(3 weeks ago)
Lords ChamberMy Lords, I declare my interest as a vice-president of the LGA. It is very encouraging to see how keen the Liberal Democrats are to scrutinise the Government. Given the inconsistent approach to last week’s reorganisation announcements, can the Minister please confirm whether officials advised Ministers that an expansion of the exceptional financial support package would be required to support some of the newly formed councils, which will come close to Section 114 territory upon formation?
When we took these decisions, we were very aware that some of the councils involved were already receiving exceptional financial support. We continue to work with those councils through the EFS process in the usual way, but LGR will save money over time and make the sector more sustainable in the long term. Where there are issues around funding and finance, the Government are already tackling this with our fair funding formula, and we have supported some authorities with exceptional financial support. We will continue to keep that under review where it is needed, but it will exist whether the confusing two-tier system remains or we transition to unitary authorities.
(3 weeks, 1 day ago)
Lords ChamberMy Lords, I support Amendment 87, in the names of my noble friends Lady O’Neill and Lord Jamieson. This is an issue on which I have had a long-standing interest. During my time in this House, I have sought to strengthen the powers available to tackle tenancy fraud and unlawful subletting. I did so because social housing is a precious public asset and every home lost to fraud is a home denied to a family in genuine need. We frequently discuss the need to build more social housing, and of course new supply is important, but we should not overlook the importance of making the very best use of the stock we already have. That seems like the common-sense approach.
The legislation is already in place to tackle fraud. The question is whether it is being used effectively and consistently. Effective enforcement measures act as a deterrent to others who may be tempted to abuse the system. Before we ask taxpayers to fund even more housing, it is right to understand whether the homes we already have are being used for the purposes for which they were intended. This is why I support these amendments that are built on transparency, accountability and understanding.
My Lords, in speaking to this group of amendments I echo the comments from the noble Lord, Lord Farmer, regarding the loss of the noble Lord, Lord Timpson, from the Front Bench.
Amendment 82 is a sound and compassionate amendment. Speaking from experience, I learned the hard way that the exchange of data between the Prison Service and local authorities with regard to placing ex-offenders does not happen as it should. I felt that the noble Lord’s comment about all local authorities taking their share is particularly pertinent, as I found out from bitter experience. To cut a long story short, I noticed a spike in homelessness and offences in certain neighbourhoods. When I dug under those statistics and spoke to the Probation Service, it turned out it was to do with the lack of homes for ex-offenders. I said, “How come it’s all congregating here?”, and they said, “Well, Hertfordshire councils aren’t very co-operative”. I then found out that only two of the 10 authorities in Hertfordshire actually co-operated and tried to work with this group of people. I am pleased to say to the Minister that they were Watford and Stevenage.
However, I fear that Amendments 86, 87 and 88 confuse a lack of action with a lack of oversight. The social housing sector is not short of reviews, strategies or regulators; what it is short of is homes. On Amendment 86, the noble Baroness, Lady Eaton, was absolutely right that every home unlawfully sublet is a home denied to someone in real housing need. We should tackle tenancy fraud whenever it occurs, but I am not persuaded that yet another review from Whitehall will tell us anything that landlords do not already know. In my experience, the challenge is not a lack of understanding but often a lack of capacity and resources.
My greatest concern is with Amendment 87. Of course we want fewer voids, faster reletting and better use of existing stock—yes, yes, yes—but this amendment seems to assume that nobody is already collecting the data, monitoring performance or holding providers to account, and I do not believe that this is true. We already have a Regulator of Social Housing overseeing governance, financial viability and consumer standards; we already have the Housing Ombudsman scrutinising landlord performance and identifying systemic failings through complaints; and housing associations and councils already operate under significant scrutiny and reporting requirements. The danger is that we mistake reporting for better performance. You really do not fatten a pig by continuing to weigh it. A national strategy will not relet an empty home and another set of metrics will not house a family; good management does that, as does investment and building more homes.
As for Amendment 88, we support strong governance, transparency and tenant representation, but those principles are already embedded in the existing regulatory framework. Housing associations are independent organisations, subject to robust oversight, not bodies waiting for Whitehall to tell them how to behave.
Therefore, while I support the objectives behind these amendments clearly and firmly, I cannot support the assumption behind them: that every challenge in housing requires another review, another strategy or another layer of central direction. The sector is already regulated, scrutinised and awash with data. What it needs is the freedom, capacity and investment to focus on what matters most: providing and managing good homes for the people who need them the most. For that reason, we oppose these amendments.
(1 month, 1 week ago)
Lords ChamberMy Lords, I declare my interest as a vice-president of the Local Government Association. I am pleased to support the amendment moved by my noble friend Lord Jamieson. Having spent many years in local government, including as chair of the Local Government Association, I want to make one simple point. While councils support the objective of improving the speed and efficiency of the planning system, they are concerned that these regulations risk doing so at the expense of local democratic accountability.
The Government have long argued that power should be devolved from Whitehall to local communities, yet these proposals move in the opposite direction by reducing the role of democratically elected local representatives. If the Government claim to believe in devolution and the northern powerhouse, then decisions about the future of northern towns and villages should remain with those elected by the people who live there.
The Local Government Association made this point clearly during the Government’s consultation. It recognised the case for reform but warned that a highly standardised national scheme of delegation does not reflect the diversity of planning authorities across England. A rural unitary authority, a metropolitan borough and a district council face very different planning challenges, and councils retain the flexibility to organise their planning committees and decision-making processes in ways that reflect the needs of their local communities.
I am particularly concerned by the removal of councillors’ ability to call applications before a planning committee. Call-in powers are not there to delay development. They provide an important democratic safeguard where an application raises significant local concern, complex planning issues or substantial public interest. The LGA recommended that an effective call-in mechanism should remain alongside the new gateway test. I regret that the Government have not accepted that recommendation.
The gateway test itself gives me cause for concern. If the nominated officer and the nominated member cannot agree that an application should come before the committee, it is automatically delegated to an officer. That default position seems the wrong way round. Where there is genuine disagreement, there should surely be a mechanism that allows democratic scrutiny rather than automatically bypassing it.
Finally, I question the decision to prescribe planning committee sizes through legislation. The Local Government Association has rightly pointed out that there is little evidence that committee size determines effectiveness. What it can affect is political balance and geographical representation, particularly as councils may become larger through local government reorganisation. Guidance would provide far greater flexibility than a statutory cap. Our councils are not resisting reform. They simply ask that the reform respects local democracy and recognises that one size does not fit all. For these reasons, I am pleased to support my noble friend’s regret amendment.
(1 month, 3 weeks ago)
Lords ChamberMy Lords, I add my best wishes to the England team tonight: even if we are not finished in time, we will no doubt get a nice, quiet journey home because everyone will be watching it.
I speak to Amendments 57, 58, 75, 83 and 107 in my name and that of my noble friend Lord Jamieson. Much of the debate around housing understandably focuses on building new homes. That is undoubtedly important. However, if we are serious about tackling housing need, we must also focus on how we effectively manage, maintain and utilise the housing stock that already exists. These amendments are intended to probe whether sufficient attention is given to the condition, management and efficient use of existing social housing assets.
Amendment 57 would require the Government to bring forward proposals to support the regeneration of social housing estates. Estate regeneration is often difficult, sometimes controversial and takes many years. The noble Lord, Lord John, sitting over there, will know that from pain in Elephant and Castle; I certainly know it from the years dealing with Thamesmead, and I am sure many others in this Chamber will know it too. It takes a long time, but there are opportunities.
Amendment 75 raises the crucial issue of illegal subletting in our social housing system. I note the Prevention of Social Housing Fraud Act, which passed through this House in 2013 under the watch of my noble friend Lady Eaton. It provided important powers to tackle this problem, but it is reasonable to ask whether those powers are being used ineffectively and whether enforcement activity is sufficient. Given the pressure on waiting lists across the country, every property recovered through anti-fraud activity represents an opportunity to house someone who is legitimately entitled to that support. In 2024-25, there were just 476 evictions for illegal subletting. However, the Tenancy Fraud Forum’s 2023 report, Lost Homes, Lost Hope, estimated that 148,000 social homes were subject to tenancy fraud in 2023. In a separate report in 2025, it estimated that there were 50,000 tenancy frauds in London alone. This is shocking and urgently needs addressing. Rather than curtailing right to buy, this is the issue that the Government should prioritise to bring housing forward quickly.
Amendment 83 would require a national audit of social housing stock. It is difficult to manage assets effectively without a clear understanding of their condition, occupancy, utilisation and future investment requirements before making major policy decisions. Government should have the clearest possible picture of the stock already available. Similarly, Amendment 107 seeks a broader strategy for improving the management of existing social housing stock. Better stock management can often deliver benefits more quickly and at a lower cost than new construction alone.
I should also mention Amendment 117D in the name of my noble friend Lord Evans of Guisborough. This is a probing amendment, but it raises an important question about accountability. Across England, elected mayors are being given increasing responsibility for housing, planning and regeneration. If powers are increasingly devolved, it is reasonable to ask how performance should be measured, and how local people can judge whether housing commitments are being delivered.
The country faces substantial housing pressures. There are now around 1.33 million households on local authority waiting lists—the highest figure for a decade. Against that backdrop, transparency regarding housing delivery matters. Noble Lords may have different views on the mechanism proposed by my noble friend, but the broader principle remains that where significant powers are devolved, there should be clear accountability for the outcomes, and that these are the right outcomes.
I would also be interested to hear from the Minister how long social housing properties typically remain vacant between tenancies. Every week that a property sits empty is a week in which a household remains on the waiting list. Understanding void turnaround times is therefore an important part of understanding the efficiency of the system as a whole. Taken together, these amendments seek to ensure that we make the best possible use of the housing stock we already have, while continuing to build for the future. I beg to move.
My Lords, I shall speak briefly to Amendment 75, tabled by my noble friends Lady O’Neill of Bexley and Lord Jamieson. As my noble friend noted, I oversaw the passing of the Prevention of Social Housing Fraud Act 2013 through this House. This criminalised the unauthorised subletting of social housing dwellings and gave landlords stronger powers.
Back then, the number of unlawfully sublet social housing dwellings was estimated to be approximately 98,000. The statistics my noble friend referenced are shocking and show that, while the laws are there, swift enforcement to crack down on fraud is severely lacking. Indeed, it begs the question of why the Government are pursuing what appears to be an ideological assault on the right to buy when a determined crackdown on fraud could return many thousands more homes to the social housing stock. Those 148,000 dwellings my noble friend referenced are, in effect, withheld from those on waiting lists, who are in genuine need. I urge all noble Lords to reflect on this. If the Government published a review, as proposed by Amendment 75, we would understand not only the rates of prosecution and recovery of properties but exactly what the barriers to proper enforcement are. Given the estimates, the Government should be much more proactive on this issue, which should be a much greater priority in this Bill.
I emphasise that we must consider different forms of tenancy fraud. It is not just illegal subletting; it can include providing false information as part of a tenancy application, failing to use a property as a principal home, leaving it empty or selling the keys to a third party. Between now and Report, I hope we can look into this, and I hope the Minister will give this issue the attention it certainly deserves.
My Lords, very briefly, I will speak to Amendment 57, moved by my noble friend. My noble friend started by making a very valid point: if the Government have a firm commitment to build, say, 1.5 million new homes and a certain number of new social houses, there is a real risk that, when looking at the capital programme within the department, that commitment trumps funding for existing estates and the regeneration of existing housing stock. That is why Amendment 57 is important: it would make sure that we do not ignore the needs of the existing housing stock.
I draw attention to housing action trusts—an initiative under the Housing Act 1988 that focused very sharply on the most difficult-to-let estates in the country. This was an initiative from my noble friend Lord Heseltine, and, as one might expect, it was highly interventionist. A housing action trust was a time-limited body that took over the management and redevelopment of a local authority estate. However, before that could happen, there was a vote of the local authority tenants to seek their agreement to that time-limited transfer. Speaking from memory, I think there were seven housing action trusts, including one in Stonebridge, in Brent; one in Tower Hamlets; one in Castle Vale, in Birmingham; one in Liverpool; and one in Hull. They were highly successful, and they transformed those estates.
It was interesting that, at the end, the tenants were given a vote: they could either go back to the local authority or transfer to a resident-run or tenant-run association of their own. Speaking from memory, I think they all decided to stick with the alternative to the local authority. If one is looking at ways of transforming the most challenging estates in the country, it is worth looking at the history of housing action trusts, which, by common consent, were highly successful. They were expensive, but we should not ignore that model when deciding how to take further the regeneration of social housing estates.
(2 months, 1 week ago)
Lords ChamberMy Lords, I declare an interest as a vice-president of the Local Government Association and the part owner of rented property in West Yorkshire. In my contribution to the King’s Speech debate last month, I referenced how disappointing it was that the Government would bring forward legislation to further curtail property ownership through a diminishing right-to-buy policy. The Social Housing Bill is a narrow-minded piece of legislation which misses huge opportunities to rectify many of the ongoing issues in the social housing sector—issues that this side of the House will seek to rectify in Committee and on Report.
Property ownership is not a bad thing. It gives families a sense of security in life and a stake in society. You cannot make a modern-day case for capitalism if the individual does not own capital. I refer noble Lords to the paper commissioned by the London School of Economics in December 2024, Human Capital from Childhood Exposure to Homeownership: Evidence from Right-to-Buy. There are some notable points to consider. The right-to-buy scheme has generated detectable, sizeable school performance gains. The policy gave rise to improved educational outcomes via improvements in the local community. The right-to-buy policy had positive effects on educational and downstream labour market outcomes. The right-to-buy experiment shows that increasing home ownership generates greater human capital accumulation.
To curtail the ability of residents in social housing to purchase property through right to buy is immoral and goes against every fabric this Government were elected to uphold. Those opposite may be surprised to know that the decision to allow local authorities to retain 100% of right-to-buy receipts was made by the previous Conservative Government, and it is right. The days when local authorities were forced into pooling right-to-buy receipts on to national schemes undermined the principle of the scheme; namely, that a right-to-buy receipt be used to build new social housing to replace stock that had been purchased privately. I hope this Government will consider using this Bill to put into legislation that the 100% retention of right-to-buy receipts be made permanent.
On a similar point, the Government announced that right-to-buy receipts would need to be spent by local authorities within a 10-year period. Could this legislation include an ability for local authorities to seek an exemption from the Secretary of State where they may have right-to-buy receipts linked to future regeneration schemes coming down the line? As I am sure the Minister will understand, given supply chain constraints in the construction sector, this is having a knock-on impact on local authorities.
Following my contribution in the King’s Speech debate, I reiterate my interest in the upcoming Law Commission consultation on escheat land, which is transferred to the Crown Estate. I understand the commission will look at the feasibility of transferring escheat land to public bodies other than the Crown Estate. I would welcome confirmation in the Minister’s summing up on whether her department will push for housing revenue accounts to be included in this on the basis that local authorities agreed to use such land for building social housing where practical.
Finally, Clause 9 is of concern to me, and I seek clarification on its necessity. It will give the Secretary of State the power to direct local authorities to contribute right-to-buy receipts towards national pooling schemes. Given that the Government have said they would like to keep 100% of right-to-buy receipts for local authorities, I would welcome clarification on why Clause 9 is therefore needed, unless the Government plan to reallocate localised right-to-buy receipts to national pooling schemes.
This Bill is wrong and undermines the principles of home ownership. Significant work will need to take place in Committee and on Report to bring it to a satisfactory condition.
(6 months, 3 weeks ago)
Grand CommitteeMy Lords, I declare my interest as a vice-president of the Local Government Association. I wish to speak in favour of the purpose clause tabled by my noble friends Lady Scott of Bybrook and Lord Jamieson.
From the outset, the Title of the Bill is quite wrong and misleading. The Bill is not about devolution; it is about centralisation. The number of directed powers it awards to the Secretary of State to instruct combined authorities is alarming. The purpose clause proposed by my noble friends reinvigorates the Bill to achieve what matters most to local government now and the issues most likely to be of concern in the future—namely, sustainable council finances and keeping the “local” in local government through locally led decision-making.
Putting aside the tax-raising powers for mayors enshrined in the Bill, it does nothing to address the serious concerns the sector has about putting the finances of our councils back on to a sustainable footing, or on the ever-increasing DSG deficits or the seismic pressures placed on upper-tier authorities in the delivery of their SEND responsibilities. However, what we had before Christmas was the Government’s unfair funding announcement, which left many councils worse off than before following the withdrawal of the remoteness adjustments metric, which in turn has left councils such as Buckinghamshire £44 million worse off.
We then come to the part of this purpose clause on local decision-making, which my noble friends are correct to underpin. At the start of my contribution, I referenced centralisation. It is astonishing that a devolution-facing Bill will essentially award mass powers to the Secretary of State to impose LGR and strategic authorities without any say from local authorities and groups in those areas. If devolution is to work, it needs to be locally led by local leaders and the community, not forced on communities by Whitehall. Over recent years, we have seen that local government reorganisation and the creation of combined authorities can be agreed by a consensus in local communities and without the imposition of Whitehall. Just look at Wiltshire and Buckinghamshire—two examples of unitarisation which have gone to plan. I welcome the addition in this purpose clause of ensuring that reorganisation and the creation of strategic authorities are locally led.
The Government’s approach to this has already been fairly shambolic. County council leaders who had elections postponed were of the clear understanding that mayoral elections, shadow unitary authority elections or a combination of both would happen in May 2026. Instead, we have had further delay as a result of Whitehall not working closely with local leaders. This is why the point in the proposed new clause about locally enshrined decision-making is worthy. I hope the Government will accept this amendment so that the purpose clause sits in the Bill.
My Lords, I have no interests to declare, other than that I want legislation to be as good as it can be. I very much welcome my noble friend’s amendment because it provides the foundation for my Amendment 251 that would provide for post-legislative scrutiny, which we will come to much later. Too often, Ministers see legislative success in terms of getting a measure on to the statute book. The real measure of success is when the Act delivers what Parliament intended to deliver. To check whether it has done that, post-legislative scrutiny is necessary some years after it has passed.
To assess whether the Act has achieved what it intended, one needs to know clearly what its purpose is—in other words, the basis on which you are undertaking the measurement. This amendment has the great virtue that it stipulates the five purposes that the Bill is intended to deliver. That would provide the measure against which a body set up to engage in post-legislative scrutiny could examine whether it has actually delivered. That is the great value of this amendment and, for that reason, the Government should have the confidence to accept it, as it would show they believe that the Act will deliver what it is designed to do. If they will not accept the amendment, will they bring forward a purpose clause of their own to demonstrate what they believe are the key purposes against which success can be measured?
(1 year ago)
Lords ChamberAs the noble Baroness will know, I grew up in a new town in Hertfordshire, which, when it was first announced, was not the most popular decision. That was back in 1946. We have all worked together on this, and now we have a very coherent picture in Hertfordshire. People work with us, and we are working on our unitary proposals. There are always memories of historical areas that people want to retain, and I think the Answer to the noble Baroness’s Question set out that the Government recognise how important these ceremonial areas are. Some of them go way back in history, and we have a lot to do to undertake the local government reorganisation. So, if there is any further reorganisation to be done, we can certainly consider it. But I think there is enough going on for the moment. These historical memories are really important to people, and we should value and treasure them. That history and heritage are part of our country.
My Lords, I declare my interest as a vice-president of the Local Government Association. Rutland County Council is one of England’s highest-performing local authorities, not least in the area of adult social care. Rutland residents have always felt very close to their council and their elected members, and all decisions have been made locally. With that in mind, will the Minister outline the tangible benefits for Rutlanders of forcing this small but perfectly formed council to become part of a larger unitary authority, and what data has the Minister based her views on?
First, no forcing is involved here. We put out an offer to submit proposals and have had proposals back. I have met all the councils in Leicestershire and Rutland and, separately, the Mayor of Leicester. There is a very strong will in the county to work together—they have been working very well together—and we look forward to taking these proposals forward with them. I hope it is of reassurance, not only to Leicestershire, Rutland and Leicester but to other counties in our country, that administratively they will be working under different boundaries but that will not affect some of the historical links that they have between them.
(1 year, 1 month ago)
Lords ChamberMy Lords, I declare my interests as a vice-president of the Local Government Association and as the part-owner of a small number of rented properties in West Yorkshire.
I will speak in support of Amendments 29, 34, 35 and 36, which are in the names of the noble Baroness, Lady Wolf, and the noble Lord, Lord Carrington. Your Lordships may recall from my contribution at Second Reading that I am deeply concerned about the impact of this Bill on rented housing supply. I remain concerned about this issue. However, these amendments provide me with the reassurance that I know the rental market is also looking for. The amendments are technical, but sensible and clearly thought through.
If the Government are to get anywhere near reaching their ambitious 1.5 million new homes target, we need to support and give clarity to the responsible institutional build-to-rent landlord sector, which is building thousands of new, high-quality rented homes each year. I know that this part of the rental market supports the Government’s aim to raise standards across the private rented sector. However, with the uncertainty it faces around how much rent it may reasonably receive and how many rent increase challenges it may receive, I worry that its development pipelines will slow or, at worst, completely halt, while it assesses this new landscape where any renter can challenge any increase without any jeopardy.
Amendments 29, 34, 35 and 36 would allow for those providing new, net additional high-quality rental homes to the market to continue to do so without undue impact from Section 13 rent increase challenges. They would allow the institutional landlord sector to continue delivering the net additional rented homes we need without uncertainty. Crucially, the amendments would deter spurious rent increase challenges and allow vulnerable renters the access to justice that they rightly deserve.
I acknowledge the Government’s amendments on Section 13 notices, but they also leave me concerned that, in this place and indeed in the rental market, we and the sector are being asked to place a significant amount of faith in the Government, and the data they have but will not publish, on how many renters might challenge their rent increases. If a renter can save themselves months of rent increase for free and without any jeopardy, why would they not?
I am therefore strongly of the opinion that the amendments in names of the noble Baroness, Lady Wolf, and the noble Lord, Lord Carrington, provide the requisite amount of clarity to the sector, while ensuring renters’ rights are improved. I urge the Government to take them on board to give everyone clarity while improving renters’ rights and access to justice for vulnerable renters.
My Lords, I will be very brief. I strongly support Amendment 29 so ably moved by the noble Baroness, Lady Wolf. I recall that, when we debated this in Committee, the noble Baroness got a favourable response from the Front Bench, and it may be that on this amendment the ice is beginning to melt.
I am also struck by the contrast between the certainty that we get with Amendment 36 from the noble Lord, Lord Carrington, and the absence of any clarity and certainty from government Amendments 37 onwards. As the noble Lord, Lord Carter, said, it is normal procedure in law if a rent increase is valid to backdate it from the date that it was due, so the Government are introducing a wholly new concept in law in their Amendment 67, which does not actually take the trick because, as I understand it, they are going to wait until the system is gummed up before they activate the process.
This is simply no way to govern. The Government ought to accept Amendment 36 with its clarity and certainty, rather than this doubtful procedure whereby there remains every incentive to appeal and only when the system becomes even more clogged will the Government intervene. That cannot be good government, and I urge the Minister to think again about Amendment 36 or the other amendment that achieves the same objective in the name of my noble friend Lord Howard of Rising. I just do not think that this takes the trick.
(1 year, 3 months ago)
Lords ChamberWe will hear from my noble friend Lord Browne next, please.
(1 year, 3 months ago)
Lords ChamberMy noble friend Lord Shipley has eloquently kicked things off for our Benches. I will make a few general comments about how we will conduct ourselves during the course of the Bill.
We do not agree with the assertions made by the noble Baroness, Lady Scott of Bybrook. We think that the intentions in the Bill are perfectly clear. Whether it will live up to those intentions only time will tell, which is why we too would be looking at reviews. In fact, the noble Baroness’s Amendment 261 is very similar to my own Amendment 263, so I will reserve comments on reviews until we discuss that group.
I say to the Minister that we really want the Bill to go through, and for that to be done professionally and swiftly, in a well-scrutinised way, so we will not be making Second Reading-style speeches or commenting on every single item and amendment. I would therefore like the Minister to take it that silence means we agree with the Government’s position. However, we will probe, challenge and seek evidence and reassurances, and I think the Minister would expect no less from us.
We all know that the main problem is the shortage of homes, particularly social homes. The Bill is not intended to solve that problem. It has to be seen as part of a suite of policies that the Government are trying to bring in—and, to use the same phrase again, only time will tell. However, landlords have cried wolf before—over the Tenant Fees Act, I believe—and Armageddon did not happen. That is not to say we should not take their concerns seriously, nor that the Government should not monitor and review, but the most important thing in the Bill is the abolition of Section 21. That was promised by the noble Baroness, Lady May, when Prime Minister, back in the mists of time, so it is long overdue. It is time that we cracked on with this, and we will do our bit to ensure thorough scrutiny but swift passage.
My Lords, I declare an interest as vice-president of the Local Government Association and as part owner of rented properties in Bingley, West Yorkshire. I support Amendment 261, tabled by my noble friend Lady Scott of Bybrook, with its proposed new clause:
“Review of the impact of the Act on the housing market”.
Specifically, I welcome the proposed addition of a review of the impact the Bill will have on requests for social housing. The vast majority of landlords in this country are good, honest people who do a real service in maintaining Britain’s housing supply and providing decent homes to people before they start the journey of getting on to the property ladder, but the reality is that, with the ever-increasing regulation placed on landlords, not least the abolition of Section 21 no-fault evictions, which has already been mentioned, the signing of tenancy agreements will become more of a risk.
In reality, landlords will no doubt be more reluctant, under the new burdens placed on them, to take on more vulnerable tenants—for example, those who enter the market for the first time, without references, and those in receipt of housing benefit. Amendment 261, on reviewing the impact the Act will have on social housing, is necessary because local authorities and housing associations are going to come under pressure as never before to provide social housing, either because supply in the private rented sector will become more challenging to access or because rents are likely to spiral out of control under these proposals. I therefore support fully the amendment tabled by my noble friend.
My Lords, I thank the noble Baroness, Lady Scott, for her Amendments 1 and 261, and the noble Lord, Lord Shipley, and the noble Baronesses, Lady Thornhill and Lady Eaton, who have spoken in this short debate. I will keep my response to Amendment 1 short, as the purpose and aims of the Bill were debated in full at Second Reading. I agree with the noble Lord, Lord Shipley, that the Bill is perfectly clear in what it sets out to do.
The private rented sector has grown significantly over the past 20 years and is now used by over 11 million renters in England, with the support of 2.3 million landlords. I should say that most of those landlords are very good landlords who look after their tenants very well. Despite this growth, it still provides the least affordable, poorest quality and most insecure housing of all tenures, and that just cannot continue. A functioning private rented sector can provide a secure stepping stone for aspiring home owners, as the noble Baroness, Lady Eaton, said, and flexibility for those who want it, but the chronic insecurity embedded in the current tenancy system fails both those tenants looking for a stable home for their families and those landlords who are undercut by the rogues and the chancers who we know are there—they may be few, but we know they are there. This is a drain on aspiration. Reform of the sector is central to our opportunity mission, so that all have the chance to achieve their potential.
Although I understand the aims of the amendment, I do not believe that it is necessary. The Government made a clear manifesto commitment to transform the experience of private renting by levelling the playing field decisively between landlords and tenants—the very balance that the noble Baroness, Lady Scott, was talking about. This Bill delivers that promise. As I outlined at Second Reading, the Bill will strengthen the security of tenure for tenants, ensure that they are paying a fair rent, guarantee a minimum standard they can expect from a property, provide new robust avenues to redress, and much more. The noble Lord, Lord Shipley, referred to the attempts in later amendments to reintroduce Section 21 evictions. We will debate those when we get to them but I will say that 83% of landlords have five properties or fewer, so those amendments would be significant and really take the guts out of the Bill. The aims I set out align with the purpose in the noble Baroness’s amendment and lie at the heart of all our current and future decision-making.
The Government also recognise the work done by the majority of landlords, who provide safe and decent homes for their tenants. Both these issues of balance were mentioned by the noble Baroness, Lady Scott, but I was surprised at her assertion that the Bill would not achieve that balance. It is a very similar Bill to the one which she herself brought forward a few months ago.
We have been clear that good landlords have nothing to fear from these reforms. The Bill will bring much-needed certainty to the sector after years of inaction and delay. The noble Baroness, Lady Thornhill, commented on the Armageddon that we hear about; I remember hearing something similar many years ago during the discussions on the minimum wage. I understand landlords’ concerns and I hope we can address them as we scrutinise the Bill, but I am sure we can continue to debate the aims and impacts as we make our way through the 300-plus amendments tabled for debate.