Renters’ Rights Bill

Baroness Scott of Bybrook Excerpts

Thursday 24th April 2025 Lords Chamber

[Lord Cromwell (CB)]

Can I just add that I was disappointed that we did not have any phraseology in ancient Greek? We will have to put up with that for today, I suppose. I echo my noble friend Lord Carter’s point: I think it would be really helpful, whatever one thinks of the rights and wrongs of retrospective legislation, that a proper list is set out as to which rights are going to be affected. I think everybody outside this Chamber is going to need that, in practice, in the rental sector. It would be very helpful if something could be published that literally specifies which bits are going to be affected retrospectively and how.

[Baroness Scott of Bybrook (Con)]

My Lords, I start by thanking my noble friend Lord Jackson of Peterborough for bringing Amendments 16 to 18 to the Committee today. The question of the retroactivity of the Bill is not just a question of how it will be applied, it is a question as to whether it is fair at all. It is easy for Governments armed with executive powers to apply the law retrospectively, but it should be the duty of every Minister to ask: is this the right way? Is it the fair way?

I invite noble Lords to imagine that they signed a tenancy agreement under a clear set of rules in January 2025; they followed all the rules; then, in June 2025, Parliament passes a law saying that their tenancy is now invalid. Well, many will have to imagine no longer, because once the Bill gets Royal Assent, tenants and landlords may find that their agreements are no longer valid.

The predecessor of the Bill adopted a model of prospective lawmaking by setting out a two-pronged approach to implementation. It would have assured that substantial changes were introduced at a suitable pace, one that brought the sector along with it, giving it time to understand the new requirements and adapt accordingly. In their haste to publish the Bill, the Government appear willing to abandon the principle of prospective lawmaking, placing an immediate and heavy burden on landlords. The Committee will be well aware that 45% of landlords own just a single property. These are not professional landlords with teams behind them. They lack the infrastructure to absorb complex regulatory change. They are not poring over the details of legislation, nor do they have time to follow days of Committee proceedings. How do the Government expect these individuals to implement such sweeping reforms all at once and without a serious and structured implementation period?

At this Dispatch Box on Tuesday, I quoted some statistics from Paragon. In the same survey, it noted that 39% of landlords had not even heard of the Bill. Will the Minister please explain how the Government will communicate these changes? The department must begin explaining in clear and simple terms what is coming down the track. Landlords need to know that change is coming. Regardless of the Bill’s specific contents or intentions, its retroactive nature will pose challenges. It will not only bring an abrupt end to agreements freely entered into by two consenting adults, it will unleash a wave of challenges upon landlords through its immediate implementation.

I turn to the litany of amendments put down by the Government. We welcome the right to sublet and want to ensure people do not lose that right, but we want it to be implemented with clarity. On these Benches, we would prefer those specific tenancy types which underlie the right to sublet—such as fixed-term assured tenancies or assured shorthold tenancies—to remain. We set out our clear case yesterday and we will continue to stand up for a sector that delivers choice and variety and provides the homes we need. Will the Minister explain the Government’s adjustments to the context of Clause 3? It is clear that they intend to restructure the legislation, so on these Benches we wish to ensure that the effects of superior leases are appropriately addressed within the updated framework. Can the Minister set out how the Government will ensure that tenants in sublet arrangements are not left in legal limbo?

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

My Lords, I thank the Minister for bringing these amendments before the House and for clearly setting out the minor and technical corrections to the legislation. Ensuring legal consistency is crucial, and aligning the wording with the Agricultural Holdings Act 1986 will help maintain uniformity across legislation.

As we will discover in coming days, the agricultural aspects of the Bill are both detailed and complex, containing numerous references to specialised terminology. Any technical amendments that help harmonise such language are most welcome on these Benches.

I trust the Minister will continue to approach these proceedings with a collaborative and constructive mindset. These amendments demonstrate that the legislation, as drafted, is not beyond improvement, and we welcome the Government’s recognition of that fact. It is our hope that suggestions from your Lordships’ House are given due consideration and are not dismissed too readily from the Dispatch Box.

We trust that the Minister will also view forthcoming amendments in the spirit intended: to test and to probe the Government’s rationale in pursuing particular policy choices, particularly when it comes to the inclusion or the omission of specific clauses and definitions in the Bill. We are grateful for the opportunity to raise these important issues and we welcome continued constructive dialogue on how we can best improve the technical framework of the legislation.

On that note, I wish to ask further questions of the Government on government Amendment 183. From our understanding, this amends the Charities Act, as the Minister said, to ensure that the disposition of leases which are assured tenancies will be subject to that Act. However, as she said, the requirement to obtain a written report from an independent property adviser could be costly. The costs of these reports vary, and they can impose a significant burden on whoever is footing the bill for them. So I would be grateful if the Minister could just clarify in writing that no charities will be required to obtain this particular report and, if there are some that will continue to need it, can she set out the conditions on which those reports from an independent adviser will be required?

If trustees do not comply with the law, they may be personally liable if this report is required and they do not do it; therefore, it is really important that we get absolute clarity on who, if anybody, will be required to do that. I reiterate the importance of keeping the core text of the Bill simple and, where possible, as focused as we can.

[Baroness Taylor of Stevenage (Lab)]

Just to respond briefly to the noble Baroness, I understand that the change to the Charities Act 2011 means that charities would not be required to obtain the designated adviser report prior to granting. They would be required to obtain advice and consider whether the terms of the lease are the best that can be reasonably obtained by the charity; that would be the requirement for trustees. But I will respond in writing to the noble Baroness just to confirm that that is the case.