Renters’ Rights Bill
Baroness Janke Excerpts(3 days, 15 hours ago)
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Baroness Janke
“Permission for home adaptations(1) The Housing Act 1988 is amended as follows. (2) After section 16 insert—“16A Home adaptations(1) It is an implied term of every assured tenancy that a landlord must give permission for adaptations where a local council has carried out a Home Assessment and recommends adaptations which constitute reasonable adjustments under the Equality Act 2010.(2) A tenant may appeal a landlord’s refusal to give permission for such adaptations.””Member's explanatory statement
This new clause would ensure that landlords of private and social tenancies provide permission for home adaptations for people who have disabilities where a Home Assessment has been carried out.
Baroness Janke (LD)
My Lords, I rise to speak to Amendment 133 in my name and that of Lady Jones of Moulsecoomb. This amendment would require landlords to grant permission for home adaptations that constitute reasonable adjustments where these have been recommended by local authority assessments.
Disabled individuals in the private rented sector often face significant barriers in accessing essential adaptations that allow them to live safely, independently and with dignity. According to the English Housing Survey for 2022, 21% of private renters live in homes that fail to meet the decent home standards and 16% of private renters with a long-term illness or disability are in homes with at least one category 1 hazard, such as the risk of falls or inadequate heating. These conditions are not only uncomfortable; they can actively endanger health and undermine independence. The Family Resources Survey for 2022-23 reports that 24% of people in the UK are disabled, amounting to approximately 16 million individuals. With such a significant proportion of the population affected, the case for making housing adaptable and accessible is both moral and practical.
We know that many disabled renters face long delays, refusals or restrictive conditions when requesting simple modifications. Even small adjustments such as installing grab rails, ramps or stairlifts can make the difference between a person being able to remain in their home or being forced to move, rely on care or live in unsafe conditions. This amendment seeks to remove those barriers by ensuring that tenants can make necessary changes, subject to the existing checks and balances of local authority assessments. It offers a proportionate, workable solution that respects landlords’ rights while upholding the basic needs of tenants.
The amendment would also help to reduce demand on already stretched social housing by enabling more disabled people to remain in private accommodation that suits their needs. Given that nearly a quarter of the population is disabled, the need for accessible and safe housing is clear and pressing. This amendment offers a practical step to ensure that those who need adaptations are not denied them by process, delay or indifference.
I urge noble Lords to support this amendment in order to make real the promise of equality under the law and to ensure that disabled renters can live in homes that support their independence, health and dignity. I beg to move.
Baroness Jones of Moulsecoomb (GP)
My Lords, my Amendments 178 and 191, along with Amendment 133 in the name of the noble Baroness, Lady Janke, highlight some of the challenges that disabled people face living in rented accommodation. Life is hard if you have to live with a disability, and it makes sense if where you live can help you have as much of an active life as possible. When we talk about disabled people, we are not just talking about wheelchair users; we are talking, for example, about people who might react badly to certain colours or intensity of lighting. Step-free access these days ought to be almost automatic, given our ageing population.
The sad reality is that Britain’s housing stock has not been designed with disabled people in mind, and the provision of adaptations for disabled housing is quite scarce. My Amendment 191 would give people reassurance that they can ask about and discuss disability adjustments when looking for somewhere to live, without being disadvantaged. Amendment 178 would take this further and give tenants a right to make minor adaptations for disabilities without needing consent from the landlord.
Taken together, these amendments would support people with disabilities to live healthier, happier lives by ensuring that they have specific rights to meet their needs. I hope that the Minister can take this issue away and look at it, as there are some simple ways forward that will have a huge beneficial impact on disabled people and their families.
Baroness Taylor of Stevenage (Lab)
I understand the noble Lord’s point about reinstatement. However, the property being adapted will usually extend the length of the tenancy, which is one of the initial objectives. This already happens where a tenant asks for a home adaptation to be carried out. That will usually mean that they will extend the length of their tenancy. If the tenant does decide to move out, the landlord can seek someone else who would benefit from that adaptation. I will come back to the noble Lord regarding his point about any necessary reinstatement costs. Normally, landlords will be able to find another tenant who would benefit from the adaptation that has been made to the property.
Baroness Janke (LD)
My Lords, I am very grateful to the Minister, and I look forward to seeing her letter and the various assurances that she has given us today. This amendment stemmed from the fact that refusal by landlords has been a major obstacle in the private sector to disabled people who are trying to get adaptations, and it seems that there are a number of measures within the Bill that will really start to tackle this problem. The Equality Act requirements have not prevented landlords refusing tenants who have requested adaptations.
As the Minister says, the business of reinstatement is not always necessary. I admit that some hoists might need to be reinstated, but there is a huge shortage of rental places available for people with even minor disabilities. Bathroom improvements and stairlifts can be a great benefit and make the property much more in demand, because they are in very short supply. I accept that some reinstatement may well be necessary at some stage, but you need only to look at how much demand there is for these properties before you think that you would necessarily have to reinstate them after somebody with a disability has left. The fact that the tenants have a longer period of tenure as a result is also an important factor.
The point of this amendment was that getting it under the disabled facilities grants, meaning that local councils would have their inspection under some form of supervision, was meant to be a safeguard to ensure that things were not being done in an ad hoc or an unsafe way. I am very pleased to hear that disabled facilities grants are being boosted, because the fact that there has been so little money in them for so long has been a major impediment to getting these improvements. I look forward to reading the Minister’s assurances in the letter, and I beg leave to withdraw the amendment.
Baroness Janke
“Right to request Fibre to the Premises (FTTP) installation(1) It is an implied term of every assured tenancy to which this section applies that— (a) a tenant may request the installation of Fibre to the Premises (FTTP) at the dwelling-house if the tenant asks to do so in accordance with this section and the landlord consents;(b) such consent is not to be unreasonably refused by the landlord;(c) the landlord is to give or refuse consent in writing on or before the 28th day after the date of the request, except as provided by subsections (2) to (5).(2) Where the landlord reasonably requests further information from the tenant about the proposed FTTP installation on or before the 28th day after the date of the tenant’s request the landlord may delay giving or refusing consent until the 7th day after the date on which the tenant provides any further information that the landlord requests where the following circumstances apply—(a) the installation of FTTP at the dwelling-house would require the landlord to obtain the consent of a superior landlord under the terms of a superior tenancy, and(b) the landlord seeks the consent of the superior landlord on or before the 28th day after the date of the tenant’s request.(3) The landlord may delay giving or refusing consent until the 7th day after the date on which the landlord receives consent or refusal from the superior landlord.(4) Where the landlord and the tenant agree that the landlord may delay giving or refusing consent, the landlord may delay until whatever date is agreed between the landlord and the tenant.(5) Where more than one of subsections (2) to (4) apply, the landlord may delay until the latest date to which the landlord may delay giving or refusing consent under any of the subsections.(6) This section applies to every assured tenancy other than a tenancy of social housing, within the meaning of Part 2 of the Housing and Regeneration Act 2008.”Member’s explanatory statement
This amendment introduces a right for tenants to request Fibre to the Premises (FTTP) installation, similar to the right to request keeping a pet, by ensuring that landlord consent for FTTP installation cannot be unreasonably refused and that decisions are made within a specified timeframe. This provision is intended to reduce delays in broadband infrastructure improvements in rented properties.
Baroness Janke (LD)
My Lords, in moving Amendment 134, I will also speak to Amendment 135. Both are also in the names of the noble Lords, Lord Black of Brentwood and Lord Best. I am grateful to Openreach for raising this issue with me, and to Generation Rent and the Good Things Foundation for their support. These amendments would introduce the right for tenants to directly request a full-fibre broadband installation. Tenants would be able to request from their landlord directly, who would have to decide within a specified timeframe. Landlord consent would not be able to be unreasonably refused.
Broadband was historically delivered through electrical signals in copper phone lines, but this technology faced limitations, including vulnerability to weather and limited information-carrying capabilities. A demand for connecting multiple devices grew. Copper networks have increasingly been replaced with fibre-optic cables, enabling more reliable broadband and faster download speeds for households and businesses across the UK.
Four years ago, less than a quarter of British homes and offices could access full-fibre broadband. Today, around seven in 10 premises, or 20.7 million, have access to full fibre, and gigabit-capable network coverage has increased from 40% in 2021 to 83% last year. This progress has been commendable, but there are still challenges to building this vital infrastructure, which is why I tabled these amendments to resolve an increasingly pressing matter.
Although the provision of ultrafast broadband has been mandated in new builds since 2022, tenants in older residential properties have to rely on freeholder permission to upgrade existing copper to full fibre. This can pose significant challenges to the provision of gigabit-capable broadband to residents, if landlords are difficult to identify or are unresponsive to requests for access.
It is estimated that there are hundreds of thousands of multi-dwelling units across the country whose tenants could be disfranchised from the benefits of gigabit-capable broadband. Although there are existing rights to enter communal areas in flats to repair the ageing copper network, providers cannot use these same rights to upgrade tenants to the latest technology, despite the benefits it brings.
Although the telecommunications code was amended in 2022 to help broadband providers get access to multi-dwelling units by providing a tribunal process, this route is often very ineffective, takes a great deal of time and cost, and results in properties still being bypassed. The law also allows providers to apply to the tribunal only when a tenant has asked for a broadband service, but if the building does not already have a fibre network in place, there is no service available for the tenant to request. As a result, tenants, often in lower-income areas, will be left with slower, outdated broadband options, restricting their ability to access vital public services, work remotely, and access online education.
Baroness Taylor of Stevenage (Lab)
The noble Earl makes an excellent point. Anyone who has travelled on the east coast main line will be incredibly frustrated about the dipping in and out of the broadband signal, and if you go through the Hatfield Tunnel on the A1, you will lose your broadband there as well. So he makes an important point.
The Bill is of course about housing, which is why we are considering the housing aspects of it, but I am sure my colleagues in DSIT are very aware of the absolute need to make sure that we have good broadband connection wherever we are in the country.
Baroness Janke (LD)
I thank the Minister for her comments, and I am very interested to hear how the Government will move forward on this. As they have rejected this amendment, I would be very interested to see what measures will be taken. Whatever reassurances we have in here, there are still large numbers of people who are digitally excluded and, as other Members have said, they are entirely reliant on broadband connection for so many things, whether it is medical appointments, work or for economic reasons. It is a real inequality and a great exclusion if they cannot have reliable connections. I hope that this will be a priority and that the Minister will inform us—perhaps in a letter—about what developments are taking place and by when. She mentioned some dates and I should be interested to see them. With those reassurances, I withdraw the amendment.
Renters’ Rights Bill
Baroness Janke Excerpts(1 week, 4 days ago)
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Baroness Janke (LD)
My Lords, as colleagues have already said, the Liberal Democrats have long campaigned to abolish no-fault evictions. We support the measures in this Bill, particularly the provisions by which tenants can challenge rent increases. We support amendments in this group that seek to establish a fairer basis for rent increases and would prevent excessive and unpredictable increases, the severe impact of which may cause eviction and homelessness. We also support the amendments in this group that will reduce the need for tribunals to hear challenges from tenants. We feel that there is a fundamental problem with the concept of market rents, which are currently calculated by looking at a range of advertisements. This does not provide an accurate assessment of the actual rents that people are paying.
One-third of private renters are already paying half or more of their income on rent, well above the commonly accepted affordability threshold of 30%. Measures to stabilise rents within tenancies are essential to ensure that the Bill delivers the secure, stable system it promises, as well as empowering tenants to challenge unfair rent increases that result in unwanted moves.
For many renters, though, a rent increase is as good as an eviction notice. Without an established index that outlines what a fair increase looks like, the First-tier Tribunal will remain effective in supporting renters.
Rent increases must not become the new no-fault eviction. Over 300,000 renters moved last year because of a rent increase they could not afford; that is more than 900 renters a day. Market rent is an artificially high indicator for judging what an appropriate rent should be. The database proposed in the Bill, once established, would be able to capture what rents are actually being paid. This could then establish benchmarking for an appropriate rent, rather than having the traditional understanding of market rent.
Amendment 77 in my name reflects Liberal Democrat policy, which would limit any in-tenancy increase in rent to a percentage of the Bank of England base rate. This is different from inflation and other indicators that are often used. Landlords do face increasing costs from time to time, but the increases they face and want to pass on to tenants are generally more likely to be related to the cost of interest on their borrowing. Therefore, that is the appropriate measure for landlords to look to and should be considered appropriate for a rental increase. It is also often much less than the much more volatile changes in the market rent that are related to inflation.
We would relate rent increases to much more realistic, modest and accurate reflection of what landlords’ expenses are and use the Bank of England base rate as an appropriate limit on the amount of rent increase and any in-tenancy rent increase. That is the rationale behind this amendment.
Lord Best (CB)
My Lords, I rise to speak to Amendment 79 and the related Amendments 84 and 85 in my name and the names of the noble Lord, Lord Young of Cookham, and the noble Baronesses, Lady Grender and Lady Thornhill. I believe these amendments would overcome an inherent defect in the Bill, both for renters and landlords, making this a rare opportunity for amendments with appeal across the piece.
The amendments seek to protect tenants from unpredictable and unaffordable in-tenancy rent increases, but they also have distinct benefits for landlords. Together, the amendments would establish a fair basis for in-tenancy rent increases for a fixed period. As with the earlier amendments in this group from the noble Lord, Lord Hacking, and the noble Baroness, Lady Janke, the amendment would restrict rent increases to an index of inflation: in this case, either the consumer price index or an earnings index. However, in these amendments, the indexation is limited to four years, countering the concern that rents will be controlled. After four years, a market rent—if necessary decided by the First-tier Tribunal—would be allowed.
These amendments address the central issue of renters’ security, which lies at the heart of the Bill. Tenants need to know that their rented property is their home and they cannot be forced to move out by a massive rent increase. As the Housing Minister in the other place, Matthew Pennycook, said at the Bill’s Report stage in the Commons:
“Once section 21 evictions are done away with, unscrupulous landlords will no doubt attempt to evict tenants who assert their rights by means of extortionate rent rises”.—[Official Report, 14/1/25; col. 259.]
The Renters’ Reform Coalition and Shelter have campaigned assiduously for in-tenancy rent increases not to become a means of eviction by price.
The Bill’s remedy is to place a requirement on tenants to take their case to the First-tier Tribunal to set a market rent that cannot be exceeded. I argue that this whole First-tier Tribunal arrangement is a highly unsatisfactory mechanism for settling on appropriate rent levels. For a start, the outcome of tribunal hearings is unpredictable and sometimes arbitrary. Deciding on a market rent is an art, not a science. Sometimes the tribunal has accepted a case made on the basis of the asking rents advertised on Rightmove and Zoopla. Sometimes, however, the tribunal has explicitly dismissed the use of these asking rents, since there is no knowing what relationship actual rents have to the initial asking rent. Moreover, it is common practice for in-tenancy rent increases to be at lower levels than the open market rents for new tenants because landlords sensibly wish to keep their existing tenants.
There are other drawbacks to the Bill’s use of the tribunal route to determine a reasonable rent increase. First, this mechanism depends upon the renter actually taking their in-tenancy rent increase to the tribunal. This can be a daunting requirement for the renter. As Generation Rent has pointed out, very few tenants have any knowledge of the FTT. Even where renters are fully cognisant of their legal rights, many will be reluctant to go down this road, as doing so is likely to mean falling out with the landlord and negatively affecting the relationship. Taking their case to the tribunal will often involve hassle and expense, particularly if they are to present their case in person. It may require travelling a considerable distance and taking time off work, and the process itself may be intimidating. The whole business is fraught with uncertainty and anxiety.
Secondly, assuming the process is followed, the market rent determined by the tribunal may still mean that the renter faces an alarming increase. A recent Zoopla report shows market rents for new lets are 27% higher—£270 per month—than three years ago, which is an increase well above earnings growth. Many commentators are suggesting that shortages may push market rents much higher in the years to come.
The noble Lord, Lord Marlesford, mentioned the guideline of an affordable rent being 30% of take-home pay, but this is only a guideline and not a requirement of any kind on landlords. Sadly, a lot of tenants are paying over 40% of income on rent as the Affordable Housing Commission, which I had the pleasure of chairing, has shown. At that level of income-to-rent ratio, there is always the danger of arrears, let alone hardship to the renter.
From the landlord’s perspective, I suggest that the proposed regime based on appeals to the First-tier Tribunal is highly unsatisfactory. Those representing landlords have argued that large numbers of tenants could be tempted, as we have heard today, to take proposed rent increases to the FTT in the knowledge that they, the renters, have nothing to lose. They cannot be asked to pay more than the level the landlord proposes and they might be successful in arguing that the rent should be less. In any case, the process would save them money by delaying any increase until after the tribunal hearing, as we have heard, which could be months ahead.
A number of your Lordships have made the point that the number of cases referred to the tribunal could clog up the system and delay any decision being taken, at an ongoing cost to the landlord. Another way of looking at this, among the many that have been suggested, is that even if 99% of tenants accepted their landlord’s proposed rent increase, that would leave 50,000 cases still going to appeal. There is no way the FTT could deal with these numbers.
This overwhelming of the system seems more likely if rumours are true that specialist firms are planning to offer a no-win no-fee service, paid for by sharing the rental savings, to handle cases at tribunal hearings on behalf of renters. So, for both landlord and tenant, the dependency on securing a decision from the First-tier Tribunal—theoretically every year for every tenancy—is fraught with danger and potentially undermines the whole Bill.
I know the Government are rightly worried that introducing any form of rent control would have a significant detrimental impact, as history and international comparisons suggest. These Amendments 79, 84 and 85 do not undermine the overriding market principle; instead, they introduce a mechanism that removes the hazards of appeals to the First-tier Tribunal and provides the certainty of indexation for in-tenancy rent increases. After four years of occupation, the rent can be reset at the market level, determined by appeal to the FTT if necessary. Since most renters move within a five-year period, the amendment would ensure that rents are predictable throughout the great majority of tenancies.
The amendment adopts the same rent stabilisation proposition and indexing of increases devised by the Renters’ Reform Coalition, but the amendment limits this inflation indexing to a four-year period. There may be exceptional circumstances in which indexing a rent, rather than going for a market rent, could cause hardship or financial difficulty for the landlord. A case might be where the landlord spends substantial sums on upgrading the property and needs compensation from higher rents, or has borrowed heavily—probably with a buy-to-let mortgage—and needs to increase rents by a bigger margin to satisfy the lender’s requirements, driven in part by the rules of the Prudential Regulation Authority. To cover these relatively rare cases, an additional amendment could place the obligation on the landlord to go to the tribunal, rather than the tenant, to seek a setting of a market rent, instead of applying the usual indexation.
Renters’ Rights Bill
Baroness Janke Excerpts(3 months ago)
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Baroness Janke (LD)
My Lords, I declare my interest as a vice-president of the LGA. I congratulate the noble Lord, Lord Wilson, and the noble Baroness, Lady Brown, on their eloquent maiden speeches. I am sure from these speeches that the breadth and depth of their experience will add greatly to the work of this House, and I look forward to working with them.
We support the objectives of the Bill and see it as a major step towards a safe, secure and affordable private rented sector. Having a home is something many of us take for granted—a place of refuge, security, comfort, safety and reassurance—yet for so many people, including large numbers of children, this is a far-off dream. In my own city of Bristol, 54% of people in the misery of temporary accommodation have dependent children. What kind of start in life is this for them?
The severe shortage of social rented dwellings means that more and more renters are now dependent on private rentals. Shelter reports that there has been a net loss of 24,000 social homes per year since 1991 through the right to buy and demolition. New build has replaced less than half of them. In the meantime, the private rented market has more than doubled since 1980, with unaffordable rents leaving renters struggling to make ends meet, with many ending up in debt and homelessness. As others have said, there is a desperate shortage of, and need for, social homes at affordable rents.
Most landlords fulfil their responsibilities and treat tenants with respect and consideration, but where exploitative and irresponsible landlords fail to comply with standards and conditions required, it is right that early enforcement powers to fine and sanction are provided in addition to legal redress, which may take much longer.
Many of the proposals in the Bill will be welcome to renters, but what is missing is any form of rent stabilisation. As we have heard from other noble Lords, the high rents in the private sector place a huge burden on renters—one-third of renters spend half or more of their income on rent. They are often intimidated from challenging increases by fear of eviction and being made homeless. Even with the banning of Section 21 evictions, landlords can still force eviction through rent hikes that tenants cannot afford. Without some form of rent control, tenants will still not be protected from summary eviction and the threat of homelessness.
Various ways of pegging rents have been mooted, such as to inflation, wage growth or the Bank of England base rate. There needs to be a framework which allows reasonable predictability for rent so that tenants can budget and not be priced out by rent hikes. Rent controls are well-established in European and other OECD countries. This is by a combination of local and national measures, and I hope that the Government will perhaps look at some of these as we progress with the Bill.
The Bill gives tenants the right to challenge unreasonable rent increases, but many tenants will feel unconfident or intimidated in challenging their landlord at a tribunal. So I hope that, through the process of the Bill, the Government will give some thought to measures for the stabilisation of rents.
The CAB tells us that one in four of the complaints it receives is about disrepair, damp, mould and excessive cold. Making the decent homes standard a legal requirement is essential. Renters often experience horrific conditions of disrepair, damp and even infestation with vermin, and they survive on a knife edge of insecurity with the constant fear of being forced into homelessness. I am sure that those of us who have been councillors who have already spoken in this debate are well aware of some of the dreadful conditions that people live in, with landlords who repeatedly fail to carry out effective repairs and maintenance work. The online database publishing information on private rented sector dwellings and landlords could be a very powerful enforcement tool, depending on what information is to be included about landlords’ records and the condition of dwellings.
However, bringing unfit properties up to standard may be costly, and effective enforcement will pose very serious challenges for cash-starved local authorities. Local authorities’ budgets have been cut to the bone and, if they are to enforce compliance, they will need the resources to do so. Tenants must be confident that the law will be enforced promptly and not be buried in lengthy bureaucracy. This will be essential for the success of this legislation, and the Government must give assurances that enforcement will be fully funded.
The banning of discrimination against benefit recipients will help people with disabilities who are on benefit. Evidence shows that people of colour are more likely to be in substandard accommodation and that black and Asian people are more likely to be denied the right to a safe and secure home. It will be essential for anti-discrimination measures to be rigorously enforced.
However, problems of accessibility remain. Private rented dwellings are often too small to allow a wheelchair or accessible bathrooms and kitchens. People are having to remain in hospital as the needs caused by injury or illness cannot be accommodated in their private rental property. Renters have had adaptations refused by landlords. Access rights are human rights for tenants, and they must be guaranteed in law, so I hope we will make some progress on this in Committee.
As my colleagues have said, Liberal Democrats also believe that accommodation for service personnel should comply with the same decent homes standard and that the accommodation of refugees and asylum seekers should be on the same principle, as in an amendment tabled by Liberal Democrat colleagues in the Commons.
We welcome the first steps that the Bill is taking to provide a fairer private rented sector, with clear rights and responsibilities, and with sanctions and redress for non-compliance. The private rented sector is the second-largest tenure in the UK, yet privately rented homes are the most insecure, most expensive and the lowest quality of any tenure. Reform is long overdue.