Renters’ Rights Bill

Judith Cummins Excerpts

Tuesday 14th January 2025 Commons Chamber

[The Minister for Housing and Planning (Matthew Pennycook)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Judith Cummins)]

With this it will be convenient to discuss the following:

Government new clause 14—Prohibition of rent in advance before lease entered into.

Government new clause 15—Guarantor not liable for rent payable after tenant’s death.

Government new clause 16—Limitation on obligation to pay removal expenses.

New clause 1—Limit on rent to be requested in advance of tenancy—

“In the 1988 Act, after section 14ZB (inserted by section 8 of this Act) insert—

“14ZBA Maximum rent to be paid in advance

No rent may be requested or received in advance of any period of the tenancy which exceeds the rent for two months of the tenancy.””

This new clause would prohibit landlords from requesting or accepting more than two month's rent in advance.

New clause 2—Impact of Act on provision of short-term lets—

“The Secretary of State must, within two years of the passing of this Act, publish a review of the impact of sections 1 to 3 on the number of landlords offering properties on short-term lets rather than in the private rented sector.”

New clause 3—Limit on rent in advance of tenancy—

“In Schedule 1 to the Tenant Fees Act 2019, after paragraph (1) insert—

“(1A) But if the amount of rent payable in advance of any period of the tenancy exceeds the equivalent of one month’s rent, the amount of the excess is a prohibited payment.””

This new clause would make it unlawful for a landlord to demand or accept more than one month’s rent in advance in respect of a tenancy or licence of residential accommodation.

New clause 4—Signature of lease for student accommodation—

“Where a tenant meets the student test set out in paragraph 10 of Schedule 1, the relevant tenancy agreement may not be signed before 1 March in the year in which the tenancy is intended to take effect.”

This new clause would prevent student leases being signed before March in the year in which they are intended to commence.

New clause 5—Review of tenancy deposit schemes and requirements—

“(1) The Secretary of State must, within 12 months of the passing of this Act, conduct a review of tenancy deposit schemes and tenancy deposit requirements.

(2) The review must include, but not be limited to—

(a) consideration of options for tenancy “passporting”; and

(b) measures to improve trust in the deposit dispute process.

(3) As part of the review the Secretary of State must consult with such parties as they see fit, which must include representatives of tenants’ and landlords’ interests.”

This new clause would require the Secretary of State, within 12 months of the Act passing, to review and consult on tenancy deposit schemes and requirements.

New clause 6—Duties of local authorities: care leavers—

“(1) Where it is requested of a local housing authority by, or on behalf of—

(a) a relevant child as defined by section 23A of the Children Act 1989, or

(b) a former relevant child as defined by section 23C of the Children Act 1989,

the local housing authority shall provide assistance to the individual making the request, or the individual on whose behalf the request is made, in paying or guaranteeing any deposit required to agree a tenancy.

(2) The assistance to be provided under subsection (1) may include, but not be limited to, the payment of a deposit on behalf of an individual listed in subsection (1), or acting as a guarantor for any deposit paid by or on behalf of an individual listed in subsection (1).”

This new clause would place a duty on local authorities to help care leavers pay or guarantee any required deposit to enable them to agree a tenancy in the private rented sector.

New clause 7—Rules for proposed rent levels—

“(1) The Secretary of State must establish a body to be known as the Independent Living Rent Body.

(2) The “proposed rent” referred to in section 55(2) must be calculated with reference to rules set by the Independent Living Rent Body.

(3) In setting rules to be applied to the calculation of a proposed rent under section 55(2) the Independent Living Rent Body will have regard to property type, size and condition, location, local incomes, and such other criteria as it sees fit.”

This new clause would require the Secretary of State to establish an independent body that would set rules to be used when calculating the proposed rent payable in relation to an advertised tenancy.

New clause 8—Mediated rent pauses (housing conditions)—

“(1) This section applies where–

(a) there is a tenancy to which section 9A of the Landlord and Tenant Act 1985 applies;

(b) it appears to the tenant that the landlord has breached the covenant implied by that section; and

(c) it appears to the tenant that the landlord has failed to carry out works necessary to remedy any such breaches within the timeframes set out in regulations made by the Secretary of State under section 10A(3) of the Landlord and Tenant Act 1985.

(2) A tenant is entitled to make arrangements to pay rent to an independent individual, rather than to the relevant landlord.

(3) The independent individual shall not pass any rent paid under subsection (2) to the landlord until there has been a determination or agreement between the landlord and tenant as to the landlord’s liability for any breach of the covenant implied by section 9A of the Landlord and Tenant Act 1985.

(4) Where a determination or agreement under subsection (3) sets a time by which works are to be completed, the independent individual will –

(a) release any rent paid under subsection (2) to the landlord if the works are completed by that time;

(b) release any rent paid under subsection (2) back to the tenant if the works have not been completed by that time.

(5) In this section an “independent individual” means the independent individual responsible for investigating complaints made against members of a landlord redress scheme under section 62.”

New clause 9—Home adaptations—

“(1) The Housing Act 1988 is amended as follows.

(2) After section 16 insert—

“16A Home adaptations

(1) It is an implied term of every assured tenancy to which this section applies that a landlord shall give permission for adaptations where a local council has carried out a Home Assessment and recommends adaptations which constitute reasonable adjustments under the Equality Act 2010. Tenants have the right to appeal a landlord’s refusal to adapt a property.

(2) This section applies to every assured tenancy other than a tenancy of social housing, within the meaning of Part 2 of the Housing and Regeneration Act 2008.””

This new clause would ensure that landlords give permission for home adaptations for people who have disabilities where a Home Assessment has been carried out.

New clause 10—Guarantor to have no further liability following death of tenant—

“(1) Subject to subsection (3), a guarantee agreement relating to a relevant tenancy ceases to have effect upon the death of a relevant tenant.

(2) Upon the death of a relevant tenant the guarantor in respect of a relevant tenancy shall incur no further liability in relation to matters arising under the tenancy.

(3) Nothing in this section shall affect the liability of a guarantor in relation to matters which arose before the date of the death of the relevant tenant.

(4) In assessing any liability under subsection (3), account shall be taken of any tenancy deposit paid in respect of the tenancy.

(5) Where there is more than one relevant tenant, this section shall apply only upon the death of both or all of the tenants.

(6) In this section—

“guarantor” is a person who enters into a guarantee agreement in relation to a relevant tenancy;

“guarantee agreement” is a contractual promise (whether incorporated in or separate from the tenancy agreement) to indemnify or compensate a relevant person in respect of an obligation under the tenancy if the tenant fails to perform or comply with the obligation;

“relevant tenancy” has the same meaning as in section 41, and “relevant tenant” is to be interpreted accordingly; and

“tenancy deposit” has the same meaning as in section 212(8) of the Housing Act 2004.”

New clause 11—Restrictions on the requirement for tenants to provide a guarantor—

“(1) A relevant person must not, in any of the circumstances set out in subsection (3), require a person, as a condition of the grant of a relevant tenancy, to provide a guarantor in relation to the observance or performance of the tenant’s obligations under the tenancy.

(2) For the purposes of this Act, requiring a person to provide a guarantor includes accepting an offer by that person to provide a guarantor.

(3) The circumstances are –

(a) that the person has paid a tenancy deposit or has been assisted under a deposit scheme;

(b) that the person is required to pay rent in advance equivalent to one month’s rent or more;

(c) that on a reasonable assessment of their means the person’s income (including state benefits received and any other lawful source of income) is sufficient to enable them to pay the full rent due under the tenancy;

(d) that arrangements will be made for housing benefit or the housing element of universal credit to be paid directly in respect of rent to the relevant person;

(e) that the relevant person has entered into a contract of insurance under which they are insured against non-payment of rent; or

(f) such other circumstances as may be prescribed in regulations made by the Secretary of State.

(4) In any other case where a relevant person lawfully requires a person, as a condition of the grant of a relevant tenancy, to provide a guarantor, the sum for which the guarantor may become liable under the relevant guarantee shall not exceed a sum equal to six months’ rent.

(5) In any case where a relevant person requires a tenant, as a condition of the grant of a relevant joint tenancy, to provide a guarantor, the sum claimed under the guarantee shall not exceed such proportion of the loss as is attributable to the act or default of the individual tenant on whose behalf the guarantee was given and, if such proportion cannot be proved, shall not exceed the sum obtained by dividing the total loss by the number of tenants.

(6) In this section–

a “guarantor” is a person who enters into a guarantee in relation to a relevant tenancy;

a “guarantee” is a contractual promise to be responsible for the performance of an obligation owed by the tenant to a relevant person under the tenancy if the tenant fails to perform the obligation;

a “deposit scheme” includes a scheme whereby a sum payable by way of deposit or a bond or guarantee is provided by a local authority, registered charity or voluntary organisation for the purpose of providing security to a landlord for the performance of a tenant’s obligations under a tenancy;

“tenancy deposit” has the same meaning as in section 212(8) of the Housing Act 2004.”

This new clause would restrict the circumstances in which a landlord can request a guarantor.

New clause 17—Use of licence conditions to improve housing conditions—

“In section 90 of the Housing Act 2004, for subsection (1) substitute—

“(1) A licence may include such conditions as the local housing authority consider appropriate for regulating all or any of the following—

(a) the management, use and occupation of the house concerned, and

(b) its condition and contents.””

This new clause would enable local authorities operating selective licensing schemes to use licence conditions to improve housing conditions.

New clause 18—Increases to duration of discretionary licensing schemes—

“(1) The Housing Act 2004 is amended as follows.

(2) In section 60(2), omit “five” and insert “ten”.

(3) In section 84(2), omit “five” and insert “ten”.”

This new clause would increase the maximum duration of additional HMO licensing schemes and selective licensing schemes from five to ten years.

New clause 19—Assessment of operation of possession process—

“(1) The Lord Chancellor must prepare an assessment of the operation of the process by which—

(a) on applications made by landlords, the county court is able to make orders for the possession of dwellings in England that are let under assured and regulated tenancies, and

(b) such orders are enforced.

(2) The Lord Chancellor must publish the assessment at such time, and in such manner, as the Lord Chancellor thinks appropriate.

(3) In this section—

“assured tenancy” means an assured tenancy within the meaning of the 1988 Act;

“dwelling” means a building or part of a building which is occupied or intended to be occupied as a separate dwelling;

“regulated tenancy” means a regulated tenancy within the meaning of the Rent Act 1977.”

New clause 20—Review of the impact of the Act on the housing market—

“(1) The Secretary of State must publish an annual report outlining the impact of the provisions of this Act on the housing market in the UK.

(2) A report under this section must include the impact of this Act on—

(a) the availability of homes in the private rental sector;

(b) rents charged under tenancies;

(c) house prices; and

(d) requests for social housing.

(3) A report under this section must be laid before Parliament.”

New clause 21—Appropriate insurance products to be available to landlords—

“The Secretary of State must, within six months of the passing of this Act, consult with representatives of the insurance sector to ensure that—

(1) sufficient and appropriate insurance products will be available for landlords wishing to let a property to a tenant who—

(a) is in receipt of benefits; or

(b) will be keeping a pet in the property during their tenancy; and

(2) such insurance products will not disadvantage landlords wishing to let a property to a such tenant or dissuade them from doing so.”

New clause 22—Requirement on landlords to pay for alternative accommodation—

“In section 9A of the Landlord and Tenant Act 1985 (fitness for human habitation of dwellings in England), after subsection(1) insert—

(1A) Where a dwelling—

(a)is found to be at any point in a tenancy; or

(b)becomes during the period of the tenancy unfit for human habitation, the landlord must pay any costs incurred by the tenant in obtaining alternative accommodation.

(1B) A landlord must hold appropriate insurance for the purposes of paying any costs under subsection (1A).

(1C) For the purposes of this section—

“costs” include—

(a) moving costs;

(b) deposits;

(c) rent, up to the amount of the rent for the original property;

“fitness for human habitation” is to be understood with reference to section 10 of this Act, but excludes any conditions caused by any damage or neglect on the part of the tenant.””

New clause 23—Permission for home adaptations—

“(1) The Housing Act 1988 is amended as follows.

(2) After section 16 insert—

“16A Home adaptations

(1) It is an implied term of every assured tenancy that a landlord shall give permission for adaptations where a local council has carried out a Home Assessment and recommends adaptations which constitute reasonable adjustments under the Equality Act 2010.

(2) A tenant may appeal a landlord’s refusal to give permission for such adaptations.””

This new clause would ensure that landlords of private and social tenancies provide permission for home adaptations for people who have disabilities where a Home Assessment has been carried out.

New clause 24—Discrimination relating to requirement for home adaptations—

“A relevant person must not, in relation to a dwelling that is to be let on an agreement which may give rise to a relevant tenancy—

(a) on the basis that a person does or may require home adaptations, prevent the person from—

(i) enquiring whether the dwelling is available for let,

(ii) accessing information about the dwelling,

(iii) viewing the dwelling in order to consider whether to seek to rent it, or

(iv) entering into a tenancy of the dwelling, or

(b) apply a provision, criterion or practice in order to make people requiring home adaptations less likely to enter into a tenancy of the dwelling than people who do not require home adaptations.”

Amendment 57, in clause 1, page 1, line 13, at end insert—

“unless the tenant meets the student test where the tenancy is entered into.

(1A) For the purposes of this section, a tenant who meets the student test when a tenancy is entered into has the same meaning as in Ground 4A.”

Amendment 58, page 1, line 13, at end insert—

“unless the landlord and the tenant mutually agree to have a fixed term during which period the landlord agrees to suspend the ability to seek possession under Ground 1 (Occupation by landlord or family), Ground 1A (Sale of dwelling-house) or Ground 6 (Redevelopment) of Schedule 2.

(1A) During a fixed term tenancy agreed under subsection (1) the landlord shall not be entitled to increase the rent as provided for by section 13.”

Amendment 60, page 1, line 13, at end insert

“unless the landlord acts as landlord for fewer than five properties.”

Government amendments 12 to 17.

Amendment 1, in clause 7, page 9, line 6, leave out from “determination” to end of line 11 and insert—

“(4AA) Where the rent for a particular period of the tenancy is to be greater than the rent for the previous period by virtue of a notice, determination or agreement mentioned in subsection (4A), the rent may not be greater than the rent for the previous period increased by the Bank of England Base Rate.

(4AB) Any provision relating to an assured tenancy to which this section applies is of no effect so far as it provides—

(a) that the rent for a particular period of the tenancy must or may be greater than the rent for the previous period otherwise than by virtue of a notice, determination or agreement mentioned in subsection (4A), or

(b) that the rent for a particular period of the tenancy, where greater than the rent for the previous period by virtue of a notice, determination or agreement mentioned in subsection (4A), must or may be greater than the rent for the previous period increased by the Bank of England Base Rate.”

This amendment would cap in-tenancy rent increases to the Bank of England base rate.

Amendment 9, page 9, line 6, leave out from “determination” to the end of line 11 and insert—

“(4AA) Where the rent for a particular period of the tenancy is to be greater than the rent for the previous period by virtue of a notice, determination or agreement mentioned in subsection (4A), the rent may not be greater than whichever is the lesser of—

(a) the rent for the previous period plus an increase equal to the rent multiplied by CPI; or

(b) the rent for the previous period plus an increase equal to the rent multiplied by the percentage increase in median national earnings.

(4AB) Any provision relating to an assured tenancy to which this section applies is of no effect so far as it provides—

(a) that the rent for a particular period of the tenancy must or may be greater than the rent for the previous period otherwise than by virtue of a notice, determination or agreement mentioned in subsection (4A), or

(b) that the rent for a particular period of the tenancy, where greater than the rent for the previous period by virtue of a notice, determination or agreement mentioned in subsection (4A), must or may be greater than the lesser of—

(i) the rent for the previous period plus an increase equal to the rent multiplied by CPI; or

(ii) the rent for the previous period plus an increase equal to the rent multiplied by the percentage increase in median national earnings.

(4AC) In this section—

“CPI” means the Consumer Prices Index 12-month rate published by the Office for National Statistics for 1 April preceding the date the notice is served.

“the percentage increase in median national earnings” means that calculated by the UK Statistics Authority over a three-year period ending on the date on which the notice was served.”

This amendment would introduce limits on the increases which could be made to rents by landlords. The limits would be calculated by reference to increases in CPI or median national earnings.

Amendment 5, in clause 8, page 11, line 16, at end insert—

“(aa) after “subject to” insert “section 13(4AA) and”;

(ab) omit from “concerned” to the end of the subsection and insert “should be let”;”.

This amendment would amend the Housing Act 1988 so that when determining rents tribunals must take into account the limits on rent increases introduced by Amendment 9 and need not consider existing market rates.

Amendment 6, page 11, line 17, leave out subsections (b), (c) and (d).

This amendment is consequential on Amendment 5.

Amendment 55, page 11, line 27, at end insert—

“(4A) In subsection (2), after paragraph (b) insert—

“(ba) any change in the value of the dwelling-house resulting from improvement works to the property facilitated by any means-tested energy efficiency grant scheme””.

This amendment would ensure that improvements to a property facilitated by means-tested energy efficiency grant schemes can be disregarded by a tribunal determining a new rent for the property, and can therefore not be used as grounds for increasing rent levels.

Government amendment 27.

Amendment 61, in clause 11, page 16, line 26, at end insert—

“(4) The Secretary of State must consult with representatives of the insurance sector before this section comes into effect to ensure that appropriate insurance products are available for tenants whose landlords have required insurance as a condition for consenting to the keeping of a pet.”

Government amendments 28 and 29.

Amendment 2, in clause 19, page 32, line 16, at end insert—

“(aa) where it is given by a tenant in relation to a premises in which they are the first tenants since its construction, not less than twenty-four months before the date on which the notice is to take effect;”.

This amendment would allow an assured short-term tenancy for the first two years after a premises is constructed.

Government amendments 30 and 34 to 39.

Amendment 7, in clause 75, page 101, line 6, at end insert—

“(2A) Information or documents to be provided under regulations under subsection (2) must include—

(a) in respect of a landlord entry—

(i) the address and contact details of the landlord;

(ii) the address and contact details of the managing agent;

(iii) details of each rented property owned by the landlord;

(iv) details of any enforcement action that any local authority has taken against the landlord;

(v) details of any enforcement action that any local authority has taken against the managing agent;

(vi) details of any banning orders or rent repayment orders that have been made against the landlord;

(vii) details of any reports that the landlord has failed to carry out works necessary to remedy any breaches of any applicable housing regulations within the timeframes set out by regulations made by the Secretary of State under

section 10A(3) of the Landlord and Tenant Act 1985.

(b) in respect of a dwelling entry—

(i) the address and contact details of the landlord;

(ii) the address and contact details of the managing agent;

(iii) details of any notices given to the previous tenant under

section 8 of the Housing Act 1988, including the grounds relied upon;

(iv) details of the rent that was payable at the commencement of the existing tenancy or, where there is no existing tenancy, the most recent tenancy;

(v) details of any increases in the rent imposed during the existing tenancy and the previous tenancy;

(vi) details of energy performance certificates required by

regulation 6(5) of the Energy Performance of Buildings (England and Wales) Regulations 2012;

(vii) details of gas safety certificates required by regulation 36 of the Gas Safety (Installation and Use) Regulations 1998;

(viii) details of electrical safety reports required by the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2010;

(ix) details of checks required under

regulation 4(1)(b) of the Smoke and Carbon Monoxide Alarm (England) Regulations 2015; and

(x) details of any features of the dwelling relevant to people with disabilities.”

This amendment would introduce specific requirements for landlord and dwelling entries on the Private Rented Sector Database.

Government amendments 40 and 41.

Amendment 11, in clause 96, page 114, line 22, at end insert—

“(1A) In section 40 (introduction and key definitions), in subsection (1) after “has” insert—

“breached a requirement imposed by sections 62(1) or 80(3) of the Renters’ Rights Act 2025 or””.

This amendment would enable a tribunal to make a rent repayment order where a landlord has failed to join a landlord redress scheme or have active entries in the private rented sector database.

Amendment 3, in clause 98, page 117, line 33, after “(homelessness),” insert—

“or that is provided by the Ministry of Defence for use as service family accommodation,”.

This amendment would extend the Decent Homes Standard to Ministry of Defence service family accommodation.

Amendment 8, page 117, line 33, leave out from “(homelessness)” to the end of line 3 on page 118.

This amendment would make the Decent Homes Standard apply to all homeless temporary accommodation provided under the Housing Act 1996 by adapting the definition of “residential premises” in the Housing Act 2004 to remove a requirement for such temporary accommodation to meet certain Government regulations.

Government amendments 42 to 52.

Amendment 56, in clause 142, page 151, line 9, leave out from “subject to” to the end of line 27 and insert—

“the publication of an assessment under section [Assessment of operation of possession process].

Amendment 10, in schedule 1, page 160, line 13, leave out subsection (a).

This amendment would extend the special provisions for purpose-built student housing to HMO student properties.

Government amendments 18 to 22.

Amendment 59, page 168, line 25, at end insert—

“20A After Ground 6 insert—

“Ground 6ZA

The landlord or superior landlord who is seeking possession intends to undertake such works as are necessary to ensure that the property meets the standards set out by regulations under

section 2A of the Housing Act 2004

and the intended work cannot reasonably be carried out without the tenant giving up possession of the dwelling-house because—

(a) the tenant is not willing to agree to such a variation of the terms of the tenancy as would give such access and other facilities as would permit the intended work to be carried out, or

(b) the nature of the intended work is such that no such variation is practicable, or

(c) the tenant is not willing to accept an assured tenancy of such part only of the dwelling-house (in this sub-paragraph referred to as “the reduced part”) as would leave in the possession of his landlord so much of the dwelling-house as would be reasonable to enable the intended work to be carried out and, where appropriate, as would give such access and other facilities over the reduced part as would permit the intended work to be carried out, or

(d) the nature of the intended work is such that such a tenancy is not practicable.””

Government amendments 23 to 26, 31 to 33, 53 and 54.

[Matthew Pennycook]

It is a pleasure to bring this important Bill back to the House this afternoon. Let me begin by thanking hon. Members on both sides of the Chamber for their engagement with it over recent months. In particular, I thank the shadow Minister, the hon. Member for Ruislip, Northwood and Pinner (David Simmonds), and other members of the Committee for the diligent and thoughtful line-by-line scrutiny of the Bill that they undertook over the course of many sittings late last year.

This Labour Government promised to succeed where their predecessor had failed, by quickly and decisively acting to transform the experience of private renting in England. Today, we make further tangible progress towards delivering on that commitment. Our Renters’ Rights Bill will modernise the regulation of our country’s insecure and unjust private rented sector, levelling decisively the playing field between landlord and tenant. It will empower renters by providing them with greater security, rights and protections so that they can stay in their homes for longer, build lives in their communities and avoid the risk of homelessness.

It will ensure that we can drive up the quality of privately rented housing so that renters have access to good-quality and safe homes as a matter of course. It will also allow us to crack down on the minority of unscrupulous landlords who exploit, mistreat or discriminate against renters. The Bill will also provide tangible benefits for responsible landlords who provide high-quality homes and a good service to their tenants. Not only will its provisions see the reputation of the sector as a whole improve, as we clamp down on those landlords whose behaviour currently tarnishes it, but the Bill will also ensure that good landlords enjoy simpler regulation and clear and expanded possession grounds, so that they can regain their properties quickly when necessary.

Although we have eschewed the previous Government’s habit of shoehorning swathes of new clauses into legislation following Second Reading, we needed to make a modest number of improvements to the Bill in Committee. Many of the amendments in question were minor and technical or consequential in nature, but I shall briefly explain to the House some of the more substantive changes.

To increase fairness for tenants being evicted because their landlord is at fault, we chose to make an amendment connected to ground 6A. As hon. Members will be aware this mandatory ground allows landlords to remove their tenants when eviction is necessary for them to comply not only with enforcement action, but as a result of separate changes that we made to the Bill with planning enforcement action as well. The amendment allows the court to require landlords to pay compensation to the tenant when they are forced to vacate their homes under such circumstances.

To provide greater flexibility for social landlords in meeting the demands of local housing markets, we widened ground 1B for rent-to-buy tenancies, ensuring that registered providers can take possession in all necessary circumstances. We also exempted assured tenancies from the 90-day rule, which protects housing supply in London and benefits permanent residents by preventing the conversion of family homes into short-term lets. Should a tenant give notice early in their tenancy, meaning that they leave before 90 consecutive nights have passed, these changes mean that the landlord will not automatically be found to have inadvertently provided temporary sleeping accommodation.

Lastly, we made changes to ensure that the introduction of a decent homes standard in the private rented sector works as intended.

--- Later in debate ---

[Matthew Pennycook]

There is a lot of bad practice out there. That is the very reason why the Government have acted so quickly to introduce these reforms, and we are confident that once they are in place, they will provide tenants with the protection that they deserve. In the interim, I am afraid that there will continue to be bad practice of the kind that the Bill will stamp out.

For the reasons that I have just alluded to, we have tabled amendments 19 and 22 to give private registered providers an alternative route for obtaining possession for redevelopment and for decant accommodation. Where the landlord seeks possession on ground 6 or ground 6ZA because they intend to carry out redevelopment work or want to move a tenant on from decant accommodation, they will need to provide alternative accommodation that meets specific requirements. That includes the accommodation being affordable, in a suitable location and not overcrowded. The accommodation must also be let as an assured tenancy or equivalent, unless it is being let for a temporary period pending the tenant being moved to an assured tenancy or equivalent. To use ground 6ZA, landlords must give tenants prior notice to ensure that they are fully aware that the accommodation is provided for temporary decant use. If the landlord does not do that, they are liable for a fine of up to £7,000.

Where landlords wish to accommodate tenants temporarily in properties that are earmarked for redevelopment, social landlords must give prior notice, and set out in a written statement the intention to redevelop the accommodation and the timeframe for redevelopment. Under those circumstances, alternative accommodation will not need to be provided. Social landlords will also be required to pay removal expenses for social tenants when using ground 6 and ground 6ZA. We do not expect that the need to use those grounds will arise often in practice through the engagement of PRPs with tenants, but where needed, the amendments will ensure that significant redevelopment work is not unduly delayed.

Government amendments 12, 13, 17, 20, 21, 23, 28 to 30 and 54 are related and consequential provisions to reflect the new ability for landlords to gain possession for redevelopment and for decant accommodation. We think that this group of amendments gets the balance right, enabling PRPs to progress redevelopment and use temporary decant accommodation during redevelopment works, while ensuring that tenants are provided with appropriate alternative accommodation and removal expenses.

Let me turn finally to amendment 34. Clause 30 ensures that long leases can continue to function by excluding leases over seven years from the assured regime. Those leases are typically used in purchases of leasehold and shared-ownership properties. I am grateful to stakeholders for raising concerns about the possibility of some unscrupulous landlords using clause 30 to circumnavigate the new assured regime by issuing leases of over seven years with a break or early-termination clause that is operable in the first few years. Tenants must not be cheated out of the protections of the assured tenancy regime. The amendment will therefore exclude all leases over 21 years from the assured regime. That will act as a much stronger deterrent to landlords who seek to avoid the assured tenancy regime. The amendment also excludes existing leases of between seven and 21 years, to ensure that they can continue to operate as currently intended. It also ensures that regulated home purchase plans can continue to enable consumers to purchase properties using the principles of Islamic finance by adding them to the list of excluded tenancies in schedule 1 to the Housing Act 1988.

The amendments that the Government have tabled for consideration today are a series of targeted changes designed to ensure that the Bill works as intended, and I commend them all to the House. I thank hon. Members for their efforts to improve the Bill, and for the scrutiny and challenge that the Bill has received so far. I look forward to listening to the remainder of the debate.

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Minister.

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

May I echo the Minister’s comments, and extend my thanks to him and his team, the other Members who served on the Committee, and the many witnesses who came in to share their views? It is clear that a lot of the discussion has been on the real-world impact that the legislation will have, rather than on political points, and in that spirit, I will set out my responses, and the rationale behind a number of the amendments that we have tabled, which will be the subject of debate and votes this afternoon.

Clearly, legislation is about striking the right balance. This afternoon, we will recognise—as we have done in our contributions to debate on this issue—the impact that the Bill will have on tenants, landlords and the stakeholders whom our amendments seek to protect. I highlight in particular the impact on students; on financially vulnerable tenants, such as those with low credit scores; on tenants who have pets; on small landlords, who are themselves vulnerable to financial shocks; and of course on other groups, such as agricultural workers and those with work-related accommodation, including NHS workers, military families and school staff, all of whom were mentioned in Committee and will, I am sure, be covered again later. All our amendments have sought to address practical issues, such as ensuring that when work is required on a property and a tenant is reluctant to allow the landlord in to carry out that work for whatever reason, there is sufficient freedom and flexibility in the legislation to ensure that the work can take place.

--- Later in debate ---

[David Simmonds]

I will not give way, because I am concluding. We on the Conservative Benches give those people the undertaking that while they may have to endure that situation until the next election, we will put it right, for the benefit of landlords and tenants alike.

[Madam Deputy Speaker (Judith Cummins)]

I call the Liberal Democrat spokesperson.

[Gideon Amos (Taunton and Wellington) (LD)]

I thank the Minister for his constructive work with the Liberal Democrats and other parties in Committee.

For a generation cut off from the dream of home ownership who find that, after half a century of flogging off social houses and council houses—over 1.5 million have been lost since 1980—there are now basically none left, it is vital that we restore hope to millions who aspire to a decent home. As such, the Liberal Democrats support the key principle of this Bill, which is to bring an end to no-fault evictions. After the continual stop-start of the previous Government, giving tenants the security they deserve is long overdue. It is time to end once and for all the fear that any complaint from any tenant could be met with an instant eviction notice at any moment.

Of course, landlords do not generally act in such a cavalier fashion; most are good landlords, and we value them and what they bring to the market. As such, to sustain a healthy private rented sector, we have tabled amendment 10, which would extend to off-street student rental landlords the same possession laws that apply to purpose-built student accommodation. Given that fully 31% of properties on the Accommodation for Students website are one or two-bedroom properties rather than houses in multiple occupancy, as Unipol and the Higher Education Policy Institute have pointed out, that is a big chunk of the market, and one that needs to be addressed.

The need for more homes is why we have tabled amendment 2, which would particularly incentivise more build-to-rent accommodation. In Taunton and Wellington, our Lib Dem council has supported the delivery of tens of thousands of new homes; our population increased by 10% up to 2021. Our manifesto called for 150,000 social homes per year—I refer the House to my entry in the Register of Members’ Financial Interests regarding my experience as a social landlord. We clearly set out the borrowing of £6 billion per year that would make that happen, unlike the Labour and Conservative manifestos, which included no numbers whatsoever for social housing.

We need a lot of that build-to-rent accommodation also to be rent to own, so renters can accrue ownership of their own home. It is time to give a whole generation of young people who have been excluded that elusive first step on the housing ladder. Amendment 2 would therefore give a developer of build-to-rent housing the security of a fixed term of 24 months for the first tenancy. Since that was tabled, I have heard from the British Property Federation and others, and they have suggested that an initial fixed term of six months would enable them to secure the investment they need to build more and to get building. That would not undermine the general principle of moving to periodic tenancies, as build to rent is only 0.1% of the housing stock. We will not press amendment 2, but I genuinely urge the Government to take up the idea, run with it and generate more investment in new homes.

Let me turn to the interests of tenants, which have been so overlooked for so long. My constituent and friend Mike Godleman, who was disabled, died while recovering from major surgery and under the threat of a no-fault eviction notice, for no reason he could possibly work out. In part in his memory, our new clause 23 would ensure that landlords of both private and social tenancies must give permission for home adaptations when a home assessment has been carried out. If rental bidding is to be outlawed, as the Minister said, it must not be replaced by bidding up rent in advance, so our new clause 1 would limit rent in advance to two months’ rent. In that respect, I welcome Government new clause 13.

In-tenancy rent increases also need to be limited to protect tenants from exorbitant increases. The most sensible way to do this is set out in our amendment 1, which would peg increases to the Bank of England base rate. Property is a financial and investment asset, and landlords’ costs are more directly influenced by mortgage rates rather than by the general inflation and the cost of living. New clause 22, in the name of my hon. Friend the Member for St Albans (Daisy Cooper), would require landlords to pay for alternative accommodation when dwellings are unfit for human habitation.

Turning to the amendments proposed by other hon. Members, we support the proposed new clause 10 in the name of the hon. Member for Dulwich and West Norwood (Helen Hayes), which will prevent the guarantor from being liable on the death of a tenant, and we recognise that the Government have tabled new clause 15 to limit that liability, rather than end it altogether. We also support amendment 7 on the content that must be submitted for inclusion in the database. The database could be a very powerful instrument for tenants if it provides information, as I spoke about at some length in Committee. We also support new clause 6, which would give care leavers support through funding for a deposit when they move out of care. Both those amendments are in the name of the hon. Member for Liverpool Wavertree (Paula Barker).

One of the biggest concerns to landlords, tenants and local communities in Taunton and Wellington, as it is in Cornwall, the lakes and other places, is that there is no control over the number of homes being turned into holiday lets and Airbnbs. This has prompted a significant increase to about 3,000 holiday homes in Somerset—a 33% increase in short-term rentals in the south-west since 2019. Visitors of course bring welcome investment, but in some areas second homes are pricing locals out of local markets.

[Gideon Amos]

My hon. Friend is absolutely right. That definition needs to cover the breadth of agricultural workers, and I am sure the Minister has heard his point.

Liberal Democrats have long argued for a licensing system and tougher planning controls for second homes, with a new use class to cover second homes and short-term lets. Both this and previous Governments have said that they would create a new use class, so I urge the Minister to say in today’s debate whether that will really happen. Without controls, there is a serious risk of second homes proliferating if landlords do not wish to be part of a more regulated private rented sector following the enactment of this Bill. Our new clause 2 would therefore require the Government to assess properly the growth in short-term lets, and I urge the Minister to do so. In fact, I am not sure why anyone would oppose that amendment.

Finally, our amendment 3 would apply the Bill’s proposed decent homes standard to military service family accommodation. I am grateful to the Minister for taking the time to write to me on this, but the argument that a standard would not be suitable for service family accommodation does not stand up, because clause 98 allows the Secretary of State to establish whatever version of the decent homes standard they feel is appropriate. I do not think anyone across the House would understand why that should be different for service families. We will no doubt hear the Ministry of Defence say that 90% or more of service family accommodation already meets the decent homes standard so it is all okay, but in that case, why not make that claim evident by subjecting that accommodation to the decent homes standard in the Bill?

To say that the recently published “Service Accommodation” report from the Defence Committee, under the chairmanship of the hon. Member for Slough (Mr Dhesi), says something different from the official reports would be a massive understatement. The Select Committee reported evidence from one service family, who said:

“It is impossible to challenge the ‘Decent Homes Standard’ without paying for a survey yourself. It is widely accepted that each house has not been checked but either guessed or it is assumed that the standard of one house is the same as all in one area.”

I therefore ask how sure we can be of the self-declared statistics from the Defence Infrastructure Organisation, or were they from Annington homes? As another witness before the Select Committee said:

“It is disingenuous for DIO to present glossy brochures about being ‘decent homes plus’ when they are anything but”

and

“it is clear that the DIO’s property frequently does not meet the standards.”

Crucially, the witness added:

“Moreover, there is no local authority”—

or anyone else—

“to hold them to account as would be the case for private and other local landlords.”

That is exactly what amendment 3 would provide.

In the Kerslake report, commissioned before the election by the now Secretary of State for Defence—a former Housing Minister—reports of damp, mould and, in other service accommodation, rat infestations abound. If all the witnesses and all these reports are wrong and the official figures are right, showing that over 90% of properties meet the decent homes standard, there is nothing for the MOD to fear in subjecting service accommodation to that assessment, just as social and private landlords will have to do under the Bill. The hard work of my hon. Friend the Member for North Shropshire (Helen Morgan) got even the previous Government to come round to the idea, and the then Minister, the former Member for Redcar, said in this Chamber on 24 April last year that the Government:

“intend to ensure that service accommodation meets the decent homes standard”.—[Official Report, 24 April 2024; Vol. 748, c. 1029.]

Service families such as those of 40 Commando Royal Marines, part of our Taunton and Wellington family community, make massive sacrifices for our country, and sometimes make the ultimate sacrifice. They deserve decent homes, and the MOD should be required to meet the standard, just as the Government are requiring that of other landlords. I am grateful to see support for amendment 3 from across the House. We will be voting for it this evening to support our service families, and I urge Members across the House to vote for it, too.

[Madam Deputy Speaker (Judith Cummins)]

I call the Chair of the Housing, Communities and Local Government Committee.

[Florence Eshalomi]

I start by paying tribute to Members from across the House who have tabled an amendment at this stage, and to the Minister, who has engaged constructively with Members between Second Reading and Report.

As we debate this Bill today, it is important to remember why it is so badly needed: the dire situation that many tenants across all our constituencies are facing through no fault of their own. We have to ask ourselves how we got to a position where tenants have the threat of eviction held over their head for no good reason. How did we get to a position where tenants can be given only a couple of months to raise thousands of pounds for rent in advance, on top of moving costs and the deposit? How did we get to a position where the average rent went up by 9.1% last year? For far too long tenants have been the innocent victims of an unjust power balance in the rental market. As a result, many of them have been unable to keep a roof over their heads and, sadly, have fallen into homelessness. This cannot continue any longer. We need a fairer deal for renters.