Renters’ Rights Bill Debate
Full Debate: Read Full DebateBaroness Thornhill
Main Page: Baroness Thornhill (Liberal Democrat - Life peer)Department Debates - View all Baroness Thornhill's debates with the Ministry of Housing, Communities and Local Government
(1 day, 16 hours ago)
Lords ChamberMy Lords, I congratulate the noble Lord, Lord Young of Cookham, on the compromise he has achieved on this important amendment. I must declare a family interest: my wife owns rented property in Dorset. I shall speak in opposition to the amendment to Motion C in the name of my noble friend Lord Cromwell, well-intentioned though I believe it is.
My noble friend’s amendment would mean that a landlord who had gained possession of a property using the grounds of an intention to sell would be able to relet that property after six months if it had not been sold, rather than having to wait up to a year, as specified in the Bill. In normal circumstances, one would expect a sale to be agreed within around six months, or, if not, the landlord would still want to go for a sale rather than relet the property, so the issue would not arise in most instances where this ground for possession could be used. However, the Government want to prevent an unscrupulous minority of landlords using these grounds for eviction as a way of bypassing the Bill’s fundamental intention of giving renters greater security. The fear is that the landlord will profess to want to sell but has no such intention; they simply want to evict the tenant. They may want to switch to more profitable Airbnb-style lettings, or they may want to replace a tenant who is complaining about the landlord’s neglect of essential repairs and find a more malleable or more desperate tenant.
There is some evidence of such cheating behaviour from Scotland, where similar legislation has not had constraints on how quickly a vacated property can be relet, so the Government want to prevent abuses. The Bill needs to ban reletting for long enough to deter a landlord from misusing these grounds for possession. The question is how long a pause before re-letting is permitted would be long enough. Let us take a case where a renter is complaining about damp and mould. The property needs, say, £15,000 to be spent on rectifying various defects. If the tenant is paying £900 a month, it would be advantageous for the landlord to go without six months’ rent, that is £5,300, to be rid of that tenant and find someone who will tolerate the poor conditions. Having to forego 12 months’ rent before reletting, well over £10,000 in this case, would present a more robust deterrent against using this no-fault eviction route to removing the tenant.
I can see that a compromise of a nine-month ban on reletting would probably be acceptable all round, but in the absence of that halfway house, it is safer and more foolproof to stay with the Bill’s 12-month term and reject this amendment.
My Lords, first, I join the noble Lord, Lord Best, in praising the noble Lord, Lord Young, for his tenacity and commitment to shared ownership owners, who really are the raw end of the market and get a raw deal in many ways. He has really shown his mettle in his commitment to this. It is also fair to thank the noble Baroness, Lady Taylor, for listening and doing something about it. I hope that her commitment to shared owners continues in other areas that we will look at.
Turning to Motion C1, from the noble Lord, Lord Cromwell, which it appears we will vote on, it is very difficult to follow the eloquence of the noble Lords, Lord Pannick and Lord Cromwell, but I will try. The noble Lord, Lord Best, has already highlighted what we call “revenge evictions”, and we are approaching that issue from the position of working—for many years, in the case of my noble friend Lady Grender—with renter groups and renter charities. From that, we get a real idea of what is happening at the sharp end, which is not quite as narrow as we might like to think it is. There are probably more unscrupulous landlords out there than the number of homes that take over one year to sell.
On revenge evictions, there is the risk that a tenant will be kicked out because they ask for improvements—the noble Lord gave a very good example of that, but there are many others. In certain parts of the country where rents are not as expensive, six months’ rent would make it worth while for the landlord to kick somebody out on that ground if they ask for even some modest accessibility improvements and so on. We are arguing over six, nine or 12 months, and the truth is that only time will tell. What I seek from the Government is some reassurance that this will be looked at, because that could very well be the case.
The noble Lord, Lord Best, mentioned Scotland. It is interesting that the properties in one in five evictions that were made on this repossession ground then turned up on their database as still being for sale. That gives weight to the fact that people are prepared to do it, because in Scotland they have no period for not re-letting.
In several debates, I mentioned that I chatted to my women friends who are landlords; I referred to them as my “landladies”. I put this to them, and they looked at me as if it were a weird question. They said, “If I were concerned about my property sitting empty, I am actually able to sell my property with the tenants still in the property while the ‘For Sale’ board is up on the door, so I would talk to them and say that the ‘For Sale’ board is going up, but I certainly wouldn’t be serving notice until I was certain that I had a buyer”. That is due to—this is a statistic that has not been bandied about—the length of time it sometimes takes to sell a house. Interestingly, they did not see it as the kind of emotive, big, terrible, unfair problem that noble Lords have made it out to be. By keeping your tenants in the property, you are not only getting the rent but—much more importantly, in our view—you are giving your tenants more time to find a home.
My Lords, I declare my interest as a councillor in central Bedfordshire. I will speak briefly to support two important Motions before us, one tabled by the noble Lord, Lord Cromwell, on no re-let provisions, and the other by my noble friend Lord Young of Cookham on shared ownership.
On Motion C1, as the noble Lord, Lord Cromwell, clearly explained, under the Bill, where a landlord seeks possession to sell a property and that sale then falls through—as it does in about one-third of cases—the landlord is prohibited from re-letting the property for 12 months. In practice, that means perfectly good homes must stand empty for a whole year. The amendment does not undermine the Bill’s purpose; it retains the requirement for a genuine sales process and safeguards against abuse. It introduces the vital element of proportionality. A six-month restriction would still deter bad actors while avoiding unnecessary loss of rental supply at a time when demand and rents are rising sharply. We have a housing crisis, and we must take every opportunity to improve the supply of housing and homes. Leaving homes empty for 12 months does not help those desperately looking for a home to rent.
Turning to shared owners, I would also like to extend my appreciation of the dedicated work of my noble friend Lord Young of Cookham, and we support the Motion in his name. He has made a compelling and deeply fair case on behalf of shared owners who, through no fault of their own, have found themselves trapped by the complexities of the shared ownership system. I want to thank Ministers for listening to the concerns raised across the House and for working constructively with my noble friend on this issue. We would support my noble friend if he took this to a vote, but from what the Minister has said, my understanding is that the Government are supportive of it. Therefore, we hope that a vote is not necessary.
My Lords, I rise to speak to the amendment in the name of the noble Lord, Lord de Clifford. As previously, I declare my interest as a private landlord. In the context of this amendment, I had a relative to whom it would have applied; that interest no longer applies, as the Bill has caused plans to be advanced and the tenants in the relevant property were given notice under current law, but, of course, that does not take away my general concern around this topic.
This replacement amendment now has a narrower scope, applying only to homes needed to house carers in the immediate family—that is, the landlord, a spouse or children. Thus, it closes a loophole perceived by some of it being used by those with an awful lot of relatives, as was discussed with the Minister.
Some people have live-in carers. Others may need more than one carer or have progressive conditions. Whatever the reason—whether financial or in terms of availability—it may not be possible to have one large house to accommodate all the future carer needs under one roof or to sustain expenditure on such a property before it is required. People have to plan for the future deterioration of the person needing care and of the family members who are part of their support.
Some may have invested in an ideal adjacent property in good faith under current law as it became available. They may be using insurance payouts and—especially in the instance of children—are needing to plan for when parents are no longer around. Such plans have to be scrapped under this Bill, most likely resulting in property sales and earlier evictions. It may be a one-off readjustment, because nobody will make such plans in future, but is it really necessary to hit the vulnerable, such as children damaged at birth? That is among what we are doing.
To suggest that it is easy for affected people to set up and move elsewhere because they have the resources of more than one property is cruel. Avoiding upheaval can be an important factor, for reasons both of the health of the impaired person and of making bespoke adjustments to property—all of the equipment, bars, ramps, bathroom locations and so on. This is really not fair and not caring. I therefore support this amendment; with the narrower scope, I believe that it is a fair suggestion.
My Lords, I will speak very briefly. We opposed the amendment of the noble Baroness, Lady Scott, on Report, and we see no reason to change our minds now. We have reflected carefully upon it. My noble friend Lord Shipley was very vexed by this question and was in conversation with the noble Lord, Lord Willetts. We finally came to the conclusion that the Government have probably got this about right, for the reasons given by the noble Baroness, Lady Taylor. We are very pleased that the diligent work of the noble Lord, Lord Carrington, has finally got the concessions that I think it deserved.
I am sorry, but every single person who would use this would be evicting a set of people, and the Bill is about protecting tenants in their place. Very few people will be in that privileged position. We and the Government have to make decisions about where that balance lies, and the decision has been made that way. I am sorry if it offends some people, but that has to be considered when making a decision of this sort.
My Lords, I thank all those who contributed to this debate. There have been some emotive discussions—I will come on to those in a moment—and some very thoughtful and considered responses to the amendments, and I am grateful for that.
I will start with the potential expansion of ground 4A. The Government recognise that the new tenancy system will have an impact on the way the student market operates. While we believe the ground covers the majority of the market, there is no one-size-fits-all solution that covers all circumstances. We think it is reasonable that the ground will apply to full-time students in larger house-share situations. Removing this restriction could lead to students who need more security of tenure—such as single parents living with their children or postgraduate couples living together who have put down roots in the area—being evicted more regularly. I took my degree as a mature student. I am very sympathetic to people who have to run other parts of their life alongside their student life. They may be working or have families or caring responsibilities to cope with alongside their student life.
Noble Lords have raised concerns that the Bill could cause severe shortages of student accommodation or force students into expensive purpose-built student accommodation. We do not expect our reforms to have that level of destabilising effect on the rental market. I shall quote from Shelter’s email to me today: “This amendment would deny a group of renters the security and stability offered by the Renters’ Rights Bill, many of whom will be in employment or with caring responsibilities that sit alongside their student life”. That is when stability is key, and we do not believe they should be denied that stability. We will continue to work with good landlords and their representative associations throughout the implementation of the Bill.
I was grateful to the noble Lord, Lord de Clifford, for his amendment. As I have outlined, everyone in the House is aware of the remarkable and vital work that carers do to support families and individuals in difficult circumstances. However, given the risk of abuse and the very limited circumstances—I think the noble Baroness, Lady Thornhill, put this very well—in which it might apply or could be used, we do not believe this new ground is warranted. We have ensured that possession grounds are fair to both parties, giving tenants more security while ensuring that landlords can recover their property when reasonable. For example, if the carer is a family member, as set out in ground 1, a landlord can use that ground to gain possession, enabling them to accommodate the carer.
I was grateful to my noble friend Lady Warwick for illustrating some of the issues that may arise, particularly in rural communities, around who may be evicted as a result of this ground. I want to add to the list of those who could be evicted an existing carer living in a rural setting where there might be very scarce housing, so you may have to evict one carer to put another carer in place. If there is scarce housing in that area, you may end up in that circumstance. Of course, the Government will continue to look at ways that they can support carers. I reassure the noble Baroness, Lady Thornhill, that once the Casey review is published, we will look at all the issues around carer support once again.
I am grateful to the noble Lord, Lord Carrington, for his comments. I know that he was not able to stay in the Chamber for the end of the debate, but we had specific issues raised by stakeholders, including the National Farmers’ Union. We listened very carefully to what they said, and we have ensured that the ground now has appropriate protections in place preventing landlords evicting assured tenants to house short-term workers. I am glad that that met the noble Lord’s request in terms of the amendment that he submitted previously.