Renters’ Rights Bill

Lord Jamieson Excerpts

Wednesday 14th May 2025 Lords Chamber

[Lord Jamieson (Con)]

My Lords, I thank all noble Lords for their contributions to the discussion on the seventh group of amendments, which addresses important changes to the rent repayment orders. These amendments seek to strengthen the mechanism by which tenants and local authorities can hold landlords accountable when they breach laws and ensure that rent repayment orders are both fair and effective.

The proposals tabled by the noble Baronesses, Lady Thornhill, Lady Taylor of Stevenage and Lady Kennedy of Cradley, raise significant points that warrant our attention. Among them, we see the suggestion to register RROs on a public database, which would make the existence of these orders transparent, allowing tenants and others to be aware of landlords with a history of non-compliance. This could serve as a powerful deterrent against landlords who might otherwise continue to disregard their responsibilities.

In addition, we see proposals to change the amount to be repaid in an RRO, as well as to extend the ability of tribunals to issue RROs in the case of non-registration on the public database. We need to ensure that the consequences for landlords are proportionate to the harm caused and that tenants receive a fair outcome. Although it is appropriate to have rent repayment orders where a tenant has been impacted or suffered a loss, as outlined so well by the noble Baroness, Lady Kennedy of Cradley, where a landlord has inadvertently breached a regulation and received a fine, but no harm has been done to a tenant, should they also receive a rent repayment order?

These Benches accept that rent repayment orders are an important tool for holding landlords to account and we welcome the intention to make these processes more accessible and transparent for tenants. However, we note that there are complex issues surrounding the practicalities of RROs, as I mentioned earlier, particularly in relation to the standard of proof and their scope.

Therefore, I ask the Government to respond to the following points. How do they propose to ensure that these amendments, particularly those relating to the registration of RROs, do not place unnecessary burdens on tribunals or create unintended consequences for landlords, who may not be aware of the rules? How do the Government intend to address the issue of non-registration on the database and the potential impact on landlords who fail to comply?

I thank the noble Baronesses, Lady Thornhill, Lady Bennett of Manor Castle and Lady Kennedy of Cradley. These are important questions and I look forward to hearing the Government’s response.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Thornhill, and my noble friend Lady Kennedy of Cradley for their amendments relating to rent repayment orders. I also thank the noble Lord, Lord Jamieson, for his contribution.

I will begin by responding to the amendments in the name of the noble Baroness, Lady Thornhill. Amendment 226 seeks to extend penalties for non-compliance with private rented sector database requirements. The Bill already includes a clear, proportionate and escalating approach to penalties against those who flout the rules. For initial or less serious non-compliance, local authorities can impose a civil penalty of up to £7,000— I think the noble Baroness, Lady Thornhill, said she was beginning to sound like a stuck record; now I feel like that as well. In the case of the database, that applies, for example, to a first failure by a landlord to register.

For serious or repeat non-compliance, local authorities can prosecute or, alternatively, issue a civil penalty of up to £40,000. In the case of the database, that applies, for example, where a landlord knowingly or recklessly provides information to the database operator that is false or misleading in a material respect. We will, through the Bill, significantly strengthen rent repayment orders because we believe they are a powerful mechanism for tenant-led enforcement.

In relation to the database, rent repayment orders are available where a landlord knowingly or recklessly provides false or misleading information to the database operator. They are also available where a landlord continues to fail to register or provide the required information to the database following a first penalty. These, though, are criminal offences, and it would not be appropriate to extend rent repayment orders to non-criminal breaches of the database requirements. Rent repayment orders are intended to act as a punitive sanction against landlords who commit criminal offences. Extending them to conduct that does not amount to an offence would undermine this.

Similarly, Amendment 257 would make rent repayment orders available for initial failure to be a member of the PRS landlord ombudsman and initial failure to be registered with the PRS database. My view is, as before, that it may be inappropriate to extend rent repayment orders to these non-criminal breaches. The new ombudsman and database are fundamental parts of our reforms, and of a better private rented sector with greater accountability. It is vital that they are robustly enforced.

We think the routes of enforcement currently in the Bill represent an effective and proportionate approach. We will monitor the use and effectiveness of rent repayment orders under the new, strengthened regime and consider whether further changes are necessary. Therefore I ask that the noble Baroness, Lady Thornhill, withdraws her amendment.

Amendment 244A, tabled by my noble friend Lady Kennedy of Cradley, seeks to lower the standard of proof to which the First-tier Tribunal must be satisfied before making a rent repayment order against a landlord for an offence of illegal eviction or harassment under the Protection from Eviction Act 1977. She set out very clearly and concisely why she was putting that forward with a very convincing argument.

I am clear that illegal eviction and harassment are serious criminal offences and that offenders need to be robustly punished. I accept that this happens too rarely at the moment. We are seeking to address this through the Bill by extending civil penalties, as an alternative to prosecution, to illegal eviction and harassment offences under the Protection from Eviction Act 1977.

My noble friend pointed out that the First-tier Tribunal is not a criminal court and asked why the criminal standard of proof should apply. The rent repayment order regime is predicated on an offence having been committed, and it is an established principle in law that offences are taken to have been committed when proved beyond reasonable doubt. Creating a lower standard of proof for the same offences for a finding of guilt in the tribunal compared with the criminal courts would be confusing, inconsistent and could be subject to a successful challenge.

We are also placing a duty on local housing authorities to enforce against specified landlord legislation, which includes illegal eviction and harassment under the Protection from Eviction Act 1977, and we are looking hard at how best we can support them do so effectively. This Government are determined to bear down harder on illegal eviction and harassment. We are concerned, though, about what impact this amendment could have on the integrity of the rent repayment order regime as a whole.

Rent repayment orders are predicated on an offence being committed. As I said, they apply exclusively to criminal offences, and the penalty can be a very significant one. The changes that we are making through the Bill both double the maximum penalty to two years’ rent and extend the circumstances in which the tribunal must award that amount. I recognise that illegal eviction may be hard to prove beyond reasonable doubt, but that is not a principled reason for a civil standard of proof to apply to obtaining a rent repayment order in respect of a serious criminal offence.

The severity of the penalties that, quite properly, apply in the rent repayment order regime mean that there would be serious questions about procedural fairness should the criminal standard of proof not be required. The criminal standard of proof will of course be required when a local authority issues a civil penalty for illegal eviction or harassment under new Section 1A of the Protection from Eviction Act 1977. All the other rent repayment offences would remain to be proved beyond reasonable doubt. Making rent repayment orders for illegal eviction and harassment subject to the civil standard of proof would create an anomaly and be a departure from a well-established position, which we consider would be hard to justify. Of course, I would be very happy to meet the noble Baroness, Lady Kennedy, and Safer Renting but, for now, I ask the noble Baroness, Lady Thornhill, to withdraw her amendment.

I will end with a brief—I promise—explanation of the Government’s amendments in this area. This Government view rent repayment orders as a critical part of ensuring higher standards and better compliance in the private rented sector; that is why we have significantly expanded them through the Bill. Government Amendments 244 to 248 aim to ensure that they work as intended in their application to the offence of breaching the restricted period after relying on the moving and selling grounds of possession, and the amended licensing offences are described correctly.

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I realise that I have spoken at some length on these matters. They are very important issues. I very much hope that the Minister, who I know has had discussions with the relevant bodies, may be able to give some comfort on these five amendments because they all reflect problems that it is within the capacity of the Bill to solve. I beg to move.

[Lord Jamieson (Con)]

My Lords, I am grateful for the opportunity to speak on this group of amendments in this important debate concerning property licensing. This discussion touches on a particular practical part of the regulatory framework: how local authorities manage and enforce licensing regimes for rental properties and meet appropriate standards of safety and quality.

The amendments in this group, tabled by the noble Lords, Lord Shipley and Lord Young of Cookham, address both the effectiveness of the licensing schemes and the administrative burdens that they impose on landlords, local authorities and tenants alike. Amendments 253 and 254 in the name of the noble Lord, Lord Shipley, speak to the role of selective licensing in improving housing conditions and propose to extend the maximum duration of these schemes.

We already have selective licensing. UK government guidance is clear that local authorities can use this process to tackle poor housing conditions, as well as other issues. These are worthy proposals. We will listen carefully to these concerns and work with noble Lords across the House both to get the balance right and to ensure that the Bill plays its part in driving up the quality of housing, particularly in the areas where local authorities can clearly demonstrate poor housing conditions or evidence of anti-social behaviour.

However, we must also ask: are licensing schemes always the right lever for improving housing quality? In the right circumstances, licensing can help drive up standards, but, if it is poorly targeted or applied too broadly, it risks creating unnecessary bureaucracy and placing costs on good landlords while doing little to deter the worst offenders. We must guard against the risk of licensing becoming a tick-box exercise rather than a tool for real enforcement.

I thank the noble Lord, Lord Shipley, for introducing Amendments 267 to 269, tabled by my noble friend Lord Young of Cookham. They are pragmatic and draw on my noble friend’s extensive experience in both government and housing policy. They propose more proportionate licensing fees in large blocks, simplified procedures for name changes and facilitated bulk applications. All are practical measures designed to reduce red tape and bring common sense to what can sometimes be a cumbersome process.

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[Lord Jamieson (Con)]

My Lords, we all want to see energy efficiency, better homes for tenants and reduced fuel poverty but, as we discussed earlier this evening, this needs to be done in an affordable and pragmatic way that does not force older, rural and heritage homes out of the rental market. Amendment 259 in the name of the noble Baroness, Lady Bennett of Manor Castle, seeks to extend the powers of local housing authorities to use available data to enforce and exercise their functions under the Energy Act 2011. As the noble Baroness has established, that Act provided obligations on landlords to meet certain energy efficiency requirements for their properties before they are able to let their properties to tenants.

Clause 134 already enables local housing authorities to use the information they possess to enforce housing offences and other functions under a wider range of legislation than was previously permitted in the Housing Act 2004. This amendment would therefore extend the already expanded remit of Clause 134 to the domain of energy efficiency. We understand the intentions of the noble Baroness in this amendment and will be interested to hear the response from the Minister.

However, I question the necessity of the amendment. The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, made under the Energy Act 2011, already provide for the energy efficiency regulations to be enforced by local authorities in the case of domestic private rental properties and by trading standards in the case of non-domestic private rental properties. Those enforcement authorities are empowered by the 2011 Act to impose monetary penalties of up to £5,000 for any landlord who breaches the energy efficiency regulations. Given the powers that already exist and the highly significant changes to energy performance certificates that the Government plan to implement, this amendment appears unnecessary.

A review of energy efficiency improvements required and the methods for funding these improvements would be more appropriate, which is why we support Amendment 274 from the noble Baroness, Lady Hayman, supported by my noble friend Lady Penn. This amendment would simply require the Secretary of State to publish a roadmap for using private finance initiatives to provide the funding for any required improvements to energy efficiency for the private rental sector. This is a sensible and measured approach to the issue at hand, as opposed to any prescriptive requirements. I look forward to hearing the Minister’s response.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baronesses, Lady Jones of Moulsecoomb and Lady Hayman, for their amendments relating to minimum energy efficiency standards, and the noble Baroness, Lady Bennett—who I think described herself as the Green night owl—the noble Baroness Lady Grender and the noble Lord, Lord Jamieson, for contributing to the debate.

I turn first to Amendment 259 in the name of noble Baroness, Lady Jones of Moulsecoomb. This amendment would allow information given to local authorities by tenancy deposit scheme administrators to be used by local authorities for a purpose connected with their functions under the Energy Act 2011, including enforcement against breaches of minimum energy efficiency standards under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. I reassure the Committee that local authorities are already equipped to enforce the private rented sector minimum energy efficiency standard of an EPC rating of E.

In February, a consultation was published to amend regulations and raise energy efficiency standards in the private rented sector, addressing fuel poverty and carbon emissions. The consultation proposes that local authorities will be empowered to issue fines of up to £30,000 for non-compliance with the new minimum energy efficiency standards in the private rented sector. To respond to the point from the noble Baroness, Lady Grender, officials from the Department for Energy Security and Net Zero are exploring support for enforcement in collaboration with stakeholders, including local authorities.

Local authorities often identify non-compliance during other property engagements and can take appropriate action. A local authority may issue a compliance notice to a landlord suspected of breaching the energy standard. If the landlord fails to comply, the authority has the power to issue a penalty notice. Of course, I recognise the value that data plays in aiding enforcement, which is why we have widened access to information for other enforcement purposes through the Bill. For these reasons, I ask the noble Baroness, Lady Bennett, on behalf of the noble Baroness, Lady Jones of Moulsecoomb, to withdraw the amendment.

Amendment 274, from the noble Baroness, Lady Hayman, would require the Secretary of State to publish a road map for scaling up private finance initiatives to support the funding of energy-efficiency improvements in privately rented homes within six months of the passage of the Bill. I strongly support improvements to energy efficiency in privately rented homes. The Government have pledged to take action to stand with tenants and deliver the safety and security of warmer, cheaper homes. In February, we published our consultation on improving energy-efficiency standards in the private rented sector in England and Wales. The consultation closed on 2 May. We are analysing the responses and expect to publish a government response later this year.

I appreciate the intention behind the amendment, as we recognise the important role that private finance will play in supporting the private rented sector to meet the proposed energy-efficiency standards. We are currently considering the consultation feedback and options to further support landlords to make the necessary improvements to their property. I believe that the amendment is not necessary as the information on support, including private finance to fund energy-efficiency improvements in privately rented homes, will be available shortly.