Commission on Antisemitism Report
Baroness Taylor of Stevenage Excerpts(9 months, 4 weeks ago)
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The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, before I answer the Question asked by the noble Baroness, Lady Deech, I start by wishing the extraordinary survivor from the Women’s Orchestra of Auschwitz, Anita Lasker-Wallfisch, a very happy 100th birthday today. I repeat her advice to young people, which was broadcast this morning. She told them:
“Hate is a poison and in the end you poison yourself … Talk to each other before you kill each other”.
I think that is wonderful advice.
Antisemitism has absolutely no place in our society, which is why our Government are taking a strong lead in tackling it in all its forms. We will carefully consider the recommendations of the report. The Government continue to work closely with their Independent Adviser on Antisemitism, my noble friend Lord Mann, and their Antisemitism Working Group, on the best methods to effectively tackle antisemitism and engage Jewish communities around international, national and local events affecting British Jews. I thank my noble friend Lord Mann and Dame Penny Mordaunt for their work on this report and their wider contribution.
Baroness Deech (CB)
My Lords, I echo the Minister’s thanks to the noble Lord, Lord Mann, for all the work he has done fighting antisemitism and for producing this really rather shocking report. Antisemitism, he says, did not increase because of Gaza. It was released from underground by 7 October and, sadly, was nurtured by the BBC being economical with the truth. It is rooted in the unfortunate myths still taught in school religion classes, which need to be tackled, and it is not dispelled by Holocaust education. Most shocking is the NHS, where Jewish patients cannot feel confident of fair treatment: there were more than 400 complaints since 7 October, most of them closed or not processed. Will the Government place the NHS at the forefront of their actions?
Baroness Taylor of Stevenage (Lab)
My Lords, the evidence that my noble friend Lord Mann and Dame Penny Mordaunt quoted in the report and in the subsequent article published by my noble friend relating to the specific unaddressed issue of antisemitism within the NHS was shocking. They made two recommendations: a summit for NHS leaders across the UK and basic training across every NHS trust. I am sure that my right honourable friend the Secretary of State for Health and Social Care will take those recommendations very seriously and look into them.
Lord Austin of Dudley (Non-Afl)
My Lords, I am afraid that, contrary to what the Minister said, as the shocking increase in antisemitism shows, there is, sadly, obviously a place in Britain for antisemitism. That is what is happening. I am afraid that one of the main causes is the BBC. If you suggest, as it does, with its disproportionate, unbalanced and biased coverage, that Israel is committing uniquely evil crimes, that is obviously going to drive hostility towards people in the UK who identify with Israel, which is the vast majority of the Jewish community. This is why the Secretary of State for Culture, Media and Sport was completely right to demand changes at the top. Is it not a disgrace that, only yesterday, the BBC’s head of current affairs, Deborah Turness, suggested that there was no difference between Hamas’s Ministers and its military wing? I have to ask the Minister: when are the Government finally going to get a grip?
Baroness Taylor of Stevenage (Lab)
I know that my right honourable friend the Secretary of State for Culture, Media and Sport is looking very closely at all issues. I am sure she will have taken comments yesterday into consideration as she considers how to address these issues. The noble Lord is quite right that, as we saw an increase of 113% in the UK of hate crimes targeting Jews in the last year compared with the previous year, we need to make sure that that underlying current of antisemitism is tackled wherever it appears.
Lord Pickles (Con)
My Lords, I too congratulate the noble Lord, Lord Mann, and Dame Penny Mordaunt on this excellent report. Its strength is that it is practical, and it gives a very clear steer to the Government on things that could be achieved relatively quickly. I will concentrate on recommendation 5, on the teaching of antisemitism and dealing with antisemitism in schools. A lot of teachers are, frankly, frightened of dealing with this. They feel intimidated and unsupported, and those who have been prepared to try have often been shouted down by hotheads in the community. There are a number of really good studies out there, and I commend the work of UCL and Education Scotland to the Minister. If they took those practical things, I think it would be possible. I ask for the Government to do their best to roll out those reforms in the coming academic year.
Baroness Taylor of Stevenage (Lab)
The noble Lord is quite right that education sits right at the heart of this. To noble Lords who may not have had time to read the report yet, I commend these examples: Maccabi GB delivering training on contemporary antisemitism across the entirety of English football, which I think is a very clear example; and the agreement between the diocese of Winchester and the local Jewish community to teach primary school teachers how to avoid passing on antisemitism and anti-Jewish tropes in their lessons. These are wonderful examples, as are those quoted by the noble Lord. I am sure that my noble friend the Minister for Education will take those on board and think about how we address this in future. There is also a role for local government here, of course, in promoting this issue, in training and support to schools.
Baroness Burt of Solihull (LD)
My Lords, as has been said, we are now suffering historically high levels of antisemitism since 7 October, despite the fact that British Jews have nothing to do with the actions of foreign organisations such as the IDF. As the noble Lord, Lord Pickles, said, one theme of the report is to call for more consistency and capacity in the training of people who train others in tackling antisemitism, particularly in schools—which, of course, is where it all begins. How far are the Government considering adopting these recommendations in the report and, if they are, could we have some details, please?
Baroness Taylor of Stevenage (Lab)
The report contains a number of very clear recommendations. Of course, all of those will be reviewed, and I hope that that will take place right across government. Certainly, I will make sure that my department looks at all the recommendations. As with any report, it takes a little while to assess the recommendations and how they need to be considered and implemented, but I reassure the noble Baroness that, right from the heart of government—I know the Prime Minister was asked about this yesterday—we consider this an important contribution to discussing how we tackle antisemitism in this country. We will take the recommendations seriously and act on them as appropriate.
Baroness Scott of Bybrook (Con)
My Lords, the report found evidence, particularly in its education-focused findings, that some Christian primary school teachers “inadvertently use antisemitic tropes” in lessons, especially religious studies. What urgent steps—they need to be urgent—will the Government take to ensure that these harmful tropes are rooted out of our schools? Will the Minister and her Government set out very quickly how they intend to achieve this?
Baroness Taylor of Stevenage (Lab)
As I said in answer to the previous question about education, we communicate the examples of good practice that we have seen—for example, in Winchester—across the whole schools community. I am sure that my noble friend the Education Minister will take those on board. I agree with the noble Baroness that urgent action here is necessary. We must not let the passing on of these tropes go on any longer. I hope that we can take urgent action to make sure that good practice is rolled out across our schools as quickly as possible.
Lord Mann (Lab)
My Lords, I commend the brilliance of the contribution of Dame Penny Mordaunt to this report. This is a report for the United Kingdom. Does not this cross-party collaboration, which the UK has long been the world leader in, re-emphasise the importance of every party getting involved in playing its role in tackling antisemitism, and that when we work together, cross-party, we are far more effective in not just giving a message but delivering outcomes which mean that communities, such as the Jewish community, can play their part in this country without any hassle or barriers?
Baroness Taylor of Stevenage (Lab)
I cannot express strongly enough my agreement with my noble friend Lord Mann on that point. This is absolutely a cross-party issue and we must work together at the national level. There is also a clear role for mayors, council leaders and councillors in supporting Jewish communities, in education and in commemorating the Holocaust, so that the crimes against Jews in Europe are never forgotten. They can also facilitate the conversations and education and the work that needs to be done across communities and civil society. This is a role for all of us, not just one political party.
Planning and Infrastructure Bill
Baroness Taylor of Stevenage ExcerptsThursday 17th July 2025
(9 months, 4 weeks ago)
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Baroness Coffey (Con)
My Lords, I am delighted to be in Committee. I agree with the impact of these clauses in consideration of future judicial decisions. It matters because there has been a trend in aspects of case law that then make other aspects of complying with the law rather complicated, leading to some of the adjustments that the Government are seeking to secure. When we talk about judicial review and what the Government are intending, the noble Lord, Lord Hunt, has tabled some rather drastic amendments. I am not surprised. Mr Robbie Owen gave evidence in the other House that my noble friend Lord Banner’s review did not go far enough. My noble friend Lady Neville-Rolfe hit the nail on the head. What is going to change?
The amendment from the noble Baroness, Lady Pinnock, is right. At the moment nothing in the Bill ties everything together to make sure that we get more homes built and improve the natural environment. We have to make sure that happens.
In her closing speech at Second Reading, the Minister said that councils have a lot of powers. I would be interested to understand what amendments may come in at this stage to achieve the objectives that the Government say the Bill is trying to achieve. Why are we not seeing certain powers being granted to the Government to speed up housing—not just planning permission but completion? The Town and Country Planning Act allows councils to issue completion notices. As the Whip in the Commons on the Infrastructure Act 2015, I had to deal with four Ministers, so good luck to the Whips here on the Front Bench in co-ordinating all that. The Government took powers there for when councils were being slow. It was not necessarily call-in, but if they were not keeping to timetables, the decisions could be made by Ministers. I do not think that happened very often under the previous Conservative Administration, but here we seem to be going with a sledgehammer to crack a nut. Why are Ministers not using the powers they already have to achieve what they want this to do and instead putting this legislation in place? That is why I welcome the amendment from the noble Baroness, Lady Pinnock. It gives us an opportunity to ask, “What is this Bill going to do? Will it achieve the aims of what is there?”
I make a plea through the Minister for Bill managers to update the parliamentary website with all the different things that they said that they would write on. The Minister in the other place promised on 29 April to write about one of the clauses that we are debating today, but Parliament is still waiting. To my knowledge, no letter has been issued. It is certainly not on the Bill website, and it certainly has not been deposited in the House. That is a further plea about process.
The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
The letter went out yesterday on some of the issues that were raised at the drop-in. The noble Baroness may have missed that in her inbox, but it did go out yesterday.
Baroness Coffey (Con)
I appreciate that, and I have not seen it in my inbox, but I am referring to Minister Pennycook making a pledge to write in Committee in the Commons. I am not aware that has ever been issued. It is certainly not available to Members of this House. It would be great, as a general approach, if we could try to make sure that is there.
Overall, this Bill needs to be massively strengthened to make sure—to quote Ronseal—that it “does exactly what it says on the tin”, that we will get the outcome that my noble friend Lady Scott on the Front Bench has put forward in Amendment 3 and that we will get on with making sure more homes are delivered for the people of this country, as well as other aspects of infrastructure that I recognise this country desperately needs.
Renters’ Rights Bill
Baroness Taylor of Stevenage Excerpts(10 months ago)
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Baroness Thornhill (LD)
My Lords, Amendments 87, 88 and 104, as we have heard, seek to raise the burden of proof to that of the criminal standard, “beyond reasonable doubt”, from the civil standard, “on the balance of probabilities”, consistently across the Bill. All the amendments in the next group, on financial penalties, seek to lower the amount of money an enforcing council can fine a landlord. This group and the next are, to me, heads and tails of the same coin. Seen together, both sets of amendments seek to considerably help landlords by raising the standard of proof for an offence and lowering the fine if they are in breach of it. We believe that it is a naked attempt to tilt the balance massively in favour of landlords in a dispute, when the power balance is already heavily in their favour, and to deter tenants from complaining and taking action.
We do not agree with anything that undermines two of the core principles of the Bill. The first is to act as a deterrent to bad landlords. We on these Benches keep saying, as does the Minister, that good landlords have nothing to fear from the Bill, and certainly not from this aspect, but the fines have to be tough enough and the burden of proof appropriate to a civil offence. The second is to increase penalties to bring them in line with similar penalties that can be issued already by enforcement authorities against landlords who breach legislation.
I want to look specifically at the amendments. I think that the noble Earl, Lord Kinnoull, and the noble and learned Lord, Lord Keen, with their forensic legal eyes, are looking at them in a particular way. I look at the unintended consequences for tenants. Amendment 87, on raising the burden of proof, relates to families claiming benefits. Refusing to rent to someone due to their claiming benefits is unlawful. However, with high demand, this form of discrimination is really hard to prove. It is often based on verbal rather than written evidence. This amendment would therefore make it significantly more difficult for recipients of benefits to hold their landlord to account for this discriminatory practice.
Similarly, Amendment 88 relates to bidding wars. It is absolutely right that the Bill will ban bidding wars. Too often, renters are pitted against each other for a home, driving up the cost of renting in the process. It is already very hard to prove, without making it even harder by raising the burden of proof. Raising that standard of proof would make it significantly more difficult for a local authority to enforce the ban on bidding wars, especially due to the nature of the evidence in such cases.
Amendment 103 relates to the database that the Bill will set up. Noble Lords will know from Committee that I am a database believer. However, without the right data and information, such a database risks losing its utility for all tenants, prospective tenants and local authorities. This amendment would provide landlords with a lovely loophole that they could potentially exploit. It would be very difficult to prove that the landlord had knowledge of the breach they committed, and the amendment would therefore allow landlords to contravene the new regulations without fear of enforcement. I acknowledge the complexity of this amendment and look forward to the Minister’s response. To us, all these amendments seek to undermine the protections for tenants, thus we are very much against them.
Let us now be positive, by turning to Amendment 104, in the name of the noble Baroness, Lady Kennedy. She has explained the situation very clearly and we support her fully. This is a really positive move. Amendment 104 would reduce the burden of proof for a rent repayment order where an illegal eviction has taken place on the balance of probabilities—hence the connection to the amendment of the noble Lord, Lord Cromwell. This is important, as “beyond reasonable doubt” is the criminal standard. It is just too hard at the moment for tenants to successfully get justice. Cases involving illegal evictions and harassment are typically really hard to prove to this standard; in far too many cases, where evidence is based on the word of the applicant, it is practically impossible.
A rent repayment order is not a criminal prosecution. Cases are settled in the First-tier Tribunal; there is no jury and it does not follow criminal procedural rules. There is no criminal sentence or criminal record for the respondent. There is no legal aid available for rent repayment order claims and thus applicants are often self-represented, with little help and no legal expertise. This is again why the higher criminal burden of proof is so inappropriate for this kind of action. It is virtually a non-action, as evidenced by the low numbers of rent repayment orders that are brought.
We need to consider the very serious possibility that, with the abolition of Section 21, there will be more illegal evictions. It is therefore important that a bigger deterrent is in place. This needs to be changed to “on the balance of probabilities”. It is really important not to confuse criminal and civil offences and their parallel burdens of proof.
This takes us neatly to Amendment 110, in the names of the noble Lords, Lord Cromwell, Lord Hogan-Howe and Lord Best—a formidable trio. I can tell the Minister that it will take a lot of political will to withstand their arguments. Amendment 110 clearly gets our support, should the noble Lords wish to test the opinion of the House.
We know from all the arguments in Committee that less than 1% of illegal evictions are successfully prosecuted and that a major part of the problem is exactly as has been enunciated: the police view these things as a civil matter or, even worse, assist the landlord, even though it is a criminal matter under the Protection from Eviction Act, or they refuse to get involved at all. I cannot think of anything worse than being illegally evicted from what I believe to be my home, with my goods and my family. There has to be a greater awareness and more training, which is the aim of the amendment. As this view seems to be shared by many important bodies, it has real credibility.
The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, I thank the noble and learned Lord, Lord Keen of Elie, the noble Lord, Lord Cromwell, and my noble friend Lady Kennedy of Cradley for their amendments. I thank the noble Earl, Lord Kinnoull, for his comments. We all miss the late Lord Etherton very much and I am very grateful to him for all the work he did on this. I thank the noble Lord, Lord Hogan-Howe, and the noble Baroness, Lady Thornhill, and all the tenant groups that have taken time to speak to me about the amendments in this group.
Amendments 87 and 88 would require local authorities to meet the criminal rather than civil standard of proof when imposing civil penalties for rental discrimination and rental bidding breaches. The standard of proof we have chosen for these breaches is lower than that which applies to the imposition of financial penalties for breaches of other measures brought in by the Bill. This is because, unlike those other breaches, rental discrimination and rental bidding breaches cannot lead to a criminal offence if the conduct persists. Breaches of the rental bidding and rental discrimination requirements cannot result in the landlord being prosecuted or given a civil penalty of up to £40,000, and are subject only to the lower £7,000 maximum penalty. This means the jeopardy for landlords in relation to those breaches is significantly lower than for others in the Bill.
I point out—I hope the noble Lord finds this reassuring—that local authorities already impose civil penalties based on the civil standard of proof in other legislation; for example, in their enforcement of agent redress requirements. My view since Committee has therefore not changed. I consider it appropriate that local authorities need to prove these breaches to the civil standard, “on the balance of probabilities”, rather than the criminal standard, “beyond reasonable doubt”.
On Amendment 103, the PRS database depends on landlords providing accurate information to raise standards, protect tenants and support local authority enforcement. Retaining the reference to recklessness in the current wording of Clause 93 is essential to achieve this, by preventing dishonest landlords submitting false or misleading information. I reiterate the point made by the noble Baroness, Lady Thornhill, that good landlords have nothing to fear from this legislation.
Recklessness is not a simple mistake; it involves taking an unjustified risk, and this wording is consistent with other, similar offences, including offences under the Housing Act 2004, under which local authorities already make prosecutions.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank the noble and learned Lord, Lord Keen of Elie, the noble Lord, Lord Cromwell, and the noble Baroness, Lady Scott of Bybrook, for their amendments. Amendments 89, 92 and 101 would reduce the maximum civil penalties for offences in relation to illegal evictions—
Lord Cromwell (CB)
I thank the Minister for thanking me, but I have not spoken to this amendment.
Baroness Taylor of Stevenage (Lab)
I think somebody must have assumed that the noble Lord, Lord Cromwell, was going to speak. I apologise for that.
For these reforms to be effective, they must be enforced robustly and fairly. Our approach to civil penalties is fundamental to this. Landlords who commit first-time and minor non-compliance will be subject to civil penalties of up to £7,000. However, for serious and repeat non-compliance, landlords will be subject to civil penalties of up to £40,000. The principle that local authorities can impose civil penalties for housing offences is well established. Since they were introduced in 2017, civil penalties have proved an effective enforcement tool. I agree with the noble Baroness, Lady Thornhill. I do not think we have any need to question the professionalism of local authorities in dealing with these matters. They are more than well versed in exercising legal duties and have legal professionals to support them.
It is important to emphasise that £40,000 will be the maximum, not the norm. Local authorities will need to have a clear rationale for why they have set a civil penalty at a certain level and apply aggravating and mitigating factors. Penalties of up to £40,000 will be available only in respect of landlords who have committed serious or repeat non-compliance. Initial failure to sign up to the database, for example, will carry a penalty of only up to £7,000. However, local authorities will be able to impose a penalty of up to £40,000 if the landlord continues or repeats this conduct after being given an initial, lower penalty.
When considering whether to issue a civil penalty, local authorities are required to issue a notice of intent—a bit like the notice about parking that the noble Baroness, Lady Thornhill, mentioned—allowing time for landlords to make representations. The local authority will need to be satisfied beyond reasonable doubt that the landlord has committed an offence. If the landlord disagrees with the imposition or amount of the penalty, they will be able to appeal to the First- tier Tribunal. This approach to civil penalties ensures efficiency for local authorities, protection for tenants, and fairness for landlords. As noted in Committee, we will also publish new guidance to help local authorities pursue civil penalties with greater consistency and effectiveness.
Amendments 98 and 99 are in the name of the noble Baroness, Lady Scott. She spoke about the scale of fines. We have increased the maximum civil penalties to take account of inflation since the £30,000 and £5,000 maximums were introduced for the similar housing offences that I referred to earlier. We want to ensure that the deterrent value of civil penalties is maintained. As I have stressed before, they are maximum penalty amounts. Local authorities will need to take into account a number of factors, such as the culpability of the landlord and the harm caused to tenants in determining the appropriate level of the civil penalty.
On the point about the single landlord in the depths of the Welsh countryside, and to the point made by the noble Lord, Lord Carrington, housing is devolved in Wales, so it is a different matter altogether in Wales.
Amendments 98 and 99 would require there to be persistent breaches of certain provisions in Clause 83 or persistent offences committed under Clause 93 before the local authority could fine an individual. I appreciate that the noble Baroness is acting in good faith by laying these amendments, but they would have significant negative consequences for the effectiveness of the database. Under these amendments, individuals could avoid penalties for failing to register or knowingly or recklessly providing false information to the database operator, to name two of the relevant provisions, unless they did so persistently over a protracted period. For the database to be useful to users, it is important that as many landlords as possible register with the service. Indeed, as the noble Baroness commented in Committee:
“It is essential that the accuracy, completeness and timeliness of the data be maintained if it is to be a useful resource for both tenants and for landlords”.—[Official Report, 14/5/25; col. 2219.]
I would add local authorities.
I fear that these amendments could discourage registration and reduce the quality of the data recorded by watering down the threshold at which financial penalties will be imposed. Furthermore, it would be unfair to those good landlords—the vast majority—who comply with the legislative requirements from the outset. It may create an environment where negligent landlords could escape sanction for significant periods of time, and disadvantage the compliant landlords the Bill intends to support.
I recognise that the noble Baroness is trying to protect landlords from being unduly punished. Therefore, I hope she is reassured that the level of fines is the maximum level rather than the standard. Local authorities must also be satisfied beyond reasonable doubt that a requirement under Clause 83 has been breached or an offence under Clause 93 has been committed before they can impose a fine. Moreover, new guidance will be published in due course to help local authorities with consistency and effectiveness.
Baroness Thornhill (LD)
My Lords, I agree with the noble Lord, Lord Best. In fact, one of my lines says that there should be only one port of call. If one of the main planks of the Bill is to drive up standards, it is critical that landlords are mandated to be part of the ombudsman scheme. It should be a catch-all. Unfortunately, this amendment would allow landlords to opt out of the government redress scheme and, as has been explained, deny tenants access to redress via the national private sector ombudsman that the Bill intends to set up.
To make this advantageous move, all landlords would need to do is use a letting agent that is signed up to one of these alternative schemes. This would create a significant loophole in the legislation and deny such tenants access to redress for issues that lie solely with the landlord and not the managing agent, such as damp and mould caused by structural issues. Generation Rent’s polling found that one in three tenants has had maintenance issues in their home that they have reported but the landlord has not dealt with. This is quite a widespread problem. If we want to drive up standards, we want to make it easier for tenants to complain and landlords to comply.
In addition, if this amendment were to pass it would create more confusion, as there are currently multiple independent letting agent schemes that compete with each other, arguably creating a race to the bottom on standards. This phenomenon arguably exists to some extent with deposit protection schemes—which, incidentally, are also chosen by landlords or agents, not by renters, so the landlord will choose the one that thinks like they do or favours the way they work.
The system as proposed in the Bill seems to be the correct way forward, as making membership of an ombudsman scheme mandatory for landlords who use managing agents will mitigate a situation where a good agent—and there are good agents—tries to remedy a complaint but is reliant on an overseas landlord who refuses to engage. As well as these advantages, one ombudsman can tackle the root cause of problems, address systemic issues, provide feedback and education to all interested parties, and offer support to vulnerable consumers. Amendment 91 would dilute all these potential good impacts of the new ombudsman, reducing tenants’ ability to hold bad landlord practice and behaviour to account. I cannot think why anybody would want to do that.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank the noble Baroness, Lady Scott of Bybrook, for her amendment on the landlord redress scheme, and the noble Lord, Lord Best, and the noble Baroness, Lady Thornhill, for their comments.
Our new private rented sector landlord ombudsman will ensure that tenants are able to seek redress against their landlord when they have a legitimate complaint about the landlord’s action, inaction or behaviour. We are clear that landlords who use letting agents cannot delegate responsibility for their own actions or behaviours. Landlords almost always retain some responsibility for their property that cannot be passed on to agents—for example, making structural repairs in buildings. Tenants should be able to access redress if they experience issues such as this, regardless of whether their landlord uses an agent. That is why we think it is essential that both landlords and agents can be held to account for their individual responsibilities.
For landlords who have already voluntarily joined a redress scheme, once a mandatory private landlord ombudsman service is in place it will be tailored to the specific needs of the private rented sector, and those landlords will have to move to it. This will work better for the private rented sector, rather than having it mixed up with social housing. Landlords will be required to sign up to the new landlord database, and we are exploring how to align the sign-up process for this with the landlord ombudsman. That will help make it simple for landlords who are already members of an existing redress system to join the new landlord ombudsman service.
We are committed to ensuring that private residential tenants know where to complain and enjoy consistent standards of service and outcomes. Having private residential landlords as members of the same service will support this aim. We also want to ensure that, where it is not clear which scheme a tenant should complain to, there is no wrong access point for tenants. The schemes will be expected to work together to ensure that, regardless of where a tenant raises a complaint, it is effectively triaged and referred on to the right body with minimal input from the complainant.
I understand the noble Baroness’s concerns about duplication, but we will work closely with the new ombudsman and the property agent redress schemes, support them to work effectively together and ensure that the process works smoothly for both tenants and landlords. For the reasons I have set out, I kindly ask the noble Lord to withdraw the noble Baroness’s amendment.
Lord Jamieson (Con)
My Lords, I am grateful to the noble Lord, Lord Best, and the noble Baroness, Lady Thornhill, for speaking on this important topic. I think we all agree that we want a system that works and is clear and easy to understand, although we seem to have some slight disagreements on how that might be best achieved. I am grateful to the noble Lord, Lord Best, for his agreement that the current system is confusing. I am also grateful to the Minister for her response and for engaging seriously with the concerns that have been raised.
Baroness Scott of Bybrook (Con)
My Lords, I thank the noble Baroness, Lady Thornhill, for her expansive and constructive thinking on what more the database could do to support a rental market that works fairly and effectively for both landlords and tenants alike. During Committee, we had a thoughtful and wide-ranging discussion about the purpose, function and future potential of this database, and many noble Lords suggested that it could, and perhaps should, do more. I agree: in time, that may well be prudent. But, from my experience as a Minister, I have learned the value of taking one step at a time. Let us focus first on getting this system up and running and getting it right.
I am very much reminded of the Second Reading of the pensions Bill in the other place. When the Minister, Torsten Bell, began to explain its provisions, he was met with laughter from both sides of the House. The joke was all in very good faith and the Minister joined in at the moment, but it speaks to a deeper truth. We cannot allow this database to become the next pensions dashboard—a project weighed down by scope creep and plagued by delay. So, although I welcome the noble Baroness’s ambitious vision and her efforts to think beyond the immediate text of the Bill, we must begin with the basics, especially if additional functionality comes at the cost of higher system complexity and, crucially, higher financial burdens on those who provide rental homes to millions across this country.
That brings me to Amendment 97, which concerns limited relevant costs. This cannot become a system that imposes unlimited and never-ending costs on landlords. They need certainty—clear and reliable reassurance from the Government—that relevant costs will not spiral every time a new Minister has a bright idea.
It is that word again—balance—and I know that noble Lords are probably sick of hearing it by now, but it remains the guiding principle. We must strike the right balance between the cost of this system and the functions that it is expected to perform. Only then can we ensure that the database succeeds, not just in theory but in practice, for those who depend on it. Despite this, I will not seek to test the opinion of the House on Amendment 97.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank the noble Baronesses, Lady Thornhill and Lady Scott, for their amendments concerning the database. I thank the noble Baroness, Lady Thornhill, for all the thought and work she has put in and the assistance she has given us to aid our thinking around what may or may not be in the database. I appreciate that the intention behind Amendment 94 is to empower tenants with more information and to support their decision-making before they decide to rent a property. As the noble Baroness helpfully outlined in Committee, that forms part of a broader and more ambitious vision for the database. We need to ensure that the database is helpful to both landlords and tenants.
I hope that the noble Baroness is pleased that Clause 84 mandates that we will indeed record banning orders on the database. This clause specifies that we will record relevant banning order offences and related financial penalties on the database. We intend to make this offence information available to the public, using the regulations set out in Clause 87. Furthermore, the Bill includes the regulation-making power at Clause 84(6) for the database to record other housing-related offences committed by landlords. We will specify which offences will be recorded through secondary legislation, but I hope the noble Baroness is encouraged to hear that rent repayment orders are among those we are actively considering for inclusion.
Our approach to recording offences will consider the necessity and proportionality of recording this information, alongside making sure, of course, that it complies with data protection and human rights legislation. We need to give that careful consideration as well. As we discussed in Committee, we intend to retain flexibility regarding the information the database records and makes public, so that it can evolve in response to the changing needs of the sector, including those of tenants and landlords—enough information to be helpful but not so much that only Torsten Bell can understand what is on it.
Amendment 95 seeks to record historical Section 8 notices on the database to enhance tenant awareness and promote responsible landlord practices. I recognise that this would be a positive addition to improve the database and help it be a driver of higher standards and tenant protection, built on comprehensive and reliable foundations, so I thank the noble Baroness for the thoughtful amendment. The Government are currently considering recording possession information on the database and whether that information should be made available to the public. Any decision on what information will be recorded on the database has to take into account both the benefits and the burdens for different users, and we will ensure that the information collected remains necessary and proportionate.
As the noble Baroness will be aware from our previous conversations about what information the database will record, we place significant importance on the flexibility of the database for future circumstances. We therefore believe that the information collected on the database should be set out in secondary legislation, as stated in Clause 78.
Amendment 96 aims to make the commencement of rent and historical rent increase information visible on the database, to improve transparency for prospective tenants and support informed decisions in the private rented market. The Government are still considering whether to collect rent data on the database. However, we recognise the potential value the information could provide to tenants, by allowing a more informed rental experience. We are also aware that other government departments and bodies, such as HMRC and the NAO, may find this data useful. We believe, however, that for the database to remain flexible, the information it collects should be specified through regulations.
Amendment 97 would restrict the calculation of PRS database fees to be set with reference to costs associated with the operation and enforcement of the database only, not by reference to the costs of wider PRS enforcement activity. I appreciate the need to keep the fee at a manageable level and to justify any new costs to landlords. However, I draw the noble Baroness’s attention to what we have heard in previous debates regarding the challenges that local authorities face in resourcing their enforcement actions.
We believe it is appropriate that, as far as possible, costs of enforcement should be met by those individuals who break the rules. However, a well-regulated and well-enforced PRS benefits all good landlords, as well as tenants, and clearly local authorities must be properly resourced to achieve this. This clause provides Ministers with the option of using a proportion of fee income to provide revenue to fund private rented sector enforcement activities beyond those relating to the database.
As I have set out previously, database fees will be determined and fixed at a later point, via secondary legislation. I assure noble Lords that fee calculations will be reasonable and will bear in mind the cost to landlords, among other factors. Given what we have heard about the importance of local authority resourcing, I do not think it would be prudent to limit the calculation and use of database fees in this way.
I thank the noble Baroness for saying that she will not press her amendment, and ask the noble Baroness, Lady Thornhill, to withdraw her amendment.
Lord Jamieson (Con)
My Lords, I speak to this group on the decent homes standard, a commitment to ensure that all tenancies, regardless of tenure or circumstance, have access to safe, healthy and secure housing. In particular, I turn to Amendments 106 and 119, tabled by the noble Baroness, Lady Grender. She, the noble and gallant Lord, Lord Stirrup, and my noble friend Lady Coffey highlighted the persistent and ongoing issues that military and service accommodation faces.
We are in no doubt that those who serve our country and whose families bear the burdens of that service deserve decent homes. It is regrettable that, despite the application of the decent homes standard to military housing on a non-statutory basis since 2017, serious concerns persist about the condition and upkeep of military accommodation. These amendments offer Parliament an opportunity to reaffirm that military and service families should not be left behind.
We therefore welcome the commitments made in the strategic defence review on 2 June 2025, in which the Government announced an additional £1.5 billion in funding for our service family accommodation, bringing a total investment of £7 billion. Alongside this, the development of a new defence housing strategy and consumer charter, including timelines for repairs, named housing officers and a strengthened complaints process, is a step in the right direction. But such undertakings must be matched by effective and timely delivery. We would be grateful for greater clarity from the Minister on when the additional investment will begin to make a difference on the ground; what time- frame the Ministry of Defence has set for the implementation of these reforms; and how progress will be assessed, monitored and reported back to Parliament. Commitments of this scale demand not only ambition but accountability. Our Armed Forces and their families deserve more than expressions of appreciation; they deserve action and results. These amendments speak to that imperative, and that is why we are pleased to support them.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank the right reverend Prelate the Bishop of Manchester and the noble Baronesses, Lady Grender and Lady Altmann, for their amendments regarding the decent homes standard. I thank the noble and gallant Lord, Lord Stirrup, for his experience and knowledge, which he showed in his contribution. I thank the noble Baroness, Lady Coffey, the noble and right reverend Lord, Lord Sentamu, and the noble Lord, Lord Jamieson.
Amendment 105 would take away the power of Ministers to set out in regulations the types of temporary homelessness accommodation that the decent homes standard would apply to. I completely understand the sentiment and intent behind these amendments. The Government intend to apply the decent homes standard to as much temporary accommodation as possible. Indeed, the consultation that we launched on the decent homes standard, which was published on 2 July and closes on 10 September, makes this very clear and asks for further information on it.
As I said in Committee, we have to strike the right balance between improving standards and avoiding risk to supply. Given the pressure on local authorities, which we all understand, there is sometimes no choice but to use forms of temporary accommodation, such as commercial hotels. It may not be possible for this to meet all decent homes standard requirements—for example, where there are no kitchen facilities. We want to avoid a situation where applying the decent homes standard could mean that such accommodation can no longer be used, even where there is no alternative, as this could make things worse for people who are homeless or at risk of homelessness, not better. Of course, the long-term solution is to provide a much greater quantity of affordable housing. In the meantime, we have to make sure we do not shut off vital resources to local authorities.
I hope that the right reverend Prelate is reassured by the Government’s intention to apply the decent homes standard to as much temporary accommodation as possible and to deliver the affordable housing that we know we need to solve the problem in the longer term, and that he recognises that the most practical way to make this change to the decent homes standards is through a regulation-making power. I therefore ask that he withdraw his amendment.
Amendment 106 would bring Ministry of Defence service family accommodation within the scope of the decent homes standards measures in the Bill, including enforcement of this standard by local authorities. No one, especially me, is going to disagree that those who defend our country deserve to live in decent homes. As I said in Committee, the Government absolutely recognise that action is required to tackle the poor state of forces’ housing. That is why we are already taking decisive steps to remedy the situation that we have inherited— I gently remind the noble Baroness, Lady Coffey, and the noble Lord, Lord Jamieson, that their party was in government just over a year ago, and we inherited this situation from them.
As noble Lords will be aware, the Ministry of Defence has concluded a landmark deal to bring military housing back into public ownership. It is also developing a defence housing strategy, which will be published later this year, that will set out further steps to bring about a renewal of military housing to restore it to the quality housing that we all want to see for our armed services.
As my right honourable friend John Healey, the Secretary of State for Defence—and a great expert on housing, as the noble Baroness, Lady Grender, acknowledges—said in his Statement to the other place on the strategic defence review,
“we will invest £7 billion of funding during this Parliament for military accommodation, including £1.5 billion of new money for rapid work to deal with the scandal of military family homes”.—[Official Report, Commons, 2/6/25; col. 53.]
He has also announced a consumer charter that will introduce new consumer rights for families in military homes. The Defence Secretary is instructing the MoD to immediately plan improvements to enhance service family homes after the years of neglect from which they have suffered. Improvements set out in the charter will be in place by the one-year anniversary of the announcement to buy back military homes, made last December, with the final detail to be shared in the defence housing strategy later this year.
In relation to standards, the MoD already uses the decent homes standard as a benchmark and applies its own decent homes-plus standard as the target standard for service family accommodation. The MoD is reviewing this standard in line with recommendations from the Kerslake review and the House of Commons Defence Committee.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank the noble Lord, Lord Shipley, for his amendments on licensing schemes. On Amendment 107, we share the noble Lord’s desire to improve housing conditions, and we have always been clear that all renters deserve safe, secure and good-quality homes. That is why we are introducing a decent homes standard and Awaab’s law to drive reform and improve conditions across the sector. I acknowledge the work that the noble Baroness, Lady Scott, did on Awaab’s law when we were on different sides of the House. As discussed in Committee, we think this is the right approach so that all renters and local authorities are able to challenge and address poor-quality homes, not just those in selective licensing areas.
On Amendment 108, we believe that licensing schemes are crucial in helping local authorities tackle specific issues and improve standards. We also think that local authorities are best placed to make decisions regarding the use of these enforcement tools in their local areas. That is why, at the end of last year, we removed the requirement to obtain Secretary of State approval to introduce larger selective licensing schemes. However, we know that licensing schemes also place additional responsibilities on landlords. Local authorities must therefore keep schemes under review so that they remain proportionate and targeted at delivering the intended outcomes.
As discussed in Committee, a maximum duration of five years for schemes achieves the right balance. It gives local authorities time to assess the effectiveness of schemes while providing landlords with assurance that they will not be subject to increased regulation for extended periods. Where issues in the private rented sector persist after a scheme has ended, a local authority may introduce a new scheme to take further action, provided that the statutory criteria are still met. I therefore ask the noble Lord, Lord Shipley, to withdraw his amendment.
Lord Shipley (LD)
My Lords, I am grateful to the Minister and the noble Baroness, Lady Scott of Bybrook, for their comments. We clearly have a difference of opinion about the importance of selective licensing and the future operation of the decent homes standard. The Government have accepted the importance of selective licensing schemes because, in December, they removed the requirement for Secretary of State approval, as the Minister just said.
I am reluctant to press Amendments 107 and 108 to a Division because, clearly, the House will vote against them, and I think that would not be helpful in the current situation. Both Front Benches of the two largest parties in this Chamber have indicated their opposition to them, so any Division that I moved would be lost.
It is important for me to withdraw the amendment because two pieces of work are going on in the House of Commons on this matter. One is the consultation on the decent homes standard that the Government are undertaking, which the Minister referred to a moment ago. Also, the Housing, Communities and Local Government Committee is taking evidence on housing conditions generally in England. It will be important for the government consultation and the Housing, Communities and Local Government Committee to take the evidence from our debate on these amendments to see the concerns that I and professional bodies have been expressing about the importance of selective licensing in driving up housing standards in the private rented sector, as well as in the public sector more generally.
In the hope that there will be sufficient good will around the Chamber to allow this debate to be referred to the bodies now undertaking consultation, I beg leave to withdraw Amendment 107.
Member’s explanatory statement
This is consequential on the amendment in my name which would add the new subsection (3A) to this clause.
Baroness Taylor of Stevenage (Lab)
My Lords, government Amendments 111, 112 and 113 to Section 239 of the Housing Act 2004 and Clause 126 of the Renters’ Rights Bill amend the requirements for entering premises without a warrant for the purposes of certain enforcement action. Notice to the property owner or landlord will now be provided after the entry has taken place, within a reasonable amount of time, rather than at least 24 hours before. The 24-hours prior notice requirement for tenants and occupiers will remain, so residents will always be aware that a power of entry is going to be exercised, whether that is under Section 239 of the Housing Act 2004 or Clause 126 of the Bill.
I thank the right reverend Prelate the Bishop of Manchester for raising this issue in Committee. We have given considerable thought to his proposal, as well as to feedback from local authorities. Local authorities have told us that providing notice can result in unscrupulous landlords hiding evidence of breaches, intimidating tenants, and temporarily fixing issues before reverting to non-compliance. We recognise that landlords will want to be aware of any inspection, and indeed the outcome of the inspection. The local authority will therefore need to provide notice after the inspection has taken place and engage with the landlord about any issues raised as a result.
We have heard, throughout the passage of this Bill, about the importance of local housing authorities having the right resources and tools to enforce. Making this change will make a real difference in their ability to address unsafe or hazardous living conditions more promptly and tackle unscrupulous landlords. I beg to move.
The Lord Bishop of Manchester
My Lords, I thank the Minister for her comments. I declare my interest: I own, with my wife, one apartment in the West Midlands. It will not help me in any way if this amendment is passed, but I still think it is the right thing to do, for exactly the reasons that the Minister has given—ones that I myself pressed in Committee. I am very grateful to her and her colleagues for meeting with me in the meantime, and for taking up the amendment at this stage. I urge noble Lords, if these matters are put to a Division of the House, to support the government amendments.
Lord Jamieson (Con)
I refer to my comments. If they are to be exercised without prior warning, there must be rigorous justification, robust checks and balances and explicit limits to prevent overreach. That bar has not been reached, and it is not in the Bill. It needs to be in the Bill.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank those who have contributed to this debate. We believe this is a well-balanced approach that enhances enforcement while respecting the rights of both landlords and tenants. Allowing local authorities—which have been very keen that we support the right reverend Prelate the Bishop of Manchester’s proposal—to enter premises without giving advanced notice to owners and residential landlords will help them better target unscrupulous landlords, ensuring that properties are compliant with PRS legislation and meet safety standards.
On the points raised by the noble Lord, Lord Jamieson, and the noble Baroness, Lady Thornhill, local authorities are able to use these powers of entry only if they consider them necessary to determine whether enforcement action is needed. Officers will need the correct authorisation and will need to state the purpose of the inspection and ensure lawful use of the power of entry. Compliant landlords will not face any detriment as a result of this change, which is not intended to impact on good landlords. They will benefit from streamlined enforcement, with transparency through timely post-inspection notices.
As I set out in my opening speech, this change will make a real difference to the ability to address unsafe or hazardous living conditions more promptly and will assist our local authorities to promptly tackle unscrupulous landlords.
“(3A) A notice need not be given in accordance with subsection (1)(c)(ii) to a person who is a residential landlord within the meaning of Part 2 (see section 64).(3B) If—(a) premises are entered in exercise of the power conferred by subsection (1), and(b) notice is not given to any person because of subsection (3A),an officer of the local housing authority must give that person notice in writing of the exercise of that power within a reasonable period after its exercise.(3C) The notice must—(a) identify the premises that were entered,(b) state when the premises were entered, and(c) state the purpose for which the premises were entered.”Member's explanatory statement
This removes the requirement to give prior notice of entry under this clause to certain landlords and instead requires notice to be given after entry has taken place.
“(5A) In relation to any qualifying residential premises within the meaning given by section 2B, notice need not be given—(a) to any owner;(b) to any occupier who has waived the requirement to give notice.(5B) If—(a) premises are entered in exercise of the power conferred by subsection (3), and(b) notice is not given to any person because of subsection (5A)(a),the authorised person or proper officer must give that person notice of the exercise of that power within a reasonable period after its exercise.(5C) The notice must—(a) identify the premises that were entered,(b) state when the premises were entered, and(c) state the purpose for which the premises were entered.”Member's explanatory statement
This removes the requirement to give prior notice of entry under section 239(5) of the Housing Act 2004 to owners of “qualifying residential premises” (see clause 101(5) of this Bill) and instead requires notice to be given after entry has taken place.
Baroness Scott of Bybrook (Con)
My Lords, I will be brief. On these Benches, we find the argument for full repeal unconvincing. The right-to-rent scheme was designed to serve a clear and important public interest, ensuring that access to the private rented sector is not used as a back door to unlawful residence in the United Kingdom. That principle remains relevant. The Bill is not the right vehicle to reopen immigration law. Any reform of the right-to-rent scheme must be considered in the round and as part of a wider conversation about enforcement, fairness and social cohesion in our immigration system. For those reasons, we cannot, and I will not, support this amendment.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank the noble Baroness, Lady Thornhill, for Amendment 115, which would abolish the right-to-rent scheme that applies in England. I thank the noble Baronesses, Lady Lister and Lady Scott, the noble Lord, Lord Cashman, and the right reverend Prelate the Bishop of Manchester for their contributions.
The scheme was introduced to ensure that only those lawfully in the United Kingdom can access the private rented sector and, importantly, to tackle unscrupulous landlords who exploit vulnerable migrants, sometimes in very poor living conditions. Some landlords who rent to those who are here illegally are criminal operators. We all have a shared objective to drive them from the rental market and to deter unscrupulous landlords from entering into exploitative practices.
We have always been absolutely clear that discriminatory treatment on the part of anyone carrying out right-to-rent checks is unlawful. The checks apply equally to everyone seeking private rental accommodation, including British citizens. The scheme has been independently evaluated twice. Although some examples of discriminatory attitudes were found, there was insufficient evidence to claim that there was any systematic, unlawful discrimination as a result of the right-to-rent scheme. There are therefore no current plans to end the scheme.
It is our view that it is wrong to seek to abolish right-to-rent legislation in its entirety by simple notice of amendment. This immigration legislation was designed to address those who are disqualified from living in the UK by virtue of their immigration status, and that remains an important priority for this Government. The Government will continue to support legitimate landlords and letting agents who continue to act properly by carrying out the prescribed checks in legislation and published guidance. We have made big strides to improve the digital capability of the systems involved.
I emphasise that the Home Office has listened to and taken on board concerns expressed about right to rent during the progress of the Renters’ Rights Bill and from wider stakeholder engagement. As a result, officials will actively engage further with tenants and their representative groups to ensure that the right-to-rent scheme works fairly and inclusively for all. Early engagement has helped the Home Office identify individuals who may struggle to prove their identity and, in consequence, face barriers to accessing housing and other services. The Home Office has begun to work with local authorities to understand how individuals can overcome these barriers, with the aim of extending successful approaches across the UK.
As we move forward, we remain committed to working with stakeholders, including community-based initiatives and the third sector, to strengthen the inclusivity and accessibility of the right-to-rent scheme. I thank the noble Baroness, Lady Thornhill, for her interest in the scheme and would be happy to facilitate a meeting with the appropriate Home Office officials to discuss how to ensure that the scheme can operate inclusively and fairly for all tenants, landlords and letting agents. In the light of these reassurances, I ask that the noble Baroness, Lady Thornhill, withdraws the amendment.
Baroness Thornhill (LD)
I thank the Minister for her answer. It seems to me that the Government want to make the scheme work, whereas on our Benches we are fundamentally opposed, as a matter of principle, to making ordinary citizen landlords immigration officers.
Noble Lords know that we do not fight injustice by staying quiet; we fight it by shining a light, telling the truth—the truth is that this is not working—and demanding better. That is what those of us who have spoken have tried to do, in some small way, by supporting this amendment.
I am disappointed that this Labour Government have not taken an opportunity to repeal this, and I feel so strongly about it that I did want to push it to a vote, but I am not silly and I do not want to waste noble Lords’ time, knowing that it will come to nothing. So I will not push it to a vote, but I will explore every avenue to bring it up again and again in any legislation. For now, I beg leave to withdraw the amendment.
Baroness Thornhill (LD)
My Lords, I have been pleasantly surprised by the support for this amendment from a range of bodies, including the Law Society and the National Residential Landlords Association, plus many and various housing legal practices. Thus I can say with confidence that the reassurances we have had thus far about the capacity and capability of the courts to deal with the impact of the Bill when it becomes an Act are clearly challenged by those who actually have to deal with the courts regularly and currently, and I have listened to them. It seems we are still recovering from the backlog of Covid; they are not convinced that it is sorted, and neither are we yet, but we hope that this amendment provides an opportunity for the Minister to do that.
Put very simply, this amendment asks for a review of the impact of the Bill, when passed, on the judicial system, with the findings set out no later than two years after the day on which it is passed. It asks the Government to consider the effects on case volumes, court efficiency, resource demands and access to justice—all key areas to measure the effectiveness of the court process for both landlords and tenants and to ensure confidence in the whole system. Does the Minister have access to the measures on current case loads from which we can measure progress?
This amendment also reflects concerns raised across this House about the capacity of the courts to deal with the additional case loads that the Bill might generate. I seek reassurance that the Government will give a clear commitment today to provide the necessary resources that the courts might need going forward. Of course, that begs the question of how the Government will know this if they do not carry out some sort of fundamental review. If reviews or something similar are promised by the Minister, given the widespread concerns there still are about the courts, can the Minister give a reason why this cannot be included in the Bill?
I know we have all received emails from around the country from landlords giving their own instances of the length of time it takes for an application for a possession order to get to an actual hearing. It has gone from weeks to months and varies depending on where you live in the country, and that is now. I hope the Minister can give us all some assurance of what the current situation is so that we can have a benchmark before the Bill becomes an Act. In Committee the noble Baroness, Lady Scott, stated:
“Backlogs are rising, court rooms lie unused for lack of staff and overburdened judges are stretched too thin”.—[Official Report, 28/4/25; col. 997.]
Can the Minister please give us a progress report?
Amendments 120 and 121 in the name of the noble and learned Lord, Lord Keen, seem to be asking for a delay, setting the unrealistic measure of cases being processed as quickly as they were before the first lockdown. To achieve this some might say desirable benchmark would, we believe, inevitably delay the implementation of the very important rental reforms in the Bill, so we cannot support them, but we would like to hear that the Government and the courts are now in tandem and have an agreed commencement date. I beg to move.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank the noble Baroness, Lady Thornhill, and the noble and learned Lord, Lord Keen of Elie, for their amendments. Starting with Amendment 116, we fully recognise the importance of the justice system, both courts and tribunals, needing to be ready for our reforms, and for individuals to access timely justice. We are therefore, as I have commented in previous sittings on the Bill, working closely with the Ministry of Justice to assess the impacts of our reforms on the courts and tribunals, and to lessen these wherever possible. This work has been ongoing for years and in great detail. The digital service for possession claims is well advanced and will make it more efficient and easier to understand for landlords and tenants.
The amendment we have tabled to our rent increase measures shows that we are listening to the concerns of the sector and this House about tribunal workloads. It puts in place a sensible and proportionate safeguard in case it is needed. The Ministry of Justice already publishes quarterly statistics on the operation of the county court possession process, including the volume of cases going through the system and average timelines. This data is widely available and regularly reported on in the press. As set out in the impact assessment for the Bill, and in debate, we are already committed to monitoring and evaluating the private rented sector reform programme.
I have spoken at length about the ambition of this programme, so I will simply reiterate that we will use a wide range of sources to support this monitoring and evaluation work. Existing datasets will be used, and new data will be collected. The department is fully committed to publishing our evaluation findings at the two-year and five-year points after the Bill’s implementation. I can therefore assure the House that we will already be collecting extensive data. In this context, it is not necessary to commit to undertake any further review. I welcome the wish of the noble Baroness, Lady Thornhill, to give our reforms a regular MOT, but I hope she accepts that we have ambitious evaluation plans and do not want to duplicate them unnecessarily. Therefore, I respectfully ask her to withdraw her amendment.
Amendment 121 would require the Secretary of State to certify that landlord possession actions in respect of residential property are processed by the courts in no greater time, on average, than they were in the year before the first Covid lockdown before most of the Bill could be capable of coming into effect. The noble and learned Lord, Lord Keen, has also tabled Amendment 120, which would confirm that commencement of these important reforms would be delayed until this proposed certification had been carried out. I fully appreciate the need for the justice system to be ready for our reforms, and for landlords and tenants to access justice in a timely way, and that landlords need a smooth and efficient process in the county court for the minority of cases where court action for possession becomes necessary.
I want to be clear that we will not link the implementation of most of the provisions in this Bill to an arbitrary target of court timeliness. The sector has already waited too long for these urgently needed reforms. Court rules already specify that possession cases requiring a hearing should be listed between four and eight weeks from the issue of the claim. The MoJ quarterly landlord possession action statistics for the period January to March 2025 indicate that claim to order median timeliness is 8.3 weeks. I understand that there will be cases outside that, but they often have different circumstances. Setting a target for other parts of the possession process is not sensible, as it is dependent on the actions of the parties to the proceedings.
For example, an important stage of the process is the application for a warrant of possession, and this is dependent on the actions of a landlord and is outside the control of the court service. Where a tenant stays in a property beyond the date in the possession order, a landlord can choose if and when to apply for a warrant to enforce the possession order granted by the court. They can also decide whether to apply to transfer the case to the High Court.
Instead of agreeing to these unnecessary commitments, we are working in partnership with the Ministry of Justice to assess the impact of the reforms on the county court and lessen these wherever possible. This close collaboration has been done in a great deal of detail. It includes the development of a new digital service for possession claims, which is well advanced, that will make the possession process more efficient and easier to understand for landlords and tenants. As set out in the impact assessment for the Bill, and in debate, we are committed to monitoring and evaluating it.
I welcome the wish expressed by the noble and learned Lord, Lord Keen, for a more efficient possession action process, but I hope he accepts that we are making good progress on bringing these processes online and will not press his amendments.
Baroness Thornhill (LD)
I am pleased that the Minister sounded assured in what she told us, and I accept what she says. However, that view is not shared by everyone. The Minister said that everyone should know, it is in the press, et cetera, but that does not appear to be the case. I think the Minister is confident in the good news and she is in tandem with the courts, and therefore there is a message to get out. Without meaningful court reform, the ambitions of the Renters’ Rights Bill could be seriously undermined, and we all know and understand that. I will cut to the chase: I beg leave to withdraw my amendment.
Baroness Scott of Bybrook (Con)
My Lords, we think that the amendment from the noble Lord, Lord Carrington, is sensible and measured. The amendment provides for a minimum of three months’ notice before new tenancies are treated as Section 4A assured tenancies and a further three months before existing tenancies are reclassified in the same way. This introduces a clear and reasonable transitional period, giving landlords and tenants time to prepare for the significant legal and practical implications of these changes.
Crucially, it gives banks time too. As the noble Lord, Lord Carrington, noted, Amendment 122 is supported by UK Finance, including lenders such as Nationwide and Paragon. Banks need time to adjust. Any change to how a landlord can evict a tenant makes lenders more cautious about the security of their investments. These lenders will want to have seen it in writing before they start to make too many changes.
Additionally, lenders will need to reassess their understanding of rental income flows. Lenders will have to adjust their risk models, and potentially their loan terms, to accommodate the risks under the new regime, not only in relation to individual properties but with regard to the broader market stability. It is vital to understand how the regime affects overall demand in the rental market.
I take this opportunity to raise the specifics of buy-to-let mortgages. Flexibility in increasing rents in these cases is especially important and an area where sufficient time for adjustment will be needed. Lenders must evaluate the continued attractiveness of buy-to-let properties as collateral for loans.
Operational readiness matters too. Quite simply, new systems and processes will need to be adapted to the framework. Earlier today, we discussed systems such as the database and the pensions dashboard. Of course, many private companies are often more agile when responding to challenge and change, but even they need time.
This is a complex Bill, and I have said several times that its implementation will require careful communication and a phased approach. I see this amendment as a practical way of helping the Government ensure that no stakeholder is caught off guard by the shift to the assured tenancy regime.
I would welcome clarity from the Minister on the Government’s plans for commencement—so, I am sure, would landlords and tenants—and all stakeholders will need time.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank the noble Lord, Lord Carrington, for his amendment and for his engagement generally on the Bill. Subsequent to our meeting earlier this week, I had a detailed response prepared for the noble Lord on Clause 145. Unfortunately, it arrived in my inbox just as I was coming into the Chamber this afternoon. It probably has not reached him yet, but that is on its way to him.
On Amendment 122, the Government are committed to introducing the new tenancy system for the private rented sector in one stage to bring to an end Section 21 no-fault evictions as soon as possible. These evictions cause utter misery for the tenants on the other end of them and a huge amount of cost to local government in picking up the pieces when people get evicted at very short notice. A single implementation date for both new and existing tenancies will enable all tenants to benefit from the reforms as soon as possible and prevent a confusing two-tier system during transition.
We are continuing to work very closely with stakeholders. The noble Lord, Lord Carrington, referred to meetings between my honourable friend the Minister for Housing and financial institutions. He has also met with many landlords’ associations and other stakeholders to ensure that the sector is prepared for the reforms in the Bill. I want to be very clear that we are committed to providing sufficient notice to ensure that all parts of the private rented sector have time to prepare. Implementation will not be immediate, as we have secondary legislation to pass. We are making good progress on drafting that and the necessary guidance that goes alongside it. All this will help us to implement in a timely manner.
In addition, the Bill makes specific provision to ensure a smooth transition to the new system and avoid unnecessary cliff edges. For example, the Bill will ensure that notices served by landlords before the commencement date remain valid after that date. Based on our ongoing work to ensure a smooth transition to the new system, we consider that there will be no benefit to requiring arbitrary minimum time periods after Royal Assent before the tenancy reform measures in the Bill can come into force.
With these reassurances that we are committed to a smooth and responsible approach to implementing the Bill, I respectfully ask the noble Lord, Lord Carrington, to withdraw his amendment.
Lord Carrington (CB)
My Lords, I thank the Minister very much for her engagement with me, although the letter has not arrived yet. I am in a position of enormous power now, in the sense that this is the very last amendment and I am keeping noble Lords from their drinks and everything else. I am very pleased that the Minister has now reassured me that the cliff edge will not happen just like that as far as financial institutions are concerned, and that there will be time for preparation.
I also thank the noble Lord, Lord Hacking, for his support and his emphasis on the fact that this was not a political amendment but a practical one. I wish him great success in the work he does with his tenants. Happily, I have someone to help me.
Having thanked everybody for their kind engagement and sometime support, I have pleasure in withdrawing the amendment.
Member’s explanatory statement
This is consequential on the amendment in my name which inserts new sub-paragraphs (2) to (6) into paragraph 13 of Schedule 6.
Housebuilders: Information Sharing
Baroness Taylor of Stevenage Excerpts(10 months ago)
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The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, the housing market can thrive only if there is fair, open competition, and it is right that the CMA acts where this is not the case. The CMA housebuilding study was right to highlight the areas for improvement in the market, and that is why we have responded to its findings about delivering a system that works in the public interest. The £100 million additional funding proposed for affordable housing will mean more families can benefit from a safe and secure home.
To answer the noble Baroness’s point about information, the seven companies highlighted in the CMA report have agreed to work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing and not to share certain types of information with other housebuilders, including the prices houses are sold for, except in very limited circumstances.
Baroness Thornhill (LD)
My Lords, I thank the noble Baroness for her Answer. There could be an alternative version to this: major housebuilders pay £100 million to halt the CMA’s investigation into potential illegal collusion through the sharing of competitively sensitive information that could have inflated house prices. While this settlement might appear a pragmatic, cost-effective solution, would it not be more useful to have some evidence-led answers about whether the business models of the major developers are a significant factor in the slow delivery of housing? Therefore, should not the Government insist that the CMA actually completes its investigation, rather than allowing a financial settlement that obscures the fact and definitely looks dodgy?
Baroness Taylor of Stevenage (Lab)
The CMA is continuing its work on this, and on 9 July it announced that it is consulting on its intention to accept commitments offered by the housebuilders in relation to the investigation. That consultation closes on 25 July, and I have already set out some of the commitments that the seven companies have made. The £100 million payment, the largest secured through commitments from companies under investigation, will be split between affordable housing programmes across all our four nations. I hope that will make a significant contribution to delivering the affordable housing we all want to see.
Lord Young of Cookham (Con)
My Lords, if the Competition and Markets Authority confirms this £100 million payment for anti-competitive activity, can the Minister give an assurance that none of the affordable homes to be built with that money will be built by the volume housebuilders responsible for this activity, otherwise they will simply get their money back?
Baroness Taylor of Stevenage (Lab)
The noble Lord makes a very good point. I am sure that the Competition and Markets Authority, as part of its consultation, will be looking at the best way of distributing that money, so it is not just recycled to the people who caused the problem in the first place.
Lord Best (CB)
My Lords, irrespective of the merits of the £100 million deal done between the CMA and the seven volume housebuilders, does the Minister agree that we should be reducing and indeed eliminating our dependency as a nation on a small oligopoly of major housebuilders? We need more variety; we need SME builders doing more; and we need the new development corporations set up at arm’s length to local authorities by mayors and combined authorities to replace our dependency on a very small handful of large-scale housebuilders which, I am afraid, will always let us down.
Baroness Taylor of Stevenage (Lab)
I have much sympathy with what the noble Lord says. He has great expertise in this area, and I recognise that. Our focus is on creating a more balanced and competitive market overall by addressing the systemic barriers that prevent SMEs and others delivering more homes. We are taking action to support SMEs across the three main challenges that we know they face: access to finance, access to land, and an uncertain and complex planning system. We have announced two immediate packages of measures to support buildout and SMEs via £100 million in SME accelerator loans and measures to support faster decisions on smaller sites, which I hope will help.
Lord Rennard (LD)
My Lords, the one-off payment of £100 million towards affordable housing is only about 3% of the operating profit of the five biggest housebuilders this year. Is this a relatively small penalty for them to pay for anti-competitive practices over many years?
Baroness Taylor of Stevenage (Lab)
As I already commented, this is the biggest settlement ever achieved by the CMA. Of course, we can always do with more money for housing. We have to consider what is appropriate in these circumstances. I am sure the CMA has done that. This will undoubtedly make a significant contribution to delivering the affordable housing we all want to see. I am sure that the CMA will continue to watch the market very carefully to see that the changes that are introduced as a result of its report make the difference that we know we need.
Baroness Scott of Bybrook (Con)
My Lords, UK GDP fell by 0.1% in May, with declines in industrial output and construction dragging down the overall performance. What communication has the Minister had with the construction industry to ensure that not just major housebuilders, which we have heard about, but the important SME housebuilding sector are supported? What support is she giving them to grow rather than stall or regress, as they are at the moment, particularly in the context of the Government’s housing ambitions?
Baroness Taylor of Stevenage
I thank the noble Baroness, although I have set out already the action that we are taking to support SMEs, including the £100 million in SME accelerator loans. We are working collaboratively with all stakeholders, including large developers. That includes setting up the major sites accelerator, which is helping to unblock some of the sites that we know have been held up in the process. A lot of work is being done with the Home Builders Federation, the industry and development companies to make sure that, alongside our reforms to planning and infrastructure delivery, we are moving this on as quickly as possible. As my noble friend Lord Livermore has just said on the previous Question, this will make the biggest contribution to growth, and we know that that is what will get our country going again.
Lord Aberdare (CB)
My Lords, I welcome what the Minister has said about support for SMEs and construction. Are the Government also looking at other issues bedevilling SMEs in the construction sector, such as poor payment practices and cash retentions?
Baroness Taylor of Stevenage (Lab)
I understand that slow payments and retentions are long and ongoing issues. We have to continue to look at all the barriers to SMEs as we go through the process of trying to speed up housing delivery in this country. Without removing some of those barriers we will not meet the ambitious total of 1.5 million homes that we want to deliver. We need to make sure we are unblocking all the areas that are causing problems in the system.
Lord Kamall (Con)
My Lords, the Minister has rightly talked about the barriers faced by SMEs and smaller developers entering the market. One of the issues identified is planning departments. What conversations have the Minister or the department had with some of the smaller housebuilders, as a facilitator to conversations with planning departments, to ensure that they are able to understand some of the complexities of getting their developments through planning?
Baroness Taylor of Stevenage (Lab)
The issue of skills and capacity in planning departments has been a real focus of this Government since last July when we were elected. We know that that is one of the areas in which we need to support local authorities. We have put large sums of money into creating 300 new skilled planning roles in local government and improving the pipeline of planners coming through, as well as addressing some of the other skills issues in the sector, which we know are critical to delivering this. Lots of developers have mentioned the building safety regulator, which is another aspect to this, and the noble Lord may know that we have made rapid changes there. That is moving on very quickly now.
Baroness Butler-Sloss (CB)
My Lords, what are the Government doing to encourage more skills and expertise, which I gather are lacking?
Baroness Taylor of Stevenage (Lab)
The noble and learned Baroness is quite right. The age profile of some of the skilled workers in the construction sector is higher than we would want it to be. We have put £600 million into improving skills, setting up 10 new technical colleges so that we can encourage young people to take up trades in the construction industry. It is an exciting industry to be in, so I hope that they will follow that through. We are trying to encourage some of those people in the construction sector who are getting closer to retirement age to take on roles as trainers of young people, so that we pass on the skills of the current generation to the next generation.
Rutland Lieutenancy
Baroness Taylor of Stevenage Excerpts(10 months ago)
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Baroness Berridge
To ask His Majesty’s Government what steps they are taking to protect the ceremonial status of Rutland’s lieutenancy in the forthcoming local government reorganisation.
The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, how wonderful to go from the outer reaches of the world to Rutland and the lieutenancy. That is the benefit of our House. I thank the noble Baroness for her Question. I understand that she has close personal connections with Rutland.
Our Government believe that the historic identity, rights and privileges of counties in England are extremely important and should be safeguarded and celebrated. There is no intention that reorganisation will impact on ceremonial rights and privileges, and we will ensure that they are maintained. Where specific provision is needed in legislation, this will be considered as necessary to reflect the local circumstances in each area. On Rutland, Minister McMahon has met and provided written assurances to Alicia Kearns MP. I have met the leader of Rutland County Council, who also raised this issue with me.
Baroness Berridge (Con)
I thank the Minister for the clarification that if legislation is needed to protect the county status, it will be given. I am sure the Answer will be welcomed by the more than 7,000 people in Rutland who signed the petition about the ceremonial status that was presented in the other place by Alicia Kearns recently. But will the Minister please confirm the timing of that legislation? That is the issue that people from Rutland have raised with me. Bizarrely, when the unitary authority is abolished, the ceremonial status will be abolished. Can the Minister confirm that that will not happen until primary legislation has preserved that status? Which legislation is it envisaged that that issue would be within the scope of?
Baroness Taylor of Stevenage (Lab)
We are still in the process of working with that local area on its proposals for unitary local government. We invited its proposals, and councils in the area sent us their interim plans in March and received detailed written feedback on those submissions in June. At this stage, no decisions have been taken on those interim proposals, so decisions will be taken on that in due course. The legislation to enact the devolution proposals has just been introduced in the other place. So, as that proceeds, we will be considering carefully the sequencing of any further legislation that is needed in respect of these ceremonial boundaries, which we all want to protect and safeguard.
Lord Foulkes of Cumnock (Lab Co-op)
The Minister is absolutely right that it is a great tribute to the House of Lords that we can look after the interests of the 41,000 people of Rutland, the lord-lieutenant and the 12 deputy lieutenants. Does she also agree that if President Putin and President Trump did the same in their own countries, the world would be a better place?
Baroness Taylor of Stevenage (Lab)
I think that is probably a question for my noble friend Lord Collins to answer, rather than me. But the point is that this issue of devolution will provide greater power and decision-making, and greater funding, for all our local areas. That is a benefit to all of us in the country, and I look forward to working with all areas, including Leicestershire, Leicester and Rutland, as we move these proposals forward. It is a great project we are working on, and the community empowerment part of the Bill is as important as the English devolution part.
Lord Caine (Con)
My Lords, it is over 50 years since one of the most unloved reforms of local government in our history. Given the changes that are now taking place, has the time not now come to drop altogether the word “county” from local government administrative units and to restore, for ceremonial purposes, including by realigning lieutenancies, all our historic counties with their traditional boundaries, including of course the Ridings of God’s own county of Yorkshire?
Baroness Taylor of Stevenage (Lab)
We all want to see all power and strength to Yorkshire. None of us would be without our Yorkshire Tea, would we? It is very important. At the moment, local government is engaged not only in local government reorganisation but in the devolution project. We will consider whether any further realignment of ceremonial boundaries is necessary, and there will be some areas where further legislation is needed on this. For the moment, we will work with local government to do the reorganisation. If the noble Lord wants to talk to me further about the West Riding or anywhere else, I am happy to have that discussion with him.
Baroness Pinnock (LD)
My Lords, 50 years ago, as we have heard, there was a reorganisation of some of the great counties of our country. In some instances, communities that had no previous relationship were forced together. What assessment have the Government made of the success or otherwise of creating a coherent whole from an artificial amalgam?
Baroness Taylor of Stevenage (Lab)
As the noble Baroness will know, I grew up in a new town in Hertfordshire, which, when it was first announced, was not the most popular decision. That was back in 1946. We have all worked together on this, and now we have a very coherent picture in Hertfordshire. People work with us, and we are working on our unitary proposals. There are always memories of historical areas that people want to retain, and I think the Answer to the noble Baroness’s Question set out that the Government recognise how important these ceremonial areas are. Some of them go way back in history, and we have a lot to do to undertake the local government reorganisation. So, if there is any further reorganisation to be done, we can certainly consider it. But I think there is enough going on for the moment. These historical memories are really important to people, and we should value and treasure them. That history and heritage are part of our country.
Baroness Eaton (Con)
My Lords, I declare my interest as a vice-president of the Local Government Association. Rutland County Council is one of England’s highest-performing local authorities, not least in the area of adult social care. Rutland residents have always felt very close to their council and their elected members, and all decisions have been made locally. With that in mind, will the Minister outline the tangible benefits for Rutlanders of forcing this small but perfectly formed council to become part of a larger unitary authority, and what data has the Minister based her views on?
Baroness Taylor of Stevenage (Lab)
First, no forcing is involved here. We put out an offer to submit proposals and have had proposals back. I have met all the councils in Leicestershire and Rutland and, separately, the Mayor of Leicester. There is a very strong will in the county to work together—they have been working very well together—and we look forward to taking these proposals forward with them. I hope it is of reassurance, not only to Leicestershire, Rutland and Leicester but to other counties in our country, that administratively they will be working under different boundaries but that will not affect some of the historical links that they have between them.
Lord Wallace of Saltaire (LD)
I have just been reading the newly published English Devolution and Community Empowerment Bill; I have not yet got through the full 300 pages but I am puzzled by the term “community empowerment”. The Bill empowers mayors and strategic authorities and gives mayors the power to appoint up to seven commissioners, who will be responsible only to them; it cuts down the role of individual councillors; and the strategic authorities will be a very long way above local communities. Should we not cut “community empowerment” from that Bill?
Baroness Taylor of Stevenage (Lab)
I am sorry but I strongly disagree with the noble Lord’s view on that. We want to improve engagement, and this will create a fantastic role for community councillors to work with their local areas. We are very clear on the importance of engagement and of developing proposals for strong, stable unitary councils fit for the future, including engagement with local residents and stakeholders, Members of Parliament, businesses and public service providers.
Baroness Scott of Bybrook (Con)
My Lords, can the Minister please clarify the anticipated timescale for local government reorganisation in England, and indicate what elections for which authorities are expected to take place in the next year?
Baroness Taylor of Stevenage (Lab)
The Government’s starting point on elections is for all elections to go ahead unless there is a strong justification. So we anticipate that for areas except Surrey—which, as the noble Baroness will be aware, is moving on a much faster timescale, being on the most ambitious timeline—there could be elections to new unitary councils in May 2027, ahead of the go-live of new councils on 1 April 2028.
Housing: National Tenant Body
Baroness Taylor of Stevenage Excerpts(10 months ago)
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Baroness Thornhill
To ask His Majesty’s Government what assessment they have made of the case for establishing a national tenant body, as recommended by the Housing Ombudsman.
The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, with strong landlord bodies in both the private and social rented sector, we agree that tenants should also have a strong voice in influencing and scrutinising social housing policy. The Government are committed to listening to tenants and acting on what we hear. The social housing resident panel was established in 2022 to give social housing tenants direct access to Ministers and officials during policy development. We expanded its scope in 2024 beyond its initial focus on quality reforms to all social housing policy. However, our engagement with tenants has shown that they want a national body that is tenant-led and independent of government and landlords. We will continue to work with tenant groups as they explore how best to establish a national tenant voice.
Baroness Thornhill (LD)
I thank the Minister for that Answer and am pleased at the positive response. We could be forgiven for thinking that everything in the garden is rosy and it is all going well—hurrah!—so why did the ombudsman, the National Housing Federation, the Commons Select Committee and other prominent voices feel the need to advocate publicly, loudly and recently for such a body? Why do Ministers refuse to meet two nationally significant tenant groups, G15 and Stop Social Housing Stigma, claiming the “no diary availability” excuse? I would like to think that this is simply a communications failure. Does the Minister see a role for government in creating the independent national body that we all seem to want to see, yet nobody knows about it or how it is going to happen?
Baroness Taylor of Stevenage (Lab)
I am grateful to the noble Baroness for her question and for championing this issue on behalf of tenants. I have met with G15; I went to its parliamentary session and had a look at its very good report on social housing stigma. I agree that we need to make sure that the tenant voice is heard. I have also met with the regulator of social housing twice, I think, since I took over the regulators. The social housing regulator is looking very carefully at how to increase the emphasis on the tenant voice. It is very important that this national body, whatever it is going to be, is tenant-led. I am happy to meet any tenant groups to move this forward. We all want to see tenants having a powerful voice in designing social housing policy.
Baroness Warwick of Undercliffe (Lab)
My Lords, I wonder whether I can support the Minister and the noble Baroness, Lady Thornhill. A lot of work is being done already in the social housing sector by the NHS, and in the private-rented sector by Shelter, Generation Rent, Acorn and the NUS. It is very important that all types of tenants are represented in this national body. There are a lot of organisations involved here. Is my noble friend prepared to go a little further and suggest that the Government have a role—maintaining distance, obviously, because that is clearly needed—in setting this organisation up, perhaps with a little seed corn to supplement the rather meagre resources that many of these organisations have?
Baroness Taylor of Stevenage (Lab)
I thank my noble friend for her question. The important thing is that we get the balance right between ensuring that tenants feel this body is genuinely tenant-led and doing what we can to help convene the right people around the table to bring this forward. I will continue discussions with all the relevant housing organisations and bodies to make sure that we are doing all we can to help move this forward. It is time we had some real action in this area.
Lord Keen of Elie (Con)
My Lords, many housing associations and local councils already have tenant panels and dispute resolution mechanisms. Can the Minister explain how a new national body would avoid unnecessary duplication while genuinely improving outcomes for renters? If such a body were established, can the noble Lord the Minister—the noble Baroness the Minister; I do apologise, but we are gender neutral—explain whether the Government would envisage it as a mandatory authority or a voluntary advisory service, and how would it interact with private landlords and housing associations that already have tenant engagement schemes?
Baroness Taylor of Stevenage (Lab)
The noble and learned Lord puts his finger on one of the issues. It is very important that at local level, at a specific housing association level and for local councils that have their own housing, tenants are able to have a voice in what is going on with that organisation. The movement towards a national body is more to help work with Ministers and officials on national housing policy where it relates to social housing. As the Government have committed £39 billion of spending on this revolution in social and affordable housing, it will be particularly important that we have a proper body to advise on national policy on social housing. I look forward to working with all those who want to move this forward, but that does not mean that the local voice will not retain its importance.
Baroness Jones of Moulsecoomb (GP)
It is very good news from the Minister that she is aware of this, but it is obvious since Grenfell and other failures, and since the Renters’ Rights Bill, that this is absolutely necessary. Where is the sense of urgency to get this up and running? Is it simply a case of tenants’ organisations not having the money to convene a proper conference to make proper decisions about the way forward?
Baroness Taylor of Stevenage (Lab)
I agree with the noble Baroness. Following the findings of the Grenfell inquiry, it is clear that the social housing system was not fit for purpose and that tenants were ignored. It is quite right that apologies were made, and those failings definitely contributed to the Grenfell tragedy. As the noble Baroness will be aware, we are delivering an extensive programme of reform to drive up standards in social housing through regulation and enforcement. We are about to bring Awaab’s law before the House, strengthening the tenant voice and improving access to redress. Those new standards put the tenant voice at their heart. My understanding is that the tenants themselves were very keen that this be both funded and driven by the sector itself. The Government are very keen to do whatever we can to assist with that.
Baroness Fox of Buckley (Non-Afl)
I am not usually very keen on quangos, but at the heart of this is the issue of trust. Tenants feel as though they are getting mixed messages: when the Housing Ombudsman suggests something, the Government say it is a good idea but then dilly-dally, and trust is undermined. The Government should be clearer on this. Also, there are issues involving tenants that need a national voice. Could the national body, for example, deal with the challenges of rental properties being turned into houses in multiple occupancy—an issue that I know worries tenants—and with the rumours that Serco is repurposing HMOs for asylum seekers, to replace hotels? I am not saying that is happening, but there is a lack of clarity. Can the Minister clarify this, and does she see the need for a national body that will help reassure tenants, rather than simply being a dead quango?
Baroness Taylor of Stevenage (Lab)
I can only repeat what I have said: if tenants want this body, we will work with them and do our best to make it happen. I do not think that anyone is dilly-dallying, but it is very important that the tenant voice be made clear in how this is set up, what it will do and how it will move forward. I am very pleased to work on that and to do what I can to move it forward, as I know my fellow Ministers in the department will be. It is particularly important now, given the massive investment the Government are bringing forward in social housing. The Secretary of State has already said that she wants 60% of the housing from that £39 billion to be social housing. We need to move this forward as quickly as possible, so I will do everything I can to move that on.
Baroness Pinnock (LD)
My Lords, the Minister said in some of her answers that the tenant’s voice is heard, but it is often heard and then ignored, as was so cruelly exposed by the Grenfell Tower tragedy and other social housing-related deaths, where complaints were made about the need for repairs but nothing was done. It is all right being heard, but tenants need to have their voice respected and acted on. How on earth can the Government make those changes?
Baroness Taylor of Stevenage (Lab)
I hope I can be clear in responding to the noble Baroness that, for too long, landlords in all tenure types have not always taken tenants’ complaints as seriously as they should. Bringing forward Awaab’s law is part of the response to that. Many noble Lords will have heard social landlords say that damp and mould were caused by lifestyle issues. I fundamentally disagree with that, and I am very pleased that Awaab’s law is coming forward to deal with it. We have also put in place a number of other steps, including the £1 million tenant experience innovation fund, supporting social landlords and tenants in working together to test and scale up innovative projects to engage social housing tenants; and our Four Million Homes training programme, which supports tenants with the skills to form organisations that can challenge their landlords at local level. So there is a lot going on, but there is a lot more to do.
Renters’ Rights Bill
Baroness Taylor of Stevenage Excerpts(10 months, 1 week ago)
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The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, I thank the noble Baroness, Lady Miller of Chilthorne Domer, and the noble Earl, Lord Kinnoull, for their amendments on pets and for their continued engagement on these issues, which has been incredibly helpful. I thank all noble Lords who have taken part in the debate: the noble Lords, Lord Trees, Lord Pannick, Lord de Clifford and Lord Fuller, and the noble Baroness, Lady Fookes. I have heard the passion of noble Lords on the issue of keeping pets. I hope there is overall support for the aim of the Bill to make it easier for tenants to keep pets but to get the balance right between tenants and landlords.
Amendment 47 seeks to set out a list of circumstances in which it would be considered unreasonable for a superior landlord to refuse consent for a tenant to keep a pet. These include personal opinions, general fears of damage or complaints and previous negative experiences with other tenants. While I completely understand the intention of the noble Baroness, Lady Miller, to provide clarity and guard against unfair refusals, I must respectfully say that I do not believe the amendment is needed. Our letter in response to the noble Baroness’s questions in Committee was sent on 15 May. I am really sorry if she has not had that letter, but I will make sure it gets sent out to her again today.
We do not believe it is appropriate or practical to draw superior landlords into the day-to-day running of the tenancy. Requiring them to engage directly in case-by-case decisions about pets risks creating serious administrative burdens. We believe it could also lead to complex and costly delays in decision-making, particularly where superior landlords are difficult to identify and contact or are located overseas. The noble Baroness cited experiences where they have responded quickly, but I know from personal experience of having tenants trying to contact superior landlords that it can be a very complex business.
That said, we intend to publish guidance alongside the Bill to assist landlords in understanding what might constitute a reasonable refusal by an individual’s immediate landlord. This will help ensure clarity, without locking specific examples into primary legislation. For these reasons, I hope the noble Baroness, Lady Miller, will consider withdrawing the amendment and not pressing for a Division.
My Lords, I thank the noble Earl, Lord Kinnoull, for tabling Amendment 48 and discussing this important issue further following Committee. Like the noble Earl, this issue is very close to my heart, and I absolutely would not want to see a two-tier approach. It is right that requests from tenants across all sectors to keep pets be considered fairly, especially given the valuable role pets play in people’s lives. Whether they be corgis, or the veritable zoo quoted by the noble Lord, Lord Fuller, pets can provide a great deal of comfort and company to those who wish to keep them.
Following Committee, my officials have explored the issue further. I can confirm that many social landlords already set out and publish their policies on pets in their tenancy agreements, allowing tenants to keep pets where appropriate. We have not been able to find any significant evidence that social tenants requesting a pet are not having their requests considered fairly. Although tenants in social housing do not generally experience the same barriers to keeping a pet as those in the private rented sector, I recognise that it is important to have clarity and consistency across sectors. Therefore, I intend to write to social landlords to ensure that they are fairly considering tenants’ rights to request a pet, and to share existing best practice in this area.
However, for the reasons I have set out, I do not I believe it is proportionate or necessary to add further provisions to the Bill regarding a social housing tenant’s right to request a pet. As the noble Baroness, Lady Scott, pointed out, even if legislation were required, this Bill is not the right vehicle for it as it would create inconsistent rules within the social rented sector. That is because the provisions in the Bill would apply only to tenants of registered providers who grant assured tenancies and not to the majority of local authority tenants, who are granted secure tenancies. Given the current approaches taken by landlords in the social rented sector, the lack of evidence of issues warranting further regulation, the additional engagement by my officials and my undertaking to continue to monitor this—and if there does seem to be a need, we will look at that if we bring forward future legislation—I hope the noble Earl, Lord Kinnoull, will consider withdrawing his amendment.
The Earl of Kinnoull (CB)
I am very grateful for what the Minister has said all round. Before she sits down, I wonder if I could push her just a little more. I think she is saying that there will inevitably be a suitable Bill on social housing at some point, and that it will be the Government’s policy to bring forward at that stage an amendment similar to this, so that there will be a legal necessity for social housing to offer availability of pets on the same basis as this Bill.
Baroness Taylor of Stevenage (Lab)
We need to continue to look at the evidence, and to look at the response to the letter that I will write to social landlords. We will then take further action, as necessary and if it is needed, in future legislation.
Baroness Miller of Chilthorne Domer (LD)
My Lords, I thank everybody who has contributed to this debate and thank the Minister for her reply. I found very helpful her response to the amendment from the noble Earl, Lord Kinnoull—which we do support—saying that she will write to ensure clarity and consistency.
I had a slight dread when the noble Lord, Lord Pannick, got to his feet, because I thought it would be something really tricky, which of course it was. On the circumstances in which superior landlords can have an opinion on specific pets, I am trying to include superior landlords in the same way as the Bill already includes landlords. I understand the issues the noble Lord, Lord Fuller, raised, but they are for direct landlords, not superior landlords, and we debated those very fully in Committee. It is people with portfolios of hundreds of flats having a blanket refusal—or not—I am concerned about. The noble Lord talked about a simple detached home in the countryside.
Member’s explanatory statement
This removes provision inserted into the Housing Act 1988 making it an implied term of an assured tenancy (other than a tenancy of social housing) that a tenant will comply with conditions relating to pet insurance where the landlord has consented to the tenant keeping a pet and given written notice of the condition.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank noble Lords for their rigorous, detailed and good-natured engagement on the matter of pet damage insurance. In particular, the extensive knowledge of the insurance industry of the noble Earl, Lord Kinnoull, has been of great assistance in ensuring that we get this policy right.
Following much debate in Committee and further discussions with sector stakeholders, including the Association of British Insurers and the British Insurance Brokers’ Association, we have reflected on our position and I will now speak to government Amendments 49, 54, 55, 57 and 73. I have listened carefully and recognised that, while the insurance market adapts to public policy, there is a risk that relevant insurance will not come on to the market sufficiently following implementation of the Bill. To avoid a situation in which landlords could essentially veto a tenant’s reasonable request to keep a pet, we are withdrawing the pet insurance provisions from the Bill. Tenants will still be able to request to have a pet in their home, but landlords will no longer be able to require insurance to cover property damage caused by a pet. Although our view was that a new market will develop for insurance products, following further engagement with the sector we now accept that this may not happen at the scale necessary. We are committed to supporting responsible pet ownership in the private rented sector and we do not want to leave tenants in a position where they are unable to comply with impractical conditions that a landlord may place on the tenant as part of their pet consent.
Noble Lords will rightly want to know what this means for landlords with concerns about potential property damage. I reassure the House that we are also now satisfied that landlords will be suitably protected from damage caused by pets, particularly after noble Lords shared evidence in Committee—for example, the University of Huddersfield report showing that three-quarters of pet-owning tenancies result in no claim against the deposit. As such, I am content that the existing five-week deposit for typical tenancies will cover any increased damages caused by pet ownership. We will, however, continue to monitor this closely after the implementation of the Bill. If tenants with pets are regularly causing more damage than deposits can cover, we have existing delegated powers to allow higher deposits for tenancies with pets under the Tenant Fees Act 2019. I hope the House recognises that we have listened and responded to the debate with pragmatism. Private renters should be treated fairly if they have reasonable requests for pets, and our legislative framework should support that. I am grateful to all colleagues who have helped us to get to the best position possible, and I beg to move government Amendment 49.
The Deputy Speaker (Lord Geddes) (Con)
My Lords, before putting Amendment 49, I must advise the House that, if it is agreed to, I will not be able to call Amendments 50 to 53 due to pre-emption.
Baroness Scott of Bybrook (Con)
My Lords, the issue of pet-related damage is understandably a source of concern for landlords. This group of amendments raises important questions about how we balance—that word balance again—the increased rights granted to tenants to keep pets with the responsibilities and protections that landlords need.
It is simply not reasonable to argue that the existing tenancy deposit, which is designed to cover damage under current arrangements, is also sufficient to cover the additional risks introduced by granting tenants a new right to keep pets.
The Government have already accepted that pets pose a greater risk by including pet insurance measures in the Bill. That was a clear recognition that pets are likely to cause additional damage. However, as we consider these provisions, it is crucial to reflect on the experience already gained in Scotland, where tenants’ rights legislation has evolved to allow pets in rented properties, while seeking to balance landlord protections. In Scotland, the introduction of pet-friendly tenancy provisions and related insurance requirements has offered valuable lessons. While these measures have expanded tenant freedoms and encouraged pet ownership, they have also revealed challenges, particularly in ensuring that landlords are adequately protected against damage and in making sure that any additional costs or deposits are fair and transparent.
Either pets cause additional damage or they do not. If the Government now claim that they do not, they must provide clear and compelling evidence to justify overturning their original assessment. Without such evidence, it logically and fairly follows that the landlord should be permitted to take a separate pet damage deposit.
We believe it is inevitable that some damage will result from pets. That is why we support Amendment 53A, which would introduce the option of a dedicated pet damage deposit. This would provide landlords with an essential route to recoup costs, while also protecting tenants from unfair charges by clearly defining that this is a separate and transparent element of a tenancy agreement and that, as we have already heard, if no damage is done, they get this charge back.
We recognise that some landlords may choose to welcome pets without requiring additional deposits—or, in the future, insurance—and they should be free to do so. But where landlords require further protections, there must be a fair and transparent mechanism for tenants to provide it at the outset of the tenancy.
Finally, the experience in Scotland reminds us that implementing pet-friendly rental policies is a delicate balance that must be tailored to the practical realities that landlords and tenants face. As the Bill moves forward, it is essential that it draws on such lessons to achieve frameworks that work fairly across the whole United Kingdom.
If the noble Lord, Lord de Clifford, is minded to test the opinion of the House on Amendment 53A, we will support him.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank all noble Lords for their contributions to this debate. I know it is a hugely emotive and important issue for so many people, and we have had a good debate on it today. I thank the noble Lord, Lord de Clifford, for introducing his amendment, and the noble Earl, Lord Kinnoull, the noble Lords, Lord Trees, Lord Howard, Lord Pannick and Lord Fuller, and the noble Baronesses, Lady Miller and Lady Scott.
I turn now to the amendments in the names of the noble Earl, Lord Kinnoull, and the noble Lord, Lord de Clifford. As we have discussed, Amendment 50 is not required as our government amendments remove the insurance requirements altogether. I understand fully the intention of Amendments 51 and 53A, with the aim to ensure that landlords are protected from potential damages caused by pets. However, we are content that existing deposits, which are capped at five weeks’ rent for typical tenancies where the annual rent is less than £50,000, or six weeks’ rent for tenancies over £50,000 per annum, are enough to cover typical pet damages.
The noble Lord, Lord Pannick, illustrated very clearly some of the complexities of this issue. Allowing a further three weeks’ deposit would cost the average tenant in England over £900. This is unaffordable for many tenants, who will have worked very hard to save for their deposit for their property, and greatly exceeds the average deposit deduction for pet damage of £300 reported in the study we have already spoken about. That study found that 76% of landlords reported that they did not encounter any damage caused by dogs or cats in their rental properties. Where there was damage, it was an average of £300 per property, compared with £775 for non-pet-related damage.
The report also shows that renters with pets tend to stay longer in their properties than those without pets, indicating financial and social advantages for landlords in fostering those longer and more stable tenancies. In the very rare cases where the insurance and deposit do not cover the cost of damage caused by a pet, a landlord can of course take the tenant to the small claims court by bringing a money claim to recoup any outstanding funds.
In relation to the issues mentioned about Scotland, housing is of course a devolved matter in Scotland, and it is for the Scottish Government to set deposit limits for private rented properties. I note that the right to request a pet does not yet exist in Scotland. In England, we believe that the five weeks’ deposit will be sufficient to cover damages. We also have concerns that in some cases it will be impossible to distinguish between damage caused by pets and that caused by tenants themselves. This could leave pet owners with more exposure to large, unreasonable deposit deductions compared with other renters. As I said, we have an existing power under the Tenant Fees Act, which we could use to allow landlords to require a larger deposit where they have consented to the tenant having a pet. We want to closely monitor how the pet provisions work in practice following implementation, and will consider using the power in the Tenant Fees Act if we see that the cost of pet damage is frequently exceeding the value of deposits.
Lord Deben (Con)
My Lords, the Minister just said that the situation has changed. I have listened very carefully to the debate. The Government thought it was necessary to have insurance; they now say it is not necessary. Therefore, the Government have already admitted that there needs to be something additional to protect the landlord in the case of somebody having a pet. Frankly, the argument does not stand up to say that that is not so. I hope that the Minister will accept that she really has to go back and say that if there is no insurance, there has to be a greater degree of protection for the landlord.
Baroness Taylor of Stevenage (Lab)
I hear what the noble Lord says, and I have listened to other noble Lords, but the evidence in the study that I cited is that three-quarters of landlords of those tenants who have pets do not report any damage. Where there is damage, the cost is around £300, which is perfectly within the scope of the normal deposit. We are content that landlords would be suitably protected against the cost of pet damage through existing tenancy deposits.
Finally, I turn to Amendment 53. As I stated in Committee, “premium” is already commonly understood to include any insurance premium tax, so this amendment is not strictly required, in our view. However, following the Government’s amendments, which remove the ability of landlords to require tenants to obtain insurance to cover the risk of property damage caused by a pet, the noble Lord will, I am sure, recognise that this amendment is no longer required. I therefore request that these amendments not be pressed.
Member’s explanatory statement
This is consequential on the amendment in my name which would remove the provision to be inserted into the Housing Act 1988 relating to indemnity and insurance for pets.
Member’s explanatory statement
The amendment removes the provisions to be inserted into the Tenant Fees Act 2019 to allow tenants to make payments relating to pet insurance in consequence of the amendment in my name which would remove the provision to be inserted into the Housing Act 1988 relating to indemnity and insurance for pets.
Lord Jamieson (Con)
My Lords, I thank both noble Baronesses for speaking in this debate. It is a sensitive issue. It concerns adaptations for some of the most vulnerable in our society and touches on those who require the greatest compassion and care. We do need to support people to live independently in their own home. As a council leader, I was proud that we built a number of fully accessible, affordable homes for the disabled.
However, I must express some concerns about Amendment 56, tabled by the noble Lord, Lord Tope, and moved by the noble Baroness, Lady Grender. This Bill is focused on the private rented sector, yet the amendment introduces provisions relating to social tenancies. As my noble friend Lady Scott alluded to earlier today, social housing providers have not been widely consulted in the lead-up to this Bill. Imposing new requirements on them without proper consultation and discussion would be inappropriate. Any such change rightly belongs in a dedicated social housing Bill. The noble Baroness, Lady Taylor, said earlier that she would seek to write to social landlords and perhaps this is another opportunity for her to do so.
Furthermore, the amendment is riddled with gaps. It lacks clarity on important matters such as what happens when a tenant leaves, who is responsible for reinstatement, its cost and the loss of rent while work is carried out. There is also the issue of ensuring work is carried out to a high standard and that structural integrity is maintained. These issues are vital to maintaining the value and usability of the property, and the amendment fails to address them adequately.
Turning to Amendment 72, tabled by the noble Baroness, Lady Jones of Moulsecoomb, I note that it defines “minor changes” as including structural alterations. Structural alterations hardly seem minor. While I fully appreciate the noble Baroness’s intentions and her compassionate approach, which we all share, this is a complex issue. I strongly believe that we must strike a careful balance between compassion, cost and deliverability, and we must do so in a thorough and considered manner. I hope that your Lordships’ House agrees.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank the noble Lord, Lord Tope, for his amendment, the noble Baroness, Lady Grender, for moving it so ably, and the noble Baroness, Lady Jones of Moulsecoomb, for her amendment. I also thank the noble Lord, Lord Jamieson. He may remember that I visited some of the housing that he developed when he was a council leader to pinch some ideas for my own local authority. It was indeed very accessible.
Amendment 56, from the noble Lord, Lord Tope, would require landlords to allow disability adaptations when a local authority has carried out a home assessment and recommended changes to be made. While the Equality Act 2010 already provides protections for disabled renters, I completely accept that they are not always as well understood as they should be. It is right that we consider how to address barriers preventing disabled renters getting the home adaptations they need. However, as I stated in Committee, I do not consider that this amendment is the right way to do this. A new requirement linked to local authority home assessments would create a confusing two-tier system. As a consequence, even these well-intentioned measures might make it harder for people who are not eligible for disabled facilities grants to access adaptations.
As I previously set out, the Government have committed to take steps to clarify matters further to support disabled renters. We all recognise what a vital issue this is and the difference it can make to someone’s life to have adequate access to their property. We will look to ensure that the written statement of terms that landlords will have to provide to new tenants includes the duty on landlords not to unreasonably refuse tenant requests for disability adaptations.
We also intend to work closely with the sector to deliver a communications and engagement programme to raise awareness of disability-related rights and obligations among tenants and landlords, and we will explore enhancing guidance to help landlords and tenants better understand the current system. This is in addition to existing provisions in the Bill that empower disabled tenants to request the home adaptations they need. For example, by abolishing Section 21 evictions, we will remove the threat of retaliatory eviction, and the creation of the new ombudsman will give tenants a new route of redress when their adaptations are refused.
The Government have also increased funding for the disabled facilities grant, as the noble Baroness, Lady Grender, mentioned. We have increased the grant by £86 million, bringing the total amount to £711 million. On the role of local authorities, they must provide a decision on the disabled facilities grant application within six months of receipt and the works must usually be completed within 12 months of the approval date. I appreciate that that can feel like a long time when you are waiting for an adaptation, but the Government have published guidance for local authorities in England to help to support the efficient local delivery of the disabled facilities grant, including speed of delivery. I appreciate that in some areas the availability of occupational therapists to do the assessments has proved an issue. Many local authorities are looking carefully at this issue, and I know we will be taking steps to address it.
Member's explanatory statement
This is consequential on the amendment in my name which would remove the provision to be inserted into the Housing Act 1988 relating to indemnity and insurance for pets.
Baroness Grender (LD)
My Lords, I will speak to Amendments 90 and 93 in the name of my noble friend Lady Thornhill, who, unfortunately, cannot be here. These are thoughtful and constructive proposals that seek to strengthen the effectiveness and accountability of the Bill.
Amendment 90 would require a review of the impact of Part 1 within three years, specifically addressing its effect on renter security and stability. Given the significance of the reforms introduced by the Bill, it is entirely reasonable to build in a mechanism to evaluate whether these changes are achieving their intended outcomes and put it before Parliament. I am aware that the department conducts its own review processes for legislation of this kind, but I would welcome assurances from the Minister that these reviews will be thorough and fully account for the various impacts of the Act across the private rented sector.
Amendment 93, also tabled by my noble friend Lady Thornhill, proposes a review of how well tenants understand their rights and obligations under the Bill and where they are most likely to seek that information. This speaks to a critical issue. The Bill makes a number of positive reforms, particularly in strengthening the rights of renters to challenge unfair practices such as unlawful rent increases, poor property standards or breaches of their tenancy agreements through accessible routes such as the First-tier Tribunal. However, as we have discussed again and again in Committee and at Second Reading, far too many tenants either are unaware of these rights or lack the practical information and support needed to exercise them. Without clear and accessible communication, even the most well-intentioned reforms risk falling short. This amendment would ensure that the Government are proactive in identifying how renters seek advice and whether current methods of communication are effective at reaching them. It is only through this kind of follow-up that the Bill’s protections can be meaningfully realised in practice.
Amendment 60, tabled by the noble Baroness, Lady Scott, would require the Secretary of State to produce an annual report on financial assistance provided to local housing authorities. As drafted, in our view, the amendment does not clarify the contents of the review and the information it suggests is already available. We are much more supportive of Amendment 118, which would require a broader review of the impact of the Bill on the housing market. We attempted to introduce this on day 1 of Report; we argued then that, given the scale of the reforms to the private rented sector, a review of this kind would provide a useful opportunity to assess the Bill’s wider consequences.
We hope the Minister will take these considerations into account. These amendments do not seek to undermine the Bill but rather to ensure that its implementation is informed, effective and fair. A commitment to review the impact on renters’ stability and to assess how well tenants understand and can access their rights would demonstrate that the Government are serious about delivering lasting change in the private rented sector. It would also offer a valuable opportunity to identify where further support or clarification may be needed, helping ensure that the reforms achieve, as we all hope, their full potential.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank the noble Baronesses, Lady Scott and Lady Thornhill, for their amendments, and the noble Baroness, Lady Grender, for again ably speaking to them.
Amendment 60 would require the Secretary of State to publish a statement of the financial assistance provided to local authorities in connection with their powers to impose civil penalties for breaches and offences relating to assured tenancies. The statement would need to be laid before Parliament within 12 months of Clause 16 coming into force, and then annually for an indefinite period. It is clearly important that local authorities are prepared to fulfil the duties placed on them by the Bill. However, requiring the Government to produce an annual statement of the nature outlined in this amendment would create a significant administrative burden for little benefit.
We know that the enforcement duties created by the Bill will present an additional net cost for local authorities. That is why we will ensure that the additional burdens created by the new system are funded in line with the new burdens doctrine. We will continue to work closely with local authority stakeholders as the Bill is implemented to ensure a smooth transition to the new system. For these reasons, I ask the noble Baroness, Lady Scott, to withdraw her amendment.
Amendment 90 from the noble Baroness, Lady Thornhill, seeks to prescribe the groups with which the department would be required to consult as part of this process. I know there is a large amount of interest in this House on the impact of this legislation, and I have previously set out to the House the approach we will be taking to monitoring and evaluating the impact of the Bill.
The use of a broad range of data is at the heart of our approach. As well as existing data, we will use data from stakeholders such as local authorities, and data generated from the reforms themselves. I agree that it is important that our evaluation makes use of interviews, surveys and focus groups, and we have committed to conduct these with a range of stakeholders. This amendment would require the Government to speak to renters, landlords and local authorities as part of our evaluation. We have already committed to speaking to these groups. In fact, we plan to go further and draw on the experience of letting agents, third-sector organisations, delivery partners, the courts and tribunals service and government officials. The information we collect from speaking to these stakeholders will be used as a key part of our evaluation of the programme.
I also recognise that this amendment places a particular focus on the impact of the Bill on levels of homelessness and the use of temporary accommodation. We already collect robust data through the Homelessness Case Level Collection. Local authorities provide quarterly data returns on their actions under the homelessness legislation. This allows us to effectively monitor homelessness, including temporary accommodation breakdowns.
No approach to tackling homelessness can rely on a single action. Instead, we are determined to address the homelessness crisis we inherited and deliver long-term solutions. That is why we have already made a £1 billion investment in homelessness and rough sleeping services this year—2025/26—a £233 million increase on the previous year. In addition, we are developing a cross-government strategy to get us back on track to ending homelessness. We are committed to moving away from a system focused on crisis response, taking a holistic approach to preventing homelessness in the first place and driving better-value-for-money interventions.
Amendment 93—also from the noble Baroness, Lady Thornhill—would introduce a legal requirement for the Secretary of State to conduct a review of the extent to which tenants in the private rented sector understand their rights and obligations. I know the House will share my view that the successful implementation of the Renters’ Rights Bill is firmly rooted in how widely its provisions are known and understood, and I completely agree with the noble Baroness, Lady Grender, in that respect. I therefore want to reassure the House that the Government are committed to raising awareness of the full range of Renters’ Rights Bill reforms across the private rented sector. This will be done through robust and extensive stakeholder engagement, providing the sector with a full suite of guidance on the reforms and an overarching communications campaign, along with partnership marketing. This extensive and targeted work will ensure each part of the sector fully understands its new rights and obligations.
The Government have already committed to a comprehensive monitoring and evaluation programme of the reforms, drawing on a wide range of data sources and stakeholder input. Including a requirement for a review of tenants’ understanding of the rights and responsibilities in the Bill therefore represents an unnecessary step. On the basis of these arguments and our clear commitments, I ask the noble Baroness, Lady Thornhill, not to press her amendments.
Finally, I turn to Amendment 118 in the name of the noble Baroness, Lady Scott. I appreciate the concern that underpins Amendment 118, namely the potential impact of the Renters’ Rights Bill on the housing market in England and whether it might discourage landlords from remaining in the sector. As we consider this issue today, it is important to reflect on the evidence already available. The 2023-24 English Housing Survey shows that the size of the private rented sector has remained broadly stable since 2013-14. This suggests that, despite ongoing discussions about reform since 2019, landlords have not exited the market in significant numbers. The Government remain confident that the measures in the Bill will not destabilise the rental market. On the contrary, our proposals make sure that landlords have the confidence and support they need to continue to invest and operate in the sector.
I will not repeat the details I set out in Committee of this Government’s commitment to thoroughly monitoring and evaluating the private rented sector reform programme using a wide range of data sources and stakeholder input. However, for the benefit of the House, I will briefly set out our plans for publishing the findings from this evaluation, which I believe is what the noble Baroness, Lady Scott, was asking me.
In accordance with the policy set out in our evaluation strategy, the department will publish its assessments of the Renters’ Rights Bill on GOV.UK at two key intervals: two years and five years after implementation. To ensure the reports are publicly accessible, copies will be formally lodged in the Libraries of both Houses of Parliament at the time of publication.
I reassure the noble Baroness that we are committed to carrying out a robust evaluation of the Renters’ Rights Bill. We will disseminate its findings widely so that parliamentarians, tenants, landlords, local authorities and wider stakeholders will be able to see and scrutinise the impact of the reforms in a timely way. For these reasons, I ask the noble Baroness not to press her amendment.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank my noble friend Lady Kennedy of Cradley for her Amendment 61 and for bringing her expertise and experience to both today’s debate and discussions we have had previously on this issue—as did my noble friend Lady Lister when she moved a similar amendment in Committee. I also thank the noble Lords, Lord Fuller and Lord Jamieson, and the noble Baroness, Lady Grender, for speaking.
The use of guarantors within the private rented sector is an issue which I know is of great interest to the House. Let me start by saying that the Government recognise that obtaining a guarantor can be a difficult task for some prospective tenants, and I understand concerns that it can be used as a further barrier to tenancy in some cases. As the noble Baroness, Lady Grender, indicated, where it is being used to discriminate, equalities law may apply. I will consider, for our information-sharing exercise on the Bill, whether there is more we can do to inform people in this regard.
Lord Jamieson (Con)
My Lords, this group of amendments relates to joint tenancies and the procedural requirements for serving and responding to notices to quit. These amendments, tabled by the noble Lord, Lord Shipley, seek to ensure that the provisions in Clauses 21 and 22 apply expressly and fairly to all assured tenancies. The spirit of these amendments is to promote transparency and fairness, ensuring that no tenant is left unaware of or disadvantaged by unilateral actions.
As we have discussed in this debate and in Committee, joint tenancies are an important and increasingly common form of tenancy arrangement, particularly among families, couples and shared households. Given that multiple tenants hold equal rights and responsibilities, it is only right and fair that the Bill reflects this reality by requiring all parties to be kept informed of significant developments affecting their tenancy.
These amendments propose sensible procedural safeguards. The requirement that any notice to quit served by one joint tenant be communicated in writing to all other joint tenants is fair. Similarly, where a landlord serves notice, all joint tenants should be notified promptly. It is also noteworthy that some amendments specify that certain agreements, such as those shortening notice periods or withdrawing notices to quit, must involve the consent of all joint tenants rather than just one. This is a balanced recognition of the collective nature of joint tenancies and the importance of mutual consent in such decisions.
As the Bill continues to evolve, it is our shared goal to ensure a rental market that is fair and workable for all parties involved. Although we fully understand and respect the intentions behind these amendments and welcome the constructive debate they have sparked, it is important to consider the practical implications. Requiring unanimous consent or detailed notice procedures could, in some circumstances, add complexity or delay, especially in situations where tenants’ circumstances change rapidly. Therefore, although we support the principle of ensuring fairness and transparency in joint tenancies, we urge careful consideration of the balance between protecting tenants’ rights and maintaining workable, efficient processes for landlords and tenants alike.
Baroness Taylor of Stevenage (Lab)
My Lords, I would like to thank the noble Lord, Lord Shipley, for his amendments on joint tenancies; Citizens Advice, which has provided the benefit of its significant expertise in this area throughout the Bill’s passage; and the noble Lord, Lord Jamieson, for his contribution.
Turning first to Amendments 62 and 66, the Government’s intention is not that tenants on a joint tenancy can unilaterally end that tenancy sooner than expected, nor should a tenant be able to trap another in a tenancy indefinitely by withdrawing a notice to quit. As such, I am pleased to confirm that the Government have tabled Amendments 64 and 67, which achieve the same effect as those laid by the noble Lord, Lord Shipley.
Government Amendment 64 will apply where a tenant who wants to serve a notice to quit in a joint tenancy seeks to agree a shorter notice period with the landlord. All other joint tenants will need to agree the shorter notice period as well for the notice to quit to be valid. This will ensure that tenants will not be able to agree short notice periods for a notice to quit without their other joint tenants being aware, preventing tenants finding out at potentially very short notice that their tenancy is ending. This was not the Government’s intention, and I am pleased to be able to clarify this issue beyond doubt in the Bill.
Government Amendment 67 will clarify that all joint tenants must agree, alongside the landlord, for a notice to quit to be withdrawn. This will ensure that it is clear that tenants must all agree to sustain a tenancy and make absolutely clear that one tenant cannot trap another in a tenancy indefinitely. These changes will ensure that joint tenancies can continue to operate effectively in the future tenancy regime and ensure maximum clarity for all parties. As such, I hope the noble Lord will not press his amendments and will instead support the government amendments.
Turning now to the noble Lord’s other amendments, Amendment 63 would require a tenant to inform all other joint tenants of their serving a notice to quit, and the landlord to do the same. I have great sympathy with the noble Lord’s intent. We all agree that tenants and landlords should communicate transparently with one another and take action to ensure that all parties are aware that a tenancy is coming to an end. With regret, however, I am unable to support codifying a requirement for this in law. The Government are concerned that, in certain circumstances, this may place individuals at risk. This is particularly true for victims of domestic abuse, who may not be able to safely inform a perpetrator that a notice to quit has been served. Indeed, some victims may choose not to serve a notice to quit at all. I also have practical concerns about the amendment. It might give rise to frustrating and counterproductive disputes between tenants. It might also cause tenants to question whether a tenancy has been validly ended if the requirement is not complied with.
Amendment 65 would allow a tenant to serve one month’s notice to end a tenancy if a landlord has served a possession notice on grounds 1 and 1A. That would be a reduction from the usual two months’ notice required by the Bill. Although I appreciate that the intent is to offer tenants greater flexibility to find a new property, we think the Bill strikes the right balance. Landlords must now give four months’ notice when using these grounds, and we think it is reasonable that the property be occupied for at least two months of this period, unless there is specific agreement to a shorter period.
I note that allowing a shorter notice period automatically might place other joint tenants in a difficult situation—for example, if they have not been able to find alternative accommodation as quickly as their housemates. This is recognised in the noble Lord’s other amendments. In many cases, the landlord will be supportive of a tenant moving out sooner than would otherwise be permitted. In those cases, there is nothing to stop all joint tenants and landlords agreeing a shorter notice period.
I hope that the noble Lord recognises that we have given very careful consideration to these amendments and have accepted those where we think the Bill could be strengthened, although I fully appreciate the intent behind his other amendments. I therefore ask him not to press those amendments for the reasons I have set out.
“(1ZB) In the case of a joint assured tenancy, an agreement under subsection (1ZA)(a)(i) is not valid unless it is made between the landlord and all of the tenants.(1ZC) That does not affect the validity of any notice to quit premises let under a joint assured tenancy that is given by only one or some of the tenants.(1ZD) In this section “joint assured tenancy” means an assured tenancy where two or more persons are tenants under the tenancy.”Member’s explanatory statement
The new subsection (1ZA)(a)(ii) inserted into section 5 of the Protection from Eviction Act 1977 enables the landlord and tenant to agree that notice to quit of less than two months can be given. This amendment would ensure that, where there are joint tenants, all of them must make such an agreement with the landlord.
“(4) In the case of a joint assured tenancy, an agreement under subsection (3) is not valid unless it is made between the landlord and all of the tenants.(5) That does not affect the validity of any notice to quit premises let under a joint assured tenancy that is given by only one or some of the tenants.(6) In this section “joint assured tenancy” means an assured tenancy where two or more persons are tenants under the tenancy.”Member's explanatory statement
The new section 5A(3) inserted into the Protection from Eviction Act 1977 enables the landlord and tenant to agree that notice to quit can be withdrawn. This amendment would ensure that, where there are joint tenants, all of them must make such an agreement with the landlord.
Baroness Scott of Bybrook (Con)
My Lords, I thank the noble Lord, Lord Shipley, for bringing this group of amendments to the attention of the House. However, we do not believe that these amendments are necessary. Tenants already have clear rights and remedies when it comes to deposit protection. A tenant can easily check online whether their deposit has been lodged in a government-approved protection scheme. If it has not been properly protected and the issue remains unresolved, the tenant has the right to take the landlord to court.
In such cases, the court may order the landlord to return or protect the deposit, and may even award the tenant three times the value of that deposit as compensation. These are significant penalties and they serve as a strong incentive for landlords to comply with the law. Given that eviction proceedings are already subject to considerable safeguards and restrictions, we are not convinced that removing Section 8 grounds in these circumstances is either proportionate or necessary.
In particular, we must ensure that where a genuine error has been made and later rectified, especially where there is no actual harm or financial loss to the tenant, landlords are not barred from recovering possession of their property. To do so would seem unjust. A more flexible and proportionate approach would promote better compliance while avoiding unnecessary hardship or deterrence to good-faith landlords.
Although we fully understand the intentions behind these amendments, having heard the reasoning of the noble Lord, Lord Shipley, we believe that existing protections for tenants are robust and that further restrictions of this kind risk being disproportionate.
Baroness Taylor of Stevenage (Lab)
My Lords, I am once again grateful to the noble Lord, Lord Shipley, for raising these points, as well as to Citizens Advice for discussing them directly with our department, and to the noble Baroness, Lady Scott, for her comments. Although I have great sympathy with the intention of Amendments 68 to 71, Clause 27 already ensures that deposits will be protected at the time of the possession hearing, which we think is a more proportionate approach.
Landlords have until the court hearing to comply with deposit protection rules. This ensures that landlords can still gain possession when it is reasonable, while ensuring that the tenant’s deposit is protected before the tenancy ends. I also note that this approach is far stronger than current restrictions, which prevent only the use of Section 21, and not Section 8, if the deposit is not protected.
However, I believe the noble Lord’s approach goes too far. Most notably, if a landlord had failed to protect a deposit within 30 days of receiving it, they would be permanently prevented from serving notice for possession on any ground except anti-social behaviour. Let me be clear: such a landlord should have complied with the law—of course they should—but there are other, more proportionate, mechanisms available to enforce that compliance, including an ability for a court to award tenants up to three times the amount of the deposit if it was not protected properly.
In conclusion, the Bill balances tenant protection with the need for legitimate possession cases to proceed. I therefore ask the noble Lord to withdraw his amendment.
Lord Shipley (LD)
My Lords, I am grateful for the Minister’s reply but it has extended the doubts that I have had about this, because it is still not clear to me why the Bill is weakening the current safeguards.
It is not clear why a valid defence cannot be assured for a tenant who has to go to court when the court case may not be necessary—in other words, they do not know whether the landlord has managed a tenancy deposit scheme correctly on their behalf. Citizens Advice has produced a strong case here, and it is not clear why the current safeguards are not being continued. I am advised that the tenancy deposit protection scheme will be significantly weakened if it remains the case in the Bill that landlords will not need to protect tenants’ deposits prior to serving notice. That is a departure from the current position. If that is required to happen in future, it will simply encourage wasted court time.
I shall withdraw the amendment and not move the other three, but I hope that the Minister and the Government will look very carefully at this issue because otherwise, I fear that tenants will not be properly protected by the tenancy deposit scheme. I beg leave to withdraw the amendment.
Member’s explanatory statement
This is consequential on the amendment in my name which would remove the provision to be inserted into the Housing Act 1988 relating to indemnity and insurance for pets.
Lord Jamieson (Con)
My Lords, on this amendment, I think we are unanimous. I, too, thank the noble Lord, Lord Best, for this amendment. I approve of his technical knowledge on this and can agree with the noble Baroness, Lady Grender—just occasionally.
Baroness Taylor of Stevenage (Lab)
I hope that the next day of Report will go just like that. It will be wonderful.
I thank the noble Lord, Lord Best, for Amendment 74. As he noted, I have added my name to it, and I am delighted to do so. The Government are very pleased to support the amendment, technical as it is. As the noble Baroness, Lady Grender, said, it will make a positive difference. I am grateful to the noble Lord, Lord Best, for bringing this forward. The amendment is a positive step towards creating a fair and transparent rental market with a more streamlined regulatory process. We want to ensure that letting agent businesses are able to receive reliable and tailored advice on complying with regulations under the Tenant Fees Act 2019.
The amendment will allow a primary authority scheme to be set up for the Tenant Fees Act 2019. The reliable and tailored assured advice issued by the primary authority is recognised by other local authorities. This helps businesses avoid costs and difficulties caused by different local authorities interpreting and enforcing the same rules inconsistently. The primary authority scheme also promotes great co-operation between businesses and regulators, fostering a collaborative environment that ultimately increases compliance rates while lowering enforcement costs and reducing administrative burdens. The Government strongly support the amendment, recognising its potential significantly to improve the rental market. I hope the whole House will support it.
Lord Best (CB)
I am delighted to receive support from all around the House and am deeply grateful. The commonhold and leasehold reform Bill is on its way shortly. That will provide further opportunities to strengthen the regulatory framework around managing agents and the work they do.
“(a) for sub-paragraph (1) substitute—“(1) A tenancy which is granted to a person who is pursuing, or intends to pursue, a course of study provided by a specified educational institution if—(a) the tenancy is granted— (i) by that institution,(ii) by another specified educational institution, or(iii) by a specified body of persons, or(b) either of the following is a member of a specified housing management code of practice—(i) a person appointed to act on the landlord’s behalf in respect of the tenancy;(ii) a person appointed to discharge management functions in respect of the building which comprises the dwelling-house or in which the dwelling-house is situated.(1A) Subsection (1)”.”Member’s explanatory statement
The new paragraph (b) of subsection (1) provides that a tenancy of student accommodation is not an assured tenancy if the person appointed to act on behalf of the landlord or to discharge management functions in respect of the building concerned is a member of a “housing management code of practice” (which is a code approved under section 233 of the Housing Act 2004).
Baroness Taylor of Stevenage (Lab)
My Lords, I shall speak also to Amendments 76 to 85 and Amendments 123 to 125, to Clause 33 and Schedule 6 respectively. These relate to the mechanism by which private purpose-built student accommodation, or PBSA, will be exempted from the assured tenancy system. They are highly technical in nature and can be broadly divided into two main groups. First, there are technical amendments to the power in the Housing Act 1988. We will use this power to make secondary legislation exempting providers from the assured tenancy framework by reference to their membership of the Unipol code of management practice. This amendment to the power will allow building managers, not just traditional landlords who own the building, to be exempted in the event those managers are members of the housing management code. The amendments are designed to reflect the diversity of commercial arrangements in the PBSA sector.
Secondly, there are amendments that aim to smooth over the transition for the sector by providing access to a modified ground 4A for landlords of existing PBSA tenancies after the transition date. I am grateful to stakeholders from the sector for working with the Government to ensure that these clauses work in the way intended.
I will now go briefly through the amendments one by one. Amendment 123 is a consequential amendment that updates the numbering in paragraph 13 of Schedule 6. Amendment 124 is not related to PBSA but rather corrects a pre-existing cross-reference error contained in paragraph 13 of Schedule 6.
Turning to the first of the substantive amendments, the Government’s intention is to exempt private PBSA from the new assured tenancy system, in recognition of its unique operating model and the need for alignment with the academic calendar. We will do this using a delegated power in paragraph 8 of Schedule 1 to the Housing Act 1988, which we are also amending. However, the power in the Housing Act will allow for new tenancies to be exempt only if they fall within scope. As a result, tenancies entered into prior to the commencement of the Bill will fall outside the scope of the exemption and, therefore, will be subject to the full provisions of the new assured tenancy system.
To apply the exemption retrospectively would carry significant risk, as it would turn one of these existing PBSA tenancies into what is known as a “common law” tenancy: that is, a tenancy almost entirely regulated by what is in the tenancy agreement. This could cause unintended consequences, such as those PBSA tenancies containing significantly fewer rights for tenants than the assured shorthold tenancies they will have signed. It could also cause problems for the landlords of those tenancies in the event that the tenancy agreement does not give them adequate forfeiture rights. We do not consider it to be the right approach, therefore, to simply exempt pre-existing PBSA tenancies from assured tenancy status.
That said, it is important that PBSA landlords under these existing PBSA tenancies can still access the possession grounds, in particular ground 4A. To ensure that the exemption operates as intended, Amendment 125 modifies ground 4A when applied to pre-existing “qualifying student tenancies”. These are PBSA tenancies, in other words.
The amendment ensures that the ground can be used despite those tenancies not usually being HMOs, nor does it require the landlord to serve the Section 8 notice between 1 June and 30 September, reflecting the fact that this restriction does not apply to PBSA tenancies in the old system; nor will it apply to fully exempted tenancies. This will ensure that existing PBSA landlords retain the ability to regain possession at the end of the academic year and therefore end the tenancy. This is consistent with the treatment of new PBSA tenancies established after commencement, where they will not be subject to the assured tenancy framework.
I turn now to Amendments 75, 76, 77 and 78. We are seeking to make the existing exemption from assured tenancy status for student tenancies more comprehensive. This exemption is currently set out in paragraph 8 of Schedule 1 to the Housing Act 1988. Amendment 75 therefore amends the exemption to ensure that it applies where a landlord has appointed a person to manage the tenancy on their behalf or to manage the building, and that person is a member of a recognised student housing management code of practice.
Amendment 77 therefore inserts a new sub-paragraph, (2CA), into paragraph 8. This will allow for regulations to make more tailored provision for particular circumstances by reference to a specified building when combined with the specified person acting on behalf of the landlord. Amendments 76 and 78 are consequential on Amendment 77. They ensure that new sub-paragraph (2CA) is cross-referred to where appropriate in the rest of paragraph 8.
I turn to Amendments 80, 81, 82, 83 and 85. There is often a delay between a student tenancy being entered into and the student tenant actually taking possession. In light of this, the exemption in paragraph 8 contains provision to say that a tenancy that meets the exemption at the point at which the tenancy is granted will be exempted permanently, save for particular situations.
These situations will include where at the time of grant the tenancy was exempt because the landlord or person acting on their behalf was a member of a housing management code of practice but at the point where the tenant takes possession neither the landlord nor the person managing is a member of a code. It will also include where at the time of grant there were regulations in place under paragraph 8 that did not prevent the tenancy from falling within the exemption, but at the point at which the tenant is entitled to possession, these regulations do prevent the tenancy from being caught by the exemption. This is achieved by Amendments 80, 81, 82, 83 and 85. These amendments are designed not only to ensure that the exemption is granted solely to those PBSA providers who adhere to robust standards but also to guard against any potential for the exemption to be misapplied or exploited.
Amendment 79 is consequential on Amendment 75. It ensures that regulations made elsewhere in paragraph 8 can specify classes of buildings that are subject to a housing management code of practice specified for this purpose under new paragraph 8(1)(b).
Amendment 84 is consequential on Amendment 125, which provides that a tenancy will be exempt if the person discharging “management functions” in relation to the building is a member of a specified housing management code. Amendment 84 defines “management functions”. It defines these functions to include services, repairs, maintenance, improvements, and insurance of the building. I beg to move.
Baroness Scott of Bybrook (Con)
My Lords, I begin by thanking the Minister for so clearly setting out the Government’s amendments relating to purpose-built student accommodation—PBSAs. I am also grateful to her for taking the time to meet with me and my noble friend Lord Jamieson ahead of Report to discuss this matter in detail.
As the Minister is aware, student accommodation is a matter of considerable importance to many of us; indeed, it is an area of particular concern in this Bill. Ensuring that we have sufficient student accommodation, of the right type, available in the right places, and operating in line with the academic calendar, is vital. This is a matter not simply of logistics but of availability and affordability. An adequate supply of accommodation helps to keep rents manageable, which is especially important for students from less advantaged backgrounds.
This is why we raised concerns around ground 4A, particularly with regard to the importance of preserving the cyclical nature of student tenancies. The cyclical model is central to the viability of purpose-built student accommodation and, indeed, to maintaining affordability for students. We therefore welcome the Government’s amendments in this area, which rightly acknowledge the unique nature and operation of the PBSAs. In particular, I am very grateful for the clarification offered in sub-paragraph (2C), which states that the tenancy of student accommodation will not be considered an assured tenancy if the person acting on behalf of the landlord is a member of a housing management code of practice.
However, I would be grateful for further clarification. Can the Minister confirm whether this provision refers specifically to recognised codes such as the ANUK or the Unipol code, or whether it includes other housing management codes of practice as well? It would be helpful if the Government could set out explicitly which codes are deemed applicable under this provision. Furthermore, in the case of newly established accommodation, how will providers be expected to demonstrate adherence to an accepted code specifically for the purpose of continuing to provide fixed-term tenancies?
I am sure the Minister agrees that providers must have, and maintain, an up-to-date understanding of their obligations. With that in mind, when does the Minister intend to update the relevant guidance, particularly regarding the practical steps that PBSAs will need to take to ensure they can continue offering fixed-term tenancies?
The relevant codes of practice are, of course, designed around the specific characteristics of student accommodation, covering matters such as health and safety, maintenance and the management of relationships between providers and their tenants. In light of the changes introduced by the Bill, does the Minister have any plans to review or amend the codes? If so, how will such changes be communicated to those operating in the sector?
Finally, does the Minister agree that one of the key benefits of code membership is the ability to provide student accommodation outside the assured tenancy framework—a flexibility that underpins the viability of the sector?
I hope the Minister will continue to keep under review the impact of this Bill on students and to consider carefully any future changes that could make it harder for students to secure suitable accommodation. Students must be at the forefront of our considerations, not only in policies but also in practice.
Baroness Taylor of Stevenage (Lab)
I thank the noble Baroness, Lady Scott, for those comments. I will attempt to answer her questions; I may have to come back in writing on the point about amending the codes.
Pre-existing PBSA tenancies will continue to benefit from the protections provided by the Bill. For newly signed PBSA tenancies after commencement, protections will be provided through the housing management codes of practice, approved under Section 233 of the Housing Act 2004. These codes set out clear and robust standards, and compliance with the codes is a condition for exemption.
In respect of the approved codes, the ANUK and Unipol codes have clear oversight mechanisms in place, including regular audits, complaint processes and suspension or exclusion for non-compliance. That is why they are the important codes that we have focused on. Landlords must maintain membership and demonstrate adherence to the code standards. If they fail to do so, they will lose their exemption, so that is very important. If they lose their code membership mid-tenancy, they will no longer be entitled to rely on the exemption for any new tenancies. However, existing tenancies will continue under the terms; otherwise, that would not be fair to the students concerned. I hope that answers the noble Baroness’s questions.
I thank everyone for their contributions to this debate. We debated other student accommodation issues extensively on the previous day of Report. I hope the whole House will agree that these amendments will ensure that this PBSA exemption works effectively and as intended, and I hope the whole House will support them.
Member's explanatory statement
This is consequential on the amendment in my name inserting the new sub-paragraph (2CA).
Planning and Infrastructure Bill
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Baroness Taylor of Stevenage
That it be an instruction to the Committee of the Whole House to which the Planning and Infrastructure Bill has been committed that they consider the bill in the following order: Clauses 1 to 12, Clauses 29 to 41, Schedule 2, Clauses 42 to 47, Clauses 13 to 23, Schedule 1, Clauses 24 to 28, Clauses 48 to 52, Schedule 3, Clauses 93 to 106, Clauses 53 to 66, Schedule 4, Clauses 67 to 83, Schedule 5, Clauses 84 to 89, Schedule 6, Clauses 90 to 92, Clauses 107 to 111, Title.
Housing Associations: Financial Assistance
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Lord Bailey of Paddington (Con)
My Lords, I beg leave to ask the Question standing in my name on the Order Paper, and I declare my interest as chairman of Faraday Ventures, which is set up to provide social housing and key worker housing.
The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, I thank the noble Lord, Lord Bailey, who I know is passionate about housing, particularly for young people. His question is very timely: just yesterday, we announced our long-term plan to deliver a decade of renewal for social and affordable housing. As part of this, we will provide the biggest boost to social and affordable housing investment in a generation with our new £39 billion programme, and we will ensure that at least 60% of that programme is spent on social housing. We will also give social landlords equal access to government building safety funding and provide a decade of certainty through the new rent settlement, supporting social landlords to invest in new and existing homes.
Lord Bailey of Paddington (Con)
I thank the Minister for her Answer. I have an additional question: at what pace will this money arrive, particularly in London? In London and the south-east, we have the greatest housing crisis compared with anywhere else nationally. How many homes will this money deliver, and at what pace will the Mayor of London have to provide these homes? The Government’s own Deputy Prime Minister was upset with his low level of delivery, and we want to be sure that there is a KPI for how many homes he is to deliver year on year with the money the Government are providing.
Baroness Taylor of Stevenage (Lab)
We intend to get this programme running as quickly as possible. That is why we have provided £2 billion of funding in advance of that settlement—so that we could kick-start the programme and get it going straight away. The rest of the programme will be open for bidding very shortly, so that local authorities can apply to bid for that fund. To answer the noble Lord’s question about London, 30% of the housing in that programme will be in London.
Lord Mohammed of Tinsley (LD)
My Lords, a recent report by the social housing ombudsman highlighted repairs as a major problem. So my question to the Government and the Minister is: what will they do to fill the skills gap that we badly need to fill to maintain and improve our existing social housing, as well as the new builds?
Baroness Taylor of Stevenage (Lab)
The noble Lord is quite right that we need to address the skills gap, both for the purposes of building new homes and for repair and maintenance. Some of the new skills are needed to retrofit homes for net zero. We have put aside £600 million over the next four years to train 60,000 skilled tradespeople—engineers, brickies, sparkies and chippies—working with our colleagues in the Department for Education and Skills England to make sure that we get our young people into those well-paid, high-skilled jobs. We are funding additional placements and setting up technical excellence colleges, foundation apprenticeships and skills boot camps. What we are trying to do—I have seen the effectiveness of this as I have visited further education colleges around the country—is get some of the skilled people who are now reaching the end of their careers to come back to train our young people and enthuse them about those careers.
Lord Best (CB)
My Lords, I greatly welcome this national housing strategy and the £39 billion that goes with it. Does this mean an end to the sharp decline in the output of social housing for older people, not least because our ageing population leads to the vacating of family homes, creating at least two for one as a result? Is it now time for a major improvement in the number of homes that we build as social housing for older people?
Baroness Taylor of Stevenage (Lab)
I agree with the noble Lord, who has done so much work in this area. Much of the advice he has provided has helped the Government to develop our programmes. In the next few weeks, we will deliver our housing strategy, which will contain details of how the Government intend to move forward with a wide range of different housing, including supported housing and supported housing for older people.
Lord Pitkeathley of Camden Town (Lab)
My Lords, will my noble friend the Minister outline how, alongside the Planning and Infrastructure Bill, the £39 billion commitment to affordable housing that has been referred to will help councils overcome delivery barriers and support our mission to build 1.5 million new homes?
Baroness Taylor of Stevenage (Lab)
I am grateful to my noble friend for that question. As well as the financial support that we announced yesterday, there is a significant package of delivery to help support our colleagues in local government and in the registered provider sector, supporting the planning process with additional funding for planners, setting clear targets for housing delivery, investing in the skills and capacities I outlined, working to help accelerate stalled sites through the major sites accelerator, helping with the delivery of infrastructure through the Planning and Infrastructure Bill—which we will debate shortly—looking forward very much to the New Towns Taskforce and its work, and ensuring that we stabilise the economy to attract the investment we need in housing after 14 years of failure that led to the housing crisis.
Baroness McIntosh of Pickering (Con)
The noble Baroness will be aware that there is a crying need for one-bedroom and two-bedroom houses in rural areas. That need is not fulfilled because the houses that are being built have three, four or five bedrooms. The affordable homes that form part of a planning application are often resiled from on intervention from the Secretary of State. Will the noble Baroness use her good offices to review the position to ensure that there is a stable supply of one-bedroom and two-bedroom homes in rural areas?
Baroness Taylor of Stevenage (Lab)
The Government genuinely understand the need for homes in rural areas, and we have focused on the rural exception site type of policies that allow local areas to ring-fence that housing for local need. We will continue to do that. It is for local authorities to determine the types of housing, both through the planning process and in their local plans. In the National Planning Policy Framework, which was published in December, we have for the first time allowed local authorities to make provision specifically for their social housing needs, which I hope will help in rural areas.
Baroness Walmsley (LD)
My Lords, the Minister mentioned skills. Is it not true that one of the quickest ways of getting more social housing is through novel, alternative methods of construction? The sorts of skills required for that are somewhat different from many of the ones that she mentioned. In Scotland now, the majority of new houses have wooden frames. What is going on in England to make sure that happens as well?
Baroness Taylor of Stevenage (Lab)
I thank the noble Baroness for that question. We went into a bit of a decline in the modern methods of construction industry. I am a great supporter of it; it holds great potential for the future. We will support and encourage developers who are taking that approach. There is no difference in the safety of those properties because all types of property come under the same building regulations framework. In fact, I went to see an amazing office block, just across the river here, that is made with a timber-frame approach. I hope we can continue to encourage the development industry to make progress with those methods.
Lord Jamieson (Con)
My noble friend Lord Bailey raised the delivery of affordable housing in London. In May, G15, the group representing the largest housing associations in London, said that there had been a 66% drop in affordable housing built in London over the last two years, down to fewer than 5,000. Given the lamentable failure of the Mayor of London to deliver, will the Government allocate the near £12 billion in funding for affordable housing directly to the London boroughs so that they can get on with the job?
Baroness Taylor of Stevenage (Lab)
The exact details of the programme will be published shortly. As I said to the noble Lord, Lord Bailey, 30% of the funding in that £39 billion funding pot will be allocated to London. But the noble Lord should look at what has happened in the last 14 years and not blame the Mayor of London for what has happened with housing in London.
Baroness Andrews (Lab)
My Lords, it is very good news about investment in social housing. The role of the housing associations will be critical, obviously. The noble Baroness mentioned the role of the New Towns Taskforce. Can she update us on when we can expect the report? I think we can all agree that it is summer already.
Baroness Taylor of Stevenage (Lab)
As I have discussed before at the Dispatch Box, summer is quite a flexible concept in the Civil Service, but we expect the report of the New Towns Taskforce imminently. I would like to say how successful it has been with the task force running an extensive round of consultation around the current new towns, with people with lived experience of what it is like to live in a new town, both to learn the lessons where things did not work and to see what did work to inform its work. So I am pleased to have been working with Sir Michael Lyons and the task force on that, and I very much look forward to its report.
Lord Young of Cookham (Con)
Does the Minister recall the exchange last December, when I raised the problem of private developers completing affordable homes on a site but being unable to find a housing association to take them over, leaving those homes empty and in some cases leaving the site uncompleted? Can the Minister give me an assurance that that problem has now been resolved and that there are housing associations ready to take over these Section 106 homes?
Baroness Taylor of Stevenage (Lab)
I thank the noble Lord, and I do remember his question. The department, along with our colleagues in Homes England, has set up a matching service—a bit like speed dating—between the Section 106 developers and the registered providers, to make sure that we can match them up with the funding available. I do not have a progress report to hand today, but I will write to the noble Lord with an update.
Renters’ Rights Bill
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Baroness Thornhill (LD)
My Lords, I do not know which amendment to start with really, but I will start with the least contentious. We agree with Amendment 42 that a review is imperative and should definitely happen.
On Amendment 30 from the noble Baroness, Lady Jones, it seems absolutely right to us that, when the taxpayer funds lovely, significant improvements that will raise the value of the landlord’s asset, the tenant in the house should be protected from a rent rise at least during that tenancy. That seems only right and fair.
Amendment 29 from the noble Baroness, Lady Wolf, which I supported in Committee and co-signed, is a sensible amendment that several noble Lords have said they would support. 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.
On the controversial bits, the rent tribunal is clearly causing concern. I say to the Minister that I think there was an invitation in the last speech to look at this again—there will be Third Reading. It seems to me that a lot of work has gone into these amendments that would justify perhaps a little more time and effort than we have now. The Minister has a lot to justify in order to gain support from the House. We are minded to support the Government, but clearly we need answers on the very detailed and sensible proposals put forward today.
What worries us about Amendment 31 is that it risks allowing a tribunal to determine the level of rent increase, which could actually be unaffordable. The idea that a rent tribunal could decide that the rent should be such-and-such would fuel a market in which rents are rising exponentially, more than they have at any other time—the amendment would seem to fuel that further. We certainly do not agree with rent controls, but we believe that some brakes could be put on this; that would seem eminently sensible.
Perhaps I am looking at this through the wrong lens, but I would have thought that a tenant might expect an annual rent rise: “I am in my rented apartment and I am expecting the landlord to put up the rent in a year because I know what’s going on in the area, so I can kind of suss out how much it might be”. But, looking at it from the other way, if we assume all the things that noble Lords have said about everyone applying to the tribunal—Martin Lewis will be saying they should apply and the student unions will be on it—why would a landlord, knowing all that, impose a stupid rent rise if he knows that his tenant can then appeal against it? That should put an instinctive brake on unjustified, unrealistic rises. The system should work with those natural tensions.
We are not happy with it, but we have had conversations and thoughts about the proposal. We would ask the Government to look again at some of the detail. Perhaps with some assurances from the Dispatch Box, we could avoid a load of votes now and at Third Reading because I think that we would want the Minister to look in more detail than I personally, I admit, have done, if that is fair to say.
The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, I thank the noble Baronesses, Lady Scott, Lady Wolf and Lady Jones, and the noble Lords, Lord Carrington and Lord Howard, for their amendments on rent increases and the tribunals, as well as the noble Lords, Lord Hacking and Lord Carter, and the noble Baronesses, Lady Eaton and Lady Thornhill, for their contributions to the debate.
Government Amendment 37 will enable the Secretary of State to make regulations to change the date from which tenants are required to pay a new rent in instances where the First-tier Tribunal has set one following a challenge to a proposed rent increase. Government Amendments 38 and 39 are consequential to that.
Our Government were elected on the clear manifesto promise to empower tenants to challenge unreasonable rent increases. It is essential that we deliver on this commitment, not only to protect tenants from undue financial pressure but to prevent rent hikes being used as a form of backdoor eviction once Section 21 notices have been abolished.
During the Bill’s passage, 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 strengthening tenants’ rights might lead to the First-tier Tribunal being overwhelmed by a 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 a compelling reason to do so. Given the 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 that a significant number of tenants will bring rent increase challenges that have little prospect of success—who knows what will happen if Martin Lewis gets involved, but we will wait and see.
We also know that the majority of landlords act responsibly, and we do not expect that many will seek to serve unreasonable rent increases given that this will increase the likelihood of a tenant challenging them at tribunal, as the noble Baroness, Lady Thornhill, said. If landlords do not impose egregious rent increases, they will not get taken to tribunal. We recognise, however, that there is inherent uncertainty as to the volume of rent increase challenges that will be brought when the new tenancy system comes into force.
The noble Baroness, Lady Wolf, mentioned the system in Scotland; as she will know, the changes made there are very different from the ones that we are proposing.
As the House will know, we are already working very closely with the Ministry of Justice to make sure that the justice system is well prepared for our reforms. In the Property Chamber, work is progressing to increase capacity, as well as reviewing resource and working practices in readiness for any increase in demand.
Baroness Wolf of Dulwich (CB)
Since I cannot withdraw my amendment, I thank the Minister very much for this constructive engagement, and I will not move it.
Baroness Taylor of Stevenage (Lab)
I am grateful to the noble Baroness.
Regarding Amendment 24, at present private registered providers of social housing can grant secure or assured tenancies. The majority of these are let at social rents. Social rents are regulated by the social housing regulator. The definition of “relevant low-cost tenancy” in the Bill reflects these arrangements. If the Government or the social housing sector were to change how rent is determined or regulated, this power would enable the Secretary of State to make technical amendments to reflect this or other changing circumstances. As the power relates only to the definition of relevant low-cost tenancies, I assure your Lordships that the Secretary of State will not be able to use this power to change the legislation to affect market-rate tenancies. Based on this, I ask the noble Baroness, Lady Scott, to withdraw this amendment.
Turning to Amendment 30, I thank the noble Baroness, Lady Jones, for her engagement on this issue. The Government fully support efforts to improve the energy efficiency of homes in the private rented sector, particularly where tenants are proactive in accessing support through government-backed schemes. The amendment as drafted would mean that any increase in value arising from these improvements would be disregarded, even if it was funded partly by public money. Therefore, if landlords have made sizeable investments themselves in improving the energy efficiency of their properties without government grants, under this amendment they would not be able to increase rent to reflect those improvements.
The tribunal has experts, such as surveyors, who will assess what the landlord could expect to receive if re-letting the property on the open market. Both landlords and tenants will have the opportunity to submit evidence on whether or not they think that the rent increase is justified. 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—particularly where the tenant was not directly responsible for the work. This may complicate the tribunal process.
We recognise that it is very important that means-tested energy-efficiency grant schemes are used to benefit tenants. That is why, for the warm homes local grant, which was launched in April, the Department for Energy Security and Net Zero has set a clear expectation that landlords should declare that they do not intend to raise rents as a direct result of the upgrades being made. In Committee, the noble Baroness, Lady Jones, rightly highlighted the importance of ensuring that landlords do not profit unduly from government-funded improvements and 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 that the measures already being introduced strike the right balance.
In conclusion, the landlord declaration, introduced and overseen by DESNZ through the warm homes local grant, will include a commitment from landlords not to increase rents as a result of improvements made using the grant funding. I hope that this offers the noble Baroness, Lady Jones, reassurance that the Government are taking this issue seriously. For those reasons, I respectfully ask her not to move her amendment.
The noble Lord, Lord Howard, has proposed two amendments to the process for challenging rents at the tribunal within the first six months of the tenancy. On Amendment 31, the ability to challenge rent in the first six months of the tenancy is a vital safety valve, ensuring that tenants cannot continue to be ripped off if they have been pressured into an unfair rent. Landlords who have agreed a fair market price have nothing to fear from this mechanism. This amendment would exacerbate the worry that tenants already face about going to a tribunal to enforce their rights. Tenants will not challenge rents if they risk being worse off following a tribunal ruling. The Bill encourages tenants to engage the tribunal when they have legitimate concerns. By reinforcing the rights of tenants to do so, we are disincentivising the minority of landlords from pressurising tenants into unfair rents at the beginning of a tenancy. The way for landlords to avoid this is to make sure that their rents are fair at the start of the tenancy.
On Amendment 32, the Government are clear that tenants should submit an application to the tribunal during the first six months of their tenancy only where they believe that their rent is above market rates or that they have been pressured into an unjustified initial rent. In the first instance, we strongly encourage landlords and tenants to communicate about what adjustments to rent might be reasonable. The noble Lord asked how a tribunal determines a fair rent. To determine the market rate, the First-tier Tribunal considers a wide range of evidence, such as the price of similar properties being advertised online and evidence submitted from both parties justifying or arguing against the rent increase.
The First-tier Tribunal has experts who are experienced in understanding the different factors that result in the market rate and determining whether the rent is reflective of this. The First-tier Tribunal is best placed to do this in the new tenancy system. It is also worth noting that tribunals have had the power to adjudicate rent levels in line with the market rent since the Housing Act 1988, and since then the market rate has continued to increase. However, if the rent is challenged and the tribunal determines that a rent exceeds the open market rate, it is right that the tribunal can backdate the lower rent to the date of the tenant’s challenge and that the landlord repay the difference to the tenant. I therefore ask the noble Lord, Lord Howard, not to press his amendments.
I turn now to Amendments 33 to 36 and 40. The Government recognise that some tenants may avoid challenging unreasonable rent increases out of fear that they will be saddled with significant amounts of backdating, which they will be unable to afford. By removing the ability of the tribunals 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. This is a really important measure to encourage people to challenge unreasonable rent increases.
Amendments 34 to 36 and 40 in particular may only heighten the risk of vulnerable tenants feeling unable to challenge an above market rent increase. We know that tenants and landlords are usually eager to maintain a positive relationship and will not bring the other to court or tribunal without good reason. As such, I ask the noble Lords, Lord Carrington and Lord Howard, not to press these amendments.
I turn finally to Amendment 42. The tribunal has over 30 years’ experience in making determinations of unfair rent increases, having carried out this function since the Housing Act 1988. 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 and for landlords and tenants to access justice in a timely way. We are working in partnership with the Ministry of Justice to assess the impact of our reforms on the tribunal and to lessen these wherever possible. This close collaboration has been ongoing for a number of years and in a great amount of detail.
The amendment we have tabled to our rent increase measures shows that we are listening to the concerns of the sector and this House about tribunal workloads. It puts in place a safeguard in case it is needed. We will already be collecting extensive data to assess the impact of these reforms. As set out in the impact assessment for the Bill, and in debate, we have committed to monitor and evaluate our reform programme. We will use a range of sources to support this. Existing datasets will be used, and new data will be collected. We are committed to publishing the evaluation findings at the two and five-year points after the Bill’s implementation.
I will respond to the request from the noble Lord, Lord Carrington, about the justice impact test. The justice impact test we are undertaking with the Ministry of Justice will identify additional burdens on the justice system, but they are internal government documents and are not published. The test is ongoing and regularly reviewed to ensure that it reflects 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 case load and procedures that will be required for our reforms. We are working with the Ministry of Justice and HM Courts & Tribunals Service to that effect, including investing additional court and tribunal capacity to handle any extra hearings generated.
In this context and in the context of the review that I have already outlined, both in the course of discussing these amendments and earlier today, I do not think it is necessary to commit to undertake any further review. On that basis, I hope that the noble Baroness will agree to withdraw her amendment.
Lord Jamieson (Con)
My Lords, I thank the Minister for her reply and for setting out the Government’s amendments. However, we remain 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. Although I listened carefully to the Minister’s comments on mechanisms, 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 it to the vote.
As the noble Lord, Lord Carrington, has raised, and we requested in Committee, the Government have failed to publish the justice impact test. I heard the Minister’s comments, but I asked her to publish it before Report given its importance and the concern across the House about the impact of the Bill on the justice system.
Amendment 42 seeks a review of the impact on the tribunal system. As we have another amendment later, reviewing the impact on the justice system in its entirety, we will not press this amendment now.
Serious concerns remain about the Secretary of State’s discretion to expand the definition of low-cost tenancies. I urge the Government to reflect carefully on the breadth of the powers they are granting. That said, I will withdraw this amendment.
Lord Jamieson (Con)
My Lords, we have concerns about a number of amendments in this group on the basis that they are unduly prescriptive and risk the introduction of what could be regarded as, in effect, a form of rent control.
The amendments in the name of the noble Lord, Lord Best, seek to protect the tribunal from being overloaded due to the Bill. While we agree that there is significant risk of overload, we have concerns about how the arrangements would function. In particular, we do not feel able to support a system that ties rental increases to CPI. CPI is a generalised index that reflects the prices of bread, fuel, clothing and so forth, but not rental market dynamics. What happens in areas where market rents are falling but inflation is high, or where incomes are stagnant while CPI rises? This approach uses a national economic measure to benchmark against a highly localised rental market, and the result would almost certainly be a distorted rental market. That said, we share the concerns of the noble Lord, Lord Best, about the impact of the Bill on tribunals’ backlogs, which we discussed at length in Committee.
Amendment 114 in the name of the noble Baroness, Lady Grender, raises some important points. There is no doubt that rent affordability is a serious issue, and the amendment rightly draws attention to a range of important factors: the regional disparities in rental costs, the strain of high rents placed on household finances and 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. We need actual 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. I urge the Minister to use this opportunity to outline how the Government will respond to the concerns raised by the noble Baroness in her amendment, which we agree are all points which matter in this debate.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank the noble Lord, Lord Best, and the noble Baroness, Lady Grender, for their amendments relating to rent affordability and rent controls, and the noble Lords, Lord Young, Lord Fuller and Lord Jamieson, and the noble Baroness, Lady Lister, for speaking in this discussion. I have the deepest respect for the noble Lords, Lord Best and Lord Young, and their experience, and for the noble Baroness, Lady Grender, who has vast experience in this area too. I am grateful for their contributions.
I do not intend to revisit the detailed discussions we had in Committee. They were detailed and informed deliberations, and I know how strongly some noble Lords and tenant groups feel about helping those who struggle to pay high rents. I absolutely understand the pressure that rents put on the budgets of individuals and families. To come back to the points that we made earlier in the debate, obviously the solution to this is to create a lot more social and affordable housing, but I realise that is not going to happen overnight.
However, I must reiterate the Government’s concern that rent controls, as proposed, would risk reducing housing supply, discouraging investment and ultimately lowering property standards. In the case of Amendment 25, the most relevant international comparator is Ontario, an example that I also cited in Committee. I am afraid that the Ontario model, whereby rent increases are capped according to a measure of inflation, has not led to desirable outcomes. In fact, analysis suggests that the result has been higher rents for new tenants.
In respect of the experience in Scotland, a recent Nationwide Foundation report by the Indigo House Group found that rent control measures had not protected the majority of private rented sector tenants against excessive rent increases or against high advertised market rents, considering average advertised rents in the system as a whole. The measures in Scotland do not appear to have impacted rental price growth, because Scotland has consistently been one of the regions in the UK with the highest growth in asking rents. For example, according to Zoopla, in the year to January 2024, when the rent freeze was in place, Scotland was the only UK region with a double-digit annual rent growth, at 11.6%.
“(5A) The Secretary of State may by regulations make provision so as to substitute, in relation to relevant tenancies, a different date as the effective date.(5B) The effective date may not be earlier than the beginning of the new period specified in the notice served on the tenant under section 13(2) or 13A(2).(5C) Regulations under subsection (5A)—(a) may amend this section;(b) may make different provision for different purposes;(c) may make supplemental, consequential, incidental, transitional, transitory or saving provision;(d) are to be made by statutory instrument.(5D) A statutory instrument containing regulations under subsection (5A) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”Member’s explanatory statement
This amendment enables the Secretary of State to amend the Housing Act 1988 so as to substitute a different date from which new rent is payable. The substituted date must not be earlier than the date specified in the notice of the new rent given by the landlord. The new date will only apply to applications to challenge the rent made on or after the date on which the regulations come into force.
Lord Jamieson (Con)
My Lords, I rise to speak to this group of amendments and to offer my full support to my noble friend Lord Young of Cookham. Amendment 59 addresses a significant gap in the Bill by providing a vital exemption for shared ownership leaseholders from certain provisions within Clause 14. Shared ownership is an important tenure model that enables many people to take their first step on to the housing ladder, yet it is not without its challenges, particularly when sales fall through, as my noble friend has highlighted. Amendment 59 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 prevents unintended consequences that could undermine the Bill’s original intent. If my noble friend Lord Young of Cookham is minded to test the opinion of the House, the Opposition will support him without hesitation.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank my noble friend Lord Hacking and the noble Lords, Lord Cromwell and Lord Young, for their amendments and their engagement on these issues. I also thank the noble Baroness, Lady Thornhill, and the noble Lord, Lord Jamieson.
On Amendment 58, we want to strengthen tenant security and prevent abuse of ground 1A. A 12-month no re-let period will act as a deterrent to unscrupulous landlords who want to evict tenants so that they can let to a new tenant for more rent or because the tenants are asking for repairs that 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 their property will wish to use that ground and to deter from using it landlords looking to evict a tenant in order to re-let at a higher rent or to a different tenant. Not only will landlords have to forgo rental income for 12 months after using ground 1A but should they be found to be misusing the ground, they could be fined up to £40,000. It is right that we have these strong tenant protections in place.
This amendment would also bring significant complexity to the system, and I struggle to see how it would work in practice. It would allow the courts to require evidence that the dwelling had been on the open market for six months and that no suitable offers had been received, but it is unclear how the courts would become involved. Additionally, it could place undue burdens on courts which may have to follow up on any ground 1A evictions to check whether the landlord had tried to sell for six months and whether they had received any suitable offers. The court would also have to determine what a suitable offer was, which would be another undue burden. The no re-let rule is a clear and simple rule that would not benefit from further complexity. I believe this amendment would open the no re-let period to abuse, reducing tenant security and contradicting the aims of this Bill.
As the noble Baroness, Lady Thornhill, indicated, if a landlord is genuinely planning to sell a property, they can market it to gauge interest before upending the tenant’s life by evicting them. This would be more effective for all parties than evicting as soon as they decide to sell and only then putting it on the market and waiting for suitable offers. For all these reasons, I ask the noble Lord, Lord Cromwell, not to press this amendment.
On Amendment 41, I understand from our helpful discussions that my noble friend Lord Hacking’s intent here is to remove the period during which a landlord cannot re-let the property after using grounds 1 and 1A and instead prevent the rent being increased in the new tenancy. While this amendment addresses one of the goals of the no re-let period by making it unprofitable for landlords to abuse the moving and selling grounds, it does not address the other key reason to prevent abuse. Even if an unscrupulous landlord could not profit from abusing the grounds, they could still, under my noble friend’s proposals, use these grounds with no intention of moving in or selling to pursue retaliatory evictions. This means abusing the grounds to get rid of a tenant who had done nothing wrong but whom, for example, the landlord simply did not like or who they considered raised too many issues with the property.
These abuses of the system are exactly what the 12-month no re-let period aims to prevent. In the current system, under Section 21, we hear all too often of tenants afraid to ask for repairs because the landlord has made it clear that they will evict them if they do. Under my noble friend’s proposal, this could still happen. The opening up of the grounds to abuse must be resisted. The 12-month no re-let period is a strong disincentive for landlords to abuse the grounds, and I believe that it strikes the right balance. As such, I ask my noble friend not to push his amendment to a Division.
I turn now to Amendment 59. I am grateful to the noble Lord, Lord Young, for his engagement on this issue and for introducing me to the Shared Owners’ Network. These clauses implement critical protections for tenants. If a landlord has used the selling or moving-in ground, they will not be able to re-let or market a property for 12 months. That period starts from the date of possession proceedings, as specified in their Section 8 notice to the tenant. These clauses also include other important prohibited landlord behaviours.
The Government are aware that some shared owners with building safety issues are facing very 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 it to determine how best to support these shared owners. We will have a dialogue with the registered providers as well. I am grateful to the noble Lord for his suggestion in that regard. To respond to another of his comments, I will clarify the licence points to him in writing.
However, I do not agree that, by helping in one area, other blameless tenants should have reduced security of tenure or be exposed to the risk of wrongful eviction just because of who their landlord is. We have to get the balance right somehow, to support those who find themselves in this awful position but not at the expense of other tenants. We will continue to work on that. All assured tenants must benefit from the new system.
I therefore ask the noble Lord, Lord Young, not to press this amendment.
Lord Hacking (Lab)
My Lords, my Amendment 41 was the first in line in this group. I still think that it was a good amendment and would have produced all of the right results without creating sorrow for the market of the full 12-month waiting period.
It is now very late in the evening. I am not going to press for a Division. I nevertheless argue that my amendment was the best of the three.
Baroness Thornhill (LD)
My Lords, in view of the time, I will speak briefly to Amendment 43. I could 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 a mutual agreement as to whether or not they will do this. No, I do not believe that. If allowed, it will become, as now, a requirement. In effect, it will become a bidding war by any other name, and landlords have their pick of tenants: Zoopla has just reported that there are between 20 and 25 punters for each property and at least 20 requests to view each property. Landlords can pick, it is a beauty parade, so they can choose the tenants who have the money to give them six months’ rent up front against those who just do not have those advantages. But those same people can still afford to pay the rent and would still make good tenants.
We are opposed to anything that prices out poor renters in hot rental market areas. We refute the argument being discussed by landlord groups that this is an option for niche circumstances that allows people to access housing; for example, as was said, where people might struggle with credit checks. If you are struggling with credit checks, it is highly unlikely that 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 £8,000. That is a lot of money.
We know that landlords and letting agents often use it as a barrier to reject tenants relying on universal credit or housing benefit, preventing them accepting a tenancy, which means that only those with savings or family support to draw on will comply, which those on low incomes are less likely to have. Shelter tells us that six in 10 renters have been asked for it and over 800,000 people in one of its surveys say 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.
Baroness Taylor of Stevenage (Lab)
My Lords, I thank the noble Baroness, Lady Scott, and my noble friend Lord Hacking for their amendments on rent in advance, and the noble Lord, Lord Carrington, and the noble Baroness, Lady Thornhill, for speaking.
The Government have been very clear in their view that the charging of rent in advance is unfair. I have not 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 will be their entire savings, which were perhaps carefully built up with the ambition of being put towards a deposit on a first home. For many others, it will be an amount of savings which is simply unreachable.
I recognise that it is the noble Baroness’s intention for it to be possible to request large amounts of rent in advance only where this has been previously agreed by the tenant and landlord. However, we must consider what this means in practice. It would allow a landlord, at the pre-letting stage, to insist on a tenancy agreement which would permit them to require up to six months’ rent in advance. In hot rental markets, we could expect such clauses to become simply a fact of renting. This could leave tenants with the “choice” of stretching their finances to the limit or facing homelessness.
“(za) to a tenancy entered into before the commencement date (which has the same meaning as in section 146(3) of the Renters’ Rights Act 2025),”Member’s explanatory statement
In line with the original policy intention, this amendment ensures that existing leases (those entered into before the commencement of Chapter 1 of Part 1) will fall outside the scope of the new section 4B.