Renters’ Rights Bill

Debate between Lord Marlesford and Baroness Scott of Bybrook

Tuesday 22nd April 2025 Lords Chamber

[Lord Marlesford (Con)]

My Lords, I support the amendment from the noble Lord, Lord Truscott. I must declare my interest: I am a Suffolk farmer and have been for 50 years and I have seen quite a lot of changes during that time. Historically, there have been ups and downs, so in recent years I have turned increasingly to the private rented sector as a means of diversifying from agriculture when agriculture has been in such difficulties.

I can remember the days when there were rent officers and the whole system was gummed up. Now, assured shorthold tenancies are—lamentably—being abandoned in the Bill. Under that system, there was a resurgence of interest. I, for example, have converted redundant farm buildings into houses. I have fitted houses into spaces where there were no houses, but they fitted well into the particularly attractive and beautiful village which I am fortunate and privileged to live in. All these things are a very important part of the overall scene.

I warn the Government that there is a danger of them proscribing or prescribing practices in the private rented sector that are the practices that make it work. It is a very flexible sector. It is a vulnerable and fragile sector and, when we debate these issues in Committee, we are going to find cases where it can be clearly demonstrated that provisions in the Bill should be modified to avoid the danger of reducing the supply of privately rented accommodation.

[Baroness Scott of Bybrook (Con)]

My Lords, I thank the noble Lord, Lord Truscott, for leading this group and all noble Lords who have contributed to the debate. My amendment aims to probe the Government on the proposed abolition of all fixed-term tenancies and to strike a fair balance between the rights of tenants and the legitimate interests of landlords.

While the Government’s desire to strengthen tenants’ security is, of course, a commendable objective, we must take a moment to reflect on the variety of tenancy arrangements that currently support different groups within the sector. In light of that diversity, it is reasonable to ask why the Government has chosen to pursue a one-size-fits-all approach through the proposed abolition of all fixed-term tenancies.

I have listened to contributions from the Committee and there is obvious and widespread concern about this element of the Bill. I thank the noble Lords, Lord Truscott and Lord Shipley, for their thoughtful amendments. Taken together, they seek to challenge the blanket removal of fixed-term tenancies and reintroduce much-needed flexibility into the current very rigid clause. In our opinion, the proposal to allow fixed terms of up to 12 months presents a pragmatic middle ground, maintaining a degree of security for tenants while giving landlords the certainty needed to plan for their future use.

Amendment 6 focuses specifically on protecting very short-term lets of up to three months. These arrangements are critical to people on, for example, probationary employment contracts, to vulnerable individuals in temporary relocation and to professionals on short-term placements. We should not be undermining access to housing for those who rely on flexible short-term arrangements. In removing fixed terms entirely, we risk cutting off access to the rental market for these groups—precisely the kind of unintended consequences this House should seek to avoid. I have also tabled this amendment to give Ministers the opportunity to indicate whether they would be willing to take a more limited step of retaining the current arrangements for very short tenancies.

Industry stakeholders have all echoed these concerns. Propertymark has warned that the removal of fixed-term tenancies could have a destabilising effect on tenants with lower incomes or poor credit histories, many of whom rely on guarantors, who in turn require the certainty of a fixed term. Without that structure, such tenants might find themselves excluded from the market altogether.

What does the future look like for these tenants? These are students without parental support, young adults leaving care, or individuals with health conditions whose employment is irregular. These individuals rely on guarantors to secure housing, but those guarantors require a legal assurance of a fixed term. Without that, the door to a rental home quietly shuts behind them. Imagine a single mother working two part-time jobs, trying to secure a home close to her children’s school. With no guarantor willing to sign an open-ended agreement, she is told again and again, “Sorry—no fixed term, no tenancies”. These are not hypotheticals. These are people who will be locked out of the system, possibly entirely.

Propertymark notes that fixed terms provide security for tenants and a guaranteed rental income for landlords. These arrangements are often actively sought by tenants, including nurses on temporary hospital placements, families wishing to remain in a school catchment area, and individuals from overseas needing time-limited accommodation. The Government will argue that tenants will still have flexibility because they can terminate their rental agreements at will. However, this misses the point. Flexibility is not the same as stability. Tenants need the assurance that their home will not be taken away at short notice, especially when they are in transitional stages of their life.

For landlords, the certainty of a fixed term allows them to plan and manage their properties effectively. Without it, many will choose to exit the sector, once again reducing the overall availability of rental homes. The supposed flexibility of a non-fixed-term tenancy could ultimately leave both tenants and landlords with far less stability than they need.

The abolition of fixed-term tenancies could provoke many landlords to reconsider their position in the market altogether. For home owners who currently rent out their properties on a fixed-term basis, this change in policy, which removes the ability to offer a defined tenancy period, will reduce landlord confidence. As a result, some home owners may choose to leave their properties vacant rather than face the uncertainty of an open-ended arrangement.

Why are the Government not listening to landlords, the very individuals who are primary maintainers of the private rented sector? Landlords are not just participants; they are the backbone of the housing market. Their voices must be heard in this conversation. There is a growing sense that these concerns are being overlooked, and one must ask whether this stems from a principled policy position or from a deeper ideological reluctance to recognise the legitimate role that landlords play. Without the ability to plan for future use or to rely on a defined tenancy period, landlords may well choose to exit the market. If this happens, we risk not only reducing the supply of homes but destabilising the rental sector as a whole, undermining the very intention of the Bill.

Taken together, these warnings from industry stakeholders should give the Government pause for thought. They remind us that while reform is necessary, it must be proportionate and carefully balanced to deliver a market that ultimately benefits renters. The Bill gives us the opportunity to modernise our rental system but, in doing so, we must take care not to discard what works. In removing fixed terms altogether, the Bill risks sweeping away short-term lets that serve a very specific and vital purpose.

These are not theoretical cases; they are everyday realities for many people navigating work, family or education. If we are to build a fairer rental system, we must ensure that it remains flexible and accessible to all, including those whose housing needs are necessarily short-term. That is what Amendment 6 in my name seeks to protect. I hope the Minister listens to voices across the House and calls from industry experts to recognise the diversity of the rental market and to support my amendment, which offers the necessary flexibility and common sense.