Renters (Reform) Bill

Baroness Pinnock Excerpts

2nd reading
Wednesday 15th May 2024 Lords Chamber

[Baroness Pinnock (LD)]

My Lords, I remind the House of my relevant interests as a councillor, a vice-president of the Local Government Association and an accidental landlord. I too thank all the groups that have provided informative briefings on a wide range of issues, which I and my colleague, my noble friend Lady Thornhill, have found immensely useful.

There is much in the Bill that we support. Legislation that rebalances the rights and responsibilities of landlords and tenants in the private rented sector is long overdue. However, the context in which the Bill is being debated is important. Much has changed in the rental sector since the Housing Act 1988. The private rented sector has continued to grow, with, according to the latest figures from the ONS, 5 million households renting from a private landlord—the equivalent of 20% of the housing market—whereas 17%, or 4.2 million households, are renting in the social housing sector.

The private rented sector has doubled since 2002. The stark fact is that for many households, especially families with children, private rent is the only option. Even 20 years ago, the first choice for families on low incomes would be social housing. Rents in social housing are within the local housing allowance, and there is a much higher degree of security. That is not to deny that some social housing fails to be of a decent standard, and that some social landlords neglect the needs of their tenants. However, the right-to-buy legislation without the right-to-build replacement housing has resulted in a large reduction in social housing, putting the most vulnerable households at risk of homelessness or leaving them with limited, or often no, choice as to where to live.

The solution to this fundamental problem is not provided by the Bill. What is needed is a substantial increase in the number of homes for social rent being built every year. This is not “affordable housing”—the vast majority of homes provided through that route are not for social rent. The Government have a much-vaunted principle of choice for consumers but tenants needing housing at a social rent are not given that choice. Can the Minister explain why the Government deny the choice of housing at a social rent to so many families in need?

I will be more positive now. Many of the changes in the Bill are positive, although they do not go far enough, as my noble friend Lady Thornhill will demonstrate. The key change must be the abolition of Section 21 eviction notices—without delay. The disruption to family life by the constant need to find another rental property is not considered anywhere near enough by the Bill. Children having to change schools on a regular basis because of the insecurity of tenure must be a thing of the past. Ending Section 21 and implementing the decent homes standard are key to the Bill.

Apart from the fundamental policy changes that the Bill offers, there are inevitably consequences for areas of housing provision that may not be fully recognised by the Bill as it stands. My colleague in the other place, Helen Morgan MP, raised the issue of decent housing standards being required for military accommodation. The Government gave her a commitment that they would table an amendment to do so. On these Benches, we look forward to that amendment from the Government in Committee.

Student accommodation is the first issue I want to raise. On Report in the Commons, the Government introduced new provisions regarding student accommodation, as the Minister outlined. This has the effect of enabling landlords of student accommodation to ensure that student tenancies end with the academic year. I ought to say, perhaps, that I am vice-chair of the council of the University of Huddersfield. I know that many courses start in January and many, particularly master’s degree courses, last 15 months. Many students, particularly international ones, need permanence in their accommodation. I would like to hear from the Minister what protections there are for these students. Can she explain the reasons for expecting students to pay six months in advance for accommodation?

I turn now to what I hope are the unintended consequences of the Bill. With regard to social housing, the National Housing Federation raised concerns in its briefing about the impact of ground 1B, rent to buy, in the possession orders because in its current form it prohibits social landlords from converting rent-to-buy properties into social or affordable rented homes. Perhaps the Minister can consider concerns from the sector on this and on ground 6 where social landlords are redeveloping properties. I am sure that we can overcome these issues but I think they are very important to social landlords.

In its helpful briefing, the Domestic Abuse Housing Alliance seeks remedies for specific concerns regarding the use of the repossession order at ground 14, where safeguards are especially needed for the victims of domestic abuse; and ground 8A regarding rent arrears, where women in controlling relationships may not have the financial oversight of domestic bills and fall foul of that particular reason for repossession.

Finally, there are 10 clauses which give new statutory responsibilities to local housing authorities. For these reforms to be effective, it is vital that enforcement powers are clearly defined and able to be implemented; therein lies the crux of the challenge for government. Councils are experiencing very significant financial pressure—local authority external auditors are regularly making that case. The Bill gives councils the right to retain financial penalties but, quite obviously, that will be inadequate to fund the enforcement teams necessary. The Minister rightly pointed out that the new burdens agreement between government and local authorities is to fully fund new duties. However, in practice that rarely occurs in full, so the Bill relies on strong enforcement; the powers are there, but currently not the means. I really look forward to the Minister reflecting on that, because the whole of the Bill depends on enforcement powers being effective.

It is good that the Bill is tackling some of the long- standing injustices in the sector. However, to be the sea-change Bill that was promised, it needs to put consideration of individuals and families at its very heart —and on that important test, currently the Bill fails.