Renters’ Rights Bill

Debate between Baroness Coffey and Baroness Taylor of Stevenage

Thursday 15th May 2025 Lords Chamber

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, before I make my comments on the noble Baroness’s amendment, I hope that the House will indulge me for a few brief moments as we start our final day in Committee on the Renters’ Rights Bill. First, let me say how noticeable it has been that, while we may have debated and occasionally had our differences on the detail of the Bill, there has been a great deal of consensus across the House on the need to improve the renting landscape for tenants and for the vast majority of good landlords. Those landlords who choose to exploit their tenants and game the system not only make their tenants’ life a misery but undercut and damage the reputation of others. It is time that we took the steps in this Bill to put that right.

The Bill has shown the best of our House, with noble Lords providing their expertise, knowledge, wisdom and thoughtful reflection to improve the legislation before us. I am most grateful for the engagement before and during the passage of the Bill. We have had some unusual and difficult sitting hours on the Bill, largely because of other business of the House and in no way because of unnecessary or lengthy contributions to our deliberations. I therefore thank all noble Lords for their patience and good humour during late sittings. I am very grateful to the noble Baroness, Lady Scott, and the noble Lord, Lord Jamieson, on the Opposition Front Bench, the noble Baronesses, Lady Thornhill and Lady Grender, the noble Earl, Lord Kinnoull, and the right reverend Prelate the Bishop of Manchester, not to mention noble friends on my own Benches for a deal of passion and enthusiasm.

I thank the Bill team, my private office and the doorkeepers and staff of the House, including the clerks and catering staff, who have stayed, sometimes into the early hours, to make sure we are all safe and looked after, and the Hansard team, of course, doing their brilliant work. I thank the usual channels, which have been negotiating to make sure we complete Committee in good time. Last, and by no means least, I thank my Whip, my noble friend Lord Wilson, who is not in his place today but who has sat patiently beside me, sometimes carrying out extreme editing of my speeches. I forgive him for that—he did not get his hands on this one—and I am very grateful to him.

There are millions of renters and landlords out there who are awaiting the passage of the Bill to ensure that the renting minefield is fairer, safer and more secure. As we move forward to Report in early June, I look forward to continuing to engage and work with your Lordships to make sure that this is the best Bill it can be. In the meantime, thank you for making my first time taking a Bill through the House such a collaborative and positive experience.

I thank the noble Baroness, Lady Coffey, for her Amendment 275B to revoke the designation of parishes as rural areas for the purposes of right to buy where the population exceeds 3,000 people. The amendment would require the Secretary of State to revoke the rural designation of any parish with over 3,000 inhabitants for the purposes of right to buy. It would not have any impact on the right to acquire housing association property in rural areas. I have to say that this amendment is a bit of a stretch for the scope of the Bill, but it is important that I should respond to the noble Baroness’s concerns.

Under Section 157 of the Housing Act 1985, the Secretary of State has the power to designate by order certain areas as rural—typically, settlements with populations under 3,000. A landlord in a rural area may impose restrictions on the buyer of a right to buy property, to prevent the property being sold again, without the former landlord’s consent, other than to a local person or back to the landlord. The noble Baroness’s amendment would remove the ability of landlords to include resale restrictions on properties sold under right to buy in those designated rural areas where the population was above 3,000, which currently helps preserve homes for local people in perpetuity. The noble Baroness, Lady Scott, is quite right to say that, if we were going to make any changes to this, it would have to be done very carefully, and definitely in consultation with local people and local authorities.

These exemptions are in place to help retain affordable housing in communities where replacement can be unfeasible due to high build costs, planning limitations and land availability. We have heard much about that in the discussion on this and other Bills and the Government do not intend to remove these protections. On this basis, I ask the noble Baroness, Lady Coffey, to withdraw her amendment.

[Baroness Coffey (Con)]

My Lords, I have heard from both Front Benches and there is clearly no appetite for this. I am just very conscious that there are some areas that have grown substantially over more than 25 years. There is a substantial amount of new housing going in, including new social housing, but, because of the designations set in stone in 1997, some people are being denied the opportunity they expected to participate in owning a home that they might not be able to afford initially but might in time. It is something I had hoped would be considered a little further, but I understand where both Front Benches are coming from and I beg leave to withdraw.

Renters’ Rights Bill

Debate between Baroness Coffey and Baroness Taylor of Stevenage

Monday 12th May 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Lord, Lord Roborough, and the noble Baroness, Lady Coffey, for their amendments, and the noble Lord, Lord Best, and the noble Baroness, Lady Grender, for their comments.

I turn first to Amendments 176 and 177 in the name of the noble Lord, Lord Roborough. Amendment 176 seeks to reverse the Bill’s removal of Section 25(1) from the Housing Act 1988. The noble Lord stated that he is seeking to probe why we are making this change. The answer, I am sure he will be pleased to learn, is simple and straightforward. After this Bill is implemented, Section 25(1) of the 1988 Act will be a spent provision; that is to say, it will have no effect. That is because it deals with what happens when statutory periodic tenancies arise upon the end of a fixed term of an assured agricultural occupancy. Statutory periodic tenancies will no longer exist after the Bill is implemented, nor will fixed terms. Indeed, all assured tenancies, including assured agricultural occupancies, will be periodic tenancies. The provision in Clause 25 is purely a consequential amendment, tidying up this spent provision from the 1988 Act following our reforms.

Amendment 177 seeks to allow the eviction of tenants with assured agricultural occupancies under ground 2ZC. This would reduce the security that these tenants currently enjoy. The noble Lord, Lord Roborough, has highlighted that he is seeking to probe why the Bill is expanding the restrictions on when assured agricultural occupancies can be evicted. With respect, this represents a misunderstanding of what the provision is doing. Clause 25 contains technical and consequential amendments to the assured agricultural occupancy regime that aim to maintain the status quo in light of our reforms. It includes preventing landlords from evicting those tenants under the employment ground—now 5C—as well as ground 5A and the new superior landlord grounds. These grounds cover circumstances where tenants under assured agricultural occupancy tenancies cannot currently be evicted. They are being amended or introduced by the Bill, and, as such, may pose a risk to tenants’ security in the new system. Rather than expanding the restrictions on evictions for such tenants, this provision will broadly maintain the status quo. For those reasons, I ask the noble Lord, Lord Roborough, not to press his amendments.

Amendment 182, in the name of the noble Baroness, Lady Coffey, would prevent any secondary legislation laid under the power in paragraph 65 of Schedule 2 exempting the rural sector from the right to acquire—and, more widely, seeks to ensure that residents in properties in rural areas have the right to acquire. The provisions in paragraph 65 of Schedule 2 allow the Secretary of State to lay regulations specifying types of assured tenancies to which the right to acquire would not apply. This consequential amendment allows the government to consider whether any of the existing right-to-acquire exemptions that apply to assured shorthold tenancies should be transferred across to the new regime. The amendment from noble Baroness, Lady Coffey, would prevent this power being used to exempt the rural sector from the right to acquire. Rural properties are currently exempt in designated rural areas, which are generally settlements with fewer than 3,000 people—the noble Lord, Lord Best, mentioned the Devon Housing Commission, which he has ably chaired, and he has made me aware of the conclusions of that commission.

This is designed to protect affordable housing in areas, both rural and urban, where replacement is often not viable due to its high costs, planning restrictions or land constraints, for example, and it is necessary to ensure the supply of rural affordable housing. The Government have no plans to change this, although it may be helpful if I comment briefly on the right to acquire. To qualify for that, tenants must have spent at least three years as a public sector tenant and occupy an eligible property. That applies whether they are in a rural or an urban area. However, there are important exemptions, such as those for the rural sector and for properties built or acquired by housing associations using their own funds. These restrictions aim to strike a balance between promoting home ownership and protecting social housing in areas or situations where it is most needed. The noble Baroness, Lady Grender, and the noble Lord, Lord Best, reflected some of the reasons that might be the case.

The Government recently consulted on reforms to right to buy, seeking views on eligibility criteria, the minimum and maximum percentage discounts, further protections for new-build properties and replacement of the homes sold. That consultation closed on 15 January and we are considering the responses received. We will provide more information on the next steps in due course. Importantly, the right to acquire was not included in that consultation; the Government will consider whether any changes should be made to the right to acquire in the light of future changes to the right to buy.

[Baroness Coffey (Con)]

Could the Minister address the situation where housing associations are selling off rural housing on the open market to the highest bidder, rather than to the tenants?

[Baroness Taylor of Stevenage (Lab)]

We hope to provide more financial sustainability to housing associations through our funding mechanisms, which I hope will prevent them having to do that. The Government have no current plans to change the right to acquire. On that basis, I ask noble Lords not to press their amendments.

--- Later in debate ---

[Baroness Coffey (Con)]

My Lords, I support my noble friend in these amendments. Two different things are going on here, one of which is not allowing the market to work. I am trying to understand what evidence there is to suggest that this is a real issue.

I will give a personal story. When at university, a group of us wanted to rent a house. Under the rules of the university, you could live only at a certain distance, and so on. Not wanting to take a 12-month tenancy, we were particularly attracted by and sought out houses that would require only a nine-month tenancy. The landlady we were involved with used to make considerably more rent in the summer through tourists and short-term lets, but also gave students the opportunity not to take on the liability of the year. That helped keep rents relatively low. I am sure that your Lordships can imagine that such a scenario, while it may seem niche, was still very important to students at that time, and so was the availability of houses reflecting that opportunity. In effect—this is nothing to be embarrassed about—we gazumped by being prepared to sacrifice a living room and turn it into an extra bedroom. It also gave a little more rent to the landlady, which was a factor when, I was led to believe, 46 groups went to see that house wanting to secure the tenancy.

While I completely understand some of the intentions of this clause about not getting into ridiculous bidding wars, I am surprised, given the real scarcity in certain parts of the country of private sector rentals, as to why we would want to unnecessarily put such handcuffs on the landlord to accept only the rent they advertise and not be creative about the situation in which prospective tenants may find themselves.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Scott, for tabling her amendments relating to rental bidding. I also thank the noble Baroness, Lady Coffey, for contributing. I will respond to the two probing amendments in a moment. First, however, I will set out to the Committee why I consider her fundamental objection to Clause 58 —which will end the unfair practice of renters being pitted against each other in bidding wars—to be misplaced.

The measures in Clause 58 will require landlords and persons acting for them, for example letting agents, to state a proposed rent in any written advertisement for the property. Landlords and those acting for them will then be prohibited from asking for, encouraging or accepting bids above this price. To respond to the comments of the noble Baroness, Lady Scott, these are not rent controls—the landlord may advertise the property at the rent they wish to achieve, but they cannot then increase that rent as other bidders come along. Currently, too many tenants suffer from a lack of transparency in the lettings process. I cannot imagine the heartbreak of thinking that you have found a property at a rent that you can afford only to discover that the landlord or letting agent has pushed other tenants to offer more. Their experience is not that of a viewing but of a kerbside auction. The impact on renters of the practice is clear and our measures will end it for good.

This is a specific problem that we are trying to target, and the majority of landlords do not engage in rental bidding. However, we are trying to stamp out the egregious practice of a minority of landlords who exploit the fact that, particularly in hot rental markets, there is a lack of supply relative to demand. Tenants can be pitted against each other in ways that ensure the rent of a tenancy escalates to a point beyond what many of them can afford, or which, if they can afford it, puts an incredible financial strain on them.

I visited a housing site in Greenwich this week and I heard that, in some parts of London, a house in the private rented sector will cost a public sector worker 94% of their salary just to pay the rent. These measures will improve the experiences of prospective tenants across England and provide clarity to all those involved in the lettings process.

Amendment 199A would remove the prohibition on landlords inviting or encouraging a tenant to offer to pay an amount of rent that exceeds the stated rent. If this amendment were taken forward, landlords would fall foul of the rental bidding provisions only if they accepted rent at a level above the stated rent, not if they invited or encouraged its payment. While I welcome the scrutiny—and I genuinely do—of our rental bidding measures, I am concerned that this amendment would risk allowing a form of rental bidding to continue to be practised. Under this—

Renters’ Rights Bill

Debate between Baroness Coffey and Baroness Taylor of Stevenage

Monday 28th April 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Coffey, for her amendment, which would allow the court to grant an order for possession of a property that houses school-aged children only during school holidays, and I thank the noble Baronesses, Lady Thornhill and Lady Scott, for their comments. I understand the probing nature of the amendment and the compassion that sits behind it. However, I gently point out that at the latest count, we have 160,000 children in temporary and emergency accommodation, a situation driven by the lack of attention to the housing situation paid by her Government. Therefore, while we want to do as much as we can to support families and children, I think it takes quite a lot of front to come before this Committee with this kind of proposal when we have that terrible situation of 160,000 children in temporary and emergency accommodation. I heard this morning of a three year-old who has been homeless for his entire life—astonishing.

Anyway, I appreciate the sentiment; however, I am going to talk about the practicality of delivering it. It would likely mean that, where possession has been sought, the courts would need to check whether the property contains school-age children and whether it is the school holidays or not, before scheduling a hearing. Not only would this create additional work for the courts—we have just spent quite some time debating the pressure the courts are already under—it could cause delays for landlords in obtaining possession orders. That is an issue the Opposition have taken great interest in. For example, a landlord’s case could be next in line to be heard, but, because it is the beginning of the school summer holidays, the hearing would be delayed for six weeks.

Furthermore, although provision is made within the amendment for regulations to be made annually to define the school periods, it would be an onerous task. School holidays vary across local authority areas and sectors; they can even vary within an individual area. My grandchildren live at the same address but go to different schools and have different holidays. This would likely cause confusion and added complexity for landlords who wish to seek possession of their properties.

While it is absolutely right that tenants enjoy a greater level of security in their homes, we have said that landlords must enjoy robust grounds for possession where there is good reason for them to seek to take their property back. It would not be reasonable to add additional barriers, complexities or delays to the possession process.

Our reforms give renters much greater security and stability, so they can stay in their homes for longer, build lives and communities and avoid the risk of homelessness. That is why we are introducing the many protections for tenants, such as banning Section 21 evictions, increasing notice periods and introducing a 12-month protected period at the beginning of a tenancy during which landlords cannot evict them to move into or sell the property. However, that must be balanced with the needs of landlords, who must enjoy those robust grounds we have already spoken about. Judges already have some discretion when deciding the date on which a tenant should give up possession. Even if an outright possession order is made, pursuant to a Section 21 notice or on a mandatory ground, the date for possession can be postponed for up to six weeks if a tenant can show that this would cause exceptional hardship.

As well as it being impractical, there is also a principled argument against this amendment. Being evicted will almost always be a significant upheaval for tenants—I accept that—particularly for those with children, so I understand the intent behind it. However, it would not necessarily—as the noble Baroness, Lady Thornhill, pointed out—always be easier for parents to deal with a possession order or eviction during the school holidays. During termtime, parents may have significantly fewer caring responsibilities, particularly if their children are younger. Therefore, many parents find the school holidays a time of increased responsibility and stress. Families being evicted during school holidays may also mean having to take up that school holiday with the necessities of moving, rather than doing activities with the children. So it may make it more difficult for families, not easier. It is for these reasons, both practical and principled, that I ask for this amendment to be withdrawn.

[Baroness Coffey (Con)]

I thank the noble Baronesses for speaking to this amendment. I am slightly surprised to hear a Member of this House being accused of having some front, based on previous government policy. I recognise this is a political debate, but I am talking about children and the UN Convention on the Rights of the Child should be considered in any consideration of legislation when it comes to this.

There has also been a kind of city and urban perspective on where children go to school; there has not been a realisation of quite how far some children in the countryside have to travel. If you are moved from, say, the middle of coastal Suffolk to Lowestoft, there is no way you could continue going to your school without considerable upheaval to your parents’ lives, and indeed at great expense.

I am conscious of the limitations being put on landlords. I had hoped to be able to speak to the Minister in more detail, but I have heard what she said and will consider potentially speaking to her noble friends in the Department for Education. I beg to withdraw this amendment.

[Baroness Taylor of Stevenage (Lab)]

My apologies, I neglected to say that I am very happy to meet with the noble Baroness.