Renters (Reform) Bill

Lord Bishop of Chelmsford Excerpts

2nd reading
Wednesday 15th May 2024 Lords Chamber

[The Lord Bishop of Chelmsford]

My Lords, it is a pleasure to follow the noble Lord, Lord Best, from whose wisdom and experience I have personally gained such a lot. I am grateful for his contribution today. I declare my interest as the Church of England’s lead bishop for housing. Also, as I am in clergy-tied housing myself, my retirement house is currently let to a long-term tenant.

My starting place is that good homes are the building blocks of strong communities. Bad homes threaten mental and physical well-being, hinder personal and economic development, and compromise safety. Everyone needs a good home so that we have a good society where people can flourish. As others have said, there is much to welcome in the Bill. Private renting is the most insecure and expensive tenure, and it requires significant reform. I am pleased that the decent homes standard will be applied to the private rented sector for the first time. I am also pleased that the Government have tabled amendments to prohibit landlords and letting agencies from discriminating against families with children and people in receipt of benefits. I will seek more details on how this will work in practice.

I have three children, all of whom are young adults. Without a significant shake-up of the entire housing market, it is likely that they will struggle ever to buy their own property. With more than 11 million people renting privately, they are not alone, and young people face particular difficulties in switching to home ownership or social rent. With some notable exceptions, young people are not particularly well represented in either House, which might be one reason the Bill has taken so long to reach us. I am determined to speak up for them as the Bill progresses. Those 11 million, including my three children, know how important it is to improve the private rented sector. The old phrase that we are a “nation of home owners” is now outdated. We are a nation in which many people are in the private rented sector for long periods, if not permanently.

So there is much to commend in the Bill. However, I am concerned that it has lost some of its most important measures during its passage through Parliament so far. As drafted, the Bill will not provide a significantly better private rented sector. The most well-publicised reversal is the delay in abolishing Section 21 evictions, and I add my voice to the calls of other Peers for the Government to set out a series of tests for the courts, or a timeline, for abolition. Without this, I fear that this reform will be delayed indefinitely.

This Bill provides us with an opportunity to make significant reforms to one tenure, but the private rented sector houses only around 20% of the population. We need to think bigger to fix our housing crisis. Nothing short of a long-term strategy which considers all tenures as interconnected parts of a whole system will do. A few weeks ago, I was pleased to launch a report from Homes For All, which set out a vision for England’s housing system and the need for a long-term strategy—and I am grateful to the Minister for being there. I commend the report and its ambitious proposals to all noble Lords who have an interest in fixing the UK’s housing crisis. I am grateful to those noble Lords who have supported it, including the late and much mourned Lord Stunell.

A vision for better housing which delivers for everyone requires a set of values that we can all support. The Archbishops’ Commission on Housing, Church and Community set out five values that should underpin good housing. It said that housing should always be safe, secure, sociable, sustainable and satisfying. As it stands, the private rented sector is often unsafe, insecure, unsociable, unsustainable and unsatisfying—and it is frequently the most expensive tenure for tenants. I shall be assessing the quality of this Bill against the five values outlined by the commission.

Achieving these five goals may require a certain amount of sacrifice. To reverse pervasive issues of low quality and high costs, a new balance must be struck between the needs of landlords and renters. This might involve some sacrifices if we are to reform the tenure meaningfully. The needs of landlords and renters are often presented as being in opposition but, in reality, the vast majority of landlords demonstrate a duty of care in line with legal obligations, and the vast majority of tenants treat their homes with respect. We need both groups to come together to make this tenure work.

To turn to specifics, a sense of security is vital for renters. I would like to see the notice period for tenants extended from two to four months, which would provide more time for them to find a new home or for local authorities to offer homelessness prevention support. At the other end of the tenancy, there are questions to ask about the newly introduced six-month tenancy commitment for renters. If the Government will not commit to removing it altogether, will they set out the extenuating circumstances that would allow tenants to serve notice earlier, such as the death of a resident or a serious hazard in the property.

Judges should have more discretion to consider extenuating circumstances when assessing Section 8 evictions. Repeated non-payment of rent can be for a huge number of reasons, some of which will not persist beyond just a few months. Judges should be able to use their discretion about whether they issue an eviction notice on those grounds. We also know, and have heard already, that domestic abuse is often misreported as anti-social behaviour. Given those sensitivities, why has the threshold for a Section 8 eviction been lowered to

“capable of causing a nuisance”?

That framing is extremely broad and will inevitably capture behaviours that should not count as anti-social behaviour.

One other issue that I would like to raise affects providers of retirement housing for clergy, including the Church of England’s pensions board. I should declare I am part of the Church of England’s pension scheme, but I am unlikely to turn to it for housing in retirement. However, many members of the clergy enter retirement without owning a home. It is then that pensions boards or similar schemes are able to step in to provide affordable and assured housing for them in later life. Some changes will be needed to this Bill to ensure that the Church’s model of provision is still financially viable. I have set these out in a little more detail in a letter to the Minister, and I look forward to corresponding further on the matter.

Finally, the Bill presents us with the first opportunity in a generation to make our most expensive and insecure housing tenure fit for purpose. Will we take the opportunity or will we squander it? I hope that this House and the other place will work constructively to pass legislation that protects renters, reassures landlords and ensures that everyone has access to good housing that is safe, secure, sociable, sustainable and satisfying.