Renters’ Rights Bill

Debate between Baroness Thornhill and Lord Cromwell

Tuesday 6th May 2025 Lords Chamber

[Lord Cromwell (CB)]

My Lords, I also support these amendments. I have one small niggle, which I will get to, but I live at the end of a very ropey copper wire system, so I yearn for the day when broadband reaches up into the Midlands—or, as it is known down here, the north.

My understanding is that Openreach, in the areas where it is installing, currently includes a building free of charge in its rollout programme. That could change, and it is not clear whether alternative network providers may charge for installing. The situation is not clear at the moment and is, of course, subject to change. Therefore, would the Minister consider it right to oblige landlords to take on the cost if one is imposed?

[Baroness Thornhill (LD)]

My Lords, I rise to give my support for Amendments 134 and 135 in the names of my noble friend Lady Janke and the noble Lords, Lord Black of Brentwood and Lord Best, who, in his usual style, has added some quality dimensions to this discussion. The noble Lord, Lord Cromwell, has given his usual nudge about something we might have forgotten.

In short, these amendments offer a simple, cost-neutral solution to a growing problem. Too many renters are still denied access to fast, reliable broadband, and there is a real risk of growing the digital divide as a result. The ability to work remotely and to access education and vital public services are basic needs in the modern world. Reliable broadband is not a luxury; it is a necessity as fundamental as water or electricity in our lives today, yet over 900,000 households are being left behind. This is often simply because, as has been said clearly, landlords are hard to reach for requests for fibre installation or are just not bothered. These amendments would introduce a clear, fair process, ensuring that tenants could request full-fibre broadband and receive a timely response. This is not about forcing landlords to pay but removing a passive barrier that is harming renters’ access to full-fibre broadband.

It is good to know that these measures are backed by many organisations, such as Generation Rent and the Good Things Foundation, and offer a cost-neutral way for the Government to improve digital inclusion, particularly for low-income renters. Importantly, yes, landlords benefit too, with fibre infrastructure clearly adding a long-term rental value to their properties.

This is a fair and practical step to connect more people and strengthen our digital infrastructure, so we strongly support these amendments—no surprise there—and urge colleagues to do the same. We look forward to the Minister’s response.

Renters’ Rights Bill

Debate between Baroness Thornhill and Lord Cromwell

Thursday 24th April 2025 Lords Chamber

[Lord Cromwell (CB)]

My Lords, I will speak very briefly because, as always, the noble Lord, Lord Young of Cookham, has set out his case so coherently and in such detail that I need raise just a couple of points. Before I do, I declare an interest: I do not let out any residential property, but I have a couple of family members who let out one each.

I support all four of the amendments in this group, because there is considerable uncertainty about how the Bill will affect shared owners who become the so-called accidental landlords that have been referred to. They often sublet as a survival strategy, to deal with exceptionally difficult financial circumstances, which the noble Lord set out. Where co-owners try but, as is common, fail to sell, the proposed 12-month letting period ban—the lack of a letting period—risks punishing the very people who simply do not have the financial resilience to cope with a 12-month void in their ability to sublet. This applies acutely to the poorer and more vulnerable end of the market, so I trust that it will be of particular interest to this Government.

[Baroness Thornhill (LD)]

My Lords, I too support the amendments in the name of the noble Lord, Lord Young of Cookham.

If many of the amendments to this Bill are designed to make us look at unintended consequences for certain groups of people, these amendments concern one group of people who wholeheartedly deserve and need us to look at how the Bill will impact their situation as shared owners who cannot sell their flats and are subletting due to a variety of legitimate reasons. The specific conditions of their model of part ownership were so cogently outlined by the noble Lord, Lord Young, that, noble Lords will be pleased to know, I will not even attempt to repeat them. That has led to their campaign to plead with us—“plead” is almost not a strong enough word—to look at ways to ameliorate the devastating situation in which they find themselves.

The key element of concern is the stranglehold that the registered providers have on the property—no doubt deemed to be a good thing in normal times, but this situation is far from normal. Due to that stranglehold and the restrictive rules that shared owners must abide by, for the majority of shared owners subletting is a loss-making operation by design. I am not given to hyperbole, but I cannot think of anything worse than being in the situation that they are trapped in.

The term “accidental landlord” was a new one to me, but when I heard first hand from the shared ownership owners, I felt their pain—it is a really messy issue. Let us not forget that, if you have gone into shared ownership in the first place, it is highly likely that your finances are going to be stretched anyway—no high salary, no inheritance, and no bank of mum and dad—or you would have bought outright. As has already been said, the 2025 survey of the Shared Owners’ Network found that 90% of subletters were created because of the building safety crisis.

Another shocking statistic was that, in November 2024, the National Audit Office stated that the Government will not reach their 2023 target for the remediation of high-rise buildings with dangerous cladding. This building safety crisis is set to continue for over a decade or more, so it is not a big stretch to say that the problem of accidental landlords will increase. That is why I too was disappointed that this was not picked up by the impact assessment—perhaps the Minister can explain why.

The issue is certainly complex, and I am absolutely certain that the Minister is fully knowledgeable about it and sympathetic to it. The amendments tabled by the noble Lord, Lord Young, are trying to find out whether there is a way forward through this Bill to help this group of people. Alternatively, perhaps the Minister will take it upon herself to follow this up by other means.

I will end with a few words from one of the many emails from the aforementioned Stephanie, but I will pick up on a slightly different point. She says that

“we are not bad people … we’re trying to cope with an impossible situation … we don’t need to be punished for failing to sell the unsellable flats that are already ruining us”.

Between the noble Lord, Lord Young, and Stephanie, they say it all—and they have our full support.

Renters’ Rights Bill

Debate between Baroness Thornhill and Lord Cromwell

Tuesday 22nd April 2025 Lords Chamber

[Baroness Thornhill (LD)]

I have to confess to the noble Lord that I had written down exactly what he said—that these are not two nice amendments to bring in fixed tenancies by the back door—but then I thought, “He’s actually just creating a new ground for repossession”. What I am concerned about from the previous debate and this one—and I urge the Minister to clarify this—is that there seems to be an idea that rolling tenancies are unstable. I have several friends who are landladies, and we have had discussions about this over one or two glasses of wine and—believe it or not—they are not fazed by this. They have not reacted hysterically, because their attitude is, “My tenants like to stay long term; I’m a good landlady”; they do not see that that is a problem. But clearly there is a problem because we have had the reaction. I say to the Minister that the messaging has somehow got lost that this is not a less secure tenancy and that, in fact, the expectation is that the tenancy will roll on, and I believe the Government have tried to make the paperwork and things easier for that to happen.

If that messaging was correct, I do not see why a tenant would need incentivising to stay if everything was going okay. So forgive me if I sound perplexed: I thought I had a clear view about this, but the noble Lord has kind of knocked me there. I think it is because of the messaging that we have had about the instability of rolling tenancies, whereas I believe that that is not the case. I would be very interested in what the Minister has to say on that. I appreciate that the noble Lord’s speech was not long; it was engaging oratory and got the little grey cells going.

[Lord Cromwell (CB)]

Perhaps the noble Baroness and I should discuss this over a few glasses of wine also, although I do not drink—but she can have the wine. I do not think the amendment creates a new ground for repossession; it gives the tenant greater security of tenure by removing half the causes for which a landlord could serve notice—I think that is what we will have to discuss over the glass of wine. It applies in special circumstances, where a landlord does not anticipate the need to sell or the wish to move in a family member but wishes to incentivise their tenant, who could leave at any moment on two months’ notice, to stay longer. So they say, “I’m prepared to give you greater security of tenure as an incentive to remain and continue paying the rent”. It is not more complicated than that, but I am glad that I managed to lift the bafflement and look forward to a chat afterwards perhaps.

Renters (Reform) Bill

Debate between Baroness Thornhill and Lord Cromwell

2nd reading
Wednesday 15th May 2024 Lords Chamber

[Lord Cromwell (CB)]

I would be happy to speak to the noble Baroness afterwards.

[Baroness Thornhill (LD)]

This will hopefully end that discrimination towards—yet again—the most vulnerable.

We would, however, urge the Government to look at several other practices where discrimination occurs. If a landlord insists on several months’ rent up front—and they do—that disadvantages many people for obvious reasons. Likewise, on the use of a guarantor, not everyone has family or friends willing or able to act as a guarantor. Both these measures in effect marginalise the less well off.

On rent rises, we feel that the Bill does not go far enough. The proposed annual limit of one rent rise is positive, but it still gives no guarantee as to how much the rent could rise, and the process to challenge an unfair rent rise is complex and lengthy. I was concerned by the statement that tenants could find themselves in a position where the First-tier Tribunal could say that the rent is worth more. That felt like a bit of a veiled threat that this would act as a deterrent to challenge a rent rise. Surely, to link increases to CPI or median wage growth would be fairer and transparent, and would obviate the need to appeal to the First-tier Tribunal at all.

We cannot escape the fact that the real issue is lack of supply. We know that much supply has been lost to short-term lets, which was expanded on very well by the noble Lord, Lord Truscott. There are no incentives in this Bill for landlords to return to long-term rentals—as opposed to the damaging overprovision, in some areas such as Cornwall, Cumbria and other tourist spots, of the more lucrative Airbnb. These should include making the playing field level between the two tenures using taxation, regulation and health and safety requirements.

There is much more to say and time to say it in detail at later stages, but I end by reinforcing the words from my noble friend Lady Pinnock and others regarding the role of local authorities in making this Bill work. As things stand now, they cannot do the job that we or they want them to do. These additional demands will only make things worse. The fact that the Bill—at last—expects the private rented sector to meet the decent homes standard and has given some additional powers to councils will come to nothing without the resources to do the job properly. Likewise, extending the homeless duty on councils sounds admirable, but some councils are barely coping now.

Finally, we do not feel that the Bill as it stands has rebalanced the relationship between landlord and tenant. It still feels to us like the landlords have the upper hand, which is perhaps why, in their briefing, they wish to see the Bill passed as soon as possible, and why the Renters Reform Coalition has branded it a failure.