Renters’ Rights Bill

Debate between Lord Carrington and Earl of Leicester

Thursday 24th April 2025 Lords Chamber

[Lord Carrington (CB)]

My Lords, I already declared my interests earlier in the debate.

I will speak to Amendments 48, 49, 51, 52, 54, 55, 56, 57 and 58. Some of these amendments have been kindly supported by the noble Earl, Lord Leicester, and the noble Lords, Lord Colgrain and Lord Roborough. The objective of Amendment 48 is to broaden the definition of “agricultural worker”, regardless of the worker’s employment status to cover not only a direct employee but a self-employed person or contractor, as this reflects modern farming employment practices.

In my meeting with the Minister, to whom I am most grateful for her attention, I learned that she was worried that this could open up an exemption for a wider group of workers, but I hope that I have reassured her that this specifically covers only agricultural workers. Her suggestion that the same could be achieved by allowing self-employed workers to occupy a property under licence would not be appropriate for longer-term workers, which this amendment seeks to address.

We believe that a ground for possession should be available where there is a need to house a non-employed agricultural worker; for example, a self-employed party to a share-farming arrangement on the farm or a self-employed shepherd or cowman. It is quite common in the agriculture industry for workers to be self-employed, but, given the nature of their work, especially if it is with livestock, they need to live on the site.

Currently, ground 5A provides a means of getting possession where the dwelling is required to house someone who will be employed by them as an agricultural worker. However, it does not cover the situation where the worker is self-employed. Similarly, ground 5C does not adequately provide for possession where a self-employed worker has been provided with a dwelling, but the work contract has ended. It applies only when the tenant has been employed directly by the landlord. We would like to see extensions to grounds 5A and 5C to cover situations where the worker/tenant is self-employed as well as employed. I hope that the Minister will be able to accept this amendment, which purely reflects current employment practices in the farming industry and is certainly not designed to cover non-agricultural workers.

I turn now to Amendments 50 and 53 in this group. By way of background, in the rural private rented sector the average length of a tenancy is around seven years, so there is little churn in view of the long-term nature of accommodation in rural areas. Combined with the shortage of rural affordable housing, which I hope will be addressed in the Planning and Infra- structure Bill, the availability of housing to support rural growth, particularly that driven by the increasing need for farm diversification due to lack of profitability in farming, is a clear and continuing problem. This diversification is being encouraged by the Government through schemes such as the Rural England Prosperity Fund. However, this diversification will be held back if it involves the necessity to house an employee on site and there is no availability of housing.

Rural landlords in the private rented sector have traditionally been the employer of their tenants. Historically, they have primarily housed agricultural workers, but with mechanisation, fewer mixed farms and employment costs, these cottages have been rented to others. At the same time, legislation governing the private rented sector has evolved to give extra statutory protection to agricultural workers. However, as farms have modernised and have been encouraged to diversify, many farmers and landlords have businesses which employ staff to operate in non-farming sectors but still need to be housed by the landlord for the better performance of their duties. The system of assured shorthold tenancies has allowed farmers and landowners to recover cottages at the end of the fixed term and thereby house the employee for the new enterprise.

In a situation of assured tenancies, this option will not exist, so the prudent owner may well take the view that he cannot risk an assured tenancy and therefore keep the house unoccupied. This could affect supply in an already-stretched private rented sector. While it remains very important that rural landlords are able to house incoming agricultural workers—new ground 5A —it is increasingly important that they are able to gain possession from a non-employee PRS tenant in order to house an employee of their diversified business.

This amendment would allow possession where the property is required for housing a person who, for the better performance of their duties, is required to be, or is by custom, housed by their employer. In order to conform with an assured tenancy, this circumstance could be made a prior notice ground in an assured tenancy if a fixed-term tenancy is not allowed. The possibility of registering such properties would allow an incoming tenant to be aware that such properties can be let only on fixed terms. Examples of such employees include security personnel, housekeepers, catering staff, wardens and groundsmen.

I urge the Minister to favourably consider this amendment, in light of the real needs of the rural economy, where housing is in very short supply and the need for rural diversification from farming is paramount. The Bill is currently geared toward the urban PRS and does not take sufficient account of the different challenges in the rural sector. I beg to move.

[The Earl of Leicester (Con)]

My Lords, I support the noble Lord, Lord Carrington, on Amendments 48, 49 and 51 and, subsequently, 50 and 53. On the first ones, the noble Lord is absolutely right that, in the 21st century, the terms of employment in agriculture have moved on: they are not based on the old direct employee relationship. There are increasing numbers of self-employed people—the noble Lord mentioned stockmen and stockwomen, and many stockmen will be self-employed and work for two or three farmers, with two or three herds. Obviously, it puts you at an advantage if you can provide them with a house.