Renters’ Rights Bill

Debate between Matthew Pennycook and Jeremy Corbyn
Wednesday 22nd October 2025

(1 week, 6 days ago)

Commons Chamber
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Matthew Pennycook Portrait Matthew Pennycook
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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 Portrait Jeremy Corbyn (Islington North) (Ind)
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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 Portrait Matthew Pennycook
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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.

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Jeremy Corbyn Portrait Jeremy Corbyn
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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 Portrait Matthew Pennycook
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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.

Renters’ Rights Bill

Debate between Matthew Pennycook and Jeremy Corbyn
Tuesday 14th January 2025

(9 months, 3 weeks ago)

Commons Chamber
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Jeremy Corbyn Portrait Jeremy Corbyn (Islington North) (Ind)
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I welcome what the Minister just said. Is he aware that a lot of landlords are using unreasonable arguments to terminate tenancies or raise rents ahead of this legislation coming into force, and is there anything he or his Department can do to protect tenants during this stressful period for them?

Matthew Pennycook Portrait Matthew Pennycook
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There is a lot of bad practice out there. That is the very reason why the Government have acted so quickly to introduce these reforms, and we are confident that once they are in place, they will provide tenants with the protection that they deserve. In the interim, I am afraid that there will continue to be bad practice of the kind that the Bill will stamp out.

For the reasons that I have just alluded to, we have tabled amendments 19 and 22 to give private registered providers an alternative route for obtaining possession for redevelopment and for decant accommodation. Where the landlord seeks possession on ground 6 or ground 6ZA because they intend to carry out redevelopment work or want to move a tenant on from decant accommodation, they will need to provide alternative accommodation that meets specific requirements. That includes the accommodation being affordable, in a suitable location and not overcrowded. The accommodation must also be let as an assured tenancy or equivalent, unless it is being let for a temporary period pending the tenant being moved to an assured tenancy or equivalent. To use ground 6ZA, landlords must give tenants prior notice to ensure that they are fully aware that the accommodation is provided for temporary decant use. If the landlord does not do that, they are liable for a fine of up to £7,000.

Where landlords wish to accommodate tenants temporarily in properties that are earmarked for redevelopment, social landlords must give prior notice, and set out in a written statement the intention to redevelop the accommodation and the timeframe for redevelopment. Under those circumstances, alternative accommodation will not need to be provided. Social landlords will also be required to pay removal expenses for social tenants when using ground 6 and ground 6ZA. We do not expect that the need to use those grounds will arise often in practice through the engagement of PRPs with tenants, but where needed, the amendments will ensure that significant redevelopment work is not unduly delayed.

Government amendments 12, 13, 17, 20, 21, 23, 28 to 30 and 54 are related and consequential provisions to reflect the new ability for landlords to gain possession for redevelopment and for decant accommodation. We think that this group of amendments gets the balance right, enabling PRPs to progress redevelopment and use temporary decant accommodation during redevelopment works, while ensuring that tenants are provided with appropriate alternative accommodation and removal expenses.

Let me turn finally to amendment 34. Clause 30 ensures that long leases can continue to function by excluding leases over seven years from the assured regime. Those leases are typically used in purchases of leasehold and shared-ownership properties. I am grateful to stakeholders for raising concerns about the possibility of some unscrupulous landlords using clause 30 to circumnavigate the new assured regime by issuing leases of over seven years with a break or early-termination clause that is operable in the first few years. Tenants must not be cheated out of the protections of the assured tenancy regime. The amendment will therefore exclude all leases over 21 years from the assured regime. That will act as a much stronger deterrent to landlords who seek to avoid the assured tenancy regime. The amendment also excludes existing leases of between seven and 21 years, to ensure that they can continue to operate as currently intended. It also ensures that regulated home purchase plans can continue to enable consumers to purchase properties using the principles of Islamic finance by adding them to the list of excluded tenancies in schedule 1 to the Housing Act 1988.

The amendments that the Government have tabled for consideration today are a series of targeted changes designed to ensure that the Bill works as intended, and I commend them all to the House. I thank hon. Members for their efforts to improve the Bill, and for the scrutiny and challenge that the Bill has received so far. I look forward to listening to the remainder of the debate.