Renters’ Rights Bill

Lord Jamieson Excerpts

Tuesday 4th February 2025 Lords Chamber

[Lord Jamieson (Con)]

My Lords, I declare my interest as set out in the register, particularly being a councillor in Central Bedfordshire. As a fellow north-easterner, I congratulate the noble Lord, Lord Wilson of Sedgefield, on his excellent maiden speech, and also on his mother’s impending 100th birthday. I also congratulate the noble Baroness, Lady Brown of Silvertown, on her passionate maiden speech. I share her concerns for children. I also thank the Minister for the time that she has given noble Lords to explain the Bill. I thank the many groups and people who have written to us and sent us submissions on the Bill.

We all want everyone to have a safe, secure and affordable home. The question is whether this Bill will deliver this or whether it risks undermining a key housing sector to the detriment of landlords and tenants alike. The Minister has argued that the Government have no choice but to introduce this Bill to reform the private rented sector. However, this assertion does not hold up under scrutiny.

While the Renters (Reform) Bill was originally conceived by the previous Conservative Government to address long-standing issues in the private rented sector, in its current form the Bill risks doing more harm than good. Comparing this Bill with its predecessor, the Renters (Reform) Bill in 2023-24, we see some striking differences. The changes proposed by the current Government threaten to destabilise the private rented sector. This is a sector that has seen remarkable growth in recent years, now housing nearly 19% of all households —some 4.6 million people.

Rather than providing the stability renters need, this Bill risks exacerbating the very problems it seeks to resolve. According to Scotland's Housing Network, 16% of landlords are scaling back their supply, and 12% are considering leaving the sector altogether. Scotland shows that the overregulation proposed here has pushed landlords out of the market, reducing housing supply and leaving renters in a worse position, with the highest rent increases in the UK. While these reforms are meant to protect tenants, they threaten to leave them with fewer choices and higher costs.

The Renters’ Rights Bill has been said by many in this Chamber—including the noble Lords, Lord Best, Lord Thurlow and Lord Truscott—to risk introducing a series of provisions that are set to significantly disrupt the private rented sector. It is a well-established fact that private landlords, when faced with increased regulation, often choose to exit the market. This is not just speculation: research from the National Residential Landlords Association in 2023 revealed that one in four landlords were considering selling at least one of their properties due to increased regulation, with many citing the Renters (Reform) Bill as a major factor. According to the English Private Landlord Survey 2024, 31% of landlords planned to decrease the number of properties or sell them altogether, compared to 16% in 2018.

Get Living, a significant player in the build-to-rent sector, has expressed serious concerns about how these changes could undermine long-term investment in rental homes. Savills, Hamptons, Zoopla and others warn that the provisions in the Bill could exacerbate the housing crisis. This is a concerning trend that will directly impact housing availability. As more landlords leave the market, there will be fewer rental homes, and it will be tenants who feel the effects of this most acutely. Moreover, by reducing investment in the rental sector, these reforms could also undermine the Government’s targets for housebuilding.

The previous Conservative Government worked hard to increase housing stock, delivering 2.5 million homes between 2010 and 2024, with 1 million of these delivered during the last Parliament. If the proposed changes in this Bill push landlords out of the market, it will risk reversing the progress on housing delivery.

Further data from Oxford Economics paints a grim picture: only one in eight renters can afford to purchase a home in their area. For many, the private rented sector is the only viable option, but these new regulations are forcing landlords to sell their properties, tightening an already overstretched market. Will the Minister explain why this Bill seems to accelerate the exodus of landlords from the market? What steps do the Government intend to take to reverse this damaging trend?

An issue that has been raised by many noble Lords is Section 21 and its impact on the courts system. I was particularly struck by the words of the noble and learned Lord, Lord Etherton, and the noble Earl, Lord Kinnoull. The previous Conservative Government were clear in their approach: any abolition of Section 21 would come only after significant reform of HM Courts & Tribunals Service. This would have ensured that the court system was ready and able to process cases efficiently and fairly. Unfortunately, the Bill abandons that commitment, rushing forward with the abolition of Section 21 without first addressing the ongoing strain in our courts.

Our court system is already under immense strain. Landlords are facing significant delays when seeking possession of a property, and these delays would only worsen with the proposed changes to Section 21. The First-tier Tribunal is already overwhelmed with challenges related to rent increases; currently, it can take up to 10 weeks for the tribunal to make a decision. Introducing additional cases to this already overburdened system risks further delays, which would ultimately harm both tenants and landlords alike.

Moreover, the legislation includes provisions enabling tenants to challenge rent increases more easily. While the right to challenge unjust rent hikes is important, the process outlined in the Bill could overwhelm our already stretched court system. As highlighted by my noble friends Lady Eaton and Lord Northbrook, a system that allows all rent increases to be appealed with no downside risks flooding the court system. How will the First-tier Tribunal manage the added burden of rent appeals, when it is already struggling with its current case load?

The abolition of Section 21 repossessions means that responsible landlords will be forced to rely on the courts to process legitimate possession cases. However, as the Housing Minister himself admitted in the Bill Committee in the other place, the UK court system is “on its knees”. While the Minister correctly argues that “court readiness” is essential to the successful operation of the new system, which I assume refers to the abolition of Section 21 and the resulting shift in the equilibrium of the renters’ market, His Majesty’s Government have yet to clarify what “court readiness” truly means in practical terms. What resources will be allocated to ensure that the courts are properly equipped for these reforms? The Law Society has rightly warned that

“without investment in housing legal aid and the courts, the Bill will not achieve its aims”.

Student lets have been raised by many noble Lords. The Bill exempts purpose-built student accommodation from the requirement to end fixed-term tenancies, a provision that we agree with. However, this exemption will not apply to other forms of student accommodation, such as private rental properties where second- and third-year undergraduate students typically reside. This Government have abandoned our commitment to sufficiently carve out student accommodation, where it is essential that both landlords and tenants have the certainty of fixed-term contracts to plan for subsequent years. What about master’s and PhD students, who often require longer-term accommodation, typically in smaller, privately rented properties? According to data from accommodationforstudents.com, one- and two-bedroom properties make up one-third of all student housing. The provisions for purpose-built student accommodation should be extended to include all student properties, ensuring the smooth operation of the entire student housing market and protecting the annual cycle of student rentals.

In conclusion, the need for more homes in the private rented sector is urgent. Savills estimates that, by 2031, we will need as many as 1 million additional homes for private rent to keep up with rising demand. How, then, can we afford to risk policies that may drive landlords out of the market and make this shortage even worse? As the noble Earl, Lord Lytton, said, how do we strike the right balance between protecting tenants and maintaining a healthy rental market that supports investment and meets the needs of renters across the country? It is crucial that the Government listen to the voices of landlords, housing experts and tenants who have raised concerns about the impact of the Bill, and we intend to table amendments that address some of the most pressing concerns. Ultimately, we must ensure that the policies we put in place strengthen, not weaken, the system that provides homes for renters, while also supporting landlords, who are crucial to meeting the nation’s housing needs. The future of our rental market depends on striking that balance.