Renters’ Rights Bill

Lord Cromwell Excerpts

Thursday 15th May 2025 Lords Chamber

[Lord Hacking (Lab)]

My Lords, I am sorry to interrupt the noble Baroness. This should be directed also to the noble Lord, Lord Bird. As I read in Clause 1 of the Bill that all existing tenancies are made periodic tenancies, that must involve the ceasing of the use of Section 21.

[Lord Cromwell (CB)]

That is what the noble Baroness is saying.

[Baroness Grender (LD)]

Yes, that is exactly what I am saying: this will bring about the abolition of Section 21.

That failure has rightly eroded trust. It now falls to this Government to deliver what was promised without further delay. Renters should not be asked to wait any longer for the basic security that this legislation is intended to provide. At the same time, we on these Benches recognise that proper implementation matters. Noble Lords would not find that surprising, given that every other member of this Bill team is a former or current councillor, with the exception of me.

The changes this Bill brings are significant and must be supported by clear guidance, well-prepared systems and proper resourcing, not least for the courts and local authorities. Yes, we need preparation time, but that preparation must not become an excuse for indefinite delay. There is a question of balance. Where regulation or consultation is needed, that work must of course be done, but it should be carried out with urgency and to a clear and published timetable. Renters deserve certainty about when these protections will come into force, but so too do landlords. Those operating in good faith need to understand the new framework that they will be working within and to have time to prepare for it, but they should not be left in limbo. The entire sector needs clarity and consistency. Delays would only undermine confidence in this long-awaited reform.

I have only one central question for the Minister. The Government publicly stated that Section 21 would be abolished “immediately” in their 2024 manifesto. However, Clause 145(5)(a) indicates that the abolition will take effect two months after the Bill is passed. The Bill also says that this is a decision for the Secretary of State. Can she please use this opportunity to clarify—my apologies if she has already explained this endlessly, but I am still slightly confused on this question—which timeframe is correct? It would be helpful, for instance, to understand the time lapse between the amendments from the noble Lord, Lord Bird, and the commencement date of the abolition of Section 21.

Finally, many of us were here until 1 am on Tuesday and until midnight last night, and this is now our seventh day. I am certain that there are many Peers who would do that again and again to get to the abolition of Section 21—to get to, at pace, that long-promised, much-needed change in the law. I look forward now to hearing when.

[Lord Cromwell (CB)]

Perhaps I may offer the briefest of comments. At the risk of being struck by lightning: on the seventh day, the Lord rested. Let us hope we all get some rest soon.

I mention two words: equilibrium and scramble. Equilibrium is what we all seek, but it is a fact of life that one woman’s equilibrium may be different to another woman’s equilibrium. The perpetual life of politics is trying to find an equilibrium between different viewpoints. Regarding scramble, there will be a scramble whenever this comes in, and that is not a reason to put it off.

We touched on the database yesterday. There are bits of the Bill that will come in more slowly, but Section 21, to echo the point from the noble Lord, Lord Bird, will definitely go. If the Bill achieves nothing else, Section 21 will go.

[Baroness Scott of Bybrook (Con)]

My Lords, I thank the noble Lord, Lord Bird, who, as always, so passionately opened this group. I thank him for all his knowledge and particularly the passion that he brings on anything to do with homes, homelessness and vulnerable people.

The noble Lord’s Amendments 278, 286 and 291, along with others in his name, would bring the majority of the Act into force on the day it receives Royal Assent, save for a few areas requiring further regulation or consultation. We on these Benches have consistently urged the Government to not take this approach. We have called on them to reaffirm their long-standing commitment to prospective lawmaking by providing clear commencement dates and reasonable transition periods for all new obligations. This is essential to protect both tenants and landlords from abrupt and potentially unfair changes.

A phased approach would allow landlords, tenants and letting agents time to understand and adapt to the new legal framework. Commencing the Act immediately upon passage does not provide sufficient time to do this. We simply cannot expect landlords to react and comply with significant new requirements on day 1. Indeed, the evidence bears this this out. In a recent survey conducted by Paragon, 57% of landlords said they had heard of the legislation but did not fully understand its implications, and a further 39% said they knew little about it. Those statistics point clearly to a knowledge gap in the market—one that we must not ignore. Therefore, we believe that a clear transition period is necessary.

Amendments 281, 287, 288 and 289, tabled by the noble Lord, Lord Hacking, present a credible and constructive challenge to the Government’s current position. They propose a model that echoes the approach taken by the predecessor to the Bill—an approach grounded in prospective lawmaking. Phase 1 in that Bill would have applied the new rules only to new tenancies with at least six months’ notice, and phase 2 would extend the rules to existing tenancies no less than 12 months later. This two-phase model provides a reasonable and practical path forward, allowing time for proper education, preparation and implementation. I urge the Government to reflect carefully on these proposals and to recognise the importance of a fair and orderly transition.

We all agree that tenants deserve safe, secure and decent homes at a fair price, but to deliver that we need a functioning rental market with enough good-quality homes to meet growing demand. We need more homes in the right places. This Bill, regrettably, puts that in danger. Rather than boosting supply, it risks driving landlords out of the market, shrinking the number of available homes and pushing rents even higher. If we get this wrong, renters will pay the price. Balance is essential. At present, we believe this Bill does not strike that balance.

Before I sit down, I thank and congratulate the noble Baroness on how she has conducted the first Bill that she is taken through Committee, and all noble Lords who have taken part in excellent, well-informed debates over the past seven days. I look forward to Report.