Renters’ Rights Bill

Debate between Baroness Eaton and Baroness Taylor of Stevenage

Tuesday 22nd April 2025 Lords Chamber

[Baroness Eaton (Con)]

My Lords, I declare an interest as vice-president of the Local Government Association and as part owner of rented properties in Bingley, West Yorkshire. I support Amendment 261, tabled by my noble friend Lady Scott of Bybrook, with its proposed new clause:

“Review of the impact of the Act on the housing market”.


Specifically, I welcome the proposed addition of a review of the impact the Bill will have on requests for social housing. The vast majority of landlords in this country are good, honest people who do a real service in maintaining Britain’s housing supply and providing decent homes to people before they start the journey of getting on to the property ladder, but the reality is that, with the ever-increasing regulation placed on landlords, not least the abolition of Section 21 no-fault evictions, which has already been mentioned, the signing of tenancy agreements will become more of a risk.

In reality, landlords will no doubt be more reluctant, under the new burdens placed on them, to take on more vulnerable tenants—for example, those who enter the market for the first time, without references, and those in receipt of housing benefit. Amendment 261, on reviewing the impact the Act will have on social housing, is necessary because local authorities and housing associations are going to come under pressure as never before to provide social housing, either because supply in the private rented sector will become more challenging to access or because rents are likely to spiral out of control under these proposals. I therefore support fully the amendment tabled by my noble friend.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, I thank the noble Baroness, Lady Scott, for her Amendments 1 and 261, and the noble Lord, Lord Shipley, and the noble Baronesses, Lady Thornhill and Lady Eaton, who have spoken in this short debate. I will keep my response to Amendment 1 short, as the purpose and aims of the Bill were debated in full at Second Reading. I agree with the noble Lord, Lord Shipley, that the Bill is perfectly clear in what it sets out to do.

The private rented sector has grown significantly over the past 20 years and is now used by over 11 million renters in England, with the support of 2.3 million landlords. I should say that most of those landlords are very good landlords who look after their tenants very well. Despite this growth, it still provides the least affordable, poorest quality and most insecure housing of all tenures, and that just cannot continue. A functioning private rented sector can provide a secure stepping stone for aspiring home owners, as the noble Baroness, Lady Eaton, said, and flexibility for those who want it, but the chronic insecurity embedded in the current tenancy system fails both those tenants looking for a stable home for their families and those landlords who are undercut by the rogues and the chancers who we know are there—they may be few, but we know they are there. This is a drain on aspiration. Reform of the sector is central to our opportunity mission, so that all have the chance to achieve their potential.

Although I understand the aims of the amendment, I do not believe that it is necessary. The Government made a clear manifesto commitment to transform the experience of private renting by levelling the playing field decisively between landlords and tenants—the very balance that the noble Baroness, Lady Scott, was talking about. This Bill delivers that promise. As I outlined at Second Reading, the Bill will strengthen the security of tenure for tenants, ensure that they are paying a fair rent, guarantee a minimum standard they can expect from a property, provide new robust avenues to redress, and much more. The noble Lord, Lord Shipley, referred to the attempts in later amendments to reintroduce Section 21 evictions. We will debate those when we get to them but I will say that 83% of landlords have five properties or fewer, so those amendments would be significant and really take the guts out of the Bill. The aims I set out align with the purpose in the noble Baroness’s amendment and lie at the heart of all our current and future decision-making.

The Government also recognise the work done by the majority of landlords, who provide safe and decent homes for their tenants. Both these issues of balance were mentioned by the noble Baroness, Lady Scott, but I was surprised at her assertion that the Bill would not achieve that balance. It is a very similar Bill to the one which she herself brought forward a few months ago.

We have been clear that good landlords have nothing to fear from these reforms. The Bill will bring much-needed certainty to the sector after years of inaction and delay. The noble Baroness, Lady Thornhill, commented on the Armageddon that we hear about; I remember hearing something similar many years ago during the discussions on the minimum wage. I understand landlords’ concerns and I hope we can address them as we scrutinise the Bill, but I am sure we can continue to debate the aims and impacts as we make our way through the 300-plus amendments tabled for debate.

Local Government: Funding

Debate between Baroness Eaton and Baroness Taylor of Stevenage

Monday 27th January 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My noble friend is absolutely right. The review that we are undertaking as part of the spending review in the spring will do just that. We made some steps forward in this year’s settlement; we need to take further steps in that regard, and the local government funding formula will be reset to take account of need.

[Baroness Eaton (Con)]

My Lords, I declare my interest as a vice-president of the Local Government Association. With Labour’s increase in employer national insurance contributions, LGA analysis confirms that the cost to local government will be around £1.7 billion next year. The provisional local government finance settlement confirms that councils will be compensated to the tune of £515 million for 2025-26, well short of the £1.7 billion. Can the Minister confirm from the Dispatch Box whether this compensation funding is a one-off, or will it be continued in future financial settlements? How does she expect local authorities to compensate for the shortfall?

[Baroness Taylor of Stevenage (Lab)]

As I said, the decision that we took around national insurance contributions was to fill the gap from the £22 billion black hole that was left by the Government of the Benches opposite. We continue to work on fixing those foundations and making the economy stronger. The noble Baroness asked specifically about the £515 million of support that we have provided to local government. That is in addition to other sources of funding that we gave to local government. Whether that will continue into future years will be the subject of the spending review in the spring. We will look at all aspects of local government funding so that we continue to fix and sort out the mess that we were left with.