Renters’ Rights Bill

Matthew Pennycook Excerpts

Wednesday 22nd October 2025 Commons Chamber

[The Minister for Housing and Planning (Matthew Pennycook)]

I beg to move, That this House agrees with the Lords in their amendments 19B, 19C and 19D.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

With this it will be convenient to consider the Government motion to agree with the Lords in their amendments 39B and 39C.

[Matthew Pennycook]

Today is a momentous day, because, subject to agreement from this House, the Renters’ Rights Bill will have completed all its stages and will therefore shortly become law. This House last legislated to fundamentally alter the relationship between landlords and tenants in 1988—I was just six years old. In the decades since, England’s private rented sector has changed beyond all recognition. It now houses not just the young and the mobile, but many older people and families with children, for whom greater security and certainty is essential to a flourishing life.

The need to overhaul the regulation of the private rented sector and, in so doing, level decisively the playing field for landlords and tenants is pressing. That is why we introduced the Bill within months of taking office. We promised that we would succeed where the previous Conservative Government had failed by legislating to transform the experience of private renting. I am delighted that we are now within touching distance of seeing the Bill become law. Before I turn to the final amendments agreed to in the other place, I want to put on the record once again my profound thanks to Baroness Taylor for so ably guiding through its House of Lords stages.

[Jeremy Corbyn (Islington North) (Ind)]

I, too, welcome the Bill becoming law. Personally, I wish that it also regulated rent levels, but my question is: how quickly will it become law to protect people? While this Bill has been winding its way through Parliament over the last year, many have faced the appalling situation of no-fault eviction. Many have lost their properties as a result, whereas they would have been protected had the Bill become law more quickly. Can the Minister give me some idea—so that I can give some comfort to my constituents who are facing no-fault eviction—of how quickly they will get protection, and will there be any retrospective element to it?

[Matthew Pennycook]

I thank the right hon. Gentleman for that point. We want to provide both renters and landlords with certainty about how the new system will be implemented. I will say a bit more on that in the course of my remarks.

[Jim Shannon (Strangford) (DUP)]

Will the Minister give way?

[Matthew Pennycook]

I am going to make a bit more progress.

As I made clear when we considered Lords amendments to the Bill on 8 September, although the Government were not prepared to accept amendments that would undermine the core principles of the Bill, we were more than willing to make sensible changes in response to the legitimate concerns that have been raised. The changes we are proposing today are firmly within the spirt of that commitment. I am delighted that we were able to reach agreement with those on the Liberal Democrat Front Bench and Lord Young of Cookham, and I thank all the noble Lords involved for their willingness to work collaboratively to strengthen the Bill.

Let me briefly set out the purpose and effect of the amendments in question, beginning with those that relate to shared owners. Lords amendments 19B, 19C and 19D exempt shared owners from the 12-month “no re-let” period in respect of new mandatory possession ground 1A, which allows a landlord to evict a tenant because they intend to sell their property. The exemption is subject to meeting set criteria, to ensure that shared owners have made a genuine attempt to sell their property. The amendments in question also include a delegated power to remove the exemption in the future—for example, once the building safety programme has been completed.

[Jim Shannon]

I welcome what the Minister has proposed. More and more of these issues have come to my attention in my constituency. Tenants then have to find alternative and affordable accommodation that is close to their work and close to their children’s education. I know this legislation applies to England and Wales only—I understand that. But the Minister is a good Minister, and he always shares information on the legislation that is put forward with the regional assemblies—in my case, the Northern Ireland Assembly. Will he do me and this House the favour of sharing the legislation with the Northern Ireland Assembly to ensure that the good things in the Bill can become good things for us in Northern Ireland as well?

[Matthew Pennycook]

The Northern Ireland Assembly can access this legislation online, but I will certainly continue to have conversations with Ministers in all the devolved Administrations about what lessons can be learned from what we have done with this Bill, and about what they can take from it.

I once again commend Lord Young of Cookham for championing the interests of shared owners affected by the building safety crisis, and I thank him for tabling his three amendments in lieu. As I made clear when we considered Lords amendments last month, the Government recognise the plight of shared owners living in buildings that require remediation. Many are facing unaffordable costs, often with no viable exit route other than a distress sale. We also appreciate that it is often harder to secure a purchaser for a shared ownership property, and that the sales of shared ownership flats are more likely to fall through due to the additional constraints involved. As such, we have always accepted that the 12 month no re-let period would have placed many shared owners in an extremely challenging position.

The reason why the Government did not feel able to accept Lord Young’s original Lords amendment 19 was that it could undermine protections for the small subset of tenants who happened to rent a sub-let home from a shared owner. I am therefore pleased to report to the House that the amendments in lieu deliver the core aims of that original amendment, while also ensuring that three key safeguards are in place to protect tenants.

First, there is a requirement for the shared owner to have informed the assured subtenant in writing at the outset of the tenancy about the exemption and its possible use. This will ensure tenants are aware of the particular circumstances of the tenancy they are entering into and can make an informed choice about whether they wish to enter into a tenancy agreement with the shared owner in question.

Secondly, shared owners must have informed their provider of their intention to sell before obtaining possession of the property from the tenant. This is an essential first step that all shared owners must take to begin the process of selling their property. I am satisfied that it is a proportionate requirement to evidence that a shared owner is genuinely intending to sell their home.

Thirdly, a valuation must be undertaken on the property by a member of the Royal Institution of Chartered Surveyors, or the shared owner must have advertised the property for sale. This can be done at any point before a property is re-let, recognising the need for flexibility in how shared owners will approach a sale.

Taken together with the protections that are already in place as a result of registered providers having to authorise sub-letting requests and having oversight of what rent levels can be charged, I am satisfied that these safeguards will reduce, if not eliminate entirely, the risk that an exemption from the 12-month no re-let period might otherwise have posed.

Lords amendments 39B and 39C will introduce a statutory requirement for annual reporting on the extent to which service family accommodation meets the decent homes standard.

[Calum Miller (Bicester and Woodstock) (LD)]

I thank the Minister for listening to Liberal Democrat colleagues who have made these points, as I have along with my hon. Friend the Member for Taunton and Wellington (Gideon Amos), on previous occasions. It is very good that those living in military service accommodation will now have the opportunity to access the decent homes standard. Could the Minister assure me that he will work with colleagues in the Ministry of Defence to ensure that all service families are aware of the decent homes standard—the standard to which they can hold their accommodation providers—so they can live in better homes in my constituency of Bicester and Woodstock and across the country?

[Matthew Pennycook]

We have ongoing dialogue with colleagues in the Ministry of Defence about this issue, and if the hon. Member will allow me, I will elaborate on how we think these amendments will work in practice and how they interact with what the Ministry of Defence is itself doing. First, however, I once again thank Baroness Grender, Baroness Thornhill and the hon. Members for Taunton and Wellington (Gideon Amos) and for North Shropshire (Helen Morgan) for their continued support and advocacy for service personnel and their families.

The Government have been clear throughout the passage of the Bill that our armed services personnel and their families must live in safe and decent homes. We remain determined to improve the standard of service family accommodation across the entire defence estate. Alongside the commitment to drive up standards through a record investment of £1.5 billion in service family accommodation over the next five years, the Government will soon publish a defence housing strategy setting out clear renewal standards and further steps to improve the lives of those who serve our country. That standard will be published, so service families will be able to see, judge their accommodation against and interact with this new statutory duty.

As I outlined in the previous debate on Lords amendments, the Government acknowledge the need for greater transparency and accountability to ensure that the commitments we have made are honoured. The amendments in lieu will place the commitments I made to this House last month on a statutory basis. The Government believe that this, alongside the wider steps I have already set out, will help ensure service personnel and their families have the quality of homes that they deserve. The amendments also include a delegated power allowing the housing quality standards that SFA is assessed against to be updated when the current version of the decent homes standard is no longer considered appropriate—for example, when it has been replaced by a new modernised standard. The Liberal Democrats have indicated their support for these amendments, and I hope hon. Members will join me in supporting them.

To conclude, I urge the House to support the amendments put forward by the other place, and I look forward to the remainder of the debate.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Secretary of State.

--- Later in debate ---

[Jeremy Corbyn]

I will be brief, because this is a time-limited debate. I welcome the Bill, although it has deficiencies, because it does not regulate the amount of rent that is charged. In my constituency, a two-bedroom flat in the private rented sector goes for about £2,000 a month, which is way above what most people can afford. There is a desperate need, in inner-city areas in particular, for rent regulation.

I am pleased that we are ending no-fault eviction, but I absolutely agree with the points made by the hon. Members for Stevenage (Kevin Bonavia) and for Hastings and Rye (Helena Dollimore) about the extraordinary way in which the Bill has been delayed. Thousands of tenants all over the country have lost a home that the Bill, had it become law, would have prevented them from losing. It is outrageous, the number of people who have become homeless or been forced to move to an even more expensive place. I would be grateful if the Minister could assure us that the no-fault eviction protection will come in immediately when the Bill receives Royal Assent, and that there will be no delay. Some of us are concerned that there has been too long a delay.

There are two quick points that I want to put to the Minister. The Bill requires local authorities to play a much greater role in the private rented sector, but they lack the resources to do that. Is there a guarantee that they will get the resources to ensure proper monitoring of the Bill, and proper support for tenants? In the same vein, the provision of housing advice has disappeared in many parts of the country, so the demand grows on local authorities and organisations such as Citizens Advice for advice for tenants. Many tenants are simply unaware of their rights. If they are unaware of their rights, they can be exploited by unscrupulous landlords—and sadly often are.

[Matthew Pennycook]

With the leave of the House, I will close this brief but thoughtful debate. I thank all right hon. and hon. Members who have spoken for their contributions. In the time available, I will respond to as many of the issues raised as I can.

Let me start by saying that I welcome the broad support for the Lords amendments expressed by both shadow Front Benchers. In our view, the amendments are reasonable and proportionate, and respond to legitimate concerns that were raised. They have the safeguards in place that we felt were needed, and we are happy that they are being incorporated into the Bill.

The shadow Secretary of State, the right hon. Member for Braintree (Sir James Cleverly), raised the issue of supply. We acknowledge that it will take time for the sector, including build-to-rent providers but also landlords of any type, to adjust to this significant change in regulation, but we do not believe that the legislation will have a destabilising effect on the rental market, or a harmful impact on future rental supply, which, it should be noted, we are taking steps to boost, not least by providing more opportunities for investment in a growing build-to-rent sector.

According to the English housing survey, the size of the private rented sector has remained broadly stable since 2013-14. Landlords have been aware of successive Governments’ plans to reform the sector since 2019. It is worth noting that a study from the UK Collaborative Centre for Housing Evidence looked at whether regulation of the PRS over the past 25 years, in the UK and internationally, had affected PRS supply. It concluded that there was no evidence to support the assertion that non-price regulation impacts supply. We will, of course, continue to work with landlords and their representative associations throughout implementation. We are committed to robustly monitoring and evaluating the private rented sector reform programme, and we will, of course, continue to monitor trends across the PRS, including the supply of properties, to understand how the market is responding to our reforms.

The right hon. Member for Islington North (Jeremy Corbyn) raised the issue of rent controls. He knows that the Government are opposed to introducing rent controls. As I have made clear on many previous occasions, we do not support them, including rent stabilisation measures, because we believe that they could make life more difficult for private renters, both by incentivising landlords to increase rents routinely to a cap, where they might not otherwise have done so, and by pushing many landlords out of the market, thereby making it even harder for renters to find a home that they can afford.

The right hon. Gentleman asked me about implementation. Following Royal Assent, we will allow time for a smooth transition to the new system. We will support tenants, landlords and agents to understand and adjust to the new rules, and ensure the sector has enough time to prepare. As he is aware, the Bill will ensure that the new tenancy system for the private rented sector is introduced in one stage. At that point, the new tenancy system will apply to all private tenancies. Existing tenancies will convert to the new system, and any new tenancy signed off on or after that date will be governed by the new rules.

As I said, I am glad that there is broad support for the Lords amendments relating to shared owners. It is worth saying that the Government will make provision during implementation to ensure that shared owner landlords with an existing tenancy will have an opportunity to provide the information in question to the tenant after the Bill comes into force. We want to take the time to get this right, and find a solution that works for shared owners. We intend to do that using the delegated powers to make transitional provision provided by clause 147.

The Liberal Democrat spokesman, the hon. Member for Taunton and Wellington (Gideon Amos), asked about various issues relating to the amendments about service family accommodation. In particular, he asked about investment. As I outlined in my opening speech, the Ministry of Defence has announced an additional £1.5 billion investment in SFA as part of a £7 billion commitment over the next five years to improving and modernising defence housing. That investment will unlock rapid work to tackle the poor state of forces housing, helping to support recruitment, retention and morale. As I mentioned, the defence housing strategy, to be published later this year, will also set out wider plans to improve service family homes.

It is also worth saying that redress is already available to service personnel, who already have a robust system in place for raising a complaint about the standard of their accommodation and receiving remedy or reimbursement. If not resolved, complaints can be escalated to a service complaint, for which there are further powers of reimbursement, charge reduction and policy redress, and ultimately to the employment tribunal in cases of potential discrimination.

[Sam Carling (North West Cambridgeshire) (Lab)]

I agree with my hon. Friend the Member for Hastings and Rye (Helena Dollimore) about the delays to the Bill. I served on the Bill Committee more than a year ago now, and since then, so many tenants have experienced no-fault evictions. I encourage the Minister to move as quickly as possible to implement the Bill, so that I can tell my constituents how soon their assured shorthold tenancies will become rolling tenancies, and so they can benefit from that as quickly as possible.

[Matthew Pennycook]

I thank my hon. Friend for that point well made, which I will respond to directly as I wind up. We know that many tenants out there want the great security, rights and protections afforded by the Bill in place as soon as possible.

We promised in our manifesto to overhaul the regulation of our country’s insecure and unjust private rented sector, and this Bill delivers on that commitment. It will empower renters by providing them with greater security, rights and protections, so that they can stay in their homes for longer, build lives in their communities and avoid the risk of homelessness. It will ensure that we can drive up the quality of private rented housing, giving renters access to good-quality and safe homes as a matter of course, and it will allow us to crack down on the minority of unscrupulous landlords who exploit, mistreat or discriminate against renters. The Bill will also provide tangible benefits for responsible landlords who provide high-quality homes and a good service to their tenants, not only improving the reputation of the sector as a whole, but ensuring that good landlords enjoy simpler regulation and clear and expanded possession grounds, so that they can regain their properties quickly when necessary.

As I have argued many times throughout the passage of the Bill, the current system for private renting is broken. In abolishing section 21 no-fault evictions and modernising the regulation of the sector, the Bill will improve the lives of England’s 11 million private renters. It is a transformational piece of legislation and, if you will allow me a brief personal word, Madam Deputy Speaker, I take great pride in having developed and shepherded it through Parliament.

It would be remiss of me to conclude my remarks without thanking a number of people. I would like to express my gratitude to all hon. and right hon. Members and peers in the other place who have engaged with the Bill throughout its passage; the expertise and insight that have been brought to bear in both Houses have strengthened the Bill in a number of important respects. I particularly want to thank my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner), who was and remains one of the Bill’s biggest supporters. She was instrumental in ensuring that it was introduced so quickly after the formation of the Government.

I also thank all the stakeholders who have worked closely with the Government to ensure that the Bill will work for landlord and tenant alike. I cannot possibly credit them all in the time I have available, but I will put on the record my thanks to Generation Rent, Shelter, Crisis, Citizens Advice and the other members of the Renters’ Reform Coalition, as well as the National Residential Landlords Association, the shared ownership network and Propertymark. I will say a final thanks to all the officials in my Department who have devoted so much time and energy to developing and progressing the Bill, particularly the Bill team, Aidan Hilton, James Kennedy, our lawyers and many more, and my private office, specifically Will Gaby and Grace Doody, who provided me with invaluable support throughout the Bill’s passage.

Completing the Bill’s final stage today is obviously only the beginning; once the Bill becomes law, we need to implement its provisions. In doing so, we will balance the need to act quickly, so that tenants can soon benefit from the new rights and protections introduced by the Bill, with ensuring that the sector has sufficient time to adjust and prepare for a significant change in regulation. The Government understand the need for certainty, and we will set out our implementation plans as soon as possible. I very much look forward to working with hon. and right hon. Members, as well as all stakeholders, as we take forward that progress.

Lords amendments 19B, 19C and 19D agreed to.

Lords amendments 39B and 39C agreed to.