Renters’ Rights Bill

Lord Carter of Haslemere Excerpts

Tuesday 4th February 2025 Lords Chamber

[Lord Carter of Haslemere (CB)]

My Lords, what wonderful maiden speeches we have heard today. I heartily endorse the congratulations given to our new Peers.

Having read the debates in the other place describing the horror stories of damp dripping down walls, mould, infestations, faulty electrics and landlords who just do not care, I welcome the principles behind this Bill. As recorded in the register, I have dabbled with being a landlord myself, and know that nothing is more important than the safety and well-being of tenants. The majority of landlords take their responsibilities seriously, but for far too long a minority of rogue landlords have been able to exploit loopholes in legislation to treat tenants in, frankly, a horrific and wholly unacceptable way. The Bill must put an end to that and provide tenants with the security and certainty they deserve.

Our overall objective must be providing enough safe rented accommodation for all, thereby helping to end homelessness. However, homelessness, in our context, can arise in two very different ways: first, by unscrupulous landlords evicting tenants who have the courage to point out problems in their rented properties; but, secondly, by imposing excessive blanket regulation which causes conscientious landlords to sell up. Both must be prevented if we are to reduce, and perhaps one day eliminate, homelessness.

A delicate balance therefore has to be struck here. There clearly needs to be tighter regulation, but the last thing we want is good landlords being deterred by this Bill from staying in the sector. This would drive up rents and empower those bad landlords who simply ignore the rules. We need to be honest about this reality and not allow well-meaning ideology to trump what is in the public interest.

Therefore, it is alarming to hear the leader of the Opposition in the other place say that 47% of landlords either attempted to sell a property in 2023 or were thinking of doing so, with the biggest reason being their fear of new laws. Good landlords provide a vital service. The private rented sector is essential for those who cannot yet afford a mortgage, young people and those who need to move for work purposes. Landlords giving up rental properties will not help the people who need to rent, and there are an awful lot of them.

What is the answer to getting the balance right? For me, the way to do it is by targeting the new regulatory regime at the unscrupulous landlords, not by using the blunt instrument of blanket regulatory burdens, which will deter good landlords from continuing and risk increasing homelessness. We heard in the other place that four-fifths of landlords are conscientious and want to look after the well-being of their tenants—and, of course, their properties. Yes, there needs to be tighter regulation to target the minority of landlords who give that label a bad name, and many of the measures in the Bill seem entirely appropriate. The question is, rather, how are they to be enforced, by whom and against whom?

Ideally, where there is a dispute, we should be maximising the powers of a judge, arbitrator or ombudsman to adjudicate on the specific circumstances of each case to determine how the regulatory regime should fairly apply in that case. Although I suspect it will not happen, I would drop some of the provisions which may otherwise drive good landlords out, while applying a tighter regulatory framework than currently, so as to ensure greater fairness for tenants. It is a question of getting the balance right.

On the good landlords side of the balance, allowing rent arrears to accumulate over three months before enforcement action can be taken risks intimidating those landlords into leaving the sector, with all the undesirable consequences which will ensue. A landlord is not a charity, and some depend entirely on the rent to pay mortgages or for their daily living costs. The relationship between tenant and landlord has to be a two-way street. Similarly, banning landlords from obtaining rent in advance will create greater risk for landlords and make them risk-averse in selecting tenants. This can only be detrimental to the latter. I also think that any current objections to fixed-term penalties and existing periods of notice are mitigated if there is a mechanism for ensuring that the ombudsman has the power to decide, where a tenant has a complaint, whether a landlord is giving notice for the right reasons.

On the tenant’s side of the balance, the Bill is spot on as to what the reasons for eviction—horrid word—must be. Similarly, I see nothing wrong with being able to challenge rent increases if those increases are being used as a disguised way of forcing the tenant to leave, beyond the reasons permitted in the Bill. Nor do I think that the reference to open market rents being imposed on landlords is unreasonable, provided that there is a detailed explanation of how this will be assessed. I also welcome the extension of Awaab’s law to the private rental sector, to force landlords to address conditions such as faulty electrics, mould and damp.

Finally, I welcome the provisions dealing with landlord redress schemes, registration and the ombudsman, provided there is clarity about how overlap with enforcement by local authorities and the courts will be avoided. The ombudsman scheme is where the focus should be, since consideration will then be given quickly and cost-effectively to the specific circumstances of the case, provided of course that the ombudsman’s office is resourced well enough.

There is lots of promise in the Bill, but it needs to be honest and laser-focused on what is in the all-round public interest: the interests of good landlords as well as of tenants. The effect of the Bill on the housing market and its effect on homelessness then need to be monitored closely. A commitment by the Government to report to Parliament annually to that effect, even if not enshrined in the Bill, would be welcome.