Renters’ Rights Bill Debate
Full Debate: Read Full DebateBaroness Warwick of Undercliffe
Main Page: Baroness Warwick of Undercliffe (Labour - Life peer)Department Debates - View all Baroness Warwick of Undercliffe's debates with the Ministry of Housing, Communities and Local Government
(1 day, 22 hours ago)
Lords ChamberMy Lords, in my response to all amendments in this group, I will be guided by a principle of stability and fairness—fairness for both tenants and landlords. This is not a debate about unchecked gain, and nor should it result in the erosion of property rights. It is about balance, responsibility and securing a system that works for everyone.
Amendment 75 in my name probes the Government’s reasons for preventing the tenant and landlord agreeing a rent value that is higher than the rent set by the tribunal. Just consider this scenario: the tribunal makes a determination, but then the landlord embarks on a renovation, which includes new appliances and upgrades throughout the property. Under this legislation, even if a tenant voluntarily wishes to pay a higher rent to reflect improvements made to the property, they would be prohibited from doing so. Two consenting adults, tenant and landlord, may well agree that the enhanced value of the home warrants a modest increase in rent. A mutual agreement will exist and yet the Bill would override that agreement. Why should the Government intervene to prevent it? That is one example, but it is, in truth, superfluous to the broader point I wish to make. If a mutual will exists—if two adults come to an agreement, regardless of whether we personally deem their reasons rational—why should any Government say no? Why should this Bill override that choice? We must be careful not to legislate away agency in the pursuit of protection, and I hope the Minister will reflect on that.
Amendment 78 in my name seeks to prevent the Secretary of State expanding the definition of low-cost tenancy by regulation. This definition is important: it is not a technicality but fundamental. It determines not only how a property is treated under the law but how the relationship between the tenant and the landlord is structured. I understand that this is a significant power. Does the Minister agree? Anyone familiar with detail in the implications of this Bill will surely recognise that the power of a Minister to alter the foundations of an existing contract is unacceptable. Therefore, can the Minister commit to removing this regulatory power ahead of Report? If not, can she please set out in writing why she believes the Government should be afforded this power?
Finally, Amendment 86, in my name, probes the Government’s reasons for allowing a six-month period in which an application may be made to the tribunal under the newly constructed Section 14(A1). Six months could lead to a significant increase in claims being directed towards an already overburdened tribunal service. Have the Government properly considered multiple timescales and modelled the impact each would have on the tribunal system? If this vital work has been overlooked, will the Minister commit to reviewing the impact of the chosen timescale on the total claims and return to the Dispatch Box with this at a later time? This is not an unreasonable request, and I hope the Minister agrees.
Many of the amendments in this group are intended to probe the Government’s thinking and understand how they have arrived at the current text of the Bill. Unsurprisingly, given the importance of these matters, this group contains numerous amendments; I hope the Minister listens carefully to the views expressed across the Committee and is not too ready to dismiss them all in her reply. I beg to move.
My Lords, I will speak to Amendments 80, 80A, 82 and 83 in my name. Each relates to the potential unintended consequences of Clause 7 for registered providers of social housing. I am grateful to the noble Lord, Lord Best, for his support.
Before turning to my amendments, I express my strong support for the Government’s ambition to give greater rights and protections to people renting their home. Since the previous Conservative Government first promised to end no-fault evictions in 2019, almost a million renters have received a Section 21 eviction, which is a leading cause of homelessness. It is right that the Government have acted decisively to end this unacceptable situation for good.
While most of the Bill is focused on reforming the private rented sector, some reforms will affect housing associations because the majority of homes that they provide use assured tenancies. This includes housing for people on low incomes, people needing high levels of support, people in crisis and people in need of short-term and emergency accommodation.
I understand that significant progress has been made to amend the Bill to negate any unintended consequences for social landlords. This has been strongly welcomed by the National Housing Federation and others that support this legislation. There have been welcome changes to ground 1B and ground 6, as well as the introduction of ground 6ZA, which will allow social landlords to gain access to properties both to meet housing need and to deliver essential redevelopment and improvement works. However, housing associations would still very much like to see further clarity in the Bill on proposed changes to the process for rent increases.
Housing associations are not-for-profit social landlords: they invest any income back into the development and maintenance of the homes they provide and into supporting residents and communities. To maintain fairness for tenants, to ensure administrative efficiency and alignment with benefits and utility rates increases, and to provide business certainty for repairs, maintenance and services, housing associations increase all tenants’ rent on the same day, usually in April. The Bill helpfully acknowledges this and attempts to provide a mechanism by which social landlords can still administer annual rent increases in the form of contractual clauses instead of Section 13A notices.
Retaining registered providers’ ability to use clauses in tenancy agreements to increase rents is positive, as it provides them with a practical method for increasing rents on the same day for all tenants. The loss of this rent-harmonisation mechanism would have been a significant disruption—and, indeed, unnecessary, given how heavily regulated this sector is compared with the private rented sector.
However, the ability to use contractual clauses instead of Section 13A notices could be clearer than is stated in the Bill currently. The Explanatory Notes clarify that contractual clause increases can be used, but the Bill says:
“For the purpose of securing an increase in the rent under a tenancy … the landlord may serve on the tenant a notice”.
It goes on. This reflects the wording applying to PRS tenancies, where the word “may” is used in a mandatory sense, as the only way that the landlord can increase the rent is through the process in Section 13 of the 1988 Act. In contrast, where it applies to relevant registered provider tenancies, “may” is used in a permissive sense: the landlord can use a Section 13A notice, but they also have the option to increase by a clause in the tenancy agreement.
The Bill provides for this method of increase by agreement between the landlord and the tenant. However, it does not make it clear whether each increase must be agreed or whether a mechanism for increase in the tenancy agreement covers all increases.