Renters’ Rights Bill

Baroness Thornhill Excerpts

Thursday 24th April 2025 Lords Chamber

[Lord Northbrook (Con)]

My Lords, I firstly declare an interest as a private landlord of residential properties in Hampshire.

I support Amendment 60, to keep the rent arrears landlord legal action limit to two months rather than four. As the noble Lord, Lord Carter of Haslemere, said, landlords are not charities, and the noble Lord, Lord Hacking, agreed with this. I also support Amendment 63 in the name of the noble Lord, Lord Carrington, which also seems very sensible.

Local authorities are already reluctant to sanction a change of use from residential to commercial, so they exercise careful control over this. As the noble Earl, Lord Leicester, said, money from permission to convert residential properties to commercial can be used to pay for and improve properties, and something that has not been mentioned much so far is the EPC problem that a lot of these cottages have, and the extra money that needs to be found to pay for this.

[Baroness Thornhill (LD)]

My Lords, I would like to thank all the parties in the renters’ coalition for their work on many aspects of the Bill, particularly this one. They have very patiently answered my every query as I have attempted to familiarise myself with all the grounds for possessions and the implications of that.

Before I move to the detail of my Amendments 26 and 27, I would like to offer support for Amendments 24 and 30 from the noble Baroness, Lady Warwick. If one recalls—because she was right at the beginning of the debate—this was about ground 6B, when the house is required back for works to be done to it. Given that the landlord is not obliged to provide alternative accommodation while the works are done, we believe it might justify consideration of compensation, mainly because—this is interesting—6B is already being described on property websites as a “loophole”. Ground 6B currently lacks clear definitions and proper oversight, so it runs the risk of being misused, disputed or even ignored. Any moves to reduce court use, given our concerns in this regard, are also to be clearly welcomed.

Amendments 26 and 27 pertain to the two no-fault grounds for eviction: namely, ground 1, moving in a family member, and ground 1A, selling the property. First, the increase in notice periods from two to four months for eviction on these grounds is most welcome, giving tenants more time to find a new home. Amendment 71 from the noble Baroness, Lady Jones, strengthens this further by the discussion of compensation, as she outlined, and we feel that this complements our amendments.

--- Later in debate ---

[Baroness Thornhill (LD)]

The noble Lord is, as I said, very persuasive.

[Baroness Scott of Bybrook (Con)]

My Lords, the amendments in this group represent yet another instance where the rights of renters intersect with those of landlords. This group of amendments is indicative of the broader Bill and, rather than increasing the availability of homes, we believe it risks reducing the supply of rental properties. This could drive up costs for renters at a time when the cost of renting has already risen significantly. It is, of course, important to make sure that the legal framework which governs this relationship protects those who are renting, but we cannot forget the landlords. They should also have their rights upheld. Landlords should have their rights over their properties respected and retain the ability to recover possession of their homes when they need to.

I start by speaking to Amendments 24 and 30, tabled by the noble Baroness, Lady Warwick of Undercliffe. They assume that the landlord is in some way liable to pay compensation for exercising rights, which surely are theirs by virtue of the fact that they actually own the property. Determining when in specific cases compensation is required is surely the responsibility of a court. To assume that compensation is always required tips the balance against the landlords and would likely discourage many responsible, principled landlords from entering the market and meeting the high demand for rented properties that we see across the country.

In the same vein, Amendments 26 and 27, tabled by the noble Baroness, Lady Thornhill, would place an administrative burden on landlords, which would have a dampening effect on the housing market. Houses are important personal assets. Piling on layers of regulation will further suffocate the market and limit the agency of landlords to use the assets that they own.

Conversely, we believe that Amendments 60 and 61, tabled by the noble Lord, Lord Carter of Haslemere, strike an appropriate balance, recognising that landlords need to be protected from bad actors, who could have a devastating financial effect on them. Landlords should not be punished for supplying rental properties to the market. Maintaining the existing possession grounds for rent arrears would mean that they can operate in the market with confidence that they will not be left out of pocket.

Amendments 63 and 64, tabled by the noble Lords, Lord Carrington and Lord de Clifford, further speak to the fact that landlords should retain the right to make use of their own property as they see fit. It is neither the role nor the place of government to dictate to home owners how their personal property should be used.

Amendment 71, tabled by the noble Baroness, Lady Jones of Moulsecoomb, seeks to conflate the rights of the landlords with their responsibilities. The landlord, by owning the property, has the right to make decisions about how that property is used. The tenant, in renting from that landlord, is expected to respect the rights of the landlord as the property owner. This relationship does not in any way suggest that the landlord should be liable to forgo income while still providing the service. This measure would clearly disadvantage landlords in their legal relationship with their tenant and would depress the market, which is already undersaturated.

Finally, I welcome that Amendments 142, 165 and 166, tabled by the noble Lords, Lord Cromwell and Lord Hacking, strike the appropriate balance between the rights of the renters and the rights of the landlord. We need to remember that we are talking about a market, which requires flexibility and adaptability so that it works for consumers and providers. Allowing landlords to make these decisions without being hamstrung by long-term obligations means that they can act in the mutual interest. A flourishing market benefits renters as much as landlords. This balance is imperative to achieve a flourishing market. I urge the Government further to consider, between now and Report, this crucial balance between landlords and tenants, most importantly to protect the tenants in this sector.