Renters’ Rights Bill

Lord Pannick Excerpts

Thursday 24th April 2025 Lords Chamber

[Lord Carrington (CB)]

My Lords, I declare my direct interest in the private rented sector, with cottage lettings in Buckinghamshire and Lincolnshire, together with farming and agricultural lettings. I am also a member of the National Farmers’ Union and the Country Land and Business Association, which have a direct interest in Amendment 63, on which I shall speak and for which I am grateful for the support of the noble Earl, Lord Leicester, and the noble Lord, Lord Roborough, who sadly is not able to be here today.

Before I turn to Amendment 63, I am also very pleased to be able to support Amendment 60 in the names of my noble friend Lord Carter of Haslemere and the noble Lord, Lord Hacking. I certainly will not repeat everything that has been said, but I shall make just one further point: it is relevant to note that Paragon, a bank that specialises in the private rented sector, commissioned a survey of landlords on the proposals in the Bill and the result was that 71% of landlords put the extended time, from two months to three months, as their top concern.

On Amendment 63, the Bill does not contain provisions to allow the repossession of a residential property if there is to be a change of usage. For example, if a landlord wanted to use the land for office space or commercial or retail usage, the amendment would allow them to seek possession of a dwelling house where it was intended that the use of that property, or the land on which it was situated, would be changed to non-residential and there was permission from the relevant authorities to do so. There are a number of Bills, reviews and reports in motion which cover farm diversification, which the Government are keen to encourage in the light of falling profitability in farming as subsidies are withdrawn or concentrated on environmental activities and concerns. Farmers are therefore looking carefully at their assets to see whether they can be put to more profitable usage. Obviously, this can involve the farmstead house and buildings rather than just stand-alone farm buildings. The Planning and Infrastructure Bill is relevant in this context, together with the Rural England Prosperity Fund, which specifically targets facilities and building conversions that help rural businesses to diversify.

In addition, we have the land use framework and a farming road map to look forward to, and it has also been announced that the noble Baroness, Lady Batters, will chair a report on profitability in farming and this will include diversification. This amendment assists in enabling this diversification, if the necessary planning permission has been granted. I am thoroughly aware that the Minister is keen not to reduce the housing stock. However, although it is possible that the proposed diversification will affect only agricultural buildings, there may be a more comprehensive development involving a farmhouse or other residential building, particularly if they are closely located to the diversification site. I therefore hope that the Minister will include this amendment as a sensible ground for possession, one which would assist in the development of the rural economy.

[Lord Pannick (CB)]

My Lords, I support my noble friend Lord Cromwell’s Amendment 142. I declare an interest in that my wife owns rental properties. I agree with what the noble Lord says about the mischief of Clause 15. It is very easy to imagine circumstances in which the owner of a property decides, in good faith, to sell it and the tenant therefore has to leave. The landlord then places the property for sale on the market but finds that, for whatever reason, after four or six months they cannot sell it. Clause 15 would prevent the landlord for 12 months from again leasing out the property. It would do so however well-intentioned the conduct of the owner of the property and however reasonable the new tenancy agreement, and even if the new lease is to the same tenant as the old one, on the same terms, including as to rent.

I entirely understand the Government’s wish to prevent landlords from abusing their rights, but the breadth of this restriction is, to my mind, plainly disproportionate to the feared mischief. This is not only unfair on the landlord; it will inevitably have an adverse effect on the housing stock available for rental purposes.

I appreciate that Ministers have stated that this Bill is compatible with the European Convention on Human Rights, but it seems to me very doubtful indeed that this clause complies with Article 1 of the first protocol to the convention, on the right to property. The European Court of Human Rights and our domestic courts have explained that the right to property requires a fair balance between the interests of property owners and those of the community in general. I cannot see how a blanket provision which penalises a landlord by preventing them from renting out their property, for a period of 12 months, however bona fide their conduct or however fair the terms of the lease, could possibly be said to respect a fair balance.

The mischief which the Government seek to prevent requires a more tailored response. I hope the Minister will be able to say, in response to the concerns that have been expressed by my noble friend Lord Cromwell and myself, that she will be prepared to meet with us to discuss ways of making this clause more proportionate by recognising an exception for landlords who have acted in good faith and responsibly.

[Lord de Clifford (CB)]

My Lords, Amendment 64 in my name is in regard to the family. I thank the noble Baronesses, Lady Bowles of Berkhamsted and Lady Neville-Rolfe, for their support for this amendment. The Bill allows a landlord to take possession of a property for a family reason. This is a small extension to the number of reasons for which a landlord could take possession of a property. That reason is that a property is to be used by a carer for a family member who requires full-time care.

The amendment clearly sets out that the property needs to be in close proximity to the landlord’s family home and be used by the carer. The reason for the close proximity is so that the carer can attend not only on a daily basis but, more importantly, be available to attend in emergencies, quickly and efficiently. These can be on a regular occurrence in some cases. The types of properties that I have in mind are: annexes on homes; a flat in a block of flats where the landlord’s primary residence is located; properties in less urban areas, such as rural villages, hamlets and remote farms; and small property clusters where properties are in short supply.

I appreciate that tenants would be forced to leave a property, but this amendment does not seem to shorten the four months’ notice period. The Bill allows some landlords the opportunity to gain possession for an employee or a worker for agricultural purposes under ground 5A in Schedule 1. I have assumed that the reason why this exemption has been included is that agricultural workers need a property close to their place of work due to the nature of the work, and at all times of day. The need of a carer is similar to that of the agricultural worker: they need to be close to the patient and could be on call and work unsociable hours.

Most landlords’ and tenants’ relations are generally good, and most likely, the landlord would make the tenant aware that the tenancy could be terminated if a property needs to be for a carer. To leave a property is an unsettling upheaval for a tenant and their family, but they would be given four months’ notice. If there is good communication between parties, everybody lives in the knowledge that this could be a possible outcome and plan accordingly.

Financially, if you own an appropriate property, this is the most practical way a landlord or their family can provide the most cost-effective accommodation for a long-term carer, and when the family is facing a high demand on its finances. Only a limited number of landlords will use this possession right, but if needed, it would be welcomed by the family, as it would give flexibility in times of sadness and when time requires the need for it.

I thank the Minister for her engagement on the Bill and for our short discussion on the amendment. I note the Minister’s suggestions that alternatives could be found to house a carer, but my response is that to find a property in the correct location and which is suitable for a carer would be extremely difficult in this current high-demand rental marketplace.

The second suggestion was that the tenant has the right to a secure home. The other side of that debate would be: would it not be a reasonable case that the landlord has a right to gain possession of their own assets for the benefit of their well-being or a family member’s own caring needs?

Properties are owned for many purposes: in some cases, for financial reasons, like investments, and to provide regular income or pension funds. It may be available to rent during a job relocation or as a future residence in a desired location. All these landlords who own such properties could gain possession under the Bill when needed. However, if the property owner who may wish to use a property for a legitimate family reason, to care for a family member, cannot gain access to the property at the time of need, then this amendment seeks to rectify this.

In summing up the group beginning Amendment 10 in Tuesday’s Committee, the Minister said that those amendments did not meet

“the bar to overrule the general principle that private renters should have secure homes”.—[Official Report, 22/4/25; col. 615.]

I believe that a long-term carer of somebody crosses that bar to enable possession for a family.