossbench)
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I rise to support Lord Hacking's
amendment, number 46. I find it
plainly obvious that rent needs to
be paid before occupation. I can find preciously few examples of anyone paying for goods and services after they are contracted or
consumed. An obvious example is a
railway ticket or an air ticket. No one goes to the cinema and pays
after the performance or buys a litre of milk from Tesco and then pays after drinking it. It is just
not acceptable.
Participating in the private rented sector, either as a
landlord or tenant, is a serious business the landlord has made a
major investment, and may have a mortgage to service, among other
costs. The tenant is looking for a safe and secure tenancy, which
incorporates Decent Homes Standard. He is well aware of the financial
obligation. Without this amendment, it would lay the landlord open to the possibility of, say, four months
with no rent, and no eviction
process, and a lot eviction process under section 8, possibly taking several months or so.
The position
of the landlord is a commercial business, not a public service. Iota
noble Baroness, the Minister, to accept this rather obvious amendment. -- I urge the noble
Baroness. Baroness.
22:41
Baroness Thornhill (Liberal Democrat)
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In view of the time, I am going
to speak briefly to amendment 43. I could just simply say the first sentence, we are strongly opposed to rent in advance because it is discriminatory. This amendment is
being framed as a cosy option where
tenants and landlords can reach mutual agreement as to whether they
will do this or not. No, I do not believe that. If allowed, it will actually become, as now, a
requirement. In effect, it will become a bidding war by any other
name.
So that landlords with their pick of tenants, and supra have just
reported that there are between 20
and 25 pointers for each property, at least 20 requests and to view
each property, so they can pick, it is a beauty parade. And so they can
choose to tenants that have got the money to give them six months rent upfront, against those who just have
not got those advantages. But those same people can still forwarding to pay the rent, would still make good
tenants.
-- Can still afford to pay the rent. We are against anything
that prices out poor rent is it what rental market areas. We will refute the argument being discussed by landlord groups that this is an
option for nation circumstances. The -- For nation circumstances that allows people to access housing,
e.g., as has been said, people might struggle with credit checks. But if
you are struggling with credit checks, it is highly unlikely you will be able to pay six months rent
in advance.
In a very modest property in Watford, six months in
advance is between 6,000 and £8000,
that's a lot of money. We know the
landlords and letting agents often use it as a barrier to reject tenants, relying on Universal Credit
or Housing Benefit, rejecting them from accepting the tenancy, which means that only those with savings
of family support will comply. Which
those on lower incomes are less likely to have. Shelter tell us that six in 10 renters have been asked
for it, and over 800,000 is in one of their surveys said they were not
able to secure a property because of
the demand for rent in advance.
The bill aims to prevent discrimination against renters on benefits. This amendment would allow it by the back
door.
22:44
Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government) (Labour)
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My Lords, I thank the noble Baroness, Lady Scott and the noble
Lord, Lord Hacking, for their amendments on rent in advance as a noble Lord Carrington and Baroness Thornhill for speaking. My Lords,
the government has been very clear in its view that the charging of rent in advance is unfair, I haven't
heard anything this evening that has changed my mind on that. Therefore,
we cannot accept amendment 43, tabled by the noble Baroness, Lady Scott, six months rent is a
significant amount of money.
For some renters, this would be their entire savings, perhaps carefully built up with the ambition of being
put towards a deposit on a first home. For many others, it would be an amount of savings which is simply
unreachable. My Lords, I recognise it is the noble Baroness's intention for it only to be possible to request large amount of rent in advance when it has been previously
agreed by the tenant and landlord, however we must consider what this means in practice. This would allow
a landlord at a pre-letting stage to insist upon a tenancy agreement that would permit them to require up to six months rent in advance.
In hot
rental markets, we could expect such clauses to simply become an effect of renting. This could leave tenants
with a choice. Stretching their finances to the limit or facing
homelessness. It would not be right
to create a scenario, however inadvertently, whereby tenants have no option but to push their finances to breaking point in order to secure
tenancy. Instead, the measures currently in the bill, tenants would be free to pay their rent prior to
the agreed due date, once a tenancy has begun, should they wish to do
so.
Although, landlords will be unable to require this. My Lords, the strike the optimal balance of protecting tenants, while
maintaining their fix ability, to --
Flexibility to pay in advance, should it suit their personal circumstances. For this reason, I
would ask the noble Lady to withdraw her amendment. Turning to amendment 45, I would like to reassure the House the government has no plans to
alter the rent in advance measures, contained within this bill. This power, however, allows the government to respond to any future changes within the private rented
sector.
That may make it necessary to do so. Such changes may include
changes in future certain types of tenure, possible anticipated introduction of new types of tenancy. Similarly, changes to
supply and demand balance may impact the extent to which affordability is a barrier to entering the private
rented sector. In these and any other unanticipated changes to the
sector, the full use of this power would enable the Secretary of State to mature the general probation of
rent in advance would continue to apply is intended for the bike and reassure the House that regulations
made under this power will be subject to the affirmative procedure, this will make sure there is appropriate parliamentary scrutiny of any changes.
However,
restricting the use of this power, allowing it only to expand rather than tighten descriptions of rent in
advance, to which the general prohibition does not apply, risks limiting the government ability to
protect tenants from unfair rent in advance requirements. And I would therefore ask the noble Baroness to
therefore ask the noble Baroness to
Lord Hacking has spoken to his amendment gives raises concerns that
tenants that failed to publish and pay the initial rent or tenancy deposit is agreed.
In relation to
the deposit landlords and letting agents will continue to be able to require payment before the signing
of the tenancy agreement. It is therefore necessary to place in law
the ability of the landlord not to grant a tenancy occupation before the tenancy deposit is received.
Landlords will remain free to delay
the signing of the tenancy until such time as the tenancy deposit has been paid. The amendment also raises an issue in relation to the risk of
tenant entering into a tenancy subsequently failing to pay their first month of rent is agreed.
Were
a tenant not to pay the initial rent and continue to accrue arrears once occupying the property, they risk potential eviction. This could have
an impact on their future ability to provide references needed to obtain
future housing. In addition, for a tenant to have reached the stage of entering the tenancy agreement, they will likely have already paid a
holding deposit of up to one week of
rent. Tenancy deposit of five or six weeks rent, and if the initial rent were not to be paid, landlord would
retain the deposit.
They provide
both the risk mitigation for the landlord facing unpaid rent and are a strong indicator that the tenant, having already made these payments,
is willing and able to pay the monthly rent. The government is of the view that the reforms of rent in advance strike the right balance.
Give the landlord confidence necessary while protecting tenants for requests from large amounts of
rent in advance was not once a tenancy has been entered into, the landlord is free to request up to
the first month of rent before the tenancy start date.
The tenant will also be free to pay any amount of rent from this point should it suit
the circumstances. And for those reasons we feel the amendment is unnecessary and I would urge my honourable friend to withdraw his
amendment. I will turn to government amendment 44. This amendment introduces a small technical clarification to the drafting of
clause 8 and as such I don't need to take up much of the time of that House. It provide any terms in a
tenancy agreement that require repayment of rent before it is you are of no effect.
This amendment clarifies that this provision only
22:51
Baroness Scott of Bybrook (Conservative)
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to six months is an important option for many particularly those who may face barriers such as poor credit histories, overseas students that UK
histories, overseas students that UK credit records or those who simply wish to manage their finances proactively. This choice should be respected and preserved, not
respected and preserved, not restricted by over prescriptive
restricted by over prescriptive regulations. Housing is a personal and often complex matter and we acknowledge the complexity of
acknowledge the complexity of balancing landlord protections with tenants rights, particularly regarding initial payments like
regarding initial payments like deposits and the first month of rent.
But it demands legislation that is flexible enough to
that is flexible enough to accommodate different circumstances without sacrificing fairness or
without sacrificing fairness or stability. I know the lateness of
stability. I know the lateness of the hour. But we believe this is an important amendment for the freedom and flexibility is that tenants require in this sector. And
require in this sector. And therefore, I would like to test the
therefore, I would like to test the opinion of the House on my amendment
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43. The question is that amendment 43 be agreed to. As many are of that opinion say, "Content". Of the
opinion say, "Content". Of the contrary, "Not content". The not content have it. The question will
22:51
Division: Renter's Rights Bills, Amdt 43
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content have it. The question will be decided by division. I will notify the House when voting is open. Voting is now open. Clear the
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The The question The question is
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The question is that The question is that amendment The question is that amendment 43 be agreed to. As many are of that opinion say, "Content". Of the
opinion say, "Content". Of the contrary, "Not content". The contents will go to the right by the throne. The not contents to the left
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The The question The question is The question is that The question is that amendment The question is that amendment 43
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The question is that amendment 43
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They They have They have voted. They have voted. Contents They have voted. Contents 23, They have voted. Contents 23, not
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They have voted. Contents 23, not contents 103, the not contents have
contents 103, the not contents have
Move formally? The question Move formally? The question is Move formally? The question is that amendment 44 be agreed to. As many as are of that opinion, say, "Content". Of the contrary, "Not
content". An intense habit. Amendment 45, Baroness Scott, not move, and 46, Lord Hacking, not
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moved. My Lords, I beg to move that
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My Lords, I beg to move that further consideration on report be adjourned. The question is that further
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The question is that further consideration on report now be adjourned. As many as are of that opinion, say, "Content". Of the contrary, "Not content". The
contents have it.
23:02
Orders and regulations: Marking of Retail Goods Regulations 2025 - motion to approve Baroness Hayman of Ullock, The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Labour)
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contents have it. Adjournment debate on the marking of retail goods regulations 2025.
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Baroness Hayman of Ullock. My Lords, I have already spoken to this motion and therefore I beg to move formally.
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The question is this motion be
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agreed to. I hope I didn't provoke mass might, I was reminiscing about Northern Ireland members about those
23:02
Lord Blencathra (Conservative)
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Northern Ireland members about those days where we used to speak Almighty Northern Ireland. Then my late colleague Alex fourth and I pulled a
stunt of having a renegade vote. I
have a certain admiration for this.the colleagues pulled last
night but I see there is a full Labour house tonight if you want to know, the official opposition line,
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you'll find it in 577. The question is at this motion be agreed to. As many as are of that opinion, say, "Content". Of the
opinion, say, "Content". Of the contrary, "Not content". The contents have it.
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contents have it. My Lords, I beg to move the House do now adjourn.
00:01
Oral questions: Standard of hotel accommodation provided to migrants who have entered the UK in small boats from France
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This debate has concluded