Renters’ Rights Bill

Jim Shannon Excerpts

Wednesday 22nd October 2025 Commons Chamber

[Matthew Pennycook]

I thank the right hon. Gentleman for that point. We want to provide both renters and landlords with certainty about how the new system will be implemented. I will say a bit more on that in the course of my remarks.

[Jim Shannon (Strangford) (DUP)]

Will the Minister give way?

[Matthew Pennycook]

I am going to make a bit more progress.

As I made clear when we considered Lords amendments to the Bill on 8 September, although the Government were not prepared to accept amendments that would undermine the core principles of the Bill, we were more than willing to make sensible changes in response to the legitimate concerns that have been raised. The changes we are proposing today are firmly within the spirt of that commitment. I am delighted that we were able to reach agreement with those on the Liberal Democrat Front Bench and Lord Young of Cookham, and I thank all the noble Lords involved for their willingness to work collaboratively to strengthen the Bill.

Let me briefly set out the purpose and effect of the amendments in question, beginning with those that relate to shared owners. Lords amendments 19B, 19C and 19D exempt shared owners from the 12-month “no re-let” period in respect of new mandatory possession ground 1A, which allows a landlord to evict a tenant because they intend to sell their property. The exemption is subject to meeting set criteria, to ensure that shared owners have made a genuine attempt to sell their property. The amendments in question also include a delegated power to remove the exemption in the future—for example, once the building safety programme has been completed.

[Jim Shannon]

I welcome what the Minister has proposed. More and more of these issues have come to my attention in my constituency. Tenants then have to find alternative and affordable accommodation that is close to their work and close to their children’s education. I know this legislation applies to England and Wales only—I understand that. But the Minister is a good Minister, and he always shares information on the legislation that is put forward with the regional assemblies—in my case, the Northern Ireland Assembly. Will he do me and this House the favour of sharing the legislation with the Northern Ireland Assembly to ensure that the good things in the Bill can become good things for us in Northern Ireland as well?

[Matthew Pennycook]

The Northern Ireland Assembly can access this legislation online, but I will certainly continue to have conversations with Ministers in all the devolved Administrations about what lessons can be learned from what we have done with this Bill, and about what they can take from it.

I once again commend Lord Young of Cookham for championing the interests of shared owners affected by the building safety crisis, and I thank him for tabling his three amendments in lieu. As I made clear when we considered Lords amendments last month, the Government recognise the plight of shared owners living in buildings that require remediation. Many are facing unaffordable costs, often with no viable exit route other than a distress sale. We also appreciate that it is often harder to secure a purchaser for a shared ownership property, and that the sales of shared ownership flats are more likely to fall through due to the additional constraints involved. As such, we have always accepted that the 12 month no re-let period would have placed many shared owners in an extremely challenging position.

The reason why the Government did not feel able to accept Lord Young’s original Lords amendment 19 was that it could undermine protections for the small subset of tenants who happened to rent a sub-let home from a shared owner. I am therefore pleased to report to the House that the amendments in lieu deliver the core aims of that original amendment, while also ensuring that three key safeguards are in place to protect tenants.

First, there is a requirement for the shared owner to have informed the assured subtenant in writing at the outset of the tenancy about the exemption and its possible use. This will ensure tenants are aware of the particular circumstances of the tenancy they are entering into and can make an informed choice about whether they wish to enter into a tenancy agreement with the shared owner in question.

Secondly, shared owners must have informed their provider of their intention to sell before obtaining possession of the property from the tenant. This is an essential first step that all shared owners must take to begin the process of selling their property. I am satisfied that it is a proportionate requirement to evidence that a shared owner is genuinely intending to sell their home.

Thirdly, a valuation must be undertaken on the property by a member of the Royal Institution of Chartered Surveyors, or the shared owner must have advertised the property for sale. This can be done at any point before a property is re-let, recognising the need for flexibility in how shared owners will approach a sale.

Taken together with the protections that are already in place as a result of registered providers having to authorise sub-letting requests and having oversight of what rent levels can be charged, I am satisfied that these safeguards will reduce, if not eliminate entirely, the risk that an exemption from the 12-month no re-let period might otherwise have posed.

Lords amendments 39B and 39C will introduce a statutory requirement for annual reporting on the extent to which service family accommodation meets the decent homes standard.