Renters (Reform) Bill

Baroness Taylor of Stevenage Excerpts

2nd reading
Wednesday 15th May 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, I am grateful for the opportunity to open this debate for the Opposition. I thank the Minister for her comprehensive introduction, and for all the time she has taken in meeting us prior to the Bill coming to the House.

Given the expectations generated among renters that the Bill will make improvements to their situation, it is of considerable regret that the Government have dragged their heels in getting it through the other place. The Bill finished its Commons Committee stage last November, but did not return for Report until last month. In the meantime, the concessions made considerably watered down the initial potential. However, as the Bill delivers some improvements, it is not our intention to hold things up any further.

It is also very regrettable that the Government appear to have put the priorities of some grumpy Back-Bench MPs—I do not blame them for being grumpy—before the needs of millions of aspirational renters, people who simply want the secure, affordable and comfortable home that they have every right to expect. For a fifth of UK households—over 4.6 million people—who live in private rented housing in England, this Bill held out a great deal of promise that they would see much-needed fundamental reforms of the sector. As the Local Government Association put it:

“We have argued for the Bill to go further in supporting tenants’ rights and providing stronger regulatory and enforcement powers, and for government to ensure sufficient funding”


for councils to enforce these measures. However, during the Commons stages, concessions were made on a number of these key measures, and the Bill no longer lives up to its stated intention of creating a fairer and more secure private rented sector. That is from the LGA’s briefing. I apologise—I should have declared my interest as a vice-president of the LGA.

I thank the many organisations that have sent through briefings, met with us, and expressed their concerns about the Bill. There are too many to mention them all, but I particularly thank the LGA, the Renters Reform Coalition, Generation Rent, the National Residential Landlords Association, Shelter, Crisis, Citizens Advice, London Councils, Universities UK, Battersea Dogs & Cats Home, and the Law Society for keeping us informed of their campaigns and for their views on the Bill.

Unfortunately, and at the risk of my sounding like a stuck record on legislation I have dealt with in your Lordships’ House, the reforms that the Bill delivers come hand in hand with a missed opportunity to improve the situation of the UK’s growing band of renters. Of course some elements of the Bill are very welcome; it changes possession grounds, introduces compulsory periodic tenancies, extends the decent homes standard, and introduces a new ombudsman and a property portal, as well as introducing the very important right for tenants to keep a pet. We very much welcome the Minister’s comments about blanket bans; she is absolutely correct in saying that they have no place in a modern housing system.

However, other key elements have been watered down in the Commons. Absolutely critical, and of fundamental importance, are the barriers put in place to delay the commencement of the abolition of the punitive and much-abused Section 21 no-fault evictions. Recent figures show that more than 80,000 households have been threatened with homelessness and had to approach their local authority for support following a Section 21 eviction notice, since the Government’s 2019 pledge to end them. As the charity Crisis tells us, this equates to 52 households a day being threatened with homelessness.

In my time as a councillor, I saw the dreadful impact of that on families. Having to move on short notice is incredibly expensive; the Renters Reform Coalition estimates that each move costs around £1,700—that is quite a low estimate. These moves disrupt employment and education, and shatter connection with communities and family support.

Indeed, it has a particular impact on vulnerable children. Imagine spending months trying to get your child with special needs into a suitable school and then being evicted from the home near that school. It also takes a terrible toll on people’s health and mental health, with parents often feeling guilty that they are not able to provide the stability they know would benefit their children. There is a very significant economic cost of this as families present as homeless to their local council. The cost of temporary and emergency accommodation has risen to £1.74 billion and consumes around 30% to 40% of net revenue budgets for some local authorities.

It is surely time for a definitive ban on Section 21 no-fault evictions, but recent amendments made in the other place just kick the can down the road. The Bill now requires the Lord Chancellor to publish an assessment on the readiness of the courts. Of course the court system must work effectively to get decisions made in a timely way for the benefit of both tenants and landlords but, with that pledge having been made five years ago, why was this work not already under way or even thought about until the final stages of the Bill? We are now left with an indefinite timeline for court reform and, although the Minister has today given us some indication of the necessary steps, there is no clear route map to say what needs to change and how it will be done and funded, and families are left with sword of Damocles-like evictions still hanging over them. The Secretary of State repeated his pledge this weekend that this court reform would be completed before the general election. Will the Minister say which general election he was referring to? It is shameful that the Government did not have the courage to face down Back Benchers in the Commons on this and put their concerns over the trauma of eviction faced by private renters. We will try again with amendments to enact a ban on Section 21 evictions on Royal Assent of the Bill, although I suspect this too will have to wait for a Labour Government.

We have significant concerns about the introduction of what could represent a tenant trap in the Bill. One of the key purposes of this legislation was to bring the UK more into line with the longer-term tenancies enjoyed in most other parts of Europe by creating open-ended tenancies. In Germany, for example, the average length of a tenancy is 11 years compared with just over two years in the UK. We welcome these more flexible tenancy proposals but, in a move which runs completely counter to this flexibility, the Bill now extends the right to move out from within two months’ notice from the start of the tenancy to six months. This could lead to some real issues in certain circumstances—for example, if a property has been mis-sold and the renter finds themselves living in a property not fit for purpose, whether through damp and mould or other maintenance issues. Being trapped in this way for six months could be extremely damaging to their health or that of their family. Yes, there are consumer protections, but these are difficult to enforce and may not be enacted as quickly as would be necessary.

Noble Lords know that I have a particular passion for supporting victims and survivors of domestic abuse, and indeed set up our local organisation, Survivors Against Domestic Abuse. It is of great concern therefore that victims and survivors may find themselves trapped in a property in a dangerous situation, potentially even with their abuser, because of the six months’ notice period. We are also concerned that there may be other vulnerabilities, such as mental health issues, which make it inappropriate to force this fixed period on certain tenants. Does the Minister feel that there may be some scope to amend the Bill to allow for those exceptions? Domestic abuse and support charities are also very concerned that the vague definition of anti-social behaviour as a ground for eviction could lead to people being evicted on ASB grounds while still undergoing their trauma.

We have outstanding concerns about why the Government have not used the opportunity of this Bill to extend the provisions of Awaab’s law to the private rented sector. It seems nonsensical that protective provisions introduced for the social rented sector to give tenants more power to have issues such as damp and mould rectified are not available to those in private rented properties—or in Army properties, which were debated earlier today in your Lordships’ House. My noble friend Lord Khan has detailed knowledge of them and will say more later in the debate.

Like many noble Lords, I have been lobbied heavily by student bodies regarding the provision to exempt landlords of student properties from the move away from fixed-term tenancies. We understand the purpose of that but, as Universities UK has pointed out, there may be significant unintended consequences. I quote Universities UK:

“We note the government’s amendment which would see landlords serving notice between 1 June and 30 September. This is welcome as it would not be in the interest of students if landlords could evict tenants at any point in the year. However, given the increased diversity of how and when courses are delivered there will be some courses which are inappropriate for this model. The government should consult with the sector to identify where this is the case and what amendments can be made”.


Students and professionals in higher education have made the point strongly to me that there may be students who cannot live at home—care leavers, for example—and need longer tenancies than an academic year. If this measure is too rigid, it may cause significant problems for those whose study pattern is different from the traditional undergraduate pattern. Can the Minister outline what discussions have taken place or will take place with the sector in this regard?

On the appointment of the ombudsman, I know that my noble friend Lady Warwick has questions about whether there will be a process to appoint the most appropriate body. I look forward to hearing the Minister’s response on that.

We welcome the pet-friendly provisions in the Bill, including those that prevent the unreasonable refusal of pet requests from tenants. I have seen from personal experience the great health and social benefits that pet ownership can bring, and for those who live alone or who have other vulnerabilities it can be extraordinarily life-enhancing. Passing the legislation would mark a significant step forward for renters across the country who have pets, as well as those who aspire to do so. However, pet charities and organisations, including Battersea Dogs & Cats Home and Cats Protection, have asked for some strengthening of the Bill—for example, shortening the time limit within which landlords must respond to a written pet request from the current 42 days to 28 days, and giving a presumption of acceptance if no response to a legitimate request is forthcoming. I hope the Minister will give due consideration to amendments in that regard.

We have no intention of holding up the Bill as it will put in place some provisions that will improve things for renters, but we wanted to see a much more fundamental reform and have called for that for many years. Regardless of whether you are a home owner, leaseholder or tenant, we believe that everyone has the right to a decent, safe, secure and affordable home. Hopefully, a Labour Government will soon be able to build on the foundations put in place by the Bill. In the meantime, I look forward to the debate today and to hearing the Government’s response.

--- Later in debate ---

[Baroness Swinburne (Con)]

The difference, as I have just alluded to, is between one person having to get external maintenance people in, and so be at the mercy of their agenda, and maintenance crews that can be sent to those areas that need prioritising. I have a huge number of questions to get through, so I apologise for being abrupt.

Many noble Lords raised concerns about the impact of reforms on the student market. Since introducing the Bill, we have heard from across the sector that, as originally drafted, the Bill would have interrupted the student housing market, reducing the supply of vital properties in university towns and cities. We have listened to these concerns and have introduced a new ground for possession which will allow landlords renting to students to seek possession ahead of each new academic year, facilitating the yearly cycle of short-term student tenancies. The ground has been carefully designed to balance the needs of both landlords and students. It will apply to any property that is let to full-time students, as long as the landlord gives prior notice to tenants at the start of the tenancy that the ground will apply.

Regarding different dates being used rather than the traditional academic year, there is nothing to stop landlords renting properties in January to students starting their studies at that time. Most students will continue to move in line with the traditional academic year. This ground provides a backstop for the majority of students studying from September. The alternative would be to allow the ground to be used at any point in the year, which would give tenants no certainty.

[Baroness Taylor of Stevenage (Lab)]

I asked whether the Minister would talk to the universities sector about this. It has made very strong representations and knows far more about this than I do, and noble Lords around the Chamber have mentioned that as well. Will the Minister please meet the universities sector to understand properly its concerns before we go much further with the Bill?

[Baroness Swinburne (Con)]

I assure the noble Baroness that those discussions are already ongoing. The department is in intense discussions with that sector, and has been since the introduction of the Bill in the other place.

Regarding MoD accommodation, as a result of discussions in the other place we are looking to apply the decent homes standard to homes for service personnel and their families. Service personnel and their families deserve homes that are safe and decent, just like everybody else. While 96% of service family accommodation already meets the decent homes standard, it is right that we explore whether we can put in further safeguards on housing quality for this sector. However, there are features in service accommodation that mean that we must consider carefully the approach that will work best in practice. This includes the fact that significant proportions of this accommodation are located on secure military sites. The department is therefore working closely with the Ministry of Defence and local authorities to urgently explore these matters and work out how this can be done.

The noble Baroness, Lady Pinnock, and others raised local authority funding. We are fully aware that local authorities need to prioritise taking enforcement action against criminal landlords and that it is essential to the effective implementation of the reforms. We are taking steps to facilitate and resource action against landlords who flout the rules. The new property portal will support local authorities in their enforcement action. It will provide information sources to enable local authorities to take action, and we are extending ring-fenced penalties to support a “polluter pays” approach. We will also ensure that net additional costs that may fall on local authorities are fully funded, and we have already taken action to support local authorities now. Our pathfinder programme has allocated £14 million to test innovative ways to create sustainable enforcement teams that can be shared across all local authorities. In addition, our healthy homes project provides funding for local authorities to test ways of increasing the compliance of landlords in tackling damp and mould.

On pet notice periods, while I appreciate that tenants will want their requests answered as quickly as possible, 28 days seems to be too short, following discussions. A landlord could be on holiday or there may be other reasons why they have not responded within a 28-day period. Therefore, we suggest that 48 days gives reasonable time for landlords but prevents them delaying indefinitely.

Regarding affordability, the local housing allowance and rent increases, some noble Lords rightly highlighted concerns about the affordability of housing; others expressed their concern about being able to charge market rates—I will try to try cover both of those points. We recognise the cost of living pressures that tenants face and that paying rent is likely to be a tenant’s biggest monthly expense. The Government are investing £1.2 billion in restoring local housing allowances, and raising them, and that significant investment means many of these low-income households will gain a significant amount of money to help them towards their rental costs. For those most in need, discretionary housing payments are available to help meet housing costs, and the household support fund has been extended to March 2024 to help with the cost of essentials. I will check those dates for the House—I just said March 2024 and we are beyond that, so I will check and make sure we correct it.