Renters’ Rights Bill Debate
Full Debate: Read Full DebateBaroness Scott of Bybrook
Main Page: Baroness Scott of Bybrook (Conservative - Life peer)Department Debates - View all Baroness Scott of Bybrook's debates with the Ministry of Housing, Communities and Local Government
(1 day, 18 hours ago)
Lords ChamberMy Lords, I reassure noble Lords, with regard to time, that the amendments in this group, in my name and those of other noble Lords —and there are a quite a lot of them—all work together and function as a pack. Therefore, my description of these amendments working together will actually be quite brief. The amendments look to strengthen the link between compliance with the private rented sector database and the lawful use of eviction powers. I appreciate that I am pushing the envelope a little bit and I will be genuinely interested in the Minister’s response.
These amendments are rooted in a very simple principle. If we expect landlords to meet minimum legal obligations—and we do, and we hope for more compliance: that is what the whole Bill is about—such as registering on the new database, which, following our previous discussions, is going to be the whizziest, wonderful game-changer, there really must be meaningful consequences when they do not. Currently, the Bill does not explicitly tie database compliance to a landlord’s ability to issue a Section 8 notice. These amendments aim to correct that, or at least to open up a discussion about it.
Amendment 223 would require landlords to register any Section 8 eviction notice on the database within seven days of issuing it. This would support greater transparency, help local landlords and tenants track patterns of use and ensure that there is a reliable record of how and when eviction powers are being exercised. Can the Minister say how we gather that data accurately, if not through this? It is important data and without it we lose very valuable oversight.
Amendments 235, 238, 239 and 240 would prevent a Section 8 eviction notice being considered valid if the landlord has failed to comply with Clause 83(3) of the Bill—namely, the obligation to register themselves and their dwelling on the database. These are not minor or excessive requirements; they are fundamental baseline requirements for responsible landlords. It is entirely reasonable to say that, if these duties are not met, a landlord should not be able to proceed with eviction.
Amendment 236 provides necessary clarification, ensuring that this requirement applies to the entirety of subsection (3) and not just selected parts. Taken together, this group helps to make the database a functioning gatekeeper for landlord compliance. It reinforces the idea that legal powers, especially those as significant as eviction, should be available only to those who follow the rules. That in turn builds confidence in the system and protects tenants from being displaced by landlords who are themselves acting unlawfully. I hope the Minister will look carefully at these proposals. They are proportionate and targeted and go to the heart of what this reform is meant to achieve: a fairer and more accountable rental sector. I beg to move.
My Lords, I thank the noble Baroness, Lady Thornhill, for opening this group. The issues of database fees and possession restrictions are of real significance, and this group is therefore of considerable importance. Before turning to the wider contributions made today, I will speak to the amendments in this group that I have tabled. Amendment 228C seeks to probe the circumstances under which a landlord may be charged a fee under the regulations made under Clause 80. I would be grateful if the Minister could provide some clarity on this point. Under what conditions do the Government foresee such charges being applied?
Amendment 228E, also in my name, would prevent the costs of enforcement action against non-compliant landlords being charged to those who have complied with the requirements of this chapter. This part of the Bill seems entirely unfair on law-abiding landlords. We want to understand why landlords who are compliant must bear the costs of enforcement taken against those landlords who fail to comply with the law. Could the Minister explain why compliant landlords must bear the costs of enforcement targeted at those who fail to meet their legal obligations?
Amendment 228F seeks to remove subsection (4)(d), which includes the costs of enforcement action imposed by the Bill in relation to the private rented sector. Our original understanding was that these fees were intended to relate to the database, but this paragraph seems to be a classic case of Ministers seeking additional and wider-ranging powers as a belt-and-braces approach. This is not an acceptable way forward. We understand completely that the database must be funded and we accept that a fee is reasonable, but we need to make sure that the fees charged under this clause remain reasonable. We know that this will increase the costs of business for landlords, so we need to ensure that the costs are both reasonable and proportionate. We are concerned that this wide definition of “relevant costs” may result in unreasonably high costs.
Perhaps I can press the Minister to give the Committee some sense of what the fees will be like, and how increases will be managed. Ultimately, we must bear in mind that it is usually the tenants who bear these costs through their rents in the future. Overall, what are the predicted costs of setting up and running the database, and what are the costs likely to be to the landlord?
Many landlords are small-scale and independent; they are not corporate landlords, with legal teams and financial reserves. They are ordinary individuals, often renting out one or two properties as a way to supplement their pension or to provide long-term family support. For the database to function as intended, it must be financially accessible.
On Amendment 228G, clear communication of the changes of fees is essential. It builds trust and helps people plan their finances, but it also avoids any confusion or frustration.
My Lords, I thank the noble Baronesses, Lady Thornhill and Lady Scott, and my noble friend Lord Hacking, who I do not think is in his place anymore, for their amendments regarding database fees and possession restrictions.
I will start with the amendments tabled by the noble Baroness, Lady Thornhill. Amendment 223 would mandate that the database operator establishes and operates the database so that it contains entries in respect of Section 8 possession notices, with such entries to be recorded on the database within seven days of the landlord serving them. I appreciate the intent behind this amendment. We are actively exploring collecting possession information on the database. We have identified various potential benefits to collecting this data—for example, it may support local authorities in identifying where possession grounds have been misused or where tenants are at risk of homelessness. It could also be useful to prospective tenants in making choices about where to rent, so I agree with her on that.
However, our research has also highlighted some challenges, particularly around accuracy and reliance on landlords self-reporting. We will need to consider carefully how these issues could be managed. I am also keen to impress upon the noble Baroness and the Committee that we do not think the information the database collects should be on in the Bill; we discussed that on the previous group. Our research has consistently demonstrated that it is imperative that the database can be adapted to meet future needs. Therefore, the data it collects should be set out in regulations. This is already possible through the regulation-making power in Clause 78, which the Government will use to outline registration requirements. Therefore, the amendment is unnecessary.
Amendments 235, 236 and 238 to 240, taken together, propose changing the Bill’s provisions so that landlords cannot serve notice for possession under Section 8 nor be granted repossession by the courts if they are not compliant with database registration requirements. In addition, the amendments would mean not only that landlords would need to be registered but that their entries would need to be up to date in order for notices served to be valid. The amendments from the noble Baroness, Lady Thornhill, would do this by adding a provision in the Bill for updating Section 7 of the Housing Act 1988, which refers to courts’ powers to order possession to be updated to effect compliance relating to the database.
The noble Baroness, Lady Thornhill, also proposes amendments to the wording of Clause 91 so that it refers to Section 83(3) as a whole. I understand that the noble Baroness is concerned with incentivising landlords to comply with regulation and therefore sees the value in replicating some of the safeguards that have been in place for serving Section 21 notices. I agree that landlords who have not met the basic obligation of registering on the database should not be able to gain possession of a property. This is an important incentive for landlords to register and supports the role of the database in driving up standards in the sector. However, the Bill will already update the Housing Act 1988 to prevent landlords being granted possession by the courts if they do not have an active database entry for themselves and the property. This is a proportionate approach to stop landlords being granted possession where they have failed to meet their obligations.
The Bill also clearly sets out our expectation for landlords to maintain active database entries and to ensure that these are up to date. I reassure noble Lords that landlords who do not have an up-to-date entry in the database will be subject to enforcement action by local authorities. Regulations will stipulate the requirements for active and up-to-date entries, and in the meantime the criteria for gaining possession as outlined in the Bill provides an appropriate level of protection for tenants against landlords who fail to register with the database without sanctioning landlords disproportionately. We do not want to risk creating a situation where landlords cannot use Section 8 grounds but have no alternative means of seeking possession. I therefore kindly ask the noble Baroness, Lady Thornhill, to consider not pressing these amendments.
Amendments 228C, 228E, 228F, 228G and 237A were tabled by the noble Baroness, Lady Scott. Amendment 228C would remove the ability to make regulations requiring the payment of a fee as part of renewals when database entries become inactive. I understand that the noble Baroness is seeking further information on the circumstances in which a landlord could be charged a fee under the regulations made under Clause 80. It is the intention that, in addition to an initial registration fee, there will be a fee at the point of renewal. An entry will become inactive if it expires at the end of a registration period and will become active again upon renewal. Landlords will not be charged for updates between renewal points. In cases where a landlord elects to make an entry inactive because they are no longer letting the property, they will not be charged. We will set out in detail when active entries become inactive, and vice versa, in secondary legislation. Timelines for registration and renewal will similarly be set out in secondary legislation.
Amendment 228E would place a requirement on Ministers to give two months’ notice of any fee changes to landlords with an active database entry. It raises a useful point to consider as we develop the database. We agree on the need for landlords to receive clear and timely communication about any changes in fees and to understand when a fee is required. As we develop the database, we are considering the required communications to landlords to help them understand their obligations, including payment of fees. We are also considering how we can design the database to facilitate this in a timely way. As we are already considering these points as we develop our proposals for implementation, we do not consider this amendment necessary.
Amendments 228F and 228G would remove the ability to set database fees with reference to costs of enforcing database requirements and to wider PRS enforcement costs respectively. This would mean that any fees could be calculated only by reference to operational costs and functions of the database. Effective enforcement is essential for the successful operation of the database. Without it, there will be no means to take action if landlords fail to sign up or provide the correct information. We have heard throughout the passage of this Bill the challenges with local housing authority resourcing and capacity for enforcement. Removing the option to factor in the costs of checking and taking action against any non-compliance would, in the long term, leave local housing authorities out of pocket and limit the database’s effectiveness.
As for wider enforcement costs, we believe that it is right that, as far as possible, the costs of enforcement should be met by those flouting the rules. Ultimately, all landlords, as well as the public and, most importantly, tenants, benefit from a well-regulated and enforced PRS. Clause 82 provides Ministers with the option of using a proportion of fee income to provide much-needed revenue to support enforcement activity. In answer to the questions asked by the noble Baroness, Lady Scott, about fees, the fee level will not be set arbitrarily. The Bill provides that the relevant costs that can be recovered via the fee can be based on the cost of establishing and operating the database and the cost of performing the functions required under the database legislation and of enforcing the database and wider PRS legislation. We will ensure that decisions about fees take into account a range of factors, including of course the burden on landlords. Fees will be set out in secondary legislation. We are in the process of developing a calculation and structure for fees. The fee level will need to reflect the operating costs of the digital tool, which is currently in development, and may also be used to fund local authority enforcement. We are in the process of designing the database as a bespoke tool, so we are developing our understanding of what our expected costs will be. This has been set out in the impact assessment. The costs may be subject to change as our plans for delivery and implementation develop, so I am not able to give the noble Baroness an exact answer at the moment.
Surely there is a budget, or even a proposed budget, that will go to the Treasury to deliver this scheme.
As with all future funding for our department and every other department, spending review bids have gone in. I will take her request back to the department to see whether we are able to be any clearer on that, but my understanding is that at the moment that we are not able to give an exact figure.
Noble Lords will be aware that these database fees will be set at a later point in regulations. I stress that in setting fees, we will ensure, and we have always been clear, that the fees will be fair and take into account the cost to landlords. The noble Baroness, Lady Scott, also asked me about the accountability of the database operator. I will write to her on that point, if that is okay. For the reasons I have set out I do not think that it would be beneficial to the private rented sector database, or the reforms more widely, to place these additional limits on what relevant costs may be recoverable via the database fees.
The Bill will make it a legal requirement for residential landlords to ensure that they and their rental properties are registered on the database before a court can grant a possession order and they can gain possession of their property. Clause 91(1) amends Section 7 of the Housing Act 1988 so that a court can order possession only where there is an active entry in the database for both the landlord and the dwelling. Clause 91(1) also stipulates that possession orders made on grounds relating to anti-social behaviour are exempted from this requirement.
My Lords, I support my noble friend Lord Tope’s Amendment 251, which I have also signed. We have all spoken of the support we give this Bill because it offers the opportunity to address the problems and injustices suffered by renters in the PRS, which is the most insecure, most expensive and lowest quality of any tenure. However, the Bill fails to recognise that certain vulnerable groups of tenants suffer disproportionately, as we have heard, and need special measures to give them the level playing field they need to be able to live in suitable accommodation that is fair, reasonable and secure in the private rented sector.
Refugees and asylum seekers are just one such group, and their housing experience is in need of radical reform. My noble friend’s amendment, suggesting that the decent homes standard should apply to housing for refugees and asylum seekers, offers an opportunity to move forward.
However, the asylum housing system in the United Kingdom leaves tens of thousands of people in inadequate accommodation, where they often live for years in conditions that significantly undermine their physical and mental well-being. The current outsourcing of asylum housing to private companies has created a system that is marked by significant issues, including exorbitant costs, excessive profit making, substandard housing, and inadequate safeguarding and oversight. I read in the Sunday Times this week that the owner of one such company, Clearsprings Ready Homes, is now a member of the Sunday Times rich list as a result of rapidly expanding contracts from the Government at the taxpayer’s expense.
These providers need to be properly accountable. Refugee organisations report appalling conditions and many incidents of poor, unsafe and cold properties with infestations and mould. It should therefore form part of contracts with providers that the decent homes standard should apply to properties that are paid for by government. Taxpayers’ money is being used to fund substandard accommodation and providers are not being sanctioned. Many of those who are obliged to live in such misery are children, forced to live in virtual isolation and incarceration with housing conditions that are woefully inadequate for their needs. I therefore support my noble friend’s amendment and call on the Minister to reflect on this situation. If she is unwilling to amend the Bill, can she say what the Government are proposing to do to resolve the desperately pressing circumstances of refugees and asylum seekers and the housing crisis that they face?
My Lords, I thank all noble Lords who have contributed to this debate on the decent homes standard and its potential application across a broader range of accommodation types. As we have heard, the Bill introduces new powers for the Secretary of State to specify additional standards for qualifying residential premises, which offers the potential to raise housing quality and improve conditions for tenants across England. This is, in principle, a welcome ambition, particularly if it helps to extend protections to the most vulnerable in our housing system.
We must recognise the dignity of all residents, regardless of tenure. However, while the intention behind these amendments is laudable, it is vital to interrogate the practicalities and the legal impact of such proposals. For instance, how would the Government define “qualifying residential premises” in the context of asylum accommodation, where providers may be delivering services under a Home Office contract rather than under tenancy agreements? What enforcement mechanisms are appropriate in temporary or institutionally managed housing? Where would the burden of compliance ultimately fall?
We must also examine the legislative implications for landlords and housing providers, particularly those operating on constrained margins. Applying a uniform standard across such a diverse landscape of housing may sound straightforward in principle but in practice it could impose significant compliance costs, particularly in sectors such as mobile home parks or supported houses, where the business model and the regulatory framework already differ markedly from the private rented sector.
Stakeholders such as G15, representing London’s largest housing associations, have raised these very points, urging caution in implying one-size-fits-all approaches and stressing the importance of clarity, resourcing and consultation. Similarly, the Royal Institution of Chartered Surveyors has warned of the unintended market disruption that could follow from ambiguous or overly broad standards, particularly if applied unevenly or without sufficient support for implementation.
Amendment 252A, tabled by my noble friend Lady Coffey, seeks to exempt certain buildings from the requirements to maintain specified energy efficiency criteria, specifically those in rural areas, those that are listed buildings or those that were constructed prior to 1900. This raises an equally critical set of questions. As we have heard, many older and listed buildings simply cannot meet modern EPC targets, such as EPC C, without intrusive and costly works that may fundamentally alter their structures or even their appearance. The amendment, therefore, is a measured and proportionate intervention designed not to weaken the decent homes standard but to ensure that it is applied with practicality and flexibility where needed.
Finally, we must ask whether there is a clear and coherent framework in place for assessing which tenures and building types should fall under the decent homes umbrella and whether, without such a framework, we risk creating legal uncertainty or burdens that will ultimately be passed on to tenants themselves.
I want to scratch lots of bits out, since the noble Lord, Lord Best, was so succinct.
Amendment 258 is in the name of Lord Cromwell and has notable signatories, and the noble Lord sold this amendment well. In short, this is an amendment that should not be needed, if the police and local authorities did their jobs correctly, as per the law, as outlined in the Protection from Eviction Act. This amendment is rightly seeking to reinforce what should be happening but we know is not. The already mentioned organisation, Safer Renting, monitored data from its clients over a given period, which revealed that, when the clients were going through an illegal eviction, and while it was in progress they called the police for assistance, worryingly in only 9% of cases did the police actually go to the property and assist the tenants. Therefore, as the noble Lord said, in 91% of cases they either failed to turn up, or turned up and sided with the landlord.
Interestingly, so concerned was Safer Renting about these statistics that it decided to do something about it. To its credit, in partnership with the Metropolitan Police and the GLA, it developed a training course for officers. Approximately 8,000 officers took the training but, sadly, this did not mean it recorded any significant improvement when talking to its clients, which begs a lot more questions that are probably not answerable here.
As has already been said by several noble Lords, it is imperative that the police understand the harassment before and during an illegal eviction—or, indeed, what constitutes criminal offences—and, most importantly, that they co-operate with the local authorities charged with the role of prosecuting these rogues and criminal landlords. Shockingly, that is not always happening. Safer Rentings’ illegal eviction count for England and Wales in 2022-23 showed 8,748 illegal evictions—that is one every 67 minutes.
It is not necessary for the police to prosecute these offences unless they witness criminal actions taking place alongside the eviction, but it is crucial for them to understand the law both to refer them to the local authority and to co-operate with the authority’s investigations. We support this amendment, but we hope the Minister will reassure us that it is not needed.
My Lords, Amendment 258, tabled by the noble Lord, Lord Cromwell, aims to provide greater clarity for local housing authorities and police forces in responding to cases of illegal eviction. Illegal eviction is a serious offence; it is not simply a housing matter but often a brazen abuse of power that leaves some of our most vulnerable renters without recourse. That said, we have reservations about the practicalities of this proposal, but I have listened to the noble Lord, Lord Cromwell, having asked the noble Lord, Lord Hogan-Howe, his views on it.
In essence, the amendment would place a statutory duty on police and councils to notify each other when a complaint of illegal eviction is received, to co-operate in investigating the offence and to take reasonable steps to assist the tenant. The intent here is understandable —tenants report illegal evictions and are, as we know, bounced between bodies, with the police saying it is a civil matter and councils struggling with limited capacity. Although the intent behind the amendment is undeniably well-meaning, we just have to pause and ask whether it might inadvertently entrench confusion within the statutory framework rather than resolving it.
Without clear definitions, the proposal to impose duties on local housing authorities and police forces to co-operate and assist opens the door to operational ambiguity. What exactly constitutes “reasonable steps to assist”, and what measurable outcomes are expected from this co-operation? Without these clarifications, there is a real risk of creating more confusion for the very tenants we want to protect.
We also want to be very careful about the practical burdens. As the noble Lord, Lord Cromwell, said, both councils and police forces are grappling the whole time with existing resource shortages. This amendment adds new responsibilities without addressing the underlying issue of capacity. Should we not first evaluate whether these agencies are equipped to handle their current workload before we impose further duties? What assessments have been made of the additional resource implications of this?
There is great merit in the principle behind the amendment—namely, the need for clearer co-operation and more decisive enforcement—but there are significant questions about whether, as drafted, it achieves that aim in a proportional, workable manner.
I agree with the noble Baroness, Lady Thornhill, and I ask the Minister: is the guidance clear enough, particularly to police forces, that it is an illegal act and it is against the law? Is there enough guidance? Are they being told exactly what they have to do? Do local authorities have clear guidance about looking after the tenant, which is their responsibility if they have been evicted and they are homeless at the time? Can this not be done in a different way by insisting that the Home Office work with MHCLG to try to embed the guidance that is already there and insist that both organisations deliver what they should be delivering at the moment?
My Lords, I thank the noble Lord, Lord Cromwell, for his amendment and for meeting me to discuss it. The amendment would place a duty on local authorities and police forces to share information regarding alleged offences contrary to Section 1 of the Protection from Eviction Act 1977. I thank the noble Lord, Lord Best, and the noble Baronesses, Lady Thornhill and Lady Scott. Local authorities and police forces would also have a duty to co-operate in the investigation of these offences and take steps to prevent offences from occurring or continuing, as well as assisting tenants to gain access to properties from which they have been illegally evicted. The Secretary of State would be required to produce statutory guidance outlining how these duties would be discharged.
The Government are clear that illegal eviction is unacceptable. Changes introduced in the Bill will further empower local authorities to penalise those who illegally evict, giving them the option to issue a financial penalty of up to £40,000 as an alternative to prosecution. Illegally evicted tenants are also entitled to receive a rent repayment order. Local authorities will be provided with new investigatory powers alongside the powers that police forces have to investigate and prosecute breaches of the Protection from Eviction Act 1977.
However, I am concerned about the administrative burden that a reporting duty might place on police forces. The department is trialling approaches to improving multi-agency targeting and the disruption of rogue and criminal actors operating throughout the private rented sector. For example, Liverpool City Council’s private sector housing intelligence and enforcement taskforce—a snappy title, I know, but it does what it says on the tin—has successfully carried out joint operations with Merseyside Police and the Home Office. The Government will continue to explore how we can encourage more effective collaboration between the police and local authorities.
I am happy to add this topic to the agenda for the meeting that I have already agreed to with my noble friend Lady Kennedy and Safer Renting, and to take another look at the existing guidance to make sure that it does what it needs to do. With that said, I respectfully ask the noble Lord, Lord Cromwell, to withdraw his amendment.
My Lords, in moving this amendment, I am grateful for the help of the Greater Manchester Combined Authority, which has worked with local enforcement teams in my diocese to help us get to this amendment.
Local enforcement will be vital to making the intention of the Renters’ Rights Bill a reality, including the extension of the decent homes standard. However, an amendment to the power of entry that councils are going to use to enforce that standard is needed so that negligent or criminal landlords do not get a tip-off of inspections in advance, which would allow them to frustrate that process or to put pressure on the tenant. Enforcement officers would never tip off the proprietor of an off-licence in advance of an under-age mystery shopper trying to buy alcohol or cigarettes but, as currently drafted, this Bill will require enforcement officers to give landlords a 24-hour tip-off for any formal inspection of compliance with the decent homes standard.
The power of entry under the Bill comes from Section 239 of the Housing Act 2004. It is completely appropriate to give notice to the occupier—I mean, it is their home; they are probably the one who made the complaint that led to environmental health officers or enforcement officers wanting to come round to have a look at it—but why on earth do we give the landlord that 24 hours’ notice? Indeed, we know already from what enforcement officers tell us that, where there is a requirement to tip off landlords, it allows criminal landlords to take lawful countermeasures. These include things such as forcibly removing tenants from an overcrowded property, pressuring tenants not to let enforcement officers into their home or taking retaliatory action, which can dissuade tenants from pursuing complaints. They can also prompt them to withdraw complaints; indeed, there is every reason why a tenant may not want the landlord to know that they have made a complaint at this early stage of the process.
Finally, I would urge that focusing the notice requirement on the occupier is consistent with equivalent enforcement legislation. For example, council enforcement officers’ powers of entry under the Environmental Protection Act 1990 include no requirement to give notice to a property’s owner.
Unlike the noble Baroness, Lady Bennett of Manor Castle—I see that she has just left us—I am not a night owl: should it get to midnight and I am still here, these fine ecclesiastical robes will, like Cinderella’s dress, turn to rags. I trust that we can have an effective but brief debate on what is, I think, a simple and clear proposal. I hope that the Minister will agree that this is a timely and sensible amendment. I beg to move.
My Lords, I thank the right reverend Prelate the Bishop of Manchester for this amendment on powers of entry into properties. Of course, there is a fine line here: we are trying to balance landlords’ rights to know what is going on in their properties, especially regarding enforcement, with the rights of the occupiers of the property to be informed when powers of entry are being exercised by enforcement authorities.
The amendment would remove the current requirement for a notice to be provided to both the owner and the occupier of the property before the authority can exercise any power of entry under Section 239 of the Housing Act 2004. This would mean landlords not having to be told that their property is going to be entered for survey or examination. I would argue that the owner of the property should have the right to be informed both that their property will be investigated by enforcement authorities and that the authority will exercise its power of entry into the property. This is the case as things stand now, and I believe that that is how it should remain.
My Lords, I thank the right reverend Prelate the Bishop of Manchester for his Amendment 260 and the noble Baroness, Lady Scott, for her comments. This amendment to Section 239 of the Housing Act 2004 seeks to enable local authorities to inspect PRS properties without the need to give 24 hours’ notice to property owners where the property is unoccupied, while retaining the notice requirement for tenants.
Section 239 currently requires local authorities to provide 24 hours’ notice to owners—if known—and occupiers before an inspection can take place. We are aware that the current requirement to provide property owners with 24 hours’ notice enables some unscrupulous landlords to hide evidence of breaches of PRS legislation, intimidate tenants and obstruct inspections. We recognise that the current notice requirement may, in some circumstances, hinder local authorities’ ability to address tenants’ unsafe or hazardous living conditions effectively.
While we are supportive of any efforts to improve local authorities’ ability to enforce against rogue landlords and appreciate that this amendment is in support of that objective, we must carefully consider its implications. We will continue to have conversations with the right reverend Prelate and with stakeholders, and we welcome noble Lords sharing their views on this matter so that the Government can take them into consideration. For these reasons, I ask the right reverend Prelate the Bishop of Manchester to consider withdrawing his amendment.
My Lords, I thank the noble Baroness, Lady Thornhill, for opening this group and introducing her Amendment 263. This amendment would require the Secretary of State to review and report on the impact of the Act on the private rented sector, including housing supply, rent levels, tenant security and regulatory burdens, within two years of its enactment.
We on these Benches do not support reviews for the sake of reviewing. They often consume time and public funds, and require precise delivery in order to answer the questions they set out to answer. However, this legislation poses a significant risk to the market. Noble Lords from across the Committee agree that we must protect tenants and ensure they have access to secure, stable and decent housing at a fair price. We have been clear this Bill does not deliver that.
The Government must review the efficacy of the Bill and be held accountable for the decisions they have taken and insisted on. To achieve this, we need a functioning market with an adequate supply of good-quality homes to meet a growing demand. Ensuring the availability of homes is key to making accommodation attainable and keeping rents affordable. Any legislation in this area must strike a difficult but essential balance between these competing interests. Only by getting that balance right can we hope to achieve an efficient and effective rental market. We, along with the many stakeholders we have consulted, believe that a review is necessary and that it should be brought before Parliament.
I am keen to know whether the Government are giving the amendments in the names of the noble Baronesses, Lady Grender and Lady Janke, serious consideration. Can the Minister say how the success of this Bill will be judged? What does success look like in the eyes of the Government?
In our view, the fear and uncertainty surrounding this Bill is already having a negative impact. On the first day in Committee, I quoted figures from Savills and I will underline them once more. According to Savills, the number of rental properties available on their books in quarter 1 of 2025 is down 42% compared with the same period in 2024. That is 42% fewer homes for families, and 42% less choice for people searching for somewhere to live. If the Government are confident in the positive impact of this Bill, what reason does the Minister have for not reviewing its effects on the housing market, specifically its impact on the availability of rental homes, rent levels, house prices and the demand for social housing? If the Bill were to have a damaging effect on the rental market, surely Ministers would want to know.
Getting this balance right is paramount. It is the difference between a functioning, accessible rental market and one that is suffocated. It is the difference between tenants being able to find a secure and affordable home, and landlords leaving the sector altogether. I look forward to the Minister’s response.
My Lords, I thank the noble Baronesses, Lady Thornhill, Lady Grender and Lady Janke, for their amendments, which propose several different types of reviews to the future Act, and the noble Baroness, Lady Scott, for her comments. I have to ask why we do not have a functioning effective rental market—we were not in government over the past 14 years.
Amendment 263, tabled by the noble Baroness, Lady Thornhill, would introduce a legal requirement for the Government to carry out a review of the Bill’s impact on the private rented sector. This review would be conducted, and subsequently reported to Parliament, within two years following the Bill’s receipt of Royal Assent. In particular, it would require the review to consider the Bill’s impact on supply, rent levels, security of tenure and the burdens on landlords. It also prescribes that the Government must consult with representatives of landlords, tenants and local authorities during the preparation of such a review.
I know the Committee shares my interest in the practical impact that this legislation will have on the private rented sector. I reassure the Committee that this interest is at the heart of the Government’s commitment to monitor and evaluate robustly the impact of our reforms. Our approach will build on the department’s existing monitoring of the housing sector. Our process, impact and value for money evaluation will be conducted in line with the department’s published evaluation strategy. Our monitoring work will make use of a range of data, including the results of the English Housing Survey, data from relevant stakeholders, including local authorities, and data generated from the reforms themselves. We will also deliver an evaluation involving extensive data collection through interviews, surveys and focus groups. These will be conducted with a range of stakeholders, such as tenants, landlords, letting agents, third sector organisations, delivery partners, the courts service and government officials. Monitoring data from existing surveys and new data produced by the reforms will supplement these findings.
I can also reassure the Committee that the conclusions of our evaluation will be published in a timely manner, in line with our broader policy on the publication of research. This includes an interim evaluation report on the processes, early impacts and intermediate outcomes, which we will produce in the early years after implementation. I hope this gives the Committee confidence that the Government’s proposed approach to monitoring and evaluation is the right one. Setting an arbitrary deadline for this process, as the amendment moved by the noble Baroness, Lady Thornhill, would do, we believe represents an unnecessary step. On that basis, I ask the noble Baroness to withdraw her amendment.
Amendment 270, in the name of the noble Baroness, Lady Grender, would mandate that the Secretary of State carry out a review of rent affordability in England, with a report to be laid before Parliament within 12 months of the Bill receiving Royal Assent. This amendment would require this review to be wide-ranging, encompassing the affordability of rents across both the private and social sectors, the impact on tenants, and regional differences. It would also require specific assessment of the effectiveness of measures to control excessive rent increases and the uptake and outcome of the tribunal.
As I already noted, the Government are committed to very robust monitoring and evaluation of the private rented sector reform programme. We will also continue to monitor trends across the industry as a whole, using a range of data sources, which include the Valuation Office Agency rental prices data, the Office for National Statistics rental price index, and data from the English Housing Survey and the English Private Landlord Survey. This will enable us to respond to unexpected impacts or unwelcome outcomes and initiate appropriate changes where these are needed.
Finally, Amendment 273, from the noble Baroness, Lady Janke, would introduce a legal requirement for the Government to produce a report on the impact of the Bill once it is an Act on different racial and ethnic groups in the private rented sector. I have already outlined at length our broader plans for assessing the impacts of the Bill. Regarding specific impacts on racial and ethnic groups in the sector, the department follows the Ethnic Group, National Identity and Religion guidance published by the Office for National Statistics. Ethnicity statistics are regularly collected and published by the department about tenants and landlords to understand the demography of the private rented sector through the English Housing Survey and the English Private Landlord Survey. This data supports our continued compliance with the requirements of the public sector equality duty and wider government responsibility by contributing to the race disparity audit.
It is also worth stressing that, in keeping with the public sector equality duty, once the Bill is an Act, Ministers will continue to have due regard to the equality impact of decisions on groups by reference to relevant protected characteristics. This includes the protected characteristic of race.
I understand the collection of the data, which I think is excellent so that we know what is going on, but how is that going to be scrutinised by Parliament? Will that come in a report? If it is, when will that first report come to Parliament for scrutiny?