Renters’ Rights Bill

Baroness Bennett of Manor Castle Excerpts

Committee stage
Monday 12th May 2025 Lords Chamber

Moved by

[Baroness Bennett of Manor Castle]

206: After Clause 63, insert the following new Clause—
“Mediated rent pauses (housing conditions)(1) This section applies where—(a) there is a tenancy to which section 9A of the Landlord and Tenant Act 1985 applies;(b) it appears to the tenant that the landlord has breached the covenant implied by that section; and(c) it appears to the tenant that the landlord has failed to carry out works necessary to remedy any such breaches within the timeframes set out in regulations made by the Secretary of State under section 10A(3) of that Act.(2) A tenant is entitled to make arrangements to pay rent to an independent individual, rather than to the relevant landlord.(3) The independent individual must not pass any rent paid under subsection (2) to the landlord until there has been a determination or agreement between the landlord and tenant as to the landlord’s liability for any breach of the covenant implied by section 9A of the Landlord and Tenant Act 1985.(4) Where a determination or agreement under subsection (3) sets a time by which works are to be completed, the independent individual will—(a) release any rent paid under subsection (2) to the landlord if the works are completed by that time;(b) release any rent paid under subsection (2) back to the tenant if the works have not been completed by that time.(5) In this section an “independent individual” means the independent individual responsible for investigating complaints made against members of a landlord redress scheme under section 65.”

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[Baroness Bennett of Manor Castle (GP)]

My Lords, all the bright-eyed and bushy-tailed Members of the House who are still here at 12.47 am will note that I am not the noble Baroness, Lady Jones of Moulsecoomb. My noble friend is the Green lark, and I am the Green owl, so you get me after midnight.

I agree with the comments of the noble Baroness, Lady Williams of Trafford. The hashtag I often use is #Nowaytorunacountry. I take the systematic approach to this and suggest that your Lordships’ House urgently needs to think about a reset of our sitting hours.

I rise to move Amendment 206 in the name of my noble friend. This is a very straightforward, positive, friendly amendment aiming to assist the Government to ensure that this legislation can be enforced and can make a real difference. We know that so many renters are trapped in mouldy homes with leaking roofs and heating and hot water systems that are not working. When renters find themselves in those kinds of situations, this amendment would give them the right to pay the rent to a third-party body. My noble friend Lady Jones has suggested the new ombudsman, but we are very open to other suggestions as well. There are other ways of doing it. The amendment is written in a neutral way.

This is to deal with the situation where a landlord refuses to carry out essential repairs, yet the tenant is in a situation where they still have to keep paying for this utterly inadequate accommodation. The arrangements under this amendment would be that, if a landlord carries out the works and ameliorates the problems, the independent third-party would send them the full amount of rent due. If not, the tenant could get a full or partial refund, which they might well otherwise have to go to court to try to recover.

This is both a fair and an effective provision. It punishes the bad landlords and does not impact on the good ones. From the Government’s point of view, this is a constructive suggestion to help make sure that this legislation delivers on its stated aims. With those brief remarks, I beg to move.

[Baroness Coffey (Con)]

My Lords, this in effect creates a formal escrow process. One of my proudest achievements was to organise a student rent strike, admittedly some time ago, as noble Lords may recognise. At the time, the university accommodation was due to be dismantled at the end of the year and as a consequence it felt like the university was not taking various matters very seriously.

I happened not to be a paying student at the time; I was a vice-warden in a hall of residence. So I did help them, but I insisted that, if I was to help them, they would have to pay over their rent to avoid being evicted. We did that by handing the money to the student union, to effectively act in escrow. As a consequence, repairs were made and everyone ended up happy—apart from the university, which did not like my role in that at all.

The reason I tell that story is that it matters that tenants should be able to withhold cash going directly to a landlord when the landlord is, frankly, taking the mickey. Awaab’s law has already been mentioned and Clause 63, which we did not specifically address, is already extending that to the private sector, and I welcome that. We need to work out a much easier way for people to effectively deploy this escrow approach. That is why I am supporting the amendment.

It is fair to say that we need to make sure that any such processes are easy to administer. Going a little bit further, there is a regularly read out statistic that something like 15% to 20% of housing benefit—or housing support, whether as direct housing benefit or through universal credit—is thought to go to properties not deemed fit for rent. I went into a reasonable amount of detail on this with officials.

The philosophy explained to me by the Permanent Secretary and other officials was that the state thus far should not determine on behalf of the renter where they are going to live; it is an important right for the renter to make that choice—even though it felt repulsive to me that taxpayers’ money was being spent in, frankly, some pretty ropey places. From my visits to some different housing, I have to say it was quite extraordinary what was going on. Sometimes, I am afraid, the dilapidation was the consequence of the tenant not allowing repairs to be undertaken—but that is a minor aside. The point is that—whether it is private money, your own money or the state’s money going to a private landlord—it matters that we have habitable accommodation. Therefore, I strongly support the amendment from the noble Baroness.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Jones of Moulsecoomb, for tabling Amendment 206, ably supported by the noble Baroness, Lady Bennett, who moved it, and I thank the noble Baronesses, Lady Coffey and Lady Scott, for taking part in the debate.

Amendment 206 would allow a tenant to pay rent to the ombudsman rather than their landlord if the landlord had failed to meet legal requirements on housing quality. I strongly agree with the desire of the noble Baroness, Lady Jones, to ensure that landlords remedy hazards in good time—we all know the outcome when that does not happen—but I feel that the Bill’s existing provisions are the best way to achieve that. The Bill will allow private rented sector tenants to challenge their landlord through the courts if they fail to comply with the Awaab’s law requirements, such as timescales for remedying hazards. Alongside that, it will allow us to apply the decent homes standard to the private rented sector, which is an important move.

The PRS landlord ombudsman will provide a new route of redress for tenants and will be able to investigate complaints about standards and repairs. The Bill will also strengthen rent repayment orders, including by increasing from 12 months to two years the amount of rent that a tribunal will be able to award a tenant. Tenants can seek rent to be repaid where a relevant offence has been committed, including offences related to housing standards, such as failing to comply with an improvement notice.

The amendment has the potential to be administratively complex and risks unintended consequences that might lead inadvertently to worse outcomes for tenants. For example, rent being held by the ombudsman could delay repairs in some cases if it made it more difficult for landlords to fund the required works, a point that I believe the noble Baroness, Lady Scott, referred to. Existing measures in the Bill place legal expectations on landlords about the quality of their properties and give tenants access to compensation if their landlords have not met obligations in relation to standards, as well as providing mechanisms through which landlords can be required to carry out repairs. I therefore ask the noble Baroness to withdraw the amendment.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I thank the Minister for her response, and those who have taken part in this short but perfectly formed debate. I thank the noble Baroness, Lady Coffey, in particular for her support for the amendment. It is something we might come back to and look at the working of down the track. I also thank her for the fascinating tale of student days which, I think, took many of us back to our own student days. I think there was an expression of support from the noble Baroness, Lady Scott, for the intention if not the exact drafting of the amendment. I would stress that we are not wedded to the precise drafting, as we are in Committee; we would be delighted to work on the detail of the drafting as we go forward.

In response to the Minister’s response, I am afraid there is a phrase that I am sure is in the Civil Service handbook: “inadvertent consequences”. That seems to be the response that every Minister gives. More substantively, what the Minister said is that tenants can challenge through the courts and appeal to the ombudsman, and orders for action can be done. Those are all things that have differential levels of access depending on people’s capacity, people’s awareness, people’s ability to access those things—their time and energy and costs. The action proposed by this Amendment 206, however, is a really straightforward and simple way to give tenants the power to have control and agency for themselves, not relying on other bodies.

Having said all that, this is of course Committee, and I beg leave to withdraw the amendment while reserving the ability to come back on Report.

Amendment 206 withdrawn.

Renters’ Rights Bill

Baroness Bennett of Manor Castle Excerpts

Committee stage
Wednesday 14th May 2025 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, it is a great pleasure and privilege to follow the noble Baronesses. They are clearly very powerful advocates for private rental tenants, who very much need them.

I will speak specifically to Amendment 257, to which my noble friend Lady Jones of Moulsecoomb attached her name; it having passed the lark hour, we are now into the Green owl hour of the evening. Before I do that, I want to mention that the noble Baroness, Lady Kennedy, made a hugely powerful argument on the inequality of arms in the rental tribunal. The judgment level the noble Baroness suggested is clearly the right one.

I will mostly speak to Amendment 257 which, as the noble Baroness, Lady Thornhill, clearly outlined, would enable the tribunal to make a rental repayment order where a landlord has failed to join a landlord redress scheme or have active entries in the private rented sector database. This is a simple and clear process in which the tenant can get what they are owed when the landlord has failed.

In preparing for this, I had a look at the Citizens Advice website and the advice it provides for tenants. It is telling that there has been real progress on some issues—for example, recovering rental deposits—in the past decade or so, but there are still far too many cases where renters are left stranded. People are in situations where they are left homeless or desperately trying to find a new rental property. Do they have the time, energy or resources to chase, go through the courts and take all of the procedures that they need to? This approach has worked well for tenancy deposit schemes. Renters get their money back from the landlord and all landlords know they need to register deposits or else pay the price. This is a proven system; it is a case of extending a proven system to deliver justice. Both the non-government amendments in this group are terribly important.

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Moved by

[Baroness Bennett of Manor Castle]

259: Clause 134, Page 155, line 27, at end insert—
“Energy Act 2011”Member’s explanatory statement
This amendment gives authorities the power to use this data to enforce minimum energy efficiency standards.

[Baroness Bennett of Manor Castle (GP)]

My Lords, on behalf of my noble friend Lady Jones of Moulsecoomb, I will move Amendment 259, a three-word amendment that provides argument for the value of explanatory statements. As this explanatory statement says, the addition of “Energy Act 2011” would give local authorities

“the power to use this data”—

about home energy efficiency—

“to enforce minimum energy efficiency standards”.

As we have discussed often on this Bill, many renters are stuck in cold, damp, leaky homes. Sometimes there are very simple and cheap fixes, such as adding or topping-up loft insulation. Sometimes they are more complicated and challenging fixes, such as insulating solid wall properties. This amendment gives local authorities the power to obtain and use energy efficiency information to help private renters. This could allow housing officers to support tenants in the most poorly insulated homes or, importantly, it could support councils to develop the street-by-street insulation programmes that can bring economies of scale and support widespread installation of insulation.

The case study is quite an old but lovely one. In Kirklees, a Green councillor, Andrew Cooper, was one of the driving forces behind a street-by-street insulation programme. The noble Lord, Lord Cameron of Chipping Norton, claimed credit for it, which may be the first time that we have seen a Green achievement being so claimed. I saw reports on how that worked out afterwards. One of the things that really came through was how much people are concerned about cowboy builders, which might be true of landlords as well as tenants, but that they trust their local authorities. That street-by-street process works well, but to make that happen you need the data. That is what this modest amendment is designed to achieve. It builds on the positive Clause 134, which will give local authorities more data to support tenants and take enforcement action against failing landlords.

Given the hour, I will leave the noble Baroness, Lady Hayman, to explain Amendment 274, which is related to this. I hope that the Minister can set out—briefly, given the hour—how the Government plan to ramp up support for domestic energy efficiency, especially for private renters. As we have just heard, so many are in vulnerable situations. Given the cost of living crisis, this is often seen as an environmental measure, but it is a crucial anti-poverty measure. We need to make this as easy and simple for local authorities to achieve as possible. I beg to move.

[Baroness Hayman (CB)]

My Lords, I declare my interests as a previous chair of Peers for the Planet and a director of that organisation. I will speak to my Amendment 274, which is supported by the noble Baroness, Lady Penn, who cannot be in the Chamber this evening. It continues the theme of energy efficiency that the noble Baroness, Lady Bennett, has just spoken about on her Amendment 259. She dealt specifically with the issue of data on energy efficiency. I wish to contribute particularly on the issue of financing energy-efficiency measures. This is the first time that I have spoken in Committee on this Bill, mainly because of my interaction with the Minister and her officials in the run-up to it, during which several issues were clarified very helpfully.

The issue of improving energy efficiency in the private rented sector has been discussed at length and on multiple occasions in this House. I hope that the current consultation will go some way to address the lack of coherent and consistent long-term policy certainty in this area, because it has suffered from stop-go and from changes of administrations and forms of assistance that have been incoherent and stopped us making progress. Of course, one of the main issues preventing progress in this area is funding, so my amendment seeks to break through some of the barriers to progress by requiring the Government to publish a road map on how private finance initiatives could be scaled up to support the funding of energy-efficiency measures.

Other speakers in the Committee have pointed out the problems that exist because of the quality of the stock in the private rented sector. As the right reverend Prelate the Bishop of Manchester pointed out, nearly half the housing stock in the private rented sector has an EPC rating below C. Although fuel poverty has fallen 35% among owner-occupiers and 54% among council tenants since 2010, it has fallen only 4% for private renters. Their homes are still disproportionately damp and cold, causing both short- and long-term health issues, with higher bills adding insult to injury. Of course, this is an issue where we should take action not only because of the need to help people in this situation but because of the detrimental effects this has on our achievement of net zero and improving our energy security.

However, while there has been widespread agreement about the value of improving energy efficiency, finance has always been an obstacle to progress. The costs of improving the quality of housing will be substantial, as others have said, given where we are starting from, and it is not realistic to expect the Government to foot the bill in its entirety, nor to put intolerable burdens on landlords. We need to find a way to finance these improvements that will work for tenants, landlords and the public purse. I recognise that the Government are doing some work on this and looking at how barriers can be overcome. The green home finance accelerator fund, due to end in June, has a number of projects looking specifically at rented properties and a number of pilot schemes. I would like to hear from the Minister what steps the Government plan to take in response to what they are learning from the experience of the fund and to what timetable they will be working.

There is also a growing number of innovative private sector finance mechanisms that deserve serious attention. As the UK Sustainable Investment and Finance Association recently reported, the high upfront costs of installing energy-efficient technologies remain the biggest challenge for landlords, and ensuring that there is private capital to support this process, and investment to help drive down the costs of energy efficiency, is paramount. To meet this challenge, a number of policy proposals have been made that my amendment would prompt the Government to consider. The UK Green Building Council, for example, has proposed a warm home stamp duty incentive, where stamp duty would be adjusted up or down depending on the EPC of a property and a rebate would be triggered within two years of purchase if the energy efficiency of the home had been improved.

The Local Government Association has recently recommended that the Government should incentivise landlords through tax rebates. France has added energy efficiency improvements to the list of deductible costs of managing a property, such as legal fees or insurance. Within the UK, Scotland has introduced low-interest loans for landlords. Such loans could be linked to the property, rather than the individual, for which there is the precedent of the interest-free loans that were available to install renewables.

Property-linked finance has been deployed in several other countries, and these are all measures that deserve serious consideration by the Government. They could cut through the Gordian knot of all agreeing that a great deal needs to be done but no one being able to see how it could be financed.

I hope that when the Minister responds, she will provide a little more detail on the Government’s thinking in this area, particularly on ways of incentivising landlords and how the Government intend to make progress in an area about which much has been said but too little has been done.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baronesses, Lady Jones of Moulsecoomb and Lady Hayman, for their amendments relating to minimum energy efficiency standards, and the noble Baroness, Lady Bennett—who I think described herself as the Green night owl—the noble Baroness Lady Grender and the noble Lord, Lord Jamieson, for contributing to the debate.

I turn first to Amendment 259 in the name of noble Baroness, Lady Jones of Moulsecoomb. This amendment would allow information given to local authorities by tenancy deposit scheme administrators to be used by local authorities for a purpose connected with their functions under the Energy Act 2011, including enforcement against breaches of minimum energy efficiency standards under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. I reassure the Committee that local authorities are already equipped to enforce the private rented sector minimum energy efficiency standard of an EPC rating of E.

In February, a consultation was published to amend regulations and raise energy efficiency standards in the private rented sector, addressing fuel poverty and carbon emissions. The consultation proposes that local authorities will be empowered to issue fines of up to £30,000 for non-compliance with the new minimum energy efficiency standards in the private rented sector. To respond to the point from the noble Baroness, Lady Grender, officials from the Department for Energy Security and Net Zero are exploring support for enforcement in collaboration with stakeholders, including local authorities.

Local authorities often identify non-compliance during other property engagements and can take appropriate action. A local authority may issue a compliance notice to a landlord suspected of breaching the energy standard. If the landlord fails to comply, the authority has the power to issue a penalty notice. Of course, I recognise the value that data plays in aiding enforcement, which is why we have widened access to information for other enforcement purposes through the Bill. For these reasons, I ask the noble Baroness, Lady Bennett, on behalf of the noble Baroness, Lady Jones of Moulsecoomb, to withdraw the amendment.

Amendment 274, from the noble Baroness, Lady Hayman, would require the Secretary of State to publish a road map for scaling up private finance initiatives to support the funding of energy-efficiency improvements in privately rented homes within six months of the passage of the Bill. I strongly support improvements to energy efficiency in privately rented homes. The Government have pledged to take action to stand with tenants and deliver the safety and security of warmer, cheaper homes. In February, we published our consultation on improving energy-efficiency standards in the private rented sector in England and Wales. The consultation closed on 2 May. We are analysing the responses and expect to publish a government response later this year.

I appreciate the intention behind the amendment, as we recognise the important role that private finance will play in supporting the private rented sector to meet the proposed energy-efficiency standards. We are currently considering the consultation feedback and options to further support landlords to make the necessary improvements to their property. I believe that the amendment is not necessary as the information on support, including private finance to fund energy-efficiency improvements in privately rented homes, will be available shortly.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I thank the Minister for her response and everyone who has taken part in this short debate, which was marked by a remarkably strong degree of agreement. Everyone agrees that home energy efficiency is something on which we really need to take vital action. I was reminded of a stat, which I learned probably a dozen years ago, that British homes were, in terms of energy efficiency, the second worst in Europe, behind Lithuania. I am not quite sure how Lithuania has done in those 12 years since then, but I know that we have made very little progress.

I will briefly pick up a couple of technical points. The noble Lord, Lord Jamieson, and the Minister both talked about local authorities having enforcement powers or, indeed, enhanced enforcement powers. But you can take enforcement only when you have the information—the data—that enables you to know when to take action. Just guessing which might be the homes that are not great is not a really effective way to proceed.

I thank the noble Baroness, Lady Grender, for the Lib Dem support for this amendment and also for embracing Kirklees. Everyone wants to embrace Kirklees, and really where we want to get to is a situation where we can embrace every town and city in the country with the same kind of project, particularly with those street to street-type arrangements.

I have one final comment. The noble Baroness, Lady Hayman, spoke about long-term policy certainty, which reminded me of going—I think it was in 2012—to the Insulate UK presentation. It was the insulation industry’s annual expo, and the whole industry was shutting down because the funding had disappeared. That boom-bust, boom-bust has been an enormous problem. We have not mentioned this yet, but, of course, we are talking also about huge numbers of opportunities, particularly for small independent businesses in every town and city up and down the land, if we find the funding and if we find the data and the push to make it happen.

I reserve the right to come back to this to look technically at the details, but in the meantime, of course, I beg leave to withdraw the amendment.

Amendment 259 withdrawn.