Renters’ Rights Bill
Debate between Baroness Thornhill and Baroness Scott of Bybrook(1 month, 1 week ago)
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Baroness Scott of Bybrook (Con)
My Lords, I begin by thanking all noble Lords across the House for their contributions to the scrutiny of the Bill. While we may differ in our views, the commitment shown by Members to improving the private rented sector is evident and deeply valued.
I also extend my sincere thanks to the Minister. She has shown courtesy, patience and great resilience throughout this process, defending what we would consider a difficult Bill and, often, an indefensible one. She has defended a policy that we think reflects more political positioning than practical policy-making.
Despite the Minister’s efforts, we are left with a piece of legislation that risks doing more harm than good. The facts are stark. According to Savills, the number of rental properties on its books dropped by 42% in quarter 1 this year, compared with the same period in 2024. That means 42% fewer homes available: fewer homes for families, less mobility for renters, less choice, and more pressure on rents.
This is not theoretical; it is happening now, and the Bill is accelerating that trend. Its uncertainty around fixed-term tenancies, poorly defined possession grounds, and reliance on stretched tribunals are driving responsible landlords away from the sector. When providers exit, supply shrinks—and when supply shrinks, rents rise.
We understand why tenants seek greater security but let us be honest: much of what the Bill tries to fix are symptoms of a very deep problem. There are simply not enough rented properties in this country, and there will be fewer. Instead of addressing that shortage, this legislation papers over the cracks, with layers of regulation that risk doing more harm than good. It treats the pressures of scarcity—rising rents, insecurity and limited choice—as issues that can be regulated away. Regulation without supply is a dead end.
What we need is a balanced approach. Yes, let us protect tenants, but let us also create the conditions for responsible landlords to stay in the market, invest and offer decent homes. Without that balance, the consequences are predictable, and they are already playing out.
The real target should be the rogue landlords: those who exploit vulnerable tenants and undermine confidence in the sector. The Bill misses that mark. Instead of cracking down on the worst offenders, it heaps new burdens on the majority who act responsibly. What the sector truly needs is a rogue landlord Bill that is targeted, proportionate and enforceable, one that protects tenants without pushing decent landlords out of the market.
Instead, we have a Bill that gets the balance wrong. It risks shrinking supply, increasing costs and adding complexity just when we most need clarity and confidence. The Bill does not strike the right balance between protection and provision. It fails tenants, landlords and the very market that it claims to reform. On this side of the House we will continue to monitor the market and challenge the Government to act on any negative outcomes.
Before I sit down, I congratulate Sam and Molly in my office—it is her first Bill in this House. I thank them sincerely for the fantastic support they have given me and my noble friend Lord Jamieson throughout the passage of the Bill.
Baroness Thornhill (LD)
My Lords, we on these Benches have been clear throughout the Bill that we support it very much: its main provisions, including the abolition of no-fault evictions and fixed-term tenancies, and its clear emphasis on tenants’ rights and much more transparency. There is no doubt that it is a radical Bill that will make significant changes to the private rented sector. It has also been said, and I wish to repeat it, that good landlords have nothing to fear from these reforms, and we on these Benches sincerely hope that that will be proved to be the case.
It is usual to say that this process is about improving the Bill through reasoned debate and using the expertise of the House. In truth, to me it felt more like a conflict—a battle of tenants versus landlords—with the bold reforms of the Government pitted against the fears and genuine concerns of the landlords, articulated sincerely and robustly by the Opposition Front Bench and others around the House.
There were also cross-House issues where only time will tell, such as the capacity of the courts. Another is the impact on all aspects of the housing market, including student landlords and the supply of homes to rent, about which let us say there were polarised views. We share the concerns expressed by the noble Baroness, but we also hope that the recent figures will steady and that, after inevitable initial upheaval, the market will settle down. We look forward to more build-to-rent and more social housing, because both are needed.
We hope that the Minister’s assurances on the military homes standard will also come to pass, as our amendment on that issue was won convincingly.
Lastly, I have some very genuine thanks. I thank everyone who took part in the many debates on amendments, which were based on honest beliefs and genuine experience, but particularly the Minister for her time, which was generously given, and for her patience—tested perhaps just a little by the determined double act of the noble Baroness, Lady Scott, and the noble Lord, Lord Jamieson. I admired their persistence, but the Minister showed that she was not willing to be moved on the Government’s core planks of the Bill, and her steeliness in the onslaught, however politely delivered, was commendable.
We cannot forget the valuable contributions of several noble Cross-Benchers. The noble Lords, Lord Cromwell, Lord Best and Lord Carrington, formed a new trio. There was also much legal wrangling. My learning curve was greatly assisted by several noble Lords who are lawyers, especially the noble Earl, Lord Kinnoull, even if I did not always agree with them.
For its advocacy on behalf of tenants and for shining a light on the reality of many renters, the Renters’ Reform Coalition deserves a big thank you. Generation Rent deserves a special mention—as does the National Residential Landlords Association. For me, it was challenging to read its excellent briefings and pit its persuasive arguments against my own.
It is also appropriate to thank all the officers of the House, who have no doubt worked tirelessly to get everything done on time and correctly delivered. This was my first Bill lead, and I am grateful to have had a small but dedicated team behind me, especially my noble friends Lady Grender and Lord Shipley. Where would any of us be without our able and professional staff—in this case, Adam Bull from our Whips’ Office? It has been a worthy task to contribute to the much-needed reform of the private rented sector.
Renters’ Rights Bill
Debate between Baroness Thornhill and Baroness Scott of Bybrook(1 month, 2 weeks ago)
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Baroness Scott of Bybrook (Con)
My Lords, fines must be proportionate, yet, as the Bill stands, the threshold for imposing fines on landlords is worryingly low, and the scale of those fines is notably high. This combination is troubling. Setting fines at such significant levels, in some cases representing a substantial portion of a landlord’s rental income, or even exceeding it, risks driving honest, well-meaning landlords out of the market, not because of any wilful negligence but out of fear.
I thank my noble and learned friend Lord Keen of Elie for leading this group from the Back Benches today and bringing two considered amendments to the attention of the House. The group continues the discussions we had in Committee, as we remain unclear on how the scale of the fines has been determined. Frankly, they appear to be arbitrary, with no transparent methodology or rationale behind them, and we would welcome clarification from the Minister on how these amounts were determined and why those particular values were chosen. Without a clear explanation, it is difficult to support their inclusion in the Bill.
Amendments 98 and 99 seek to clarify that fines should be issued only for persistent breaches. Including this in the Bill would provide much-needed reassurance. It would make it clear that significant penalties will not be levied for the first offence. That is especially important when many landlords may not be immediately aware of their new obligations, either those set out in the legislation or those introduced later through regulations. Imagine a landlord renting out a cottage for many years in their village in rural Wales. They are entirely unaware of this Bill and the proceedings of this House. They do not register on any new database, not out of malice but because they simply do not know what is required. Is it right that they should face a steep fine for this? Surely not. That is why “persistently” must be in the Bill—to protect landlords like them and ensure that the legislation is proportionate, fair and enforceable.
Ministers may say that, in practice, individuals such as in the example I have given will not be fined, and that discretion will be used and enforcement will be reasonable, but warm assurances are not enough. We need to ensure that this protection is guaranteed in law, not simply assumed in guidance or left to future interpretation. We need this clarity in the Bill, and without it, the risk remains that well-intentioned landlords—those who may simply be unaware of new requirements—could still find themselves facing disproportionate penalties.
If the Minister cannot accept the premise that we must embed this protection clearly within the legislation, I regret to say that we will be minded to test the opinion of the House.
Baroness Thornhill (LD)
My Lords, the noble Baroness was so quick to leap up—
Baroness Thornhill (LD)
Noble Lords will realise by now that I am a bit messianic about the database. I listened very carefully to what the Minister said at the end of Committee about the database, which is that much of it will be given to us in guidance and by statutory instrument. I look forward to the opportunity to contribute to that, but the reason for continuing to press this case is to put on the record just how important this is as a plank of this Bill—and how transformative it could be. So I will speak to my Amendments 94, 95 and 96 and speak against Amendment 97.
The private rented sector database presents a major opportunity to drive up standards through empowering tenants to make informed decisions before entering into a new tenancy, while giving local authorities the information they need to proactively enforce the new regulations. Those are two really important prongs.
The database will only be as useful as the information it stores. My amendments seek to ensure that it is as useful as possible. It is probably my shopping list of things that I would like to see, but I am sure that interested bodies and people other than myself will be putting into that further guidance and further information.
Renters will not be reading it in bed at night, or on holiday; they will look for it when searching for a new home. If it has useful information that helps them make informed choices—such as, past enforcement actions taken against the landlord in question, accessibility features of the home or rent levels for similar properties in the area—they will be able to choose a home that is right for them. For example, a recent Generation Rent survey found that more than three-quarters of renters would support including any prior prosecutions of a landlord on the database, as per my Amendment 94. Having this information will help foster more of the long, stable tenancies that both renters and landlords alike want, while discouraging landlords from attempting to sidestep the Bill or exploit tenants. Furthermore, renters who have used the database will tell their family and friends about it. In my experience, this kind of word-of-mouth marketing is the most effective.
My Amendment 96 would ensure that actual rents are recorded on the database. The Government have put much trust in the First-tier Tribunal, protecting renters from unaffordable rent hikes. At the moment, however, the tribunal uses advertised rents to see whether a rent increase is fair. Often, these are inflated and could become even more so with the end of bidding wars. So, recording actual rents will allow the tribunal and tenants to have a better understanding of the local market.
The issue of local authority finances has been debated many times as the Bill has progressed. We are right to be concerned about their capacity to proactively enforce the Bill. Having key information in one place, such as Section 8 eviction notices, as per my Amendment 95, would be a massive help to enforcement when the Bill comes into action—cutting out much of the proactive fact-finding work that local authorities often lack the capacity to do.
Outside the renting process, the database could also be of use to both national and local policy-making. Recording rents, for example, would help inform national decisions on housebuilding and crack down on landlords’ tax avoidance, which the think tank TaxWatch estimates to be as high as £1.7 billion a year.
We oppose Amendment 97, to limit costs related to the database, given that some areas of the Act inevitably may turn out to need more enforcement than others. It makes sense for the Government to have some wriggle room to set some costs at a later date. The legislation’s success relies heavily on enforcement, and therefore having the ability to raise funds through the database feed written into primary legislation is an important mechanism in case it is needed in future to cover costs, such as an awareness campaign or guidance and training to tenants and landlords.
Finally, I will end on a positive note. Much of this debate often pits landlords against renters, seeing the issue like a see-saw. But findings from Generation Rent’s survey of its supporters in April this year found that the more information about a landlord that renters have, the better their relationship with them. Nearly a quarter of renters who had a direct contact line to their landlord rated them five out of five, compared with fewer than one in 10 of those who did not. With the right information, the database will help foster more of these relationships. I beg to move.
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 Thornhill (LD)
I am hoping that some of the larger players will have ones that are off the shelf for the noble Lord to use. I am sure the Minister will be able to help out with that. Basically, we do not want to delay things any more. We genuinely believe that the trailing of the key planks of the Bill has been so public and so out there. But I say to the Minister that some definite timescales would be helpful.
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.
Renters’ Rights Bill
Debate between Baroness Thornhill and Baroness Scott of Bybrook(3 months, 2 weeks ago)
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Baroness Thornhill (LD)
My Lords, I reassure noble Lords, with regard to time, that the amendments in this group, in my name and those of other noble Lords —and there are a quite a lot of them—all work together and function as a pack. Therefore, my description of these amendments working together will actually be quite brief. The amendments look to strengthen the link between compliance with the private rented sector database and the lawful use of eviction powers. I appreciate that I am pushing the envelope a little bit and I will be genuinely interested in the Minister’s response.
These amendments are rooted in a very simple principle. If we expect landlords to meet minimum legal obligations—and we do, and we hope for more compliance: that is what the whole Bill is about—such as registering on the new database, which, following our previous discussions, is going to be the whizziest, wonderful game-changer, there really must be meaningful consequences when they do not. Currently, the Bill does not explicitly tie database compliance to a landlord’s ability to issue a Section 8 notice. These amendments aim to correct that, or at least to open up a discussion about it.
Amendment 223 would require landlords to register any Section 8 eviction notice on the database within seven days of issuing it. This would support greater transparency, help local landlords and tenants track patterns of use and ensure that there is a reliable record of how and when eviction powers are being exercised. Can the Minister say how we gather that data accurately, if not through this? It is important data and without it we lose very valuable oversight.
Amendments 235, 238, 239 and 240 would prevent a Section 8 eviction notice being considered valid if the landlord has failed to comply with Clause 83(3) of the Bill—namely, the obligation to register themselves and their dwelling on the database. These are not minor or excessive requirements; they are fundamental baseline requirements for responsible landlords. It is entirely reasonable to say that, if these duties are not met, a landlord should not be able to proceed with eviction.
Amendment 236 provides necessary clarification, ensuring that this requirement applies to the entirety of subsection (3) and not just selected parts. Taken together, this group helps to make the database a functioning gatekeeper for landlord compliance. It reinforces the idea that legal powers, especially those as significant as eviction, should be available only to those who follow the rules. That in turn builds confidence in the system and protects tenants from being displaced by landlords who are themselves acting unlawfully. I hope the Minister will look carefully at these proposals. They are proportionate and targeted and go to the heart of what this reform is meant to achieve: a fairer and more accountable rental sector. I beg to move.
Baroness Scott of Bybrook (Con)
My Lords, I thank the noble Baroness, Lady Thornhill, for opening this group. The issues of database fees and possession restrictions are of real significance, and this group is therefore of considerable importance. Before turning to the wider contributions made today, I will speak to the amendments in this group that I have tabled. Amendment 228C seeks to probe the circumstances under which a landlord may be charged a fee under the regulations made under Clause 80. I would be grateful if the Minister could provide some clarity on this point. Under what conditions do the Government foresee such charges being applied?
Amendment 228E, also in my name, would prevent the costs of enforcement action against non-compliant landlords being charged to those who have complied with the requirements of this chapter. This part of the Bill seems entirely unfair on law-abiding landlords. We want to understand why landlords who are compliant must bear the costs of enforcement taken against those landlords who fail to comply with the law. Could the Minister explain why compliant landlords must bear the costs of enforcement targeted at those who fail to meet their legal obligations?
Amendment 228F seeks to remove subsection (4)(d), which includes the costs of enforcement action imposed by the Bill in relation to the private rented sector. Our original understanding was that these fees were intended to relate to the database, but this paragraph seems to be a classic case of Ministers seeking additional and wider-ranging powers as a belt-and-braces approach. This is not an acceptable way forward. We understand completely that the database must be funded and we accept that a fee is reasonable, but we need to make sure that the fees charged under this clause remain reasonable. We know that this will increase the costs of business for landlords, so we need to ensure that the costs are both reasonable and proportionate. We are concerned that this wide definition of “relevant costs” may result in unreasonably high costs.
Perhaps I can press the Minister to give the Committee some sense of what the fees will be like, and how increases will be managed. Ultimately, we must bear in mind that it is usually the tenants who bear these costs through their rents in the future. Overall, what are the predicted costs of setting up and running the database, and what are the costs likely to be to the landlord?
Many landlords are small-scale and independent; they are not corporate landlords, with legal teams and financial reserves. They are ordinary individuals, often renting out one or two properties as a way to supplement their pension or to provide long-term family support. For the database to function as intended, it must be financially accessible.
On Amendment 228G, clear communication of the changes of fees is essential. It builds trust and helps people plan their finances, but it also avoids any confusion or frustration.
Baroness Thornhill (LD)
I want to scratch lots of bits out, since the noble Lord, Lord Best, was so succinct.
Amendment 258 is in the name of Lord Cromwell and has notable signatories, and the noble Lord sold this amendment well. In short, this is an amendment that should not be needed, if the police and local authorities did their jobs correctly, as per the law, as outlined in the Protection from Eviction Act. This amendment is rightly seeking to reinforce what should be happening but we know is not. The already mentioned organisation, Safer Renting, monitored data from its clients over a given period, which revealed that, when the clients were going through an illegal eviction, and while it was in progress they called the police for assistance, worryingly in only 9% of cases did the police actually go to the property and assist the tenants. Therefore, as the noble Lord said, in 91% of cases they either failed to turn up, or turned up and sided with the landlord.
Interestingly, so concerned was Safer Renting about these statistics that it decided to do something about it. To its credit, in partnership with the Metropolitan Police and the GLA, it developed a training course for officers. Approximately 8,000 officers took the training but, sadly, this did not mean it recorded any significant improvement when talking to its clients, which begs a lot more questions that are probably not answerable here.
As has already been said by several noble Lords, it is imperative that the police understand the harassment before and during an illegal eviction—or, indeed, what constitutes criminal offences—and, most importantly, that they co-operate with the local authorities charged with the role of prosecuting these rogues and criminal landlords. Shockingly, that is not always happening. Safer Rentings’ illegal eviction count for England and Wales in 2022-23 showed 8,748 illegal evictions—that is one every 67 minutes.
It is not necessary for the police to prosecute these offences unless they witness criminal actions taking place alongside the eviction, but it is crucial for them to understand the law both to refer them to the local authority and to co-operate with the authority’s investigations. We support this amendment, but we hope the Minister will reassure us that it is not needed.
Baroness Scott of Bybrook (Con)
My Lords, Amendment 258, tabled by the noble Lord, Lord Cromwell, aims to provide greater clarity for local housing authorities and police forces in responding to cases of illegal eviction. Illegal eviction is a serious offence; it is not simply a housing matter but often a brazen abuse of power that leaves some of our most vulnerable renters without recourse. That said, we have reservations about the practicalities of this proposal, but I have listened to the noble Lord, Lord Cromwell, having asked the noble Lord, Lord Hogan-Howe, his views on it.
In essence, the amendment would place a statutory duty on police and councils to notify each other when a complaint of illegal eviction is received, to co-operate in investigating the offence and to take reasonable steps to assist the tenant. The intent here is understandable —tenants report illegal evictions and are, as we know, bounced between bodies, with the police saying it is a civil matter and councils struggling with limited capacity. Although the intent behind the amendment is undeniably well-meaning, we just have to pause and ask whether it might inadvertently entrench confusion within the statutory framework rather than resolving it.
Without clear definitions, the proposal to impose duties on local housing authorities and police forces to co-operate and assist opens the door to operational ambiguity. What exactly constitutes “reasonable steps to assist”, and what measurable outcomes are expected from this co-operation? Without these clarifications, there is a real risk of creating more confusion for the very tenants we want to protect.
We also want to be very careful about the practical burdens. As the noble Lord, Lord Cromwell, said, both councils and police forces are grappling the whole time with existing resource shortages. This amendment adds new responsibilities without addressing the underlying issue of capacity. Should we not first evaluate whether these agencies are equipped to handle their current workload before we impose further duties? What assessments have been made of the additional resource implications of this?
There is great merit in the principle behind the amendment—namely, the need for clearer co-operation and more decisive enforcement—but there are significant questions about whether, as drafted, it achieves that aim in a proportional, workable manner.
I agree with the noble Baroness, Lady Thornhill, and I ask the Minister: is the guidance clear enough, particularly to police forces, that it is an illegal act and it is against the law? Is there enough guidance? Are they being told exactly what they have to do? Do local authorities have clear guidance about looking after the tenant, which is their responsibility if they have been evicted and they are homeless at the time? Can this not be done in a different way by insisting that the Home Office work with MHCLG to try to embed the guidance that is already there and insist that both organisations deliver what they should be delivering at the moment?
Renters’ Rights Bill
Debate between Baroness Thornhill and Baroness Scott of Bybrook(3 months, 3 weeks ago)
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Baroness Thornhill (LD)
In view of the time that we have lost—and I must say publicly that I regret the pressure that we are putting ourselves under—I will just say that it is essential that written statements are mandated to help people resolve conflicts and provide evidence if disputes go to court. What these must contain, which is the essence of Amendment 140 from the noble Baroness, Lady Scott, is clearly important and needs to be widely known.
There is quite a lot in the Bill that we feel needs to be widely known, and we have all had concerns about the level of knowledge. All I will say, with my tongue in my cheek for things down the road, is that that is all the more reason to regulate those who act for landlords—such as letting agents—to make sure that they act professionally and inform their tenants correctly.
Baroness Scott of Bybrook (Con)
My Lords, Clause 14 aims to strengthen the transparency of rental agreements by requiring landlords to provide written terms at the outset of a tenancy. This is a welcome step towards ensuring that tenants are fully informed about their rights and obligations, and that landlords are held to account for the terms they offer.
Amendment 140, in my name, recognises that legislation alone is not enough. We must ensure that tenants, landlords and, indeed, any third-party contractors involved are informed and empowered. By requiring the Secretary of State to issue clear, accessible guidance, we help to make these rights and duties real and usable in practice. Without such guidance, even the most well-intentioned legislation risks becoming an abstract concept rather than a meaningful tool for change. This is why it is crucial that the Government take proactive steps to ensure that everyone involved in the rental process understands their roles and their responsibilities.
Amendments 136, 138 and 139, tabled by the Minister, seek to refine the process through which written statements of terms are provided. The intention, as I understand it, is to ensure that landlords are held to account for providing these terms in a timely manner, which is certainly a step in the right direction. However, we must be careful to consider whether the amendments fully take into account the diverse needs and circumstances of both tenants and landlords.
The Government have a clear opportunity here to provide a system that is not only fair and transparent but also practical and achievable for all those involved. We must ensure that these provisions do not overburden landlords with an administration task but, at the same time, protect the rights of tenants by providing them with the necessary information to make informed decisions about their tenancies. While the intention is to create more transparency, it is equally important, we feel, that we do not add unnecessary complexity or red tape that could inadvertently discourage smaller landlords or make the rental process more cumbersome.
In light of these considerations, I would like to ask the Minister one or two questions. First, is the Minister confident that the 28-day requirement for landlords to provide written statements will not lead to confusion or delays? This timeline, while designed to allow time for landlords to issue the statements, may in practice create gaps in communication, potentially leaving tenants in a state of uncertainty about their rights and obligations. How do the Government intend to mitigate these potential delays?
Furthermore, how do the Government plan to ensure that smaller landlords, who may not have the dedicated administration teams, will be able to comply with these provisions without facing excessive burdens? Small landlords, who often play a crucial role in our rental market, could face challenges in keeping up with increased administration requirements without support or resources. We must be mindful not inadvertently to create barriers that make it harder for these landlords to continue offering tenancies.
In conclusion, while we acknowledge the Government’s intention to improve transparency in tenancy agreements and better protect tenants, we must consider the real-world impact of these changes. We must ensure that reforms are workable for both tenants and landlords, without increasing the complexities of the rental process or creating unnecessary barriers to housing. The amendments, while positive in some respects, do not fully address the practical challenges landlords and tenants face. Is the Minister confident that these provisions will not place undue burdens on landlords, especially those at the smaller end of the market, and that they will effectively protect tenants’ rights without creating new avenues for confusion and non-compliance? The legislation must strike a balance that promotes fairness and transparency while also being workable for all parties involved.
Renters’ Rights Bill
Debate between Baroness Thornhill and Baroness Scott of Bybrook(4 months ago)
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Baroness Thornhill (LD)
I do not doubt the genuine compassion and sincerity of the noble Baroness, Lady Coffey, but I feel there is a real incongruity about the current position of His Majesty’s Official Opposition to favour landlords and make evictions quicker and easier. The message to tenants via this amendment is, “Your unwanted evictions will take place only in the school holidays, so on 21 December rather than earlier in December”. I genuinely feel that it would be unworkable and that circumstances differ. I could actually argue the opposite: I would rather my children were safe in school while I negotiated trying to find where we were to live. I just do not think we can say that one size fits all on this.
Baroness Scott of Bybrook (Con)
My Lords, I thank my noble friend Lady Coffey for bringing Amendment 70 before the Committee today. It is a thoughtful and considered probing amendment that rightly recognises the significant impact that housing stability can have on a child’s education. During the pandemic, our children and grandchildren suffered greatly. Schools were closed, youth clubs shut down and extracurricular activities ground to a halt. The disruption left many young people adrift at a crucial stage of their development, and only now are we beginning to understand the effects. It is therefore incumbent on us all to support and uplift the next generation. However, the Government must ensure that the burden does not fall disproportionately on individual landlords. It is not, and should not be, their moral obligation to serve as the final safety net for vulnerable families. That responsibility lies with us—with the state, with local authorities and with society.
Owning a property does not automatically confer great wealth. It does not equip an individual to shoulder the complex needs of a struggling family. The Government must tread carefully to ensure that their actions do not drive up costs in this sector, which fall most heavily and disproportionately on low-income families and the most vulnerable members of our society. A sustainable housing market depends on both tenant security and landlords’ confidence. This is a very tough balance to strike, but I believe that the onus is on us all to strike it.
Renters’ Rights Bill
Debate between Baroness Thornhill and Baroness Scott of Bybrook(4 months ago)
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Baroness Scott of Bybrook (Con)
My Lords, the amendments in this group represent yet another instance where the rights of renters intersect with those of landlords. This group of amendments is indicative of the broader Bill and, rather than increasing the availability of homes, we believe it risks reducing the supply of rental properties. This could drive up costs for renters at a time when the cost of renting has already risen significantly. It is, of course, important to make sure that the legal framework which governs this relationship protects those who are renting, but we cannot forget the landlords. They should also have their rights upheld. Landlords should have their rights over their properties respected and retain the ability to recover possession of their homes when they need to.
I start by speaking to Amendments 24 and 30, tabled by the noble Baroness, Lady Warwick of Undercliffe. They assume that the landlord is in some way liable to pay compensation for exercising rights, which surely are theirs by virtue of the fact that they actually own the property. Determining when in specific cases compensation is required is surely the responsibility of a court. To assume that compensation is always required tips the balance against the landlords and would likely discourage many responsible, principled landlords from entering the market and meeting the high demand for rented properties that we see across the country.
In the same vein, Amendments 26 and 27, tabled by the noble Baroness, Lady Thornhill, would place an administrative burden on landlords, which would have a dampening effect on the housing market. Houses are important personal assets. Piling on layers of regulation will further suffocate the market and limit the agency of landlords to use the assets that they own.
Conversely, we believe that Amendments 60 and 61, tabled by the noble Lord, Lord Carter of Haslemere, strike an appropriate balance, recognising that landlords need to be protected from bad actors, who could have a devastating financial effect on them. Landlords should not be punished for supplying rental properties to the market. Maintaining the existing possession grounds for rent arrears would mean that they can operate in the market with confidence that they will not be left out of pocket.
Amendments 63 and 64, tabled by the noble Lords, Lord Carrington and Lord de Clifford, further speak to the fact that landlords should retain the right to make use of their own property as they see fit. It is neither the role nor the place of government to dictate to home owners how their personal property should be used.
Amendment 71, tabled by the noble Baroness, Lady Jones of Moulsecoomb, seeks to conflate the rights of the landlords with their responsibilities. The landlord, by owning the property, has the right to make decisions about how that property is used. The tenant, in renting from that landlord, is expected to respect the rights of the landlord as the property owner. This relationship does not in any way suggest that the landlord should be liable to forgo income while still providing the service. This measure would clearly disadvantage landlords in their legal relationship with their tenant and would depress the market, which is already undersaturated.
Finally, I welcome that Amendments 142, 165 and 166, tabled by the noble Lords, Lord Cromwell and Lord Hacking, strike the appropriate balance between the rights of the renters and the rights of the landlord. We need to remember that we are talking about a market, which requires flexibility and adaptability so that it works for consumers and providers. Allowing landlords to make these decisions without being hamstrung by long-term obligations means that they can act in the mutual interest. A flourishing market benefits renters as much as landlords. This balance is imperative to achieve a flourishing market. I urge the Government further to consider, between now and Report, this crucial balance between landlords and tenants, most importantly to protect the tenants in this sector.
Building Homes
Debate between Baroness Thornhill and Baroness Scott of Bybrook(1 year ago)
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Baroness Scott of Bybrook (Con)
My Lords, I first add our condolences to the community of Southport after the horrific incident yesterday. Our thoughts and prayers go out to the friends and families of all those who have been affected.
We on these Benches support policies to provide more housing in this country, particularly affordable and social housing. Our previous Conservative Government fulfilled their commitment to build over 1 million homes over the previous Parliament and 2.5 million homes since 2010, but targets do not ensure that homes are delivered and I do not see that any of the changes announced today will aid any delivery.
Our last Government put £11.5 billion into the affordable homes programme, delivering 700,000 more homes. What will this Government invest to build more homes, or will homes suffer the same fate as hospitals and transport, with no investment? Compare this with the previous Labour Government, where construction slowed to the worst peacetime housebuilding rates since 1924. Let us hope that this Labour Government will invest and deliver, and not just produce targets.
How will the Government deal with communities having a say over what homes are built in their area? The Prime Minister admitted on Radio 4 that he will ignore local councils, but the Secretary of State for MHCLG and the Chancellor have both tried to stop developments in their own constituencies. What will Labour’s policy be? So many questions.
The levelling up Act simplified local plans to work with local communities on the housing and infrastructure needed in their areas. Will the Government continue to support local plans and what exactly will they do if a local council does not produce a local plan or produces one with too few homes? If combined authorities are to be responsible for strategic plans of housing growth in their area, how is this devolving power to communities? Surely this is just adding another tier of bureaucracy. Will this not once again slow down the system, adding complexity between conflicting strategies? Noble Lords have only to look at Mayor Khan’s London plan and what that has not delivered for our great capital city.
Labour’s top-down green belt review seems to go much further than grey belt. The NPPF already allows for brownfield site development in green belts, for example of redundant car parks, petrol stations et cetera, so how far will Labour’s changes to green belt policy go? Will farmland be included in the top-down review? How long will that review take? Will there be any national or local consultation? Once again, we see a slowing down of the housing delivery system.
Before I finish, I go back to nutrient neutrality. Some 160,000 homes in this country cannot be delivered —homes for young people, families and older people trying to downsize. These are not large developments, but one or two houses here and there, quite often across a rural landscape. Will the Government take another look at this?
So many changes, so much consultation, so much extra time in the system—it seems to be a field day for the Planning Inspectorate to go out and look again and again and again.
I am confident that the whole House wants more good-quality homes in places where they are required. What I am not sure about is whether this Government’s policy changes will deliver that, but what I can assure the noble Baroness opposite is that we will work with them to deliver where it is right to do so, but we will challenge them where we believe it is not.
Baroness Thornhill (LD)
My Lords, we too are shocked by the appalling incident in Southport and feel very deeply for all the families concerned, and the knock-on effect in the community.
What a pleasure it is to listen to the noble Baroness, Lady Scott; now that she is no longer opposite me on the Benches I will have to get used to seeing her in profile. She always engages constructively and generously with her time, and I am sure that will continue. I agree with a lot of what she said, but I have a slightly different emphasis because I passionately want this housing agenda to succeed. We all know and understand the problems and the bigger picture, and it is indeed dire. There is so much to commend in what has been said today that it is almost too difficult to decide which bits to pick.
I start by saying that I welcome the link between economic growth and housing. Of all the things to get UK plc going, housing has always been there as a solution to a lot of our economic woes, so I sincerely hope that it works. The challenge will be in turning the Deputy Prime Minister’s passionate rhetoric into reality. It is a wicked issue, and it has been caused by decades of failure to build enough homes. I do not think we should be always apportioning blame; this is a long-term systemic problem. I look forward to working on the forthcoming legislation, but I feel that there is going to be a lot of it. The devil will be in the detail, and that will come later. Within the rhetoric, there are a lot of conflicts, as the noble Baroness to the side of me hinted at. The Statement said that the Government want to bring stability into the planning system—I doubt very much that this will bring much stability.
Let us go to the big issues. I start with targets. At the election, all the parties tried to outbid each other with the numbers game. Targets do not build homes, but they send a very powerful message to local planning authorities. However, there have to be consequences. Can the Minister outline what they might be? Councillors are not going to change their behaviour overnight, so what are we going to do to change the public narrative and turn our nimbys into yimbys? How do the Government intend to engage the public and the councillors in the need for more homes? What is the future of the housing delivery test? What about the two-thirds of councils that do not have an up-to-date plan? I would like to ban the phrase, “Build the right homes in the right places”, as it is a fig leaf for anybody to say anything. You hear it said by protestors who are for and against building. I want to know what it actually means. My big question to the Minister is, in short: what is going to change to change the narrative and the culture around housebuilding?
That brings us to the standard method to allocate the targets. I welcome a more balanced approach; I felt that the previous approach pitted urban authorities against rural authorities, which is never good. The Statement talked about an uplift where house prices are more out of step with local incomes. What does that mean in practice? Do the Government really believe that we can build enough homes to affect market prices? Is that even desirable? Both Barker and Letwin and several academics have said that that just is not possible, and if it were that it would take decades. I feel we should be concentrating on affordability as an issue. In those areas where there is that discrepancy, it is all about the need for social housing. I hope that the Government will stop saying “affordable” and use the terms appropriately. In high-cost housing areas we need social housing to keep balanced communities and keep people cleaning our streets, working in our care homes, et cetera. I hope that funding from Homes England reflects a real shift towards social housing.
In effect, all the Government’s ambitions will come to nothing if we do not tackle the skills shortage and the issues within the workforce. What are the plans to reverse this current trend, especially as we know that a considerable number of the current workforce are due to retire? What are we doing differently from what was already in position to reverse that trend? How will SME builders be incentivised to build more and join this council house revolution? As the noble Baroness asked, what is happening in the areas that have been in an effective moratorium due to biodiversity net gain—where some of them are clapping their hands and saying, “Whoopee-do! This is the best thing that has happened”?
With regard to the green belt, in my authority I used to talk about bronze, silver and gold. We all knew what our gold was, and there was some debate about what was bronze and therefore able to be built on, but doing that is not going to be as easy as it would appear. Take the petrol station example. I know of a petrol station near where my daughter lives; it is derelict and an eyesore, but it is right next to a dual carriageway, miles away from any other homes, and it has no facilities. I hope there is a little more local flexibility on that.
As for building the infrastructure upfront and aligned to the development, that is ideal but very challenging. It is perhaps slightly easier in larger-scale developments, but in my area a lot of the development is smaller sites and infill. The impact on infrastructure is cumulative and lags behind the building of houses. I will be interested in how the Government intend to reverse that.
On right to buy, I hope that there is some local flexibility to suspend right to buy if a local authority can prove that that is in its interests within its community.
There is loads more in this Statement. I expect we will have plenty of time over forthcoming years to discuss much of this, because, as the Minister said, there are no quick fixes. However, it is important to send out messages different from some of the messages we have had hitherto.