Renters’ Rights Bill

Lord Hacking Excerpts

Wednesday 14th May 2025 Lords Chamber

Moved by

[Lord Hacking]

207: Clause 65, page 99, line 25, leave out “may” and insert “must”
Member’s explanatory statement
This amendment alters the Bill so that the Secretary of State must make regulations requiring a residential landlord to be a member of a landlord redress scheme, rather than leaving it to the Secretary of State’s discretion to make regulations.

[Lord Hacking (Lab)]

My Lords, we now move on to Clause 65. I have tabled a number of amendments in this group: Amendments 207, 210, 214, 215 and 216. All of them are directed at tidying up the terms of the Bill, but they are also rather complicated, so I must ask for the patience of the Committee as I go through them one by one, so that I get the argument right relating to each of them.

Amendment 207 takes us straight to Chapter 2 on page 99 of the Bill and landlord redress schemes. Clause 65(1) says that the Secretary of State

“may make regulations requiring a residential landlord to be a member of a landlord redress scheme”.

The difference of opinion that I have in moving this amendment is that that should not be in terms of “may” but “must”, because it is an essential feature of landlord redress schemes that all residential landlords join in.

Amendment 210 goes further into this section of the Bill. The requirement that I seek here is that there should be only one landlord redress scheme. I think that my noble friend the Minister is sympathetic to that. I would like it to be rather stronger and make it an obligation to have only one redress scheme.

We then move to Amendments 214, 215 and 216. Amendment 214 gives sympathy to those who are digitally inept, which certainly includes me. In that amendment, I seek a requirement to enable those who are unfamiliar with computers and other electronic devices to be able to enter the redress scheme and not be digitally excluded.

Amendment 215 is the most complicated of all my amendments. It would make it a condition of approval of a designated redress scheme that the Secretary of State should apply the test of what is considered appropriate and proportionate in support of tenants experiencing house-related problems. It is a matter of drafting, perhaps, but a matter of some importance.

Amendment 216 is very sensible and I hope that my noble friend the Minister will be able to help me here. I suggest that we should be quite sure that the duty of the Secretary of State is to designate one landlord redress scheme in the private sector, and no more than one.

I hope that I have covered all the amendments sufficiently and accurately. I beg to move.

[Baroness Thornhill (LD)]

My Lords, I wrote in my notes that this was “hopefully” the last day in Committee on the Bill, but I have now inserted “possibly”. Regrettably, it is my last day, because of an important appointment tomorrow that I cannot cancel.

It is appropriate for me to thank profusely all those who have helped me personally, and probably helped all of us, with their excellent briefings, as well as giving help with amendments—and, in my case, frantic email exchanges when I have not quite understood things. I refer to all those in the Renters’ Reform Coalition, the Local Government Association, the National Residential Landlords Association and Suzanne, the Independent Landlord, to name but a few.

This is a very important part of the Bill, and we largely support the first two amendments from the noble Lord, Lord Hacking, regarding having just the one scheme and changing “may” to “must”. However, I will speak to my Amendment 218, which is a simple probing amendment for what is a very complex issue. The Bill makes continuing or repeat breaches of the landlord redress scheme an offence, but not joining the scheme in the first place is merely a breach. That means that landlords can still be fined by the local authority for not joining but tenants cannot claim a rent repayment order as it is not an offence.

There is clearly an imbalance here; my amendment simply seeks to probe the Government’s reasoning for not making failure to join the scheme an offence in the first place, rather than waiting for landlords continually not to adhere to the new requirement. We want this failure to become an offence from the get-go because we believe that non-compliance with the redress scheme will have serious regulatory consequences, significantly impacting tenants’ ability to hold their landlord to account. That is the key matter on issues such as disrepair and the standard of the home. The rent repayment order gives tenants compensation for substandard accommodation and can incentivise them to report things in the first place. Interestingly, Generation Rent’s polling found that nearly one in three renters has had maintenance issues in their home, which they have reported, but their landlord has not dealt with—a simple but very telling snapshot.

In the Republic of Ireland, failure of a landlord to register a tenancy with the Residential Tenancies Board—the Irish equivalent to what we are proposing—is a criminal offence, punishable by imprisonment of up to six months and a fine of €40,000, with €250 payable each day of non-registration. Perhaps they take a rather different approach.

We are concerned that, as councils are already overstretched and currently have very little resource for proactive enforcement, an undetermined number of landlords could avoid joining the redress scheme initially as they will think being discovered by the council is low risk. The risk of being reported by their tenants—who would not be eligible for a rent repayment order, so there is no incentive for them—is also very low. Both aspects are not what we want. Therefore, we feel that this imbalance does not treat seriously enough the impact that non-compliance in these matters will have in undermining and frustrating one of the fundamental tenets of the new regulatory regime. I hope that the noble Baroness will allay our concerns.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank my noble friend Lord Hacking and the noble Baronesses, Lady Scott and Lady Thornhill, for their amendments, and the noble Lord, Lord Jamieson, for moving the amendments proposed by the noble Baroness, Lady Scott.

Before I turn to the amendments, I note that the noble Baroness, Lady Scott, advised of her opposition to having Clause 65 stand part of the Bill. Clause 65 gives the Secretary of State power by regulations to require residential landlords to be members of a private landlord redress scheme. I note her concern over placing a legal requirement on landlords to join a redress scheme. However, having no legal obligation on landlords to do so means retaining the status quo, in which a very small minority of private landlords choose voluntarily to sign up to a redress scheme. I believe only around 100 landlords out of the 2.3 million in the country joined a previous voluntary scheme.

This lottery for private tenants is wholly unfair, particularly as those renting in the social sector have enjoyed universal access to landlord redress through the Housing Ombudsman service for decades. This Bill makes it clear that being a residential landlord is a serious commitment, which most landlords understand, and that it carries responsibilities and obligations towards a tenant. For those who do not understand this, we need to make it clear through the Bill.

Placing a legal requirement on landlords to be part of a redress scheme is necessary and key to delivering a long-promised government commitment. Access to justice for tenants should be not at the discretion of landlords but built into the new tenancy system, promoting high-quality, safe and secure privately rented homes.

[Lord Hacking (Lab)]

Hear, hear!

[Baroness Taylor of Stevenage (Lab)]

I start with the amendments tabled by my noble friend Lord Hacking— I hope he is going to carry on saying “Hear, hear!” as I go through his amendments.

Amendment 207 would place a duty on the Government to lay regulations requiring residential landlords to be members of a landlord redress scheme, rather than giving them discretion to do so. I understand why my noble friend has put in this amendment and I reassure him that the Government are committed to requiring private landlords to become members of an ombudsman as soon as it is practicable to do so. However, it would not be beneficial to the sector for the Secretary of State to be obliged to require landlords to join an ombudsman scheme before being assured that it is ready to join. We have taken powers in the Bill to allow the Government to make sure that the ombudsman is introduced in the most effective way, with the appropriate sequencing. This will make sure the ombudsman scheme is ready to deliver a high- quality service at the point that landlords are required to join it.

Amendment 210 seeks to set out in legislation that only one redress scheme can operate in the private rented sector at any time. Amendment 216 similarly seeks to remove the ability to set out in regulations the number of redress schemes that can operate in the private rented sector at any one time. It is indeed our intention to approve a single redress scheme, as my noble friend outlined, which all private landlords will be required to join. However, as my noble friend has noted, the legislation allows at the moment for more than one scheme. There are an estimated 2.3 million landlords operating in England, letting their properties to 11 million tenants. Allowing for multiple schemes in legislation offers the Government the flexibility and assurance that, should demand for redress prove too much for a single provider to handle effectively, additional schemes could be brought into this space to take over some of the load.

This approach to allowing for the possibility of multiple schemes has precedent: for instance, in the Housing Act 1996, which makes provision for social housing redress as delivered by the Housing Ombudsman. It is therefore vital that the Government can set out in regulations the number of redress schemes that they will approve or designate for the private rented sector. This will allow the Government to set a limit at first of one scheme, with the assurance that this is not set in stone, should demand for redress prove too much for a single provider to handle effectively.

Amendment 214 would make it a statutory requirement for the private rented sector landlord ombudsman scheme to enable access to the service through offline routes. I fully agree with my noble friend on the importance of ensuring that those who cannot or do not wish to use a computer are still able to engage with the service and access redress. I am pleased to reassure the Committee that the Government intend to ensure that the scheme is accessible, including to those who require offline access. We will expect the new ombudsman service, regardless of whether administered by a public or private body, to meet the same set of high standards for accessibility as outlined in the government service standard and accessibility requirements for public sector bodies. There will be further opportunities for the Government to ensure that this is the case without amending the Bill.

Amendment 215 would expand the role of the private rented sector landlord ombudsman to provide support for tenants with housing-related problems that are outside of their landlord’s control, such as issues with employment, welfare or debt; I found the comments from the noble Lord, Lord Jamieson, about piecemeal amendments to the welfare system, as I think he called them, a little ironic in view of where we find ourselves with the welfare system. This amendment would be an additional responsibility for the ombudsman not directly linked to resolving disputes. We think that it is important that we focus on the main function of the ombudsman, rather than considering other functions that may slow down implementation or direct resource away from delivering against the core purpose of the redress service.

We recognise, of course, that tenants facing housing-related employment, welfare and debt problems should have access to support. It may be appropriate for the ombudsman to signpost tenants to, for instance, their local authority, Citizens Advice or tenant advocacy charities, but we do not think that any amendment is necessary for that to take place. For these reasons, I kindly ask my noble friend Lord Hacking to consider not moving his amendments.

I turn now to the amendments tabled by the noble Baroness, Lady Scott. Amendment 208 would exempt landlords from being required to join the private landlord ombudsman if they use a property agent who is a member of another approved independent redress scheme. We cannot have a situation where tenants have no route to redress for problems that are outside an agent’s control, such as where a landlord refuses to authorise large repair works or behaves badly toward the tenant. This is why we think that it is fair that landlords, including those who use a managing agent, can be held accountable if they have failed to resolve a tenant’s complaint satisfactorily.

We take seriously the noble Baroness’s concerns about duplication. Careful consideration will be given, during the implementation process, as to how the PRS landlord ombudsman service will interact with the agent redress provision. Our primary concern is that the service works effectively for landlords and tenants so that tenants can access redress where needed and treated fairly by the system, regardless of whether their landlord uses an agent.

Amendment 210A seeks to prevent regulations under Clause 65 requiring landlords to remain members of the redress scheme for a specified period after they cease to be residential landlords. Problems can occur for tenants at any point in the rental process, right up to the very end; in fact, the end of a tenancy can be an extremely stressful time for both landlord and tenant, with a lot of scope for things to go wrong as a landlord takes back possession of their property. Requiring landlords to remain members of the ombudsman for a reasonable amount of time once they have stopped being a landlord gives tenants the opportunity to seek redress for harm or inconvenience caused at the end of their tenancy.

As part of the implementation process, we will work with stakeholders to ensure that the period of time for which former landlords are required to remain members of the scheme is appropriate and proportionate. I assure the House that we are committed to ensuring that landlords who choose to leave the sector can exit the ombudsman scheme as quickly as possible; this is not a “Hotel California” ombudsman where you can check out but never leave. However, this needs to be balanced with giving tenants sufficient time for issues to come to light and for them to escalate complaints after their tenancy has ended.

Amendment 210B seeks to require a draft of the landlord redress regulations under Clause 65 to be published within six months of Royal Assent. We agree that transparency is important, and we are committed to giving the sector as much time as possible to prepare for the new redress requirements. However, it will be the published scheme, not the regulations—indeed, not regulations under Clause 65—that will set out how the private landlord redress scheme will operate.

We are committed to working with the sector to implement the PRS landlord ombudsman service smoothly. We intend for the details of the scheme to be published with significant lead-in time and to be piloted before landlords are required to be members. We do not think it would be right to place a legal requirement on the Secretary of State to publish draft regulations within a set time from Royal Assent. This is already a complex landscape, and work on this needs to be carefully thought through. Delivering it in a rush could be counterproductive, creating more problems down the line.

Amendment 212A seeks to remove the requirement for the redress scheme to provide for the appointment of a responsible individual to oversee the investigation and determination of complaints under the scheme. This individual will likely be known as the private landlord ombudsman. We believe that clear accountability is important to promote good performance. Responsibility and authority for oversight of the complaints handling process under a scheme must lie with a single accountable person. This is common practice across other redress schemes and we believe it is right that it should be the case for the private landlord ombudsman. We will set out in the regulations the process for appointing the responsible individual for the redress scheme.

--- Later in debate ---

Turning finally to government Amendment 213, the ombudsman service will have powers to compel landlords to comply with the scheme and its decisions. This includes being able to expel those who fail to meet their redress obligations. We believe it is right that an expelled landlord can rejoin an approved or designated redress scheme if they take the necessary steps to correct their actions at any point. Amendment 213 ensures that this is the case, even under exceptional circumstances. The noble Lord, Lord Jamieson, asked for an example. One example might be where the scheme from which the landlord was expelled is no longer in operation. This amendment allows for the landlord to be admitted as a member of another approved or designated scheme instead. I beg to move the government amendments.

[Lord Hacking (Lab)]

My Lords, I am very grateful to my noble friend the Minister for her very constructive reply. It happens many times in this House that, when we seek to change “may” to “must”, requiring more pressure to be put on the Government to commit to a certain form of action, the Government’s traditional reply is, “Leave it as ‘may’: you have our promise that we will do our best to bring this measure in and actually apply the ‘must’ test rather than the ‘may’”—so I accept all that my noble friend has said.

I was interested in her comments on the landlord redress scheme and the explanation that she gave for why it would be quite sensible as a starter to have more than one redress scheme in place, but the aim must be to have a uniform scheme in place as soon as that is possible. However, the most important thing is the obligation on every residential landlord to join the scheme. I hope the Government will concentrate on that and will not have the type of figures that my noble friend has given to the House about an earlier scheme with a tiny number of landlords joining it and with a great, great majority not. I think that is probably the most important thing.

I am very happy, therefore, in these circumstances to withdraw my amendment, based on the very helpful response that the Minister has just given to us.

Amendment 207 withdrawn.

--- Later in debate ---

Moved by

[Lord Hacking]

219: Clause 76, page 110, line 5, after “must” insert “, within one year of the day on which the Act is passed,”
Member’s explanatory statement
This amendment requires the database to be established within one year of the Renters’ Rights Act coming into force.

--- Later in debate ---

[Lord Hacking (Lab)]

I congratulate our Chair on going through these complicated provisions. She is doing very well and should receive congratulations from all of us.

We now move on to the chapter relating to the private rented sector database, which is an essential component in the efficient bringing in of the provisions of the Bill. The database should be set up even before the Act comes into force.

Amendment 219 seeks an obligation that the database operator must establish and operate the database within one year of the Act being passed. It seeks to set down a timetable for the bringing in of the database. All these amendments, like my earlier amendments, are meant to be tidying-up amendments and helpful to all of us taking part in this debate. The other amendments in my name in this group are Amendments 231 and 232. In an earlier version of the grouping, Amendment 237 was in this group but somehow it has disappeared. Can it be brought back to this group so we can discuss it as well?

Amendment 231 would require

“the database operator to ensure that facilities are available for persons to report breaches of any requirement”

by means other than a computer. I have already spoken to the problems of the computer inept, including myself, and my noble friend the Minister is sympathetic on that issue.

Amendment 232 would require

“the database operator to ensure that facilities are available for people to access information on the database, in situations where they do not have access to a computer or electronic device”.

Again, it would help those such as me, who are digitally inept.

Amendment 237 would remove

“the exception for landlords to be registered on the private rented sector database before a court can grant possession in cases”

under ground 7A of the Housing Act 1998, as amended; for example, proceedings brought by the landlord for possession for anti-social behaviour. That seems to be a sensible amendment. There should not be restraint on a landlord bringing such proceedings, which are socially vital for the community in which those tenants are playing a part.

Those are all the amendments. I hope I have been able to describe them lucidly and correctly to your Lordships. I beg to move.

[Lord Best (CB)]

My Lords, I will speak to Amendments 220 and 225. Amendment 220, in my name and those of the noble Lord, Lord Young of Cookham, and the noble Baronesses, Lady Thornhill and Lady Kennedy of Cradley, is the first of several amendments to support and enhance the Bill’s proposals for a PRS database. I am grateful to my noble colleagues and also to the Lettings Industry Council, Generation Rent, and the Large Agents Representation Group for help in drafting these amendments.

The database, as proposed by Clause 76, will contain some basic information about the landlord and the property. This will assist local authorities in the carrying out of their duties in the enforcement of required standards in the PRS—private rented sector. It will save councils time and money—chasing landlords for the information the council needs and locating properties failing to meet statutory requirements.

However, the database can do much more than this, and Amendment 220 makes it clear that it can have a wider, more significant role. It would surely be a wasted opportunity if the property database was of use only to local authorities. The amendment makes it clear that information on the database should also be available for the benefit of tenants, landlords and their agents. Not least, this new resource should enable landlords and agents to identify any obligation for them to obtain a licence from the local authority where the property is subject to a licensing requirement and would assist them in making such an application.

For tenants and prospective tenants, Amendment 220 makes explicit what is surely intended; namely, that the database is being created to provide important information for those seeking a property to rent who want essential details about their future home and its landlord.

Amendment 225 seeks to assist the new database process by clarifying that its functionality should allow data to be uploaded by landlords’ agents as well as by the landlords themselves; otherwise, landlords will need to be contacted constantly by agents to obtain the information they need. With around half of rented property being supported by lettings agents, this tweak is another reason why the amendment is a necessary addition to the Bill.

This property portal amendment is supported by those representing renters and those representing landlords and property agents. With the additional features that we will discuss in the next group, these amendments seek to ensure that the database has a transformative impact in raising standards, helping enforcement and widening knowledge of all the properties in the sector.

--- Later in debate ---

My papers are out of order. I will not repeat what I said earlier. Amendment 243A, tabled by the noble Baroness, Lady Thornhill, would add a new regulation-making power to the Bill to facilitate the database being used to signpost tenants to resources that would help them to understand their rights and how to access means of redress. The Government appreciate the need to provide tenants with clear guidance. We will publish a full suite of updated guidance on GOV.UK. This will allow tenants to understand their rights and responsibilities and help them to make informed decisions throughout their tenancy journey. We anticipate that the database may contain a user link to this guidance once it is published. Signposting tenants to resources does not, however, require a legislative footing. The Government would like to keep flexibility to create links with the database and other services in the way that best meets users’ needs. I therefore ask the noble Baroness to consider not pressing her amendment.

[Lord Hacking (Lab)]

My Lords, I am very happy to withdraw Amendment 219. The Minister has done magnificently. May I just say on behalf of all of us that she is doing magnificently? She stumbled for a moment just now, but it is amazing that she has not stumbled before. She is covering her brief with extreme detail, and I thank her on behalf of everybody in the Committee.

My noble friend replied to my amendment, which seeks a definite date for the establishment of the private rented sector database. In a sense, I think my amendment was unrealistic because the development of a database obviously takes time. The promise has already been made by my noble friend that they are working on that database and recognise its importance, and that fully satisfies me.

Now I am going to place a burden on my noble friend because I had not seen that Amendment 237 had been regrouped and put into another group. The Whip has told me that I am not allowed to speak again on that amendment, but is there any chance of my noble friend replying to it now, immediately after I have made the case for it?

[Baroness Taylor of Stevenage (Lab)]

It is more appropriate for me to respond to that amendment in order because otherwise it would make it difficult for other members of the Committee to reply to it. I shall reply to it in the sixth group, and if my noble friend cannot be in the Chamber, I shall send him a response in writing.

[Lord Hacking (Lab)]

I beg leave to withdraw the amendment.

Amendment 219 withdrawn.