Renters’ Rights Bill

Baroness Taylor of Stevenage Excerpts

Monday 28th April 2025 Lords Chamber

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, I thank the noble Baronesses, Lady Scott and Lady Thornhill, the noble Lord, Lord Young of Cookham, and the noble and learned Lord, Lord Etherton, for their amendments, and I thank the noble Lords Cromwell, Lord Empey, Lord Wolfson and Lord Northbrook, the noble Baroness, Lady Grender, and the noble Earl, Lord Kinnoull, for their comments and for bringing the noble and learned Lord’s amendments before us.

I understand the concerns that Members have on this issue, which is why we engaged early on with noble Lords in advance of the Bill coming before this House. We have listened to noble Lords’ views and experience in this area. I appreciate that we may need to have further discussions.

I say to the noble Baroness, Lady Scott, that I started working with noble Lords on the Bill some months ago to understand the concerns that they had. Where probing amendments have been tabled, I have attempted to answer in detail. On matters requiring factual answers, such as data that I did not have at my fingertips, I have responded either in writing and/or offered further meetings to noble Lords.

However, it was too late in the day when the party opposite recognised the dreadful housing crisis that it had led us into, which meant it was too late for it to finish legislation to deal with it. Today, we are faced with amendments seeking to remove core principles of the Bill that is trying to deal with it. If those come before us, I will have no option but to disagree with them. Some of those core principles were in the Bill of the party opposite when that sat before this House. This Government will take up the challenge of dealing with the issues with a degree of balance between landlords and renters and, I believe, will do a better job of it.

The amendments before the Committee today would all require the Government to make an assessment of the justice system as a result of these reforms and, in some cases, delay commencement of the reforms until certain conditions were fulfilled. Amendment 69, in the name of the noble Baroness, Lady Scott, would require the Lord Chancellor to prepare an assessment of the operation of the process by which a county court is able to make possession orders for rented properties, and how such orders are enforced. That assessment will be published at such a such a time and in such a manner as the Lord Chancellor sees fit. The noble Baroness, Lady Scott, has also tabled Amendment 283, which, if made, would delay the commencement of these important reforms until the Lord Chancellor had carried out and published the proposed assessment and was satisfied that the court service had sufficient capacity.

The Government’s view is that the implementation of our tenancy reforms should not, as the noble Baroness, Lady Thornhill said, be held back by an assessment of current working, especially one that is so broad and undefined. We have no intention of delaying these urgent reforms while we wait for an unnecessary assessment of the existing possession process. The proposed assessment will provide no new insight or benefit to interested parties. Compelling the courts and tribunals to undertake such an assessment would detract from their vital work to make sure that the courts are ready for our reforms.

Quarterly data on the operation of the court possession process for rented properties is already, and will continue to be, published by the Ministry of Justice. This is regularly reported and scrutinised. The published statistics include both the volumes and timeliness of possession orders and the enforcement of those orders. Court rules specify that possession claims requiring a hearing should be listed within four to eight weeks of the claim being issued. Landlord possession claims are taking an average of eight weeks—not seven months, as quoted by the noble Lord, Lord Northbrook—to progress from the issue of a claim to a possession order in the most recent quarter from October to December 2024.

Instead of publishing this unnecessary assessment, we will carry out our tenancy reforms as quickly as possible. I want to reassure the Committee that we are fully focused on making sure that the justice system is prepared for the changes to court caseload and procedures which will be required for our reforms. We are working with the Ministry of Justice and HM Courts & Tribunals Service to that effect. This includes investing in additional court and tribunal capacity to handle any extra hearings generated. I hope that answers the point from the noble Lord, Lord Wolfson. I therefore ask that those amendments are not pressed.

Amendment 205 in the name of the noble Lord, Lord Young of Cookham, would require the Secretary of State to lay a Statement before Parliament setting out how the Government will ensure that the county courts are prepared for the impact of the Renters’ Rights Bill on possession cases. The Statement would need to be made within six months of the Bill being passed and assess the effect of the Bill on the volume of cases, the efficiency and timeliness of judicial proceedings, and the resource requirements of the courts in future.

As I have said, I fully recognise noble Lords’ concerns that this Bill will impose an additional burden on the justice system and understand the concern of my honourable friend at the other end of the building about the court system. As already noted, I reassure the Committee that we are fully focused on making sure that the justice system is prepared for changes to court caseload and procedures which will be required for our reforms and we are working with the MoJ and HMCTS to that effect.

To pick up the point from the noble Lord, Lord Young, about resources, we are working together to agree how these reforms are implemented. This will include ensuring that the county court will have the capacity and resources it needs to adjust to any changes in possession caseloads—which will, of course, involve the assessment that the noble Lord, Lord Northbrook, referred to—and commitments to address the resources needed. Work is also progressing on updating rules and procedures in readiness for the implementation of the new legislation.

In the longer term, we expect our reforms to reduce the volume of court possession claims, as only those cases where there is a clear, well-evidenced ground for possession will be able to proceed. This will help offset any increased pressure on the courts resulting from our reforms in due course.

His Majesty’s Courts & Tribunals Service is building an end-to-end digital service for resolving all possession claims in the county courts in England and Wales, to make processes more efficient and easier to understand for landlords and tenants—a much-needed reform. Funding has been agreed and provided to enable the design and build of this new service, which is well under way and builds on the existing digitisation of the justice system.

The noble Lord, Lord Cromwell, said it had left him with the impression that this was five years away. That is not what the court service said and not my understanding of where we are with it. As I have explained, this is not a new system that is being built from scratch; it is a further module of an existing system.

The noble Earl, Lord Kinnoull, commented on the outlining of the size of the problem that our colleagues from HMCTS set out. That was the hold system that they are developing, with the approach to design and build being at prototype stage. I understand what he is saying, but the digitisation process is not the whole picture of what we are doing with our colleagues in the courts service. This service will offer an online route for making and responding to possession claims, filing documents and receiving updates and outcomes, offering improved user experience through guided journeys.

As we have heard, some noble Lords heard first-hand about the progress being made. The noble Earl, Lord Kinnoull, said that the question was put, “How long will this take?” and colleagues replied, as I understand it, “Two years from March”. I thank him for those comments, but that is not the totality of the work we are doing with the courts service, so, while progress on that is really important to driving this forward for the future, we will be working with our friends in the courts service and supporting them in the interim. I therefore ask him not to press his amendment.

I reiterate my thanks to the noble Baroness, Lady Thornhill, for Amendment 264, which would require the Secretary of State to publish a review of the impacts on the judicial system arising from the Renters’ Rights Bill within two years of the legislation being passed. The review would need to consider the effect of the Bill on the volume of cases, the efficiency and timeliness of judicial proceedings and the resource and administrative burdens on the courts.

As I already outlined, I want to reassure the Committee that we are fully focused on making sure that the justice system is prepared for changes to court caseloads and procedures. We are taking that issue very seriously. We will monitor the effects of these reforms on the justice system by closely engaging with the sector and analysing the comprehensive data that is already collected. It is not that we do not think it is necessary to analyse the data; it is more that we think committing to a formal review on the face of the Bill is unnecessary.

The points the noble Baroness made about justice delayed being justice denied are quite right. That is why we do not want to delay all this, including abolishing the Section 21 evictions that have caused so many problems. We want to do that as quickly as possible, but I want her to be assured that we believe that analysis of the impact of the Bill on the system is critical and important, and we will be doing that using the information that is already available.

[Baroness Thornhill (LD)]

I thank the Minister for giving way. Does that mean, as I take from her words, that such monitoring and review will be an ongoing and rolling process from day one?

[Baroness Taylor of Stevenage (Lab)]

That is completely correct. We need to make sure we are taking account of the impact on the system from the start. We believe that over time it will reduce the volume of cases going to the court service. As the noble Baroness, Lady Grender, pointed out, not many cases end up in the courts system, but there are some that go down that route. We will be monitoring them from the outset.

[Baroness Scott of Bybrook (Con)]

On that point, I have just gone online and it is still being quoted that there is a seven-month delay, as my noble friend Lord Northbrook said. If it becomes clear during the process leading to the implementation of the Bill that the courts cannot cope and it will have a severe impact on people’s lives—the lives of both landlords and tenants—will His Majesty’s Government be brave enough to slow down the implementation of this Bill?

[Baroness Taylor of Stevenage (Lab)]

As I hope I have already made clear, we do not want to slow down implementation. We think the reforms we are bringing forward are really important and very much overdue. We do not expect that it will have the impact the noble Baroness has just outlined, but we will continue to monitor it and we will support our friends in the courts service with whatever help they need to make sure the impact is mitigated.

I turn finally to Amendments 279 and 280, in the name of the noble and learned Lord, Lord Etherton. I thank the noble Lord for his continued engagement on the Bill, particularly on the judicial impacts. It has been incredibly valuable to me to have that input. Amendment 280 would require the Secretary of State to certify that landlord possession actions in respect of residential property are processed by the courts in no greater time, on average, than they were in the year before the first Covid-19 lockdown. In addition, Amendment 279 would delay the commencement of important reforms until this proposed assessment had been carried out.

As I have previously outlined, I recognise that landlords need a smooth and efficient process in the county court for the minority of cases where court action for possession becomes necessary. But we will not tie the implementation of these urgent reforms to an arbitrary target of court timeliness. The sector has already waited too long.

As noted, the Ministry of Justice already publishes quarterly statistics on the operation of the county court possession process, and court rules specify that possession cases requiring a hearing should be listed between four and eight weeks from the issue of the claim. If the noble Baroness, Lady Scott, says that that figure is still disputed, I am happy to get back to her on that.

Setting a target for the possession process as a gateway for the operation of other Bill provisions would not be meaningful. A key stage of the process is the application for a warrant of possession. This is dependent on the actions of the landlord and is therefore outside the control of the courts service. Where a tenant stays in a property beyond the date set out in the possession order, a landlord can choose whether to apply for a warrant immediately to enforce a possession order granted by the court, and whether to apply to transfer the case to the High Court. We will continue to work closely with the Ministry of Justice on implementing these reforms. This includes ensuring that the county court has the resources it needs to adjust to any changes in case loads, and that the relevant rules and procedures are updated. The noble Earl, Lord Kinnoull, requested a meeting. I am very happy to continue meeting on the progress of digitisation and the other interim steps that we are likely to take.

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[Baroness Taylor of Stevenage (Lab)]

I think it is best to wait until I have the detail of the Serco arrangement before we debate that. As I said, I will give noble Lords a response in writing and place a copy in the Library.

[Lord Northbrook (Con)]

I listened carefully to the Minister’s encouraging remarks on improving capacity and resources, and on the digitisation process. However, the impact assessment—if I have read it correctly—says there was no extra expenditure on this. I am not quite sure how to square the circle on that.

[Baroness Taylor of Stevenage (Lab)]

As I said, we are working very closely with our colleagues in the Ministry of Justice and the courts service. The digitisation process is already under way and is already costed, and we are looking at other impacts. If the noble Lord’s view is that they are not clearly set out in the impact statement, I will come back to noble Lords on what they may be.

[Lord Cromwell (CB)]

I just want to come back to the estimated five-year implementation period that the Minister responded to. That arose from conversations with people who have had a lifetime of professional involvement in legal processes, so I would not brush it aside too early. I have been on the sharp end of a number of these sorts of IT projects that get built. If you build anything, you always double the budget and double the time you are told it is going to take; anybody who has built anything knows that—I will not touch on R&R.

The Minister has told us a number of times that the Government are fully focused—a phrase that has been used a number of times. I do not wish to be discourteous, but it sounds like the Government are being fully optimistic, almost to the point of naivety, on this. These are probing amendments. There is a general agreement, including from the Government, that there really is a problem here that needs to be solved. There is no dispute about it being a problem. I urge that, before we get to Report, we need a crisp, specific, clear and credible statement about what exactly will be done to resource this properly, because our current court system is not a model of swiftness and efficiency, and it is hard to see how this will be magically transformed.

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[Baroness Taylor of Stevenage (Lab)]

In response to the noble Lord, Lord Cromwell, I say that I too have been involved with a number of IT projects over the years, and I understand his scepticism. However, having listened to the excellent presentation, I agree with the comments that the noble Earl, Lord Kinnoull, made about the nature of the team that came to present to us, which was outstanding in the straightforward way it presented to us both the challenges it faced and the success it had had in taking the project forward so far. We are making good progress on that project and, as the noble Baroness, Lady Scott, said, the benefit of bringing Bills before this House is that we get the outside experience that people bring. But we will see in due time whether it will move forward as quickly as we hope. I do not think that is overly optimistic—we have had a presentation from the team that is doing the work.

I understand the comments on funding, but the way that our Government have set about working across departments to deliver objectives has been incredibly productive so far. We are working very well across government, led by the team in the Cabinet Office, and I hope that means that we will not have this shunting around of costs but will all sit down and decide what we need to prioritise. It all depends on the spending review, and this would be a lot easier if we had not been left with a £22 billion black hole.

[The Earl of Kinnoull (CB)]

I am sorry to put something else to the Minister, and I am very grateful to her for the offer of a meeting. I have here the latest possession statistics, which I printed off beforehand, so I thought I would merely inform the Committee what they say: claims to order is currently eight weeks, but claims to repossessions is 25 weeks. So everyone was saying something correct, but in fact they were looking at different bits of the statistics. But, of course, claims to repossessions is what a landlord would be thinking about. You cannot start the claim until various amounts of time have passed, so actually the median 25 weeks for claims to repossessions is quite a long time. Going on from that, I turn to item 7, on regional possession claims. In fact, there are quite big differences between the regions, and there are some regions where claims are quite slow.

[Baroness Taylor of Stevenage (Lab)]

I thank the noble Earl for clarifying that point. Indeed, I was talking about the claims to order median timeliness being eight weeks. It is difficult to take measures from different places—there are lies, damned lies and statistics, as we all know—but, as I mentioned, in the longer term we expect the reforms we are introducing to reduce the volume of possession claims. That is why the monitoring that I set out in response to the amendment of the noble Baroness, Lady Thornhill, is really important, so that we can see where this is taking us. We expect that only those cases where there is a clear, well-evidenced ground for possession will be able to proceed, and that should, over time, reduce the volumes overall.

[Baroness Scott of Bybrook (Con)]

My Lords, I am grateful for the insightful contributions made during this debate and the amendments we have discussed, particularly those proposed by my noble friend Lord Young of Cookham and the noble and learned Lord, Lord Etherton. I thank my noble friend Lord Wolfson for speaking to them with such in-depth knowledge, which was much appreciated. The whole debate underscores shared concerns across the Committee about the capacity of our courts to effectively implement the Bill.

As I made clear throughout the previous days in Committee, the ambition to reform the private rented sector is commendable, yet without a robust and adequately resourced court system, these reforms risk being totally undermined. Amendments 283 and 69 in my name would create a foundational aim to ensure that the necessary infrastructure is in place before significant changes are enacted, thereby safeguarding the interests of both tenants and landlords.

The Minister remarked on the first day of Committee and has continued to say that the Government are working with the Ministry of Justice to complete a justice impact test. This assessment is intended to identify the additional burdens on the system arising from the new policies in the Bill and to ensure that the system is fully prepared for any increases in workload. This commitment is welcomed, but we need to know how long this justice impact test will take to complete. Will it be ready before the Bill progresses through Parliament? Given the significant implications for the court system, it is imperative that this assessment is thorough and timely and that the Bill is impacted only once we know the court system is ready for these changes.

The capacity of our courts is not a peripheral concern; it is central to the success of this legislation. As we have discussed, delays in the court process are not merely procedural; they have a real-world consequence for tenants and landlords alike. I urge the Minister to expediate the impact test and to ensure its findings are fully considered before any further steps are taken. I reiterate the importance of aligning the ambition of the Bill with the practical realities of our court system. The amendments before us provide a prudent approach to achieving this balance. I look forward to the Minister’s response and to continuing our discussions on how best to deliver. I beg leave to withdraw my amendment at this point.

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[Baroness Scott of Bybrook (Con)]

My Lords, I thank my noble friend Lady Coffey for bringing Amendment 70 before the Committee today. It is a thoughtful and considered probing amendment that rightly recognises the significant impact that housing stability can have on a child’s education. During the pandemic, our children and grandchildren suffered greatly. Schools were closed, youth clubs shut down and extracurricular activities ground to a halt. The disruption left many young people adrift at a crucial stage of their development, and only now are we beginning to understand the effects. It is therefore incumbent on us all to support and uplift the next generation. However, the Government must ensure that the burden does not fall disproportionately on individual landlords. It is not, and should not be, their moral obligation to serve as the final safety net for vulnerable families. That responsibility lies with us—with the state, with local authorities and with society.

Owning a property does not automatically confer great wealth. It does not equip an individual to shoulder the complex needs of a struggling family. The Government must tread carefully to ensure that their actions do not drive up costs in this sector, which fall most heavily and disproportionately on low-income families and the most vulnerable members of our society. A sustainable housing market depends on both tenant security and landlords’ confidence. This is a very tough balance to strike, but I believe that the onus is on us all to strike it.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Coffey, for her amendment, which would allow the court to grant an order for possession of a property that houses school-aged children only during school holidays, and I thank the noble Baronesses, Lady Thornhill and Lady Scott, for their comments. I understand the probing nature of the amendment and the compassion that sits behind it. However, I gently point out that at the latest count, we have 160,000 children in temporary and emergency accommodation, a situation driven by the lack of attention to the housing situation paid by her Government. Therefore, while we want to do as much as we can to support families and children, I think it takes quite a lot of front to come before this Committee with this kind of proposal when we have that terrible situation of 160,000 children in temporary and emergency accommodation. I heard this morning of a three year-old who has been homeless for his entire life—astonishing.

Anyway, I appreciate the sentiment; however, I am going to talk about the practicality of delivering it. It would likely mean that, where possession has been sought, the courts would need to check whether the property contains school-age children and whether it is the school holidays or not, before scheduling a hearing. Not only would this create additional work for the courts—we have just spent quite some time debating the pressure the courts are already under—it could cause delays for landlords in obtaining possession orders. That is an issue the Opposition have taken great interest in. For example, a landlord’s case could be next in line to be heard, but, because it is the beginning of the school summer holidays, the hearing would be delayed for six weeks.

Furthermore, although provision is made within the amendment for regulations to be made annually to define the school periods, it would be an onerous task. School holidays vary across local authority areas and sectors; they can even vary within an individual area. My grandchildren live at the same address but go to different schools and have different holidays. This would likely cause confusion and added complexity for landlords who wish to seek possession of their properties.

While it is absolutely right that tenants enjoy a greater level of security in their homes, we have said that landlords must enjoy robust grounds for possession where there is good reason for them to seek to take their property back. It would not be reasonable to add additional barriers, complexities or delays to the possession process.

Our reforms give renters much greater security and stability, so they can stay in their homes for longer, build lives and communities and avoid the risk of homelessness. That is why we are introducing the many protections for tenants, such as banning Section 21 evictions, increasing notice periods and introducing a 12-month protected period at the beginning of a tenancy during which landlords cannot evict them to move into or sell the property. However, that must be balanced with the needs of landlords, who must enjoy those robust grounds we have already spoken about. Judges already have some discretion when deciding the date on which a tenant should give up possession. Even if an outright possession order is made, pursuant to a Section 21 notice or on a mandatory ground, the date for possession can be postponed for up to six weeks if a tenant can show that this would cause exceptional hardship.

As well as it being impractical, there is also a principled argument against this amendment. Being evicted will almost always be a significant upheaval for tenants—I accept that—particularly for those with children, so I understand the intent behind it. However, it would not necessarily—as the noble Baroness, Lady Thornhill, pointed out—always be easier for parents to deal with a possession order or eviction during the school holidays. During termtime, parents may have significantly fewer caring responsibilities, particularly if their children are younger. Therefore, many parents find the school holidays a time of increased responsibility and stress. Families being evicted during school holidays may also mean having to take up that school holiday with the necessities of moving, rather than doing activities with the children. So it may make it more difficult for families, not easier. It is for these reasons, both practical and principled, that I ask for this amendment to be withdrawn.

[Baroness Coffey (Con)]

I thank the noble Baronesses for speaking to this amendment. I am slightly surprised to hear a Member of this House being accused of having some front, based on previous government policy. I recognise this is a political debate, but I am talking about children and the UN Convention on the Rights of the Child should be considered in any consideration of legislation when it comes to this.

There has also been a kind of city and urban perspective on where children go to school; there has not been a realisation of quite how far some children in the countryside have to travel. If you are moved from, say, the middle of coastal Suffolk to Lowestoft, there is no way you could continue going to your school without considerable upheaval to your parents’ lives, and indeed at great expense.

I am conscious of the limitations being put on landlords. I had hoped to be able to speak to the Minister in more detail, but I have heard what she said and will consider potentially speaking to her noble friends in the Department for Education. I beg to withdraw this amendment.

[Baroness Taylor of Stevenage (Lab)]

My apologies, I neglected to say that I am very happy to meet with the noble Baroness.

Amendment 70 withdrawn.

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[Baroness Thornhill (LD)]

My Lords, we have several groups of amendments that talk about rent, money and finances, so before commenting specifically on this amendment, I want to have a little rant regarding landlord finances. The narrative is that the majority of landlords are in a terrible financial position. What evidence do we actually have for that? It is certainly not borne out by my anecdotal evidence and could be conceived as scaremongering, because my understanding is that being a landlord is, and will remain, profitable.

The idea that, to remain sustainable, landlords must be able to pass the entirety of any increased business cost and risk on to the tenant through a rent increase is, frankly, ridiculous. There is no other business model that operates in this way, and it does not add up when we look at the sum of the data that we have. The English Private Landlord Survey said that the median income of landlords, including rental properties, is around £52,000. According to the Shelter/YouGov survey of private landlords, rental income is largely additional for landlords: 50% of landlords say that they do not rely on rental income to cover living expenses.

I note that in any investments that I have made, there is a very cleverly worded phrase at the bottom: “Investments can go down as well as up”—except if you are a landlord, it would seem; even more so as you are left with a capital asset that, in this country, largely increases in value. That is my rant. If the noble Baroness, Lady Jones of Moulsecoomb, were in her place, she would probably be quite proud of me for it.

I turn to the amendments in this group tabled by the noble Baroness, Lady Scott, regarding notice periods for rent increases. When the Bill was introduced in the Commons it proposed a standard one-month period. The Government’s decision to extend this to two months represents a welcome improvement that better balances the interests of landlords and tenants. This evolution demonstrates a willingness to listen and to respond to concerns about tenant security, for which I sincerely thank the Minister and her team.

Amendment 73 seeks to revert the notice period to just one month and Amendment 81 questions the differential treatment between standard and low-cost tenancies. These amendments, particularly Amendment 81, raise fair questions, which I too would like an answer to, as I have not been able to find a reason for that differentiation. A two-month notice period for rent increases represents a reasonable middle ground that acknowledges landlords’ legitimate need to adjust rents while giving tenants adequate time to prepare financially.

For many working families, a rent increase actually requires careful budgeting. I have not got the figures to hand but we know that a significant number—into the many thousands—of moves and evictions last year were due to the inability of the tenant to pay the new rent rise. One month is simply inefficient to work a decision to relocate and make those adjustments.

I commend the Government for finding a balanced approach. This middle ground solution may not be perfect from any single perspective, but it demonstrates what good legislation can achieve when all voices are genuinely heard during the parliamentary process. With these factors in mind, I look forward to the Minister’s response.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Scott, for her amendments relating to notice periods for rent increases, and the noble Lord, Lord Jamieson, for moving Amendment 72.

I thank the noble Lord, Lord Marlesford, for his comments about the balance between landlord and tenant. We are aiming to get that balance in this Bill. He is right to point to the ratio of rent to income, but that is why tenants need longer to consider the impact on their family budget. Increasingly, the proportion of income that is taken up by rent is going up and up, particularly in certain parts of the country, making it very difficult for tenants to manage increases at short notice and without adequate notice to plan their family budgets.

The noble Lord, Lord Jamieson, talked about consultation with landlords on the impact of rent increases. Because of a question during the debate on a previous day, I undertook to give a written response on the consultation that has been carried out before and during the course of this Bill. I will provide that response in writing to noble Lords; it is being prepared at the moment, and I will get back to them with a summary of that.

I thank the noble Baroness, Lady Thornhill, for her comments. She is quite right to refer to issues of rental income and capital assets. As I have said many times, we must make this fair for everybody, and make sure that everybody gets what they want. Landlords want a tenant who will look after the property and pay their rent, and tenants want a landlord who will make sure the property is available, looked after and in good condition—that is what we are all after.

Amendment 72 would reduce the amount of notice of a rent increase that a landlord will have to give a tenant from two months to a period equal to a rental period. For example, where the rent is paid monthly, this would reduce the notice period from two months to one month. I appreciate, as the noble Lord, Lord Jamieson, said, that these are probing amendments.

Together with Amendment 72, Amendment 74 would remove the requirement for landlords to serve a rent increase notice two months before the rent increase comes into effect. We do not agree with this position. The Renters’ Rights Bill will deliver our manifesto commitment to empower private rented sector tenants to challenge unreasonable rent increases. This includes by requiring landlords to give two months’ notice of a change, rather than one. This was, as the noble Baroness, Lady Thornhill, pointed out, the result of debates in the other place and of lobbying from a number of groups that have been speaking to us. This will ensure that tenants who may struggle to pay a rent increase will have time to consider their options, seek advice and, where necessary, take steps to challenge the rent increase at a tribunal.

Receiving a rent increase can be distressing for many tenants. We want to give tenants time to reassess their budgets and consider their options. It is unfortunate that the noble Baroness, Lady Scott, and the noble Lord, Lord Jamieson, do not agree that tenants should have this protection.

Amendment 73 seeks to decrease in the Bill the notice period for a landlord to serve a rent increase from two months to one month. Similarly to Amendment 72, we do not agree with this position. A two-month notice period will give tenants time to review their budgets before the rent increase takes effect and to take advice, if necessary or appropriate, from advice agencies such as Citizens Advice.

It is regrettable that the Opposition have tabled this amendment, because they supported this position on the matter. Their original White Paper, in 2022, promised to

“increase the minimum notice landlords must provide of any change in rent to two months”.

It is disappointing that they have changed their minds on this, and now wish for tenants to have less time to consider their options when receiving a rent increase.

Amendment 81 seeks to increase from one month to two months the amount of notice of a rent increase that landlords of relevant low-cost tenancies need to provide. Social landlords that fall under a new definition of a relevant low-cost tenancy in the Bill will be exempted from most of the changes the Bill makes to rent increases. This means that landlords of relevant low-cost tenancies will be permitted to increase the rent via the Section 13 process at any point in the first 52 weeks of a tenancy, and then once every 52 weeks thereafter, and must give at least one month’s notice. The new amount may take effect after this notice period if it is not challenged by the tenant in the tribunal. These landlords will still be able to use review clauses within a tenancy to increase the rent, as they can at present.

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[Lord Carter of Haslemere (CB)]

My Lords, I support Amendment 106 from the noble Baroness, Lady Thornhill. I declare an interest as a former landlord.

Clause 8 of the Bill amends Section 14 of the 1988 Act to allow any tenant to challenge a rent rise in the First-tier Tribunal. It will be free of charge. No tribunal ruling will be able to increase the rent proposed by the landlord. By challenging the rent rise, as we have heard, the tenant will automatically delay any rent rise by several months, however modest and justified it may be.

This will obviously create an incentive for tenants to challenge single rent rises, regardless of the merits, and without any risk to them doing so. As we have heard, if their appeal is unsuccessful, they will then be liable to pay the increase in rent only from the date of the tribunal’s determination. That is incredibly unfair on landlords, for the reasons the noble Lord, Lord Young, and my noble friends Lord Carrington and Lord Cromwell have given. What have tenants got to lose? My focus is to express strong support for seeking to ensure that the tribunal has adequate resources to cope with the likely increase in the number of rent rise challenges it will face. Okay, not 100% of tenants are going to challenge rent rises, but there will be a significant increase unless changes are made to the Bill to remove the incentive to do so, because they have nothing to lose.

Given that the tenant will hold all the aces in the pack, the tribunal floodgates are likely to be, or are at risk of being, opened. Without more tribunal resources, this will greatly increase delays and create even more incentives to challenge rent rises. The Government need to get this right or the system will grind to a halt, landlords will leave the sector in droves and tenants will be at risk of homelessness. As I said at Second Reading, there needs to be balance in the very welcome improvements that the Bill makes as a whole. The relationship between landlord and tenant has to be a two-way street to maximise the effectiveness of the Bill.

As this amendment proposes, there needs to be a proper consultation, including with the senior judiciary, before these provisions are commenced, to ensure that the tribunal system is adequately resourced to cope with the increased demand—what on earth could there be against that? This is such a sensible and unobjectionable amendment, and I am looking forward to seeing it accepted by the Minister and appearing in the next proof of the Bill.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baronesses, Lady Scott of Bybrook, Lady Thornhill, Lady Wolf of Dulwich and Lady Jones of Moulsecoomb, and the noble Lord, Lord Carrington, as well as my noble friends Lady Warwick of Undercliffe and Lord Hacking, for their amendments on rent increases, and all noble Lords who have spoken, including the noble Lords, Lord Cromwell, Lord Howard, Lord Young, Lord Marlesford and Lord Carter of Haslemere, and my noble friend Lady Kennedy of Cradley.

I will start with the comments from the noble Lord, Lord Marlesford, on the challenge to rent levels. He asked whether that concerned a permanent change to the rent. When a tenant challenges their rent, it will be that challenge that is decided upon by the tribunal. Each time the Section 13 notice is issued, presumably the tenant will be able to go back again and challenge that rent. It is unlikely that they will do that, because if a landlord gets taken through the tribunal for an increase in rent, he or she is unlikely to go back and do that again.

The point the noble Lord made about the lack of affordability in housing sits at the heart of the Bill, to some extent. However, this Bill is only part of the Government’s response to the housing market’s lack of affordability, and not the totality of it. I point to the increase in supply that we are trying to drive forward and the reforms we have made to planning, which will, I hope, increase the supply of housing. There is also the £2 billion we are investing in social and affordable housing, which I genuinely think will help to change things, and the £633 million we have put into relieving homelessness, which I hope will help.

The noble Baroness, Lady Thornhill, referred to the cost of temporary and emergency accommodation. Not only is temporary and emergency accommodation devastating for families—it is just awful for them, and we have heard so many terrible stories about that—it has seriously exacerbated the dire financial situation that our councils find themselves in, which is not helped by profiteering. Of course, not all landlords do that, but there is no doubt that some profiteering is going on, as has been reported in the press today.

We have a significant number of amendments in this group; in the interests of time, I will attempt to address each of them thematically. First, Amendment 75, tabled by the noble Baroness, Lady Scott, would allow landlords and tenants to agree a higher rent than the tribunal’s determination. We have been clear that, after the Bill’s implementation, the only way that parties will be able to agree a higher rent is via the Section 13 process.

I am not sure why the noble Baroness, Lady Scott, feels that a tenant would object to and challenge a rent increase that they had agreed to. If a tenant and a landlord come to an agreement on a rent increase, presumably there would be no need for the tenant to challenge that at the tribunal. If the rent is challenged, then the tribunal can determine it. This amendment would leave a gaping loophole for unscrupulous landlords to force tenants to accept a higher rent, even after they have challenged it at the tribunal. Clearly, no tenant would agree to this unless they were under pressure, and it is for that reason that I ask the noble Baroness, Lady Scott, to withdraw her amendment.

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[Lord Cromwell (CB)]

Very briefly, if I may, I rather like this idea—it is great. In the Government’s consideration, will they include where the grant covers only part of the cost and how that can be treated?

[Baroness Taylor of Stevenage (Lab)]

The noble Lord, Lord Cromwell, makes a very relevant point—we will have a look at both things.

Although I appreciate the intention behind Amendment 90, I have concerns about whether it would be practical to attribute a portion of the market rent to energy improvements. We need to think about how we might do this. I hope that the alternative approaches I have outlined and the steps we have taken to allow tenants to challenge egregious rents, for whatever reason the increase has been put on, provide some reassurance. I therefore respectfully ask the noble Baroness, Lady Jones, not to press the amendment.

Amendments 91, 94, 96, 97, 98, 99, 101 and 104 all deal with the backdating of rent increases. I do not agree that tenants should be forced to pay backdated rent. To ensure that tenants are not unexpectedly thrown into debt that could cause further difficulty, the Bill provides that the new rent will apply from the date the tribunal directs, not earlier than the date of determination. We are clear that tenants should submit an application to the tribunal only where they believe that a rent increase is above market rates, and all parties should communicate about the level of rent increases that would be sustainable.

One noble Lord mentioned 1.6 million tenants taking landlords to court. I find that unlikely, to say the least, but we would quickly know. I have already undertaken to noble Lords that we will monitor this very carefully. If that did start to happen, we would certainly know that it was happening and would deal with it immediately. Allowing the backdating of rents risks disadvantaging the most vulnerable tenants—those who may forego challenging a rent increase that is designed purely to force them out of their home.

I turn briefly to each amendment in turn. My noble friend Lord Hacking has spoken to his Amendments 91, 94, and 97. Amendment 91 aims to backdate a rent increase to the date specified in the Section 13 notice. Amendment 94 seeks to backdate a rent increase where the tenant has challenged the relevant notice at tribunal. Amendment 97 is a consequential amendment linked to Amendment 94, which aims to ensure that, where a tenant challenges a rent increase notice at tribunal, any rent increase determined by the tribunal will be backdated to the date on the Section 13 notice. I have already set out why the Government do not agree that tenants should be forced to pay backdated rent. I therefore ask my noble friend not to press these three amendments.

The noble Lord, Lord Young, set out the process as it is now. If it really is as straightforward and simple as he said—I am not arguing with him, and I am sure he has been as diligent as he always is in looking up the facts—surely we would already be swamped with tenants appealing their rent increases, and that is not the case.

[Lord Young of Cookham (Con)]

The key difference is that it is backdated at the moment. The Bill changes that, which provides the incentive that is not there at the moment.

[Baroness Taylor of Stevenage (Lab)]

I understand what the noble Lord is saying, but putting a backdated rent increase burden on people who are challenging the rent because they cannot afford it in the first place would just exacerbate the problem, rather than make the proper ability to challenge their rent increase available and accessible to them, which is part of the aim of the Bill.

[Lord Carter of Haslemere (CB)]

If you take a civil case to the court and you win your appeal, the appeal court grants you your rights from the date they arose. Your rights are always backdated to the date the rights arose, so this is a dramatic departure from normal court procedure.

[Baroness Taylor of Stevenage (Lab)]

I accept that it is a dramatic departure, but it is done for a good purpose. We put the provision in the Bill to prevent tenants being penalised for challenging their rent at tribunal by having a backdated increase.

[Lord Cromwell (CB)]

Is the Minister saying that a tribunal that sets a rent at a level which it considers to be right is setting a penal level of rent? She is saying that tenants would be penalised if rent is backdated to the date when it should have occurred. The implication, therefore, is that the tribunal is setting a penal rent. I cannot think that that is what is intended.

[Baroness Taylor of Stevenage (Lab)]

I am not saying that; I am saying that the penalty for the person challenging their rent would be in the debt that accrued from the backdating. That is the point I was trying to make.

Amendment 97 is a consequential amendment linked to Amendment 94 which aims to ensure that, where a tenant challenges a rent increase notice at the tribunal, any rent increase determined by the tribunal would be backdated to the date on a Section 13 notice. I have already set out why the Government do not agree tenants should be forced to pay backdated rent.

Amendments 96 and 98, in the name of the noble Lord, Lord Carrington, should be considered in the light of his Amendment 103. Amendment 96 would allow a rent increase to be backdated to the date of the notice. It would, however, limit this to cases where the tribunal has determined that the rent increase proposed by the landlord is the same as or lower than the market rate.

Amendment 98 would similarly change when the rent increases apply after the tribunal determines a rent. It would mean that, if the tribunal finds that a landlord’s proposed rent is lower than the market rate, the rent increase would take effect from the date the landlord originally intended. However, where a landlord has proposed a rent above the open market rate, it would apply from a date on or after the date of the tribunal hearing. I understand the noble Lord’s concerns about the potential for the courts to be overwhelmed. We have had extensive discussions on this capacity issue.

I believe I answered his points around the ECHR in response to the noble Lord, Lord Pannick, last week, but I am happy to take that back to the department’s lawyers again. I have also responded previously to the noble Lord’s points about the impact on build-to-rent investment. The Government do not agree that tenants should be forced to pay backdated rent.

I have more amendments to get through, but I see that I am out of time. If noble Lords are happy for me to carry on, I will.

Amendment 99, also tabled by the noble Lord, Lord Carrington, seeks to backdate a rent increase to the date of the notice. It provides that tenants may either pay the backdated rent in one payment or in 12 equal instalments. Amendment 104 is consequential to Amendment 99 and seeks to define the terms “the uplifted rent” and “the rent difference”. Amendment 101, tabled by my noble friend Lord Hacking, similarly proposes that tenants pay a backdated rent increase in equal instalments for a period of up to six months after the date of the tribunal’s determination. I am sympathetic to the underlying premise of these amendments, which is that tenants might face financial problems in paying a rent increase approved by the tribunal. Although these amendments seek to smooth out the impact of an increase, it is much better to remove the cause of the problem, which our current policy achieves by ruling out backdating in the first place. I therefore ask noble Lords not to press these amendments.

Amendment 100, tabled by my noble friend Lord Hacking, seeks to remove the tribunal’s ability to delay a rent increase for up to two months after the date of determination in cases of undue hardship. The Government strongly believe that being able to defer rent increases for a short period is a necessary protection for renters. This will give them time to adjust and consider their options, while ensuring that the landlord can achieve market rent. I therefore ask my noble friend not to press his amendment.

Finally—noble Lords will be pleased to hear that—Amendment 106, tabled by the noble Baroness, Lady Thornhill, would require the Secretary of State to carry out a consultation on the resources available to the First-tier Tribunal (Property Chamber). My department has worked closely with His Majesty’s Courts & Tribunals Service and the Ministry of Justice throughout the formulation of this Bill. This collaboration has carefully considered implementation and resourcing issues. Our shared aim is that the tribunals are well equipped to implement our reforms effectively, as I have repeated a number of times during our debates. Work is progressing in the First-tier Tribunal (Property Chamber) to increase capacity, as well as to review resource and working practices. The noble Baroness’s amendment understandably reflects the need to ensure the tribunals are equipped to implement these reforms, but the proposed consultation would not provide any new information beyond the work that is already under way. I therefore respectfully ask the noble Baroness not to press this amendment.

[Baroness Scott of Bybrook (Con)]

My Lords, as expected, this has been a technical and densely packed group of amendments, with numerous contributions from noble Lords who clearly possess deep knowledge of this Bill. I have found their insights invaluable, and I trust the Government will reflect seriously on the points raised today.

I thank the noble Baroness, Lady Warwick of Undercliffe, for rightly seeking clarification on the mechanism available to social housing providers to increase rents. Amendments 80, 80A, 82 and 83 are thoughtful probing amendments and we thank the noble Baroness for bringing these to the attention of everyone in the Committee today. This is an important issue for both social housing providers and for tenants living in social housing. Clear rules and understandable mechanisms build trust and transparency. Furthermore, a standardised approach, underpinned by clear and consistent rules, ensures confidence in the process that governs rent and tenancy management. The Government have a duty to communicate these mechanisms, not only to this House but to those forced to respond to this incoming legislation. In fact, I would argue that the latter is much more important. As we have repeatedly noted throughout Committee, this legislation is technical and detailed, and so the Minister has an obligation to clarify. I trust she will welcome any further amendments brought forward with the purpose of testing and probing the Government’s rationale and decision-making process.

I now turn to Amendment 87, tabled by the noble Baroness, Lady Wolf of Dulwich. Any amendment brought to the attention of this Committee which seeks to alleviate the pressures on the tribunal process must be considered by the Government. This is an important area, and the noble Baroness should be commended for putting forward ideas to help filter out appeals which simply do not have any prospect of success. Prolonged uncertainty is not good for the landlord or the tenant. Delays in resolving disputes will keep both parties up at night and add to the pressures of everyday life. Additionally, backlogs will reduce confidence in the system and many will lose faith with that service as a legitimate protector of their interests. This is not an exhaustive description of all the issues arising from an overburdened system, but it highlights the serious risks we face if these concerns are not addressed.

The noble Baroness, Lady Thornhill, rightly highlighted the critical issue of resourcing within the tribunal system. This is a thoughtful amendment which clearly commands support. Ensuring that the tribunal system is adequately resourced is vital. The Secretary of State must take responsibility for ensuring that their own policies do not undermine or overwhelm the very system intended to deliver justice and security for tenants and landlords alike. My noble friend Lord Howard of Rising, among many others, spoke with his usual vigour and clarity on this issue. On many issues in Committee he has shown his understanding that it is only by striking the right balance in this legislation—I will say it again—that we can we hope to achieve an efficient and effective rental market for the future.

Amendment 88, tabled by the noble Lord, Lord Hacking, seeks to reduce the backlog by adding a drawback or consequence of taking a case to tribunal if unsuccessful. I recognise the determination of the noble Lord to take the pressure off the tribunal system.

Amendment 90, tabled by the noble Baroness, Lady Jones of Moulsecoomb, raises an interesting probing issue in relation to government grants. I was interested to hear that the Minister is going to look into this further. I welcome that and will be interested in what she comes forward with.

I turn to Amendments 91, 94, 97 and 100, tabled by the noble Lord, Lord Hacking. The Committee is right to consider amendments that tighten up and clarify the timing of when a rent increase or notice becomes effective. The Committee is also right to explore options that ensure a predictable timeline for this process, and I thank the noble Lord, Lord Hacking, for tabling these amendments.

Lastly, I briefly allude to the contribution of the noble Lord, Lord Carrington. Amendment 104 highlights the importance of clear, conscious definitions within law. Definitions provide certainty and consistency in application, and every Bill should have well-defined terms. Our courts rely on this, our public bodies rely on it and those who are expected to follow the law deserve it. I hope that the Minister agrees with this principle.

Next, Amendment 99, tabled by the noble Lord, Lord Carrington, is a useful probe into rent tribunals. To remind the Committee, this amendment would ensure that, if a rent challenge were unsuccessful, the reviewed rent would apply from the date that the increase was due to take effect, rather than the end of the legal process. We must consider the incentives and signals that the legislation sends to tenants, but additionally we must seek to protect landlords from financial losses caused by legal delays firmly out of their own control. I listened to what the Minister said on this, but we will be bringing this back for further discussion in the future. Across the Committee, we must consider proposals that ensure that tenants are not hit with sudden, unaffordable lump sums, but also ensure that landlords are properly compensated for a lawful rent increase. This amendment would bring this consideration front and centre, and I thank the noble Lord, Lord Carrington, for speaking to it today.

Briefly, Amendments 96, 98 and 103, tabled by the noble Lord, Lord Carrington, are interesting and quite thoughtful proposals. Where it is possible to do so fairly, rent should indeed be determined at the open market rate. Ensuring that rents reflect genuine market conditions helps to maintain balance and fairness in the market, for both tenants and landlords.

This was a packed and detailed group, with numerous proposals from across the Committee. Not only did I find it a fascinating debate, but once again it highlighted noble Lords’ understanding of the key issues facing the sector. I hope the Minister is listening carefully to the knowledge and expertise across this Chamber and can therefore help the Government make this a successful Bill at the end of the process. We have to ensure that we can enhance the availability of houses, alleviate the burden of unaffordable rents and really deliver security for tenants. Right across the Committee, we agree that renters need a better deal, but I fear that this group is yet another part of the story and, as it stands, the Bill is not quite the answer. However, at this time, I wish to withdraw my amendment.

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[Lord Jamieson (Con)]

My Lords, this has been a good debate. Rental costs are a serious problem, and we know that the high cost of housing, coupled with other pressures, poses real challenges for hard-working families across the UK. The Ministry of Housing, Communities and Local Government’s English Housing Survey 2022-23 found approximately 1.2 million private rented households reporting it difficult to pay their rent. That represented 29% of private rented households when the survey was conducted. When nearly a third of tenants find it difficult to pay their rent, there is clearly a problem. When we were in government, we took decisive action on the cost pressures faced by hard-working families across the country, and we zeroed in on the most important issue of all for households: inflation. By the time this Government took office, inflation was back below target. However, following the Chancellor’s Budget last year, inflation is, concerningly, now above target.

It is against that backdrop of cost pressures that these amendments have been tabled, and while we do not agree that rent controls are the solution to the problem, we do, however, share the concerns many noble Lords have raised about the cost of renting. As the noble Lord, Lord Thurlow, and the noble Earl, Lord Lytton, raised in the debate, supply is a fundamental part of the issue. We believe an adequate supply of rented accommodation is the way to address the cost of renting but, as we have warned in previous debates, the Bill risks driving landlords out of the sector and not attracting some of those institutional investors that could make a real difference if the quanta were increased. Decreasing the supply of rented accommodation at a time when demand is already high and rising will lead only to higher rents.

We also know that where rent controls have been tried, they have failed; and even the Minister has previously raised in Committee the impact of rent controls in Scotland, although, to be clear, we believe that rent controls are just part of the problem in Scotland. The SNP’s failed experiment with unbalanced renters’ reforms and rent controls in Scotland is a case worth dwelling on; there we have seen stifled supply and higher rents. That said, the Government must address the serious concerns raised by noble Lords across the Committee and listen to those tenants who are struggling with the cost of renting.

Last month, the Lord Chancellor warned that despite further court sitting days being announced by the Ministry of Justice, the sad reality is that the backlog of cases will still go up. It is right that we ask questions about the additional burdens that Clause 8 will place on our already overloaded courts and tribunal system. Can the Minister confirm what additional resources will be provided to the appropriate tribunals, so they have the means to cope with the increased number of cases brought before them under Clause 8?

Amendments 76 and 77 seek to introduce a cap on the increases in rent that can be brought forward by landlords, and we will listen carefully to the Minister’s response to those proposals. I know that the Deputy Prime Minister, the Secretary of State, has put her opposition to rent controls on the record, saying that they

“restrict housing supply, which does not help anyone”.—[Official Report, Commons, 9/10/24; col. 335.]

We agree with the Government that restricting housing supply does not help anyone. Ministers should listen carefully to the concerns we have raised throughout the debates on the Bill.

Amendment 275, in the name of the noble Baroness, Lady Jones of Moulsecoomb, would deliver an entirely separate body to set rules for rent increases. Leaving aside the fact that the noble Baroness’s amendment fails to provide parliamentary oversight, or that there are no clear objectives for the set of rules set by the independent living rent body which she is seeking to establish, and the lack of clarity on the governance of the proposed body, we do not feel that establishing what is, in effect, an additional regulator is the right approach. Our rental sector is already subject to heavy regulation and the Bill places additional burdens on the sector. As the noble Lord, Lord Young, said, we do not wish to strangle the market. For that reason, I am afraid we cannot support this even more onerous measure which the noble Baroness is proposing.

Amendments 79, 84 and 85, in the name of the noble Lord, Lord Best, are perhaps the most pragmatic of the amendments in this group, and I understand why he has tabled them. We will listen carefully to the Government’s response to his amendments and continue to work on this part of the Bill before we proceed to Report. It seems clear to us that now is not the time to impose additional burdens on our tribunals—when, by the Government’s own admission, backlogs are already rising. Ministers need to take a long, hard look at this part of the Bill, if we are to deliver a Bill that strikes the right balance on the rights of tenants and landlords without adding to the growing backlog and without discouraging investment in the sector. There are serious questions for Ministers to answer in all these areas, and we look forward to hearing the Minister’s reply to this group.

[Baroness Taylor of Stevenage (Lab)]

I am very grateful to all noble Lords. I agree that this is a very important group, and I was sorry to see other noble Lords leaving the Chamber, because this was a very important discussion.

I thank the noble Baronesses, Lady Janke and Lady Jones, and the noble Lords, Lord Hacking and Lord Best, for their amendments, and thank all noble Lords who have spoken: the noble Lords, Lord Thurlow, Lord Marlesford, Lord Jamieson and Lord Young, the noble Baroness, Lady Grender, and the noble Earl, Lord Lytton, to whose letter I have replied. It is in the post, so I have signed it off, and the noble Earl should receive it shortly.

As I have stated previously, and I am going to restate it, and the Deputy Prime Minister, as the noble Lord, Lord Jamieson, said, has been very clear about this, our Government do not support rent controls. We have considered rent regulation within the broader context of the private rented sector, and we do not believe that limiting rents in this way leads to positive outcomes. Evidence suggests that so-called first- and second-generation rent controls may disadvantage tenants as well as landlords. They can have a long-term negative impact on housing supply and discourage investment in the sector, leading to declining property standards. Subtler forms of rent control—second- or third-generation rent controls—have differential impacts on different groups, typically benefiting settled and better-off tenants more than those looking for a home or needing to move.

Academic studies from countries such as Sweden and Germany, and from places such as San Francisco and Ontario, show that rent controls can limit supply, discourage investment and lead to declining property standards. The noble Earl, Lord Lytton, referred to early attempts at rent controls and their impact on supply. We simply think that the answer to this is supply generally, and supply of social and affordable housing in particular, rather than putting controls on rents.

The noble Lord, Lord Thurlow, was right to say that my interactions with the financial sector indicate that institutional finance is available for rental property. The noble Lord, Lord Carrington, has spoken about build to rent very powerfully; the finance is there for that. That has the potential to drive the supply that will stabilise rents over time. That is why we do not want to introduce rent controls.

I will start with my noble friend Lord Hacking’s amendments—perhaps he could ask the two tenants to whom he referred to come up with a solution to the Arctic temperature in your Lordships’ Chamber this afternoon. The weather forecasts of a heatwave have been grossly exaggerated in this part of London. On Amendment 76, the Bill as presented to the Committee today seeks to remove the ability of landlords to place rent review clauses in tenancy agreements. The effect of the amendment tabled by my noble friend would be to reintroduce into the Bill a measure allowing landlords to make use of such a clause. To be specific, Amendment 76 would amend Clause 7 to allow for rent review clauses linking rent increases to inflation to be included in tenancy agreements so long as such an increase fell between 3% and 8%. Rent increases made under a rent review clause cannot be challenged at the tribunal. As such, the approach put forward by my noble friend Lord Hacking risks a significant reduction in the protection for tenants, who may not understand the effects of the rent review clause and could have limited power to negotiate these even if clearly articulated. It is likely that the use of such clauses would become standard, in effect taking us back to the status quo, where the protection the tribunal offers is available only to a small number of tenancies.

Furthermore, if the use of standardised rent review clauses became commonplace, there is a risk that this would, in effect, result in a system of de facto rent control. I will not repeat again our position on rent control, but it is worth while, if the Committee will allow me, to elaborate further on why any attempt to use a single metric for calculating rent increases risks unintended consequences. The danger of such an approach is that arbitrary increases prescribed in tenancy agreements could artificially inflate the rent for some locations. For example, in Leeds, rents increased by 2% between January 2024 and January 2025, whereas in Oxford, rents increased by 12% in the same period. CPI for this 12-month period was 3%. The measures contained within the amendment would therefore likely have led to rent increases in Leeds above the market rate, to the detriment of tenants there, and the controlling of rents in Oxford, with all the associated wider issues which we have already discussed. Therefore, I am sure my noble friend can understand why the Government cannot accept an amendment which would remove the right of tenants to appeal rent increases above market rate, risk some tenants being trapped in above-market-rate rent rises, and risk the implementation of de facto rent controls.

Turning to Amendments 79, 84 and 85, I join others in commending the noble Lord, Lord Best, for the clarity of his explanation and for all the work he has done as chair of the Affordable Housing Commission. This is vital work, and I sincerely understand the motivation behind his amendments: that these would limit annual rent increases during the first four years of a tenancy to a percentage calculated by reference to CPI or median national earnings over a three-year period—the noble Lord articulated his amendments much clearly than I could. If either of those things happened, a challenge to the tribunal by the tenant would not be possible.

The first of the amendments from the noble Lord, Lord Best, Amendment 79, would introduce measures into Clause 7 of the Bill which, as I have just set out, would separate the setting of rents from the market rate. As such, the amendment would introduce a form of rent control, and I have already explained our position in the Government towards rent control. The regulation of rents in the form proposed by the noble Lord could have a long-term negative impact on housing supply, discourage investment and lead to declining property standards.

In fact, the introduction of an in-tenancy rent control would create the risk of tenants in this country experiencing what has been seen in Ontario in Canada, where a similar form of regulation has limited the amount by which rents could increase each year for existing tenancies. For example, rental price growth in 2023 was capped at 2.5%, based on the Ontario consumer price index. Analysis suggests that the result of this measure has been higher rents for new tenants, with the impact felt by more mobile groups such as younger people, who are often new arrivals to the rental market. There is also evidence from Ontario that landlords have sought to evict tenants so that controlled rents can be reset at the market level. The risk, therefore, of causing unintended harm to tenants as well as landlords is too large for our Government to accept, even in an amendment as well-intentioned, as I know it is, as that put forward today by the noble Lord, Lord Best. Instead, as the Committee is already aware, our approach is to allow landlords to increase rents annually to the market rate, which represents a strengthening of rent regulation in the broader context of the entire system, including security of tenure, better enforcement and quality standards.

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[Baroness Thornhill (LD)]

I had thought that there would be a few more speakers than that, but hey.

I wish I could be half as certain about what is going to happen in the future as some noble Lords here—they must have a crystal ball hidden somewhere. I feel this Bill is almost an act of faith. It is quite obvious that we believe that it is going to do good things and that Armageddon will not happen. However, the noble Baroness, Lady Scott, argued her case very well and sincerely, and likewise she believes that. At the moment, neither side really knows what is going to happen. To use the cliché: only time will tell.

The problem with so many amendments being regrouped is that we are into groundhog day, so I will be brief. As previously stated, we do not support amendments that would disincentivise tenants challenging rent rises and feel that most of these amendments fall into that category. The Bill is about a power balance between the tenant and the landlord, and is a genuine attempt to redress that balance. A lot of the amendments and statements made by some noble Lords want to maintain the status quo; for us on these Benches, that is an imbalance. We are just going to have to disagree about that.

The noble Baroness referred to the realities of the housing market. Our interpretation is that landlords can charge whatever they want—whatever the market will sustain—and we do not believe that that is right. In doing so, I genuinely believe we are creating an underclass of people who will never be able to fit into the private rented sector. That is perhaps an argument for another day.

The Minister has perhaps already answered Amendment 105, but I am quite happy to hear it again, given that I agree with the noble Baroness that such a review is important and necessary.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Scott, for her amendments on rent regulation. I thank the noble Lord, Lord Howard, and the noble Baroness, Lady Thornhill, for their comments.

As I set out earlier, the Bill will empower private rented sector tenants to challenge unreasonable rent amounts. This is a central aim of the Government’s reform agenda and reflects our manifesto commitment. The tribunal will not be able to increase rent beyond what the landlord initially proposed. This will prevent unscrupulous landlords—let us face it, most of them are good, but there are some unscrupulous ones—using rent increases as a back door means of eviction, while ensuring rents can be increased to reflect market rates.

We are clear that tenants should submit an application to the tribunal only where they believe a rent increase is above market rates. In the first instance, we strongly encourage landlords and tenants to communicate early about what adjustments to rent are sustainable for both parties. We need to think about possible triage arrangements if there is no agreement between them.

We anticipate that our reforms will lead to some increases in cases, but, as I have already stated, we are working closely with the judiciary to ensure the tribunal has the capacity to deal with cases. In the First-tier Tribunal (Property Chamber), work is progressing to increase capacity, as well as on reviewing resourcing and working practices in readiness for any increase in demand. I am not sure if it will be 1 million applications, as the noble Lord, Lord Howard, said, but we anticipate that there will be some increase initially, until the way that this works drives down demand in the future—which I think it will. This is part of our wider work to make sure the justice system is prepared for the changes to case loads and procedures which will be required for our reforms.

As now, tenants will be able to challenge the rent payable in the first six months of a tenancy if it is above market rate at the First-tier Tribunal. The tribunal can determine the open market rent only to be lower than or the same as the tenancy rent itself. The tribunal will not be able to increase the rent above the amount originally proposed by the landlord. We see this as a rebalancing mechanism, as the noble Baroness, Lady Thornhill, said.

Amendment 92 seeks to allow the tribunal to determine the open market rent to be higher than that originally proposed by the landlord. We believe that limiting the tribunal to determine a rent to be either the same as the landlord themselves proposes or an amount lower than this is fair to both parties. If landlords have agreed a rent that they consider to be acceptable at the beginning of the tenancy, they should have no fear of a challenge at tribunal.

I turn to Amendment 93. This Bill enables a tenant during the first six months of a tenancy to challenge the rent payable. It is an important provision that should stop a minority of unscrupulous landlords exploiting tenants desperate to find a new home. It strengthens our ban on rental bidding, ensuring that any landlords who seek to charge over the odds can be challenged. When a tenant challenges their rent, the Bill states that the start date of the new rent determined by the tribunal

“must not be earlier than the date of the application”.

This reflects Section 22 of the Housing Act 1988, where a similar provision already exists to allow backdating of a determination where a tenant has challenged an excessive rent.

Amendment 93 would prevent a tribunal backdating the determination of the new rent payable to the date of the tenant’s application. It would mean that the new rent could take effect only from the date of the tribunal’s determination. I understand that the purpose of this is to ensure that the landlord will not have to repay the difference in rents back to the tenant. The Government encourage landlords and tenants to communicate early about what rents are sustainable for both parties. The Bill levels the playing field to enable a more equitable discussion about levels of rent before anything comes to the tribunal. To be clear, the aim of this is to prevent as many cases as possible ending up in court action.

In our view, the noble Baroness’s amendment would limit the ability of tenants in the first six months of an above-market tenancy to get justice for the period that the case is in the courts. It would also increase the risk that landlords would seek to exploit desperate tenants by extracting above-market rents. I am really concerned about that, because one of the key principles of the Bill is to stop that happening.

[Lord Howard of Rising (Con)]

Perhaps the Minister can help me: if you can never put the rent above market rates, how does it ever change? You can never put it up—you can only ever put it down—so it can never go up and will only ever drop. That seems a bit of a conundrum.

[Baroness Taylor of Stevenage (Lab)]

No—you can put the rent up to market rates.

[Lord Howard of Rising (Con)]

That is the point. If you put it up to market rates, it can never go above market rates, so market rates can never increase. They will always stay static, and in 10 years they will be exactly the same.

[Baroness Taylor of Stevenage (Lab)]

Market rates are usually driven by demand, not by what happens in the courts, so I do not think that will be the case.

On Amendment 95, for too long tenants have been afraid to challenge an unreasonable rent increase for the fear that the rent can be raised beyond what the landlord has asked for. The Bill will reform how the tribunal works to ensure that tenants feel confident in challenging poor practice and can enforce their rights. The tribunal will not be able to increase rent beyond what the landlord initially proposed. That strikes the right balance between empowering tenants to challenge unreasonable rent increases and ensuring that landlords can increase to the market rent.

Amendment 95 would require the tribunal to backdate a rent increase to the date of the rent increase notice, except where this is likely to cause undue hardship to the tenant. This amendment would punish the most vulnerable tenants who may already be struggling financially. Therefore, to ensure tenants are not unexpectedly thrust into debt, it is right that the new rent amount would take effect no earlier than the date of the tribunal determination. This will give tenants the time to prepare for any changes to their rent and seek independent advice on how best to manage their finances. For the sake of clarity, I repeat that the tenant will continue to pay the rent that they were paying before—it is the increase in the rent that is being challenged through this process.

Turning to Amendment 102, I reiterate that applying to the tribunal should be a last resort for a tenant. Good landlords and tenants will discuss what rent is sustainable for both parties but, if they cannot come to an agreement, a tenant has the right to challenge a rent increase at tribunal. As I have said, for too long tenants have been afraid to do that. I note, too, that the Opposition once supported our position on this matter. Their original White Paper said the tribunal will no longer have the power to increase the rent above the amount the landlord asked for. It is regrettable that they now disagree with themselves and want to make it easier for tenants to be evicted by the backdoor.

[Baroness Scott of Bybrook (Con)]

Can the Minister explain this? If a tribunal is taking quite a long time, then the decision is made and any increase happens from the date of that tribunal’s decision, and the landlord can go to a tribunal only every 12 months, does that 12 months start from the date of the tribunal’s decision, or can it go back six, seven or eight months prior, so that it could be nearly two years rather than one year?

[Baroness Taylor of Stevenage (Lab)]

I understand the noble Baroness’s question. My understanding is that the year starts from the date the tribunal decisions are made, but I will check that and write to her.

[Baroness Scott of Bybrook (Con)]

So you could lose six or eight months—it could be nearly two years. If the Minister could confirm that, it would be useful.

[Baroness Taylor of Stevenage (Lab)]

I will clarify that in the letter.

Amendment 105 would require the Secretary of State to carry out a review of the impact of Clause 8 on the First-tier Tribunal, and to consult the Competition and Markets Authority on whether further measures are needed to prevent distortion of the rental market by the tribunal’s determinations on rent. As I have made clear on similar amendments, the department is already collaborating extensively with His Majesty’s Courts & Tribunals Service, as well as the Ministry of Justice, to ensure that the property chamber of the First-tier Tribunal is prepared for the implementation of the Bill, including any changes to its role in determining rent.

--- Later in debate ---

[Baroness Thornhill (LD)]

My Lords, most of the amendments in this group are disagreeing with the Government’s ban on being able to ask for rent in advance, and all basically say the same thing. While I am very supportive of the Government’s aims, there are legitimate questions to be answered in this area. By preventing tenants paying rent up front, will the Government potentially reduce the housing options available to financially vulnerable people? So says the letting and landlords’ association. Is it a way to crack down on discrimination against low-income renters by unscrupulous landlords? So say the Government and the lobby groups for renters.

Amendments 108 and 111, which would allow up to six months’ rent in advance or even 12 months, are troubling. Rogue landlords could pressure vulnerable tenants to mutually agree to these excessive payments, circumventing the very protections that the Bill seeks to establish. Furthermore, Amendment 112’s provision for tenants to specifically request such arrangements in writing could easily be manipulated. Landlords might simply make such requests a condition of securing the property, forcing tenants to choose between signing or losing their housing opportunity.

However, what we do know is that people on fixed incomes, such as pensioners, those with lower incomes, the self-employed, the overseas students, those with a bad credit history, those who fail referencing checks and those with no family member to act as a guarantor will all have challenges passing referencing and affordability checks. They are the risky renters. The Government’s amendments are clearly designed to protect these financially vulnerable people from exploitation, but the big question is: how will agents and landlords manage tenancy risk in the future? Tenancy risk is a reality. With over 20 tenants chasing each vacancy, landlords will, legitimately and legally, be able to pick the person who represents the lowest risk. The bottom line for them is economic reality. Your Lordships have all heard my views, but even I would say, “Who can blame them?”

There are many thousands in these various groups. How do the Government think that they will get housing in the future? How will landlords mitigate the risk of tenants who fail references and have no renting history in the UK or who have CCJs against their name? Millions of people fall into these categories. My deepest worry is that the rent in advance system will go underground and people will be asked to stuff cash into brown envelopes, while rental payments will be edited to make it seem that all is well. Desperate renters will do desperate things to put a roof over their heads. I hope that I am wrong and not being unduly harsh on landlords or tenants. It seems to me that such people are left with the sole option of a professional rent guarantor service. What else is there? I am quite sceptical of local authorities stepping into that role, although they do much already to make tenancies survive and to help tenants.

What are the Government doing to ensure that those services can operate legally and responsibly, and to help this group of people? Are they part of the solution? I look forward to the noble Baroness’s answers.

Finally, to reiterate the point, a market that is significantly undersupplied and where the market rules of supply and demand result in continually rising rents, impacting most on precisely this large group of risky renters, has already resulted in a whole cohort of renters who are forced into homelessness and overpriced temporary accommodation. These are the very people who would in the past have been in social housing, of which there is, as we know, a huge shortage. The free market, under the rules as they are now, has led us to this place—a broken system—and there is no one denying that. Continuing as we have thus far can lead only to more of the same.

The Bill is a brave attempt to recognise the current imbalance between tenant and landlord, but if we do what we always do, we will get what we always get, and that is not acceptable.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Scott, and the noble Lords, Lord Jamieson, Lord Truscott and Lord Hacking, for their amendments in relation to rent in advance, and the noble Lord, Lord de Clifford, and the noble Baroness, Lady Thornhill, for commenting on these amendments.

Taken together, Amendments 108 to 110 and 112 tabled by the noble Baroness, Lady Scott, would allow landlords or agents to charge rent in advance when this has been mutually agreed with the tenants in a tenancy agreement. This Government are clear that the practice of landlords or agents charging rent in advance is unfair. Many of us will have heard the stories, many of them of requests for large amounts of rent in advance that have pushed families into financial hardship or locked some out of the sector completely. In other cases, unscrupulous landlords use rent in advance to pit prospective tenants against each other and create these dreadful bidding wars to help people secure a property. That is why the Bill will prohibit a landlord or letting agent requiring or accepting any payment of rent before a tenancy has been entered into. In addition, a landlord will be able to require only up to one month’s rent in advance in the window between a tenancy being entered into and that tenancy beginning.

I want to be crystal clear on this point: once a tenancy has begun, tenants will remain free to pay their rent prior to the agreed due date should they wish to do so, although landlords will not be able to require this and any attempt to require it will be challengeable by the tenant.

Amendment 108 would allow landlords to include terms in a tenancy agreement that require rent in advance to be paid up to six months before it is due. It is the view of the Government that this amendment would fail to protect tenants from exploitative rent in advance practices. Landlords, being able to require up to six months’ rent in advance when this is agreed in a tenancy agreement, could, in a market where properties are hotly contested, push tenants into agreements that stretch their finances to breaking point to secure a tenancy.

Amendment 109 would limit rent in advance to four months when agreed in a tenancy agreement. This has the same effect, with the potential for tenants in hotly contested markets to feel compelled to agree to terms that require significant financial outlay. Even the limit of two months, as the noble Baroness, Lady Scott, proposes in Amendment 110, in our view does not go far enough to protect tenants. In a scenario where a landlord can request two months’ rent in advance, this is still a significant financial expectation of a tenant. Given that the tenant will also likely be required to pay a five-week tenancy deposit, they could face being asked to stump up more than three months’ rent to access a property.

[Lord Jamieson (Con)]

I would just like clarification for my understanding. It has been made clear by a number of noble Lords that our concern is that some of the most vulnerable would be able to even up the playing field by providing rent in advance. I understand what the Minister is saying, but that competition, in a competitive market where there is a shortage of supply, risks excluding some of the most vulnerable. I am keen to hear how the Minister will address that.

[Baroness Taylor of Stevenage (Lab)]

I am coming on to the impact on vulnerable tenants, but it makes tenants far more vulnerable where they are being pushed to take on financial commitments well beyond their means just to get access to a tenancy in the first place.

In effect, Amendment 112 would enable some unscrupulous landlords to continue to pit tenants against each other in de facto bidding wars. In this circumstance, tenants under pressure to secure a property could face being required to offer in writing even greater sums of rent in advance.

Any one of these amendments could allow landlords at the pre-letting stage to insist upon a term in the tenancy agreement which permits rent in advance. This would leave tenants with a potentially impossible choice of stretching their finances to the limit or facing homelessness.

I would like to address the concerns of some in the Committee that those landlords who rely on rent in advance could find themselves left out of the market. We are clear that landlords are free to undertake the referencing and affordability checks necessary to give both the landlord and the tenant the confidence that a tenancy is sustainable.

The noble Lords, Lord Jamieson and Lord de Clifford, and the noble Baroness, Lady Thornhill, mentioned foreign students. If landlords are not satisfied with the outcome of pre-tenancy checks, there remain a number of options available, including requiring a tenant to provide a guarantor or the use of professional guarantor products. If the tenant is unable to provide a UK-basedguarantor—I accept that that may be the case for international students—alternative options could be available, such as professional guarantor services.

We are committed to robustly monitoring and evaluating the impact of our reforms. We retain powers to amend these measures should the evidence arise that they are having a significant impact on a particular group. The noble Baroness, Lady Thornhill, mentioned self-employed people and those on limited-income pensions. We maintain the powers to amend, should we need to do so.

The noble Lord, Lord de Clifford, raised a point about local authorities. Some local authorities are very proactive. The reason they take on this role is to prevent homelessness, and they recognise the benefit to families and individuals of not having to go into temporary and emergency accommodation. In addition, it can reduce the cost to the local authority if it does not have to find that family temporary and emergency accommodation, so it will take on that role.

The power gives the Secretary of State the flexibility to adapt the constraints on rent in advance to respond to a changing private rented sector. Changes in the balance of supply and demand within the private rented sector—driven, for example, by our commitment to building 1.5 million homes over this Parliament—may change the extent to which affordability is a barrier for prospective tenants entering the sector. In this scenario, the Government may consider it appropriate to make changes to the constraints on rent in advance. Equally, changes in the market could be driven by currently unanticipated future legislative changes, such as the introduction of new types of tenancies. In this scenario, the power would allow the Secretary of State to maintain the application of these measures to the intended cohorts of landlords and tenants.

The introduction of the power therefore provides the Government, or any future Government, with the ability to make sure rent in advance measures continue to apply as intended in the face of any changes within the private rented sector. However, I reassure the Committee that regulations made under the power will be subject to the affirmative procedure, which will ensure that there is appropriate parliamentary scrutiny of any changes.

Amendment 117, also in the name of the noble Baroness, Lady Scott, would introduce the legal requirement for the Secretary of State to communicate to tenants, letting agents and landlords the changes made by the Renters’ Rights Bill to the Tenant Fees Act 2019, which prohibits certain payments of rent in advance. I know the Committee will share my view that the successful implementation of the Renter’ Rights Bill is firmly rooted in how widely its provisions are known and understood. I reassure the Committee that the Government are committed to raising awareness of the full range of Renters’ Rights Bill reforms across the private rented sector.

This amendment would require the Government to make stakeholders aware of one aspect of our rent in advance policy, which is given effect by amendments to the Tenant Fees Act—namely, the prohibition on landlords inviting, encouraging or accepting a payment of rent in advance before the tenancy agreement is signed by both the landlord and the tenant. However, it would not oblige the Government to communicate the details of the rest of the rent in advance policy.

--- Later in debate ---

[Lord Hacking (Lab)]

My noble friend has replied to my Amendments 115 and 116, but I would be grateful if she could agree to talk further on them, particularly Amendment 116. It is an extraordinary situation how a landlord is not permitted to prevent a tenant moving into a property even though the tenant has not done the basic thing of paying the rent in advance. It is not an excessive amount of rent; in my case, as I explained to my noble friend, it is the rent for the rest of the month—a modest payment. Why on earth can a landlord not say, “You can’t come into the property until you’ve paid your rent”? You always pay rent in advance.

[Baroness Taylor of Stevenage (Lab)]

I would just reiterate the comments I made to my noble friend that, having undertaken a tenancy, gone through the process of vetting and paid the deposit and the holding deposit, it will be a very rare case where the tenant proceeds not to pay their first month’s rent.

[Lord Jamieson (Con)]

Before the Minister sits down, I just want to follow up on the question I raised regarding the Home Office’s plans to offer landlords five-year tenancies and ask whether the Minister can confirm whether there will or will not be more than one month’s rent in advance?

[Baroness Taylor of Stevenage (Lab)]

I thank the noble Lord for his question. I did respond earlier to the points in relation to the Home Office position. Because it is the work of another department, it would be best, as I said earlier, if I clarify the situation in relation to the Home Office’s proposals and come back to noble Lords on that. It involves the contract between the Home Office and Serco and I do not want to comment on it without knowing the facts from the Home Office. So, I will come back to the noble Lord on that point.

[Lord Jamieson (Con)]

My Lords, I rise to close this group of amendments. It has been an excellent debate and I thank all noble Lords who have provided contributions to this debate.

The noble Lord, Lord Hacking, has demonstrated the case for his amendments. I thank him for the support he has given to our amendments, and I certainly support the intention of his amendments. We also share the concerns of the noble Lord, Lord Truscott, that the Bill will potentially exclude thousands of tenants from the rental market. The noble Lord, Lord de Clifford, raised the issue of the difficulties of getting guarantors, particularly if you are an overseas student.

I also thank the noble Baroness, Lady Thornhill, and others who raised the issue that there are 20 people seeking every tenancy and you cannot blame the landlord for seeking the most stable and secure tenant for their property, with the risk, as I said earlier, that the most vulnerable will lose out. We believe that this will have a negative impact on tenants who might otherwise struggle to find a tenancy. Amendments 108, 109 and 110 provide three options for how much rent could be paid in advance with the mutual agreement of the renter and the landlord. Amendment 114 would allow rent in advance at the discretion of the tenant.

The Minister has raised the prospect of guarantors and, for those people who are not able to provide a personal guarantor, using guarantor services. Many people who have used these services will well know that these can be substantially expensive, and frequently far more expensive and onerous than paying rent in advance. Therefore, it seems only logical that one should offer that option.

The Minister has rejected all three options and has not proposed an alternative. It is disappointing to see such a lack of engagement with these amendments when they are likely to have a negative impact on both international students and those with poor credit scores. This clause reduces their ability to prove their financial responsibility and, as such, reduces their likelihood of finding suitable rental property—and, as I highlighted earlier, reduces the ability of councils to secure accommodation for some of the most vulnerable in their communities.

We raised the issue of the five-year tenancies that the Home Office is using, and I am glad the Minister will come back to us. I look forward to being assured that there is no differential treatment of landlords and tenants depending on which part of government is dealing with them.

This clause removes a tenant’s ability to prove their financial responsibility. If a tenant and landlord agree to pay rent in advance, why are the Government standing in the way? I urge the Minister to consider these amendments. Noble Lords across the House have raised genuine and real concerns with this clause. Although we all want to see a better deal for tenants, removing their autonomy to pay in advance is not the best way to go about this. I hope that the Minister will consider this before the next stages of the Bill.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I do not want to delay proceedings, and the noble Lord, Lord Jamieson, might not agree with me, but I did fully answer the question of why we consider that payment of rent in advance, even when agreed between two parties, can have a serious effect on other tenants in the rental market who are not able to make those very large payments in advance. He may not agree with me on that, but I did respond to the point.

[Lord Jamieson (Con)]

I beg leave to withdraw my amendment.