Renters’ Rights Bill

Baroness Taylor of Stevenage Excerpts

Monday 12th May 2025 Lords Chamber

[Baroness Thornhill (LD)]

My Lords, first, I echo from our Benches the sincere condolences to Lord Etherton’s husband, Andrew, and their family. They really do have our most sincere condolences.

I also echo the concerns that were delivered in a rather measured way by my noble friend Lord Shipley regarding the way that things have gone along. I have also communicated that to the Minister.

We come to another key plank in the Bill, perhaps one less explored or spoken of but, in our view, massively important, that of enforcement. It is important to remind ourselves of the current state of affairs in the enforcement world, albeit very briefly, as this is not Second Reading. The reality is, as the noble Lord has just mentioned, that after decades of cutbacks, councils have gradually been reducing the number of staff in the areas of housing enforcement, decent homes and tenant matters. It is arguable that, as a result of this, they have failed over that same time to carry out proper proactive enforcement work, inevitably leading to more substandard housing, as, let us be blunt, the rogue landlords know they can likely get away with it.

The big change is, of course, Clause 107. It is an important section in the Bill and, in short, it very boldly states:

“It is the duty of every local housing authority to enforce the landlord legislation in its area”.


That is a very powerful change—it is not optional nor desirable, it is mandatory. The landlord legislation wraps up, of course, other requirements from other Acts, such as the Protection from Eviction Act 1977 and various housing Acts. It is a real step change from the current situation and it cannot happen too soon.

However, our concern is whether local authorities are tooled up for this. Are they ready and will they have the right resources? This is not a blame game; it is the reality. The Bill, as we discussed in a previous group, allows for two main activities to fund their enforcement activities—civil penalty notices, as previously discussed, and rent repayment orders, which we will get to sometime later. The importance of these funding streams is why we opposed any reductions in the previous group and why we have amendments in the next.

The amendments in this section centre around the burden of proof that local authorities can apply when taking civil action. I agree with the noble Baroness, Lady Scott, that we need to understand the rationale for using the criminal standard of proof “beyond reasonable doubt” as opposed to the civil standard “on the balance of probabilities”, and vice versa—all the more so given the increased powers that are being granted under the Bill. It needs to be stated that there are many and they are quite complex. I confessed earlier that I am no lawyer, but even I could see that some of our officers might need to get their heads around some of these changes.

Given that I have argued previously that local authorities will need this money to fund enforcement activities, Amendments 145 and 152 seek to lower the burden of proof to

“on the balance of probabilities”,

thus making it easier for local authorities to impose civil penalties, whereas Amendments 197 and 200 seek the opposite.

I also note that in the Renters (Reform) Bill, Clause 15 had the higher proof. I look forward to hearing the reasoning as to why there has been a change. In short, these are legitimate questions. Consistency and clarity are essential and I look forward to the Minister’s replies, particularly on the notion of recklessness and the culpable mind in Amendments 242 and 148.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, may I say how sorry I am to have to deal with Lord Etherton’s amendments after his sad passing? I did not have a long time to get to know him, but during my time in this House, I truly appreciated both his engagement and his wisdom on this Bill and his courtesy and kindness. I know that he will be greatly missed by the House and I add to what other noble Lords have said in sending my condolences to his husband and his close friends and family. I understand that his wonderful legal brain will be a sad loss to this House, and we will all miss him. I am very sorry that he is not here today to complete the work that he started on the Bill. As the noble Baroness, Lady Scott, said, may his memory be a blessing to all those who knew him.

I thank the noble Baroness, Lady Scott, and the noble Lord, Lord Hunt, for speaking on behalf of Lord Etherton in this debate on the amendments on financial penalties, and also the noble Baroness, Lady Thornhill, for her comments on these. I will make the declaration up front that I am not a lawyer either, so I rely on others for legal advice on this part of the Bill.

Starting with the amendments in the name of the noble Baroness, Lady Scott, Amendment 145 would replace the criminal standard of proof with the civil standard of proof for breaches of the tenancy requirements which are not criminal offences. These breaches can, by virtue of continuing or being repeated, form part of a criminal offence. We consider that it is necessary, therefore, for the criminal standard of proof to apply.

Amendment 152 would reduce the standard of proof from “beyond reasonable doubt” to “on the balance of probabilities”, where local authorities are imposing civil penalties as an alternative to prosecution for tenancy offences. Where civil penalties are imposed as an alternative to criminal prosecution, it is necessary for the same criminal standard, “beyond reasonable doubt”, to apply. That is already the case, for example, for civil penalties imposed as an alternative to prosecution for offences under the Housing Act 2004, such as failure to comply with an improvement notice. For these reasons, I ask the noble Baroness not to press her amendments.

I now turn to the amendments tabled by Lord Etherton, and spoken to on his behalf today by the noble Lord, Lord Hunt. Amendments 197 and 200 would, conversely, require local authorities to meet the criminal, rather than civil, standard of proof when imposing civil penalties for rental discrimination and rental bidding breaches.

The standard of proof is lower than that which applies to the imposition of financial penalties for breaches of other requirements introduced by the Bill. This is because, unlike those other breaches, rental discrimination and rental bidding breaches cannot lead to a criminal offence if the conduct is repeated or continued. As such, rental discrimination and rental bidding cannot result in the landlord being prosecuted or given a £40,000 civil penalty, and are subject only to the lower £7,000 penalty. We therefore think it appropriate that local authorities need to prove these breaches to the civil standard, “on the balance of probabilities”, rather than the criminal standard, “beyond reasonable doubt”.

The noble Lord, Lord Hunt, raised the issue of resources, and I will answer that with two points. One is that the Government have committed to assess the financial impact of this on local authorities, and have committed to new burdens funding. Secondly, those fines will be available for local authority use for this purpose, or other purposes, if they wish to use them in that way.

The noble Lord, Lord Hunt, asked about appeals. Local authorities can consider evidence and decide whether, for example, the individual concerned was aware that the information they provided might be false or misleading, and if so, whether it was reasonable for them to submit it, or if they took an unjustified risk in doing so; that is the point about recklessness.

The legislation also provides safeguards. In the case of prosecution it would be for the court, not the local authority, to decide whether the accused had been reckless. In the case of a financial penalty, the landlord has the right to make representations before a penalty is imposed, and a right of appeal against the imposition or the amount of the penalty.

Amendment 148 would narrow the offence of misusing a ground for possession to evict a tenant when possession would not be obtained on that ground. It would do so by removing the element of recklessness from the offence. Amendment 242 would narrow the offence of providing information to the database operator that is false or misleading in a material respect in the same way.

To commit the first of these offences, a landlord, or person acting or purporting to act on their behalf, would need to know that the landlord would not be able to obtain possession on that ground. If a landlord, or person acting or purporting to act on their behalf, was simply being reckless as to whether the landlord would be able to do so, it would not amount to an offence.

I do not think that limiting the offence in this way is necessary or helpful. Clearly, landlords should not be penalised for minor mistakes, but recklessness goes beyond making a mistake. It entails taking an unjustified risk, and landlords should not take an unjustified risk when their action may result in someone losing their home. It is, of course, the case that the offence is committed only if the tenant actually surrenders possession. Making enforcement in every case dependent on being satisfied to the criminal standard that the landlord, or those acting or purporting to act on their behalf, knew that the landlord would not be able to obtain possession using a ground for possession, would make it too easy for unscrupulous landlords and agents to escape enforcement.

Similar arguments apply in relation to the database offence. To require knowledge to be proved in every case would make it too easy for unscrupulous landlords to submit false or misleading information in purported compliance with database requirements.

It is well-established in legislation for offences relating to the provision of false or misleading information to include the mental element of recklessness, including in housing legislation. It is used, for example, in relation to the provision of false and misleading information to local authorities in connection with their functions under the Housing Act 2004—an offence that is prosecuted by local authorities.

In short, we consider that the mental state of recklessness is appropriate to apply to these serious offences, so I kindly ask that the noble Baroness considers withdrawing her amendment.

[Baroness Scott of Bybrook (Con)]

My Lords, first, I am really disappointed because a number of noble Lords who have been involved in all these debates over the past four days in Committee are unable to be in their seats because of the later time of day. That will not help us scrutinise this Bill as we should.

I thank all those who have contributed on Amendments 148, 197, 200 and 242, which are now in the name of the noble Earl, Lord Kinnoull. Noble Lords are absolutely right to highlight the issue of consistency —an issue we on these Benches intended to raise today —but my noble friend Lord Hunt also introduced an important new concern: the threshold of proof required by local authorities before a financial penalty can be imposed. On matters such as these, it is vital that we draw on the expertise of the legal profession to improve the Bill’s drafting, and I hope the Minister will seek the wise counsel of noble Lords such as my noble friend as these matters are taken back to the department.

As noble Lords have rightly pointed out, the financial penalties under consideration are significant. Many landlords are small-scale or so-called accidental landlords, who may not be in a position to absorb such fines. It is therefore entirely appropriate that the Committee seeks clarity on the methodology, consultation process and factors, such as the ability to pay, used in determining these thresholds.

Given the scale of these penalties, the standard of evidence and the threshold for their imposition must be carefully examined, and my noble friend set out with clarity the issues that may arise without a sufficient burden of proof, and the legal argument underpinning these amendments. There is legitimate concern about penalties being applied without adequate legal scrutiny, potentially undermining due process. We therefore welcome these amendments and believe my noble friend Lord Hunt has made a compelling case. When large fines are at stake, a high level of rigour and certainty must be reflected in the legal standard applied. What is more, any concerns expressed on these matters should not be dismissed too readily and should be carefully considered, but at this point I withdraw my amendment.

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[Lord Northbrook (Con)]

My Lords, I support the amendments in the name of my noble friend Lady Scott of Bybrook, but I want first to express great sympathy to the husband of Lord Etherton.

It seems entirely sensible to widen the definition of family within the Bill to include first and second cousins. I cannot see any reason for refusing that.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Scott, for her amendments relating to guarantors and family members, as well as the noble Baroness, Lady Grender, and the noble Lord, Lord Northbrook, for contributing to the debate.

Amendments 167, 168 and 169 would expand the definition of “family member” used in Clause 21 to include the grandchildren of aunts and uncles as well as siblings of grandparents. This would absolve these individuals from liability for rent owed after a tenant had died when they acted as guarantor.

I understand the noble Baroness’s motivation in probing this definition of family. She sometimes accuses me of not listening, or of not thinking these things through, but I have carefully considered the balance of these provisions. They protect bereaved guarantors from financial hardship while allowing landlords to keep guarantors in place where it is reasonable to do so.

The definition of “family member” reflects the need to encompass more distant family members who might commonly be used as tenancy guarantors. While we understand that more distant relatives than those covered in the definition may rarely be used as guarantors, defining family members for the purposes of this legislation means that a line needs to be drawn somewhere. This definition does not seek to disregard or downplay any family links between relatives who are not included within that definition—some of my second cousins might have something to say if I tried to do that.

It is worth noting that landlords holding guarantors liable in these scenarios is already uncommon, and most landlords would already act compassionately towards a deceased tenant’s family. Furthermore, by removing fixed terms, a personal representative of the deceased tenant can end the tenancy by giving a landlord two months’ notice. We believe that this strikes a balance that is fair to tenants, guarantors and landlords alike. I therefore ask the noble Baroness, Lady Scott, not to press her amendments.

[Baroness Scott of Bybrook (Con)]

I am grateful to the Minister for her response, but I do not think that we have quite got to a better understanding of the Government’s reasons for defining a family in this way; it is just that they are going to define a family in this way.

I point out once again that many families are of different shapes to the one described in the Bill. We feel strongly that it would be a strange outcome if slightly more distant cousins were not protected by the legislation, but close cousins were. We have set out clearly that many people have very close family ties with their slightly more distant cousins. We feel that the Government have failed to adequately explain why those individuals should not have the same rights based on their family ties as other members of the family.

We reserve the right to come back to this on Report, but we hope that Ministers will listen to the argument that we have made today and consider improving this part of the Bill to properly reflect the family relationships that many people have in in this country. At this point, I beg to leave to withdraw my amendment.

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[Lord Jamieson (Con)]

We have heard some compelling arguments from across the House on the very important issues here. I thank the noble Baroness, Lady Lister of Burtersett, for her cogent and careful explanation of the reasons for bringing forward her amendments.

The issue we are addressing today is of great importance, particularly given that the Bill removes the options for tenants to pay rent in advance. Furthermore, the Minister has declined to support our amendment, which would have allowed for an arrangement between two consenting adults to agree on such a payment structure. This is a missed opportunity. Although His Majesty’s Opposition have not tabled an amendment to this group, we share the serious concerns that have been raised and I will try not to repeat the many arguments that have already been made.

Unfortunately, the Government’s proposals, in their current form, appear to pay little more than lip service to fairness. In practice, they fail to provide meaningful protection to those most at risk of exclusion from the rental market. Let us be clear about the deficiency of Amendments 170 and 265: they specifically prevent landlords requiring a guarantor in a wide range of circumstances, yet there remains ambiguity as to whether the amendments would still allow landlords to accept a guarantor if offered. I thank the noble Baroness, Lady Lister of Burtersett, for being very clear that they could still accept it, but that does create some ambiguity.

While we recognise that requiring a guarantor can be a significant barrier for many prospective tenants, particularly those from vulnerable backgrounds, the guarantor system serves a legitimate function where it is used proportionately. It can provide a safety net for tenants with limited financial histories, such as students, individuals supported by local councils or those whose circumstances might not meet the traditional expectations of landlords. However, the Government’s approach to rent in advance is inconsistent with the rest of the Bill. If tenants are not allowed to offer rent in advance as an alternative to a guarantor, we must ask: how will the Government ensure that fair and proportionate mechanisms are put in place to assess risk?

The private rental market is not a one-size-fits-all model; it encompasses a diverse range of tenants, from students and graduates to care leavers and older renters. How do the Government plan to accommodate those who may not have access to a guarantor but are still financially reliable? Crucially, where does the space exist in this framework for discretion, mutual agreement and choice between two consenting adults—tenants and landlords?

Furthermore, the Secretary of State’s proposed power to allow insurance-based alternatives to guarantors raises significant concerns. Can the Minister say how accessible these insurance products are likely to be and what steps are being taken to ensure that they do not create another costly barrier for tenants? As it stands, the insurance model seems unlikely to provide a fair and proportionate solution to the challenges that tenants face. These are not abstract concerns: the provisions, as drafted, place undue strain on tenants and their families without achieving the balance that the Government claim to seek. Unless there are significant revisions, this issue will undoubtedly return with force on Report.

As has been mentioned, the Bill has generated substantial interest across the rental sector, with campaigns led by the National Union of Students being particularly striking. Students across the UK, especially those from marginalised and underrepresented backgrounds are sounding the alarm. Guarantor requirements have emerged as one of the most significant barriers to accessing stable, affordable housing.

As the NUS has clearly outlined, these requirements disproportionately affect working-class students, care-experienced young people, estranged youth and international students—groups already navigating considerable challenges in their pursuit of education. Many of these students face an additional hardship: they do not have a family member in the UK who can meet the often arbitrary financial thresholds demanded by landlords. As a result, they are forced either to pay up to a year’s rent in advance—an impossible ask for many—or to turn to expensive guarantor services. We now find ourselves in the deeply perverse situation where it costs more to rent a home if you are poor.

Guarantor requirements contribute to this divide, by insisting that students find someone, often someone who earns up to 80 times the monthly rent and is based in the UK, to guarantee their tenancy. We are systematically locking out those who cannot meet these criteria. No one should be denied the opportunity to pursue academic excellence simply because of who they know or, more importantly, who they do not know. This is why these amendments fail, why the NUS and student representatives worked so tirelessly to bring this reform forward in the other place, and why it is so vital that we do not let this opportunity slip through our fingers in this House.

I focused much of my speech on the barriers faced by students, but it is essential to remember that this issue also affects many other vulnerable groups, none more so than care leavers. I speak as an ex-leader of a council, where I spent much time trying to enhance the position of care leavers. Having already overcome considerable challenges in their lives, they should not face yet another hurdle in their pursuit of independence. How can we in good conscience expect care leavers to comply with a condition that they simply cannot meet on their own? This also demonstrates the complexity of the situation, as often, their local councils—including Central Bedfordshire while I was there—were often willing and keen to provide guarantors to ensure that care leavers were on an even playing field to those from better financial backgrounds.

As I have outlined, the restrictions on rent in advance and lack of objective criteria for when a guarantor is required will only entrench existing inequalities. Penalising individuals who may be financially reliable but lack family support or financial connections to meet the arbitrary thresholds demanded by landlords is unjust. This is not just an issue of housing, it is an issue of fairness, opportunity and basic dignity.

Housing is not merely a financial transaction, it is the foundation of stability, security and opportunity. When we deny people access to housing because they cannot meet arbitrary demands for a guarantor, we are closing doors not only to homes but to education, career advancement and future independence.

The noble Baroness, Lady Lister of Burtersett, raised a very valid issue regarding the right to rent and the fact that introducing what may seem quite a sensible rule leads to complications and places landlords in an awkward situation if they do not fully understand the legislation in front of them. Earlier today, we heard a number of noble Lords admit that they were not lawyers. It is also unreasonable to expect every landlord to be a lawyer. Where the law is complex, we need to make it simple and easy to comply with. This is one of our major concerns with this legislation.

In conclusion, I ask the Minister to listen to the voices of those most affected by these provisions—the students, care leavers and low-income tenants—and make the necessary changes to ensure that the Bill delivers fairness for all.

[Baroness Taylor of Stevenage (Lab)]

My Lords, before I respond directly to the amendments, the noble Lord, Lord Jamieson, talked about denying people access to housing, including students, care leavers and people on low incomes. The fact that so little social and affordable housing has been provided over the last 14 years is a very strong reason why we are in the situation that we now are. That those people have not been able to find affordable housing is largely due to the housing policies of the previous Government. I want to put that on the record before giving my answers on my noble friend’s amendments.

I thank my noble friend Lady Lister of Burtersett for her amendments relating to guarantors and the right to rent. I add my thanks to Shelter, which has provided so much advice and support during the passage of this Bill, for which I am very grateful. I also thank my noble friend Lady Kennedy, the noble Baronesses, Lady Grender and Lady Hamwee, and the noble Lords, Lord Tope and Lord Jamieson, for their comments.

Amendment 170 seeks to restrict the circumstances in which a guarantor could be required by a landlord. I appreciate that underlying this amendment—tabled with characteristic clarity, commitment and compassion by my noble friend Lady Lister—is the concern that those who do not have access to a guarantor will find it more difficult to find a home in the private rented sector than those who can obtain a guarantor. I make clear to my noble friend and the Committee that our approach to this issue is underpinned by the need to provide tenants with the rights and protections that they deserve. At the same time, we wish to guard against any unintended consequences that may, for some tenants, make renting more challenging. I recognise that obtaining a guarantor can be difficult for many prospective tenants. The Government are clear that landlords should consider tenants’ individual circumstances when negotiating rental contracts.

The noble Lord, Lord Jamieson, seemed to indicate that there was some sort of compulsion for landlords to find a guarantor. If they wish to come to an agreement without one, they are more than able to do that. What they cannot do under the Bill is require significant sums of rent in advance. That is what was really discriminating against people. Those incredibly high sums of rent required in advance were making it difficult for people to rent.

However, it is important to acknowledge that, in many circumstances, the use of guarantors can provide landlords with the confidence to let their properties to tenants who may otherwise find it difficult to secure a tenancy in the private rented sector. This includes tenants with a history of rent arrears, people with incomes that fluctuate from month to month and those with no previous rental history—for example, students or young people moving out of home for the first time. Prohibiting landlords from accepting large amounts of rent in advance will benefit all tenants by giving them the confidence that the maximum financial outlay needed to secure a tenancy will not exceed the cost of a tenancy deposit and the first month’s rent.

The Government recognise that providing a UK-based guarantor may be difficult for some prospective students, including international students. Under the Renters’ Rights Bill, landlords will continue to be able to offer tenants who cannot provide a UK-based guarantor with the alternative of purchasing rent guarantor insurance. The measures set out in my noble friend’s amendment would inadvertently risk blocking certain types of renter from accessing accommodation in the private rented sector altogether, despite the amendment’s honourable intentions.

Turning to my noble friend Lady Kennedy’s question on guarantors, the Government are clear that landlords should consider each prospective tenant’s circumstances individually, including when it is appropriate to require a guarantor. They should not apply blanket requirements for guarantors to all tenants. In response to her other question, the landlord’s database will act as a record of landlords and properties rather than of individual tenancies. Therefore, it would not be appropriate for landlords to record the risk-mitigation measures that they have put in place for a particular tenant on the database. She also made a point about guidance on guarantors. I will take that back to the department to consider further.

I assure the Committee that we have carefully considered the extent to which different practices act as barriers or enablers to accessing the private rented sector. That is why we are taking this action to limit rent in advance through the Bill. I am always happy to meet my noble friend to discuss this further but, for all these reasons, I hope she will withdraw her amendment.

I turn to Amendment 265, which would abolish the right-to-rent scheme that applies in England. Right to rent was introduced to ensure that only those lawfully in the United Kingdom can access the private rented sector and—this is important—to tackle unscrupulous landlords who exploit vulnerable migrants, sometimes by letting properties that are in very poor condition indeed. Some landlords who rent to those who are here illegally are criminal operators and we all have a shared objective to drive them from the market—I think everybody around the Chamber would agree with that.

We have been absolutely clear that discriminatory treatment on the part of anyone carrying out the right-to-rent checks is unlawful; the dreadful examples given by my noble friend illustrated that. The checks apply equally to everyone seeking accommodation in the private rental sector, including British citizens, and I will just elaborate a little further on that. The right-to-rent scheme is capable of being operated proportionally by landlords and letting agents in all cases. The very purpose of the statutory code of practice on avoiding unlawful discrimination when conducting checks recognises and seeks to address the risk of discrimination.

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[Baroness Lister of Burtersett (Lab)]

My Lords, I am very grateful to everybody who spoke. I will not go into any great detail in response, given the late hour. I do not think that my noble friend the Minister answered the question posed by the noble Lord, Lord Tope, which was on whether the right to rent has had any effect in reducing illegal migration. I do not know if she would care to answer that question now.

[Baroness Taylor of Stevenage (Lab)]

I do not have any statistics in front of me, but I will come back to noble Lords on that point.

[Baroness Lister of Burtersett (Lab)]

I thank my noble friend. I am grateful for the support that I received. I was slightly confused, I must admit, by the noble Lord, Lord Jamieson, because I was not sure whether he was supporting my amendments or not. He said that they were ambiguous, but I think his approach was perhaps a bit ambiguous—and I cannot resist pointing out that right to rent was introduced by his Government, and we are now saddled with it.

I am disappointed, but perhaps not surprised, that my noble friend said that there is no plan to be shot of it especially, as the noble Baroness, Lady Hamwee, said, in the light of today’s White Paper. It is not exactly conducive to it, but it is important still to come back to the point.

I was also a bit disappointed that my noble friend did not feel able to give a bit more on the question of guarantors. She said that the proposed amendment would inadvertently block certain groups and could have unintended consequences. Everyone who spoke to this amendment accepted that it may be that it is not quite right, but that it is aiming to do something that in fact supports what the Government are trying to do.

Although she very kindly said that she is willing to discuss it, I did not get the sense that there is a willingness to discuss it in terms of perhaps bringing forward a government amendment that would achieve what we are trying to achieve but without the unintended consequences. Given the late hour, however, I beg leave to withdraw my amendment.

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However, many shared ownership leaseholders, for example, face restrictions in their leases that prevent them subletting altogether or setting rent at a market rate during a sublet. These restrictions were never designed with today’s housing pressures in mind. Without reform, we risk trapping leaseholders between outdated lease terms and new regulatory obligations, with no room to renegotiate. This is about proportionality, flexibility and modernising the rental framework to reflect the real experiences of those people living in it today.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Lord, Lord Shipley, for his amendments, which relate to tenants ending an assured tenancy and joint tenancies. In doing so, I thank him for raising the very important issues brought to him by Citizens Advice, which has been in touch with the department as well. I thank Citizens Advice and all the other stakeholders for engaging with our officials on these issues. I thank the noble Baronesses, Lady Coffey and Lady Scott, for their comments too.

Where a joint tenant has served a notice to quit, Amendment 171 would require any agreement to a notice period of less than two months to be with not just the landlord, as the Bill requires, but with all other joint tenants as well. Although I genuinely think there is merit to this approach, I am cognisant of the potential impacts on tenants who do not wish to inform their co-tenants that they are leaving. There may be a number of reasons why that might be the case. We would need to give very careful consideration to any change in this direction, to make sure we understand any impacts that it might have. We are currently working through that.

Amendment 172 would allow a tenant to provide only one month’s notice to end an assured tenancy if the landlord had already provided a notice of their intention to seek possession using ground 1 or ground 1A. The Government understand that tenants may find new properties to let within the four-month notice period the landlord has given them, and that market pressures would mean that, ideally, they could go when they need to. However, it is right and fair that tenants provide landlords with the usual two months’ notice so that landlords have sufficient notice, as they may need to change or alter their plans as a result. We think that this strikes a fair balance. Tenants will benefit from slightly longer notice periods, and it is right that landlords can plan for the ending of the tenancy too. Nothing prevents the agreement of a shorter notice period. We expect that, in many cases, landlords will gladly facilitate a quicker end to the tenancy to allow them to sell or move in more quickly.

The noble Baroness, Lady Scott, raised a number of questions around subletting. I will come back to her on those points.

Amendment 174 would require joint tenants to notify each other when serving a notice to quit an assured tenancy, and landlords to inform all joint tenants that such a notice has been served and to provide a copy of the notice. The Bill does not require joint tenants to inform each other when ending an assured tenancy. I understand the point that there is an inherent risk that tenants may not find out until late in the notice period that their tenancy is ending. However, at the moment, the Government are concerned about the potential impact—for example, on domestic abuse victims—of being required to inform the perpetrator that they are ending a tenancy, possibly in order to flee. On the balance of risks, we believe the needs of domestic abuse victims must be allowed to prevail, although I recognise it is a difficult decision and we are giving it further consideration.

Finally, Amendment 175 would require all joint tenants to agree to withdrawing a notice to quit. This amendment is unnecessary, as it has already been established in law that all joint tenants must agree to positively sustain the tenancy. It is very unlikely that a court would determine that a single tenant could unilaterally withdraw a notice to quit, because there is not the positive consent of all tenants. For those reasons, I ask the noble Lord not to press his amendments.

[Lord Shipley (LD)]

My Lords, these are essentially probing amendments and I am glad that the Minister and her department have had discussions with Citizens Advice. I understand some of the points that she has made. To take up the point mentioned by the noble Baroness, Lady Coffey, I think the aim is to avoid unintended consequences in a new Bill such as this. So it is important that all these issues are thought through and examined so that the best answer can be found. I hope it might be possible, between now and Report, for some of the issues that the Minister has raised to be looked at in detail. I shall look carefully at her response in Hansard to see whether there are ways in which some of the problems that have been identified, and some of the responses with perhaps unintended consequences that the Minister has identified, might find a solution. With that, I beg leave to withdraw the amendment.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Lord, Lord Roborough, and the noble Baroness, Lady Coffey, for their amendments, and the noble Lord, Lord Best, and the noble Baroness, Lady Grender, for their comments.

I turn first to Amendments 176 and 177 in the name of the noble Lord, Lord Roborough. Amendment 176 seeks to reverse the Bill’s removal of Section 25(1) from the Housing Act 1988. The noble Lord stated that he is seeking to probe why we are making this change. The answer, I am sure he will be pleased to learn, is simple and straightforward. After this Bill is implemented, Section 25(1) of the 1988 Act will be a spent provision; that is to say, it will have no effect. That is because it deals with what happens when statutory periodic tenancies arise upon the end of a fixed term of an assured agricultural occupancy. Statutory periodic tenancies will no longer exist after the Bill is implemented, nor will fixed terms. Indeed, all assured tenancies, including assured agricultural occupancies, will be periodic tenancies. The provision in Clause 25 is purely a consequential amendment, tidying up this spent provision from the 1988 Act following our reforms.

Amendment 177 seeks to allow the eviction of tenants with assured agricultural occupancies under ground 2ZC. This would reduce the security that these tenants currently enjoy. The noble Lord, Lord Roborough, has highlighted that he is seeking to probe why the Bill is expanding the restrictions on when assured agricultural occupancies can be evicted. With respect, this represents a misunderstanding of what the provision is doing. Clause 25 contains technical and consequential amendments to the assured agricultural occupancy regime that aim to maintain the status quo in light of our reforms. It includes preventing landlords from evicting those tenants under the employment ground—now 5C—as well as ground 5A and the new superior landlord grounds. These grounds cover circumstances where tenants under assured agricultural occupancy tenancies cannot currently be evicted. They are being amended or introduced by the Bill, and, as such, may pose a risk to tenants’ security in the new system. Rather than expanding the restrictions on evictions for such tenants, this provision will broadly maintain the status quo. For those reasons, I ask the noble Lord, Lord Roborough, not to press his amendments.

Amendment 182, in the name of the noble Baroness, Lady Coffey, would prevent any secondary legislation laid under the power in paragraph 65 of Schedule 2 exempting the rural sector from the right to acquire—and, more widely, seeks to ensure that residents in properties in rural areas have the right to acquire. The provisions in paragraph 65 of Schedule 2 allow the Secretary of State to lay regulations specifying types of assured tenancies to which the right to acquire would not apply. This consequential amendment allows the government to consider whether any of the existing right-to-acquire exemptions that apply to assured shorthold tenancies should be transferred across to the new regime. The amendment from noble Baroness, Lady Coffey, would prevent this power being used to exempt the rural sector from the right to acquire. Rural properties are currently exempt in designated rural areas, which are generally settlements with fewer than 3,000 people—the noble Lord, Lord Best, mentioned the Devon Housing Commission, which he has ably chaired, and he has made me aware of the conclusions of that commission.

This is designed to protect affordable housing in areas, both rural and urban, where replacement is often not viable due to its high costs, planning restrictions or land constraints, for example, and it is necessary to ensure the supply of rural affordable housing. The Government have no plans to change this, although it may be helpful if I comment briefly on the right to acquire. To qualify for that, tenants must have spent at least three years as a public sector tenant and occupy an eligible property. That applies whether they are in a rural or an urban area. However, there are important exemptions, such as those for the rural sector and for properties built or acquired by housing associations using their own funds. These restrictions aim to strike a balance between promoting home ownership and protecting social housing in areas or situations where it is most needed. The noble Baroness, Lady Grender, and the noble Lord, Lord Best, reflected some of the reasons that might be the case.

The Government recently consulted on reforms to right to buy, seeking views on eligibility criteria, the minimum and maximum percentage discounts, further protections for new-build properties and replacement of the homes sold. That consultation closed on 15 January and we are considering the responses received. We will provide more information on the next steps in due course. Importantly, the right to acquire was not included in that consultation; the Government will consider whether any changes should be made to the right to acquire in the light of future changes to the right to buy.

[Baroness Coffey (Con)]

Could the Minister address the situation where housing associations are selling off rural housing on the open market to the highest bidder, rather than to the tenants?

[Baroness Taylor of Stevenage (Lab)]

We hope to provide more financial sustainability to housing associations through our funding mechanisms, which I hope will prevent them having to do that. The Government have no current plans to change the right to acquire. On that basis, I ask noble Lords not to press their amendments.

[Lord Roborough (Con)]

My Lords, I am grateful to all noble Lords who have spoken in this short debate, in particular to my noble friend Lady Coffey for her comments on agricultural tie dwellings. I am also grateful to the Minister for providing a very helpful clarification. The question mark remains about what happens to dwellings that have an agricultural restriction on them which are occupied by agricultural employees after they cease to be agricultural employees but may be protected in their tenancy under the Bill. I hope she might write to me on that but, in the meantime, I beg leave to withdraw.

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Moved by

[Baroness Taylor of Stevenage]

179: Schedule 2, page 192, line 4, at end insert—
“13A In section 553 (effect of repurchase on certain existing tenancies (England)), in subsection (2)—(a) in paragraph (a), omit the words “or an assured tenancy”;(b) in paragraph (b), omit the words from “or in accordance” to the end of that paragraph (including the “and” at the end of that paragraph);(c) omit paragraph (c).13B In section 554 (grant of tenancy to former owner-occupier), in subsection (3)— (a) omit paragraph (c) (and the “or” at the end of that paragraph);(b) after paragraph (b), insert—“(ca) an assured tenancy, or”.13C In Part 4 of Schedule 2 (grounds for possession: secure tenancies), in paragraph (1)(c), omit the words from “which is neither” to the end of that paragraph.”Member's explanatory statement
This makes further amendments to the Housing Act 1985 which are consequential on the changes made by Chapter 1 of Part 1 of the Bill.

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[Lord Jamieson (Con)]

My Lords, I also thank the noble Lord, Lord Best, for moving this very sensible amendment, which is thoughtful and well-considered.

The integration of the Tenant Fees Act 2019 into the framework of the Regulatory Enforcement and Sanctions Act 2008, through Schedule 2, is not just a technical improvement but a step towards greater coherence and clarity in an already highly complex area of legislation. In a Bill of this scope and detail, ensuring that our legislative frameworks align and complement one another is not only sound law-making but essential for those responsible for implementation on the ground. Was that passionate enough?

The practical implications of this amendment deserve the Committee’s close attention. In essence, it would allow primary authorities to give assured, legally backed advice to letting agents on how to comply with the Tenant Fees Act 2019. Supporting letting agents through legislative transitions in this way will help avoid confusion and ensure compliance from day one—a key goal for any regulatory change.

As the noble Baroness, Lady Thornhill, mentioned, the amendment would also relieve pressure on local enforcement teams, many of which operate with limited resources, in both finance and capacity. By reducing their workload where possible, we enable these teams to concentrate on the most serious breaches—rogue landlords, unsafe housing and the exploitation of vulnerable tenants—where intervention is most urgently needed.

This approach is not without precedent. Organisations such as the Lettings Industry Council have consistently called for greater clarity, guidance and consistency in how regulations are enforced across local authorities. Integrating the Tenant Fees Act into this structure directly supports those calls and shows that the Government are listening to those working on the front line of regulation and compliance.

We are, therefore, sympathetic to the spirit of this amendment. It offers practical benefits to tenants, agents and enforcement authorities alike. We believe that it would contribute to a more effective, fairer and more streamlined regulatory environment.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I am not sure whether it is because of the late hour, but my Whip, sitting on the Front Bench with me, just sent me a dancing emoji, as if to show me how to show passion when responding to amendments. I will do my best.

I thank the noble Lord, Lord Best, for his amendment, which would allow for the Tenant Fees Act 2019 to be included in the primary authority scheme. This would provide estate and letting agent businesses with the option to receive assured advice on complying with its regulations. The scheme allows the local authority nominated as a primary authority to provide assured advice to businesses that operate across multiple local authority areas, which helps those businesses comply with regulations. The scheme has the potential to streamline the interpretation of regulation for business. It can also be a more efficient approach to regulation for local government.

I welcome Members of the House sharing their views on this matter and we will undertake to consider this amendment further. For now, and for those reasons, I ask the noble Lord to withdraw his amendment.

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Moved by

[Baroness Taylor of Stevenage]

183: Schedule 2, page 200, line 1, at end insert—
“Charities Act 2011
66A (1) The Charities Act 2011 is amended as follows.(2) In section 117 (restrictions on disposition of land: general), in subsection (2)(b)(ii), after “less” insert “or which are assured tenancies”.(3) In section 120 (requirements for leases which are for 7 years or less)—(a) in the heading, after “less” insert “or which are assured tenancies”;(b) in subsection (1), the words from "a lease" to the end become paragraph (a);(c) after that paragraph insert “, or(b) a lease that is an assured tenancy within the meaning of Chapter 1 of Part 1 of the Housing Act 1988.””Member’ s explanatory statement
This amends the Charities Act 2011 so that the disposition of leases which are assured tenancies will be subject to the requirements in section 120 of that Act.

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Moved by

[Baroness Taylor of Stevenage]

184: Clause 32, page 47, line 9, leave out “made before the regulations come into force” and insert “entered into—
(i) before the regulations come into force, or(ii) when or after they come into force under a contract entered into before then, or by the acceptance of an offer made before then.”Member’ s explanatory statement
This brings the wording in clause 32(5)(a) into line with the wording used in the new Part 2 of Schedule 6 which would be inserted by the amendment in my name.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Lord, Lord Best, for his amendment, which seeks to restrict the conversion of assured private rental sector tenancies into short-term lets, and the noble Lords, Lord Truscott, Lord Young and Lord Jamieson, and the noble Baronesses, Lady Coffey and Lady Thornhill, for taking part in this debate.

The Government recognise that while short-term lets can benefit the tourist economy, they can also impact on the availability and affordability of housing, including in the private rented sector. I understand noble Lords’ frustration that little has been done to assess the impact of this as its development has accelerated over recent years.

As we have discussed at earlier stages of the Bill, we share concerns that landlords may be leaving the private rented sector to instead provide short-term lets. The noble Lord, Lord Jamieson, gave some figures about reductions in the rental market, but statistics released on 28 April from Rightmove’s rental tracker told a very different story. Its property site found that the number of new properties coming to the market in March was 11% ahead of the same period last year, while the overall number of rental properties is 18% up on 2024, just months before the legislation is set to come into force this summer, so there are differing opinions about the impact.

To address the issues that noble Lords have raised, the Bill includes a provision to ensure landlords will not be able to evict tenants simply to return the property to a holiday let. As many noble Lord will be aware, we have also abolished the furnished holiday lets tax regime. As a result of that measure, landlords will no longer be incentivised by the tax system to make their properties available as short-term holiday lets rather than longer-term homes for people who want to live and work in the area.

The Government will also introduce the short-term lets registration scheme, as legislated for in the Levelling-up and Regeneration Act 2023. The scheme will collect crucial data on the sector and ensure that all providers of short-term lets are aware of their legal responsibilities to ensure that health and safety standards are met in their property.

With regard to the comments made by the noble Lords, Lord Best, Lord Truscott, Lord Young and Lord Jamieson, we are committed to robustly monitoring and evaluating the reform programme and have set out how we are developing our approach in the impact assessment for the Bill. Our approach builds on the department’s existing long-term housing sector monitoring work, and we will conduct our process impact and value-for-money evaluation in line with the department’s published evaluation strategy. We are not going to just drop the Bill and leave it; we will continue to monitor the situation.

The noble Lord, Lord Best, and the noble Baroness, Lady Thornhill, asked when the register will be operational. The Government are keen to introduce the registration scheme for short-term lets in England as soon as possible. The initial phase of digital development is now complete and public testing is planned to start in the next 12 months. During this next phase of work, we will test a working interface with a small number of users to make sure that the systems and processes are robust and effective before publicly launching a first version of the service. It is on its way; we have started working on it and will bring it forward as quickly as we can.

The noble Lord, Lord Truscott, asked a question about energy performance standards for the PRS and short-term lets. On 7 February this year, DESNZ launched a consultation on increasing minimum energy efficiency standards in the domestic private rented sector. The consultation includes proposals for rented homes to achieve an EPC C or equivalent by 2030. DESNZ is also seeking views on whether short-term lets should be included in the scope of these changes to help ensure a common standard across all private rented properties.

The proposed amendment seeks only to allow councils to place restrictions on the change of use from a private rental property to a short-term rental property and would not affect the change of use of owner-occupied properties. The amendment seeks to achieve this via a change to the Town and Country Planning (Use Classes) Order 1987. However, it would not have the intended effect, as the use classes order does not permit the change of use in the way proposed.

I assure noble Lords that we are carefully considering what additional powers we might give to local authorities to enable them to respond to the pressures created by short-term lets. However, I also recognise the complexities of introducing such restrictions, so I believe we need to explore the various potential levers that could help achieve that better balance that we all want between housing and the tourism economy before moving forward. I therefore ask the noble Lord, Lord Best, to withdraw his amendment.

[Lord Jamieson (Con)]

May I seek a point of clarification before the Minister sits down? If I heard correctly, she said that the legislation would come into force this summer. Does that mean that everything will be in place, including things like the database, ensuring that there is court capacity and so forth?

[Baroness Taylor of Stevenage (Lab)]

The comment related to the finishing of the Bill. There may be subsequent work to be done on it after that.

[Lord Jamieson (Con)]

Thank you very much.

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Moved by

[Baroness Taylor of Stevenage]

186: Clause 33, page 49, line 10, at end insert—
“(ai) after subsection (1) insert—“(1AZA) But that is subject to subsections (1ZA) to (1ZC).”;(aii) in subsection (1ZA), for “But in” substitute “In”;(aiii) after subsection (1ZB) insert—“(1ZC) Section 11 does not apply to a lease of a dwelling-house in England which—(a) was an assured tenancy immediately before the commencement date (which has the meaning given by section 146(3) of the Renters’ Rights Act 2025), and(b) was granted—(i) for a term of seven years or more, and(ii) by a person other than a private registered provider of social housing.”;”Member’s explanatory statement
This ensures than an existing assured tenancy of a fixed term of 7 years or more - which will become a periodic tenancy by virtue of the Bill - does not come within section 11 of the Landlord and Tenant Act 1985 as a result of that change. Accordingly, repairing obligations will continue to be governed by the tenancy.

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Moved by

[Baroness Taylor of Stevenage]

188: Clause 34, page 50, line 5, at end insert—
“(2) In Schedule 1 to the 1988 Act, paragraph 8 (lettings to students that are not assured tenancies) is amended as follows— (a) after sub-paragraph (1) insert—“(1A) But that is subject to sub-paragraphs (2B), (2C) and (5) to (7).”;(b) after sub-paragraph (2) insert—“(2A) Regulations under sub-paragraph (2) may, in particular, specify as a body of persons—(a) the members, or(b) a class of the members,from time to time of a housing management code of practice which is specified for this purpose by regulations under sub-paragraph (2).(2B) The Secretary of State may by regulations made by statutory instrument—(a) specify a class of building, and(b) provide that a tenancy—(i) does not fall within this paragraph if the dwelling-house is in a building of the specified class, or(ii) falls within this paragraph only if the dwelling-house is in a building of the specified class.(2C) The Secretary of State may by regulations made by statutory instrument—(a) specify a student landlord or a class of student landlord,(b) specify a class of building in relation to the specified student landlord or specified class of student landlord, and(c) provide that, where the landlord is the specified student landlord, or a student landlord of the specified class, the tenancy—(i) does not fall within this paragraph if the dwelling-house is in the specified class of building, or(ii) falls within this paragraph only if the dwelling-house is in the specified class of building.(2D) Regulations under sub-paragraph (2B)(a) or (2C)(b) may, in particular, specify as a class of building—(a) the buildings, or(b) a class of the buildings,from time to time subject to a housing management code of practice which is specified for this purpose by regulations under sub-paragraph (2B)(a) or (2C)(b).(2E) Regulations under sub-paragraph (2C)(a) may, in particular, specify as a class of student landlord—(a) the members, or(b) a class of the members,from time to time of a housing management code of practice which is specified for this purpose by regulations under sub-paragraph (2C)(a).”;(c) in sub-paragraph (3), for “the power conferred by sub-paragraph (2) above” substitute “a power conferred by this section”;(d) after sub-paragraph (3) insert—“(4) Regulations under this paragraph—(a) may make different provision for different purposes;(b) may make supplemental, consequential, incidental, transitional, transitory or saving provision.(5) The question of whether or not a tenancy is within this paragraph is to be determined by reference to the circumstances at the time when the tenancy is granted. (6) A change in the circumstances after that time does not affect whether or not a tenancy is within this paragraph, except in a case where—(a) the tenant is entitled to possession of the dwelling-house at a time after the tenancy was granted, and(b) at the time when the tenant is entitled to possession—(i) condition A is met (see sub-paragraph (8)),(ii) condition B is met (see sub-paragraphs (9) and (10)), or(iii) both of those conditions are met.(7) In such a case, the tenancy ceases to fall within this paragraph (and accordingly this paragraph ceases to prevent the tenancy from being an assured tenancy) at the time when the tenant is entitled to possession.(8) Condition A is met if—(a) the tenancy was granted by a body of persons who were, at the time of the grant, a specified landlord solely by reference to a code of practice, but(b) at the time when the tenant is entitled to possession of the dwelling-house, the landlord (whether that is the body of persons who granted the tenancy or a successor in title) is not a student landlord.(9) Condition B is met if—(a) at the time when the tenancy was granted—(i) regulations under sub-paragraph (2B) or (2C) were in force, but(ii) those regulations did not prevent the tenancy from being within this paragraph, but(b) at the time when the tenant is entitled to possession of the dwelling-house—(i) regulations under sub-paragraph (2B) or (2C) are in force, and(ii) those regulations prevent the tenancy from being within this paragraph.(10) But condition B is not met in any circumstances that are specified, or are of a description specified, for this purpose by regulations made by the Secretary of State.(11) For the purposes of this paragraph—(a) “student landlord” means an institution or body of persons specified, or of a class specified, for the purposes of this paragraph (see sub-paragraph (2));(b) “housing management code of practice” means a code of practice approved by the Secretary of State under section 233 of the Housing Act 2004 (codes relating to the management of HMOs or excepted accommodation);(c) a building is “subject to” a housing management code of practice if it—(i) is a particular building subject to the code, or(ii) is of a class of buildings subject to the code;(d) a reference to—(i) a class of the buildings from time to time subject to a housing management code of practice, or(ii) a class of the members from time to time of a housing management code of practice,includes the buildings or members that are from time to time in a class provided for in the code of practice;(e) a body of persons are “a specified landlord solely by reference to a code of practice” if they—(i) are a member of a housing management code of practice that is specified by regulations under sub-paragraph (2A), and (ii) are not specified by regulations under sub-paragraph (2) as a body of persons otherwise than as a member of that code of practice.””Member’s explanatory statement
Paragraph 8 of Schedule 1 to the Housing Act 1988 provides for certain student lettings not to be assured tenancies. This amendment would enable the exemption to be limited to buildings of a specified class; and for regulations to operate by reference to codes of practice approved under section 233 of the Housing Act 2004.

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[Baroness Scott of Bybrook (Con)]

My Lords, I thank my noble friend Lord Black of Brentwood for his amendments. I also thank my noble friends Lord Lexden and Lady Coffey for their contributions, as well as the noble Baroness, Lady Hayter, who makes it very clear that we need to have a balance.

This group seeks to address the growing concern among renters, but we must also consider the valid and practical concerns of landlords. Although these proposals aim to prevent blanket bans on pets in rental properties, it is essential to recognise that there must be legitimate reasons for any restrictions. Many tenants may view their pets as family members, as we have heard, but we must also acknowledge the potential challenges and consequences of allowing pets in rental properties. These are challenges that can affect property maintenance, insurance costs and, as we have heard, the well-being of other tenants. A balanced approach is needed, one that considers the rights of tenants and the legitimate concerns of landlords and property owners.

Landlords are often responsible for the upkeep of the property and ensuring the safety and comfort of all tenants. Allowing pets may also complicate insurance policies, leading to higher premiums or even exclusions in certain cases. These concerns are not trivial and must not be dismissed lightly, but rather addressed in a way that is both fair and proportionate. The amendment in this group recognises the need for a balanced approach that takes into account the rights of those tenants and the legitimate interests of landlords.

We on these Benches have made our position clear on previous days in Committee. We continue to advocate for a balanced solution that respects the needs of both tenants and property owners. Ultimately, these amendments contribute to a more equitable housing market, where tenants with pets are not excluded from their right to live in a home that suits their needs. They also ensure that the landlord can continue to manage their properties responsibly with the appropriate protections in place.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Lord, Lord Black of Brentwood, for his amendments relating to pets and rental discrimination, and the noble Lord, Lord Lexden, the noble Baronesses, Lady Coffey and Lady Scott, and my noble friend Lady Hayter for their comments on these amendments.

Amendments 190, 192, 193, 194, 195, 196 and 198 would extend the core rental discrimination provisions of Chapter 3 to prospective renters with pets, protecting them from any unfavourable treatment in the letting process. We know that pets bring a huge amount of joy to their owners—even Wilberforce, the snake we heard about the other day—and we are committed to supporting responsible pet ownership in the private rented sector.

However, it is our view that extending our rental discrimination provisions in this manner would not be proportionate, nor is it necessary. The Bill already contains measures to ensure that landlords cannot unreasonably withhold consent when a tenant requests to have a pet in their home. Landlords must consider all requests and provide valid justification if consent is refused. This ensures that tenants are not unfairly prevented from keeping pets while still allowing landlords to consider legitimate concerns such as property suitability lease restrictions—the other day we discussed superior leases, which may have clauses about pets—or potential issues with other residents, as my noble friend Lady Hayter mentioned.

Tenants will be able to escalate unfair decisions to the PRS ombudsman, who will have strong powers to put things right, such as compelling a landlord to take a specific action, issue an apology and award financial compensation. Given that, I kindly ask that the noble Lord consider not pressing his amendments.

[Lord Black of Brentwood (Con)]

I am grateful to all who have taken part in this short debate, particularly my noble friend Lord Lexden, who rightly told us about the heartbreak that can follow when tenants have to choose between a home and a pet, something that happens far too often and which the Bill is determined to diminish. I am also grateful to my noble friend Lady Coffey, who brought to bear her considerable experience and expertise in this area. We should take her comments very seriously.

I say to the noble Baroness, Lady Hayter, that of course I understand the issue that arises from allergies; I am unfortunately allergic to pollen and there is little I can do to avoid it. She is right, and that is why we have to strike a balance. As my noble friend Lady Scott said, this is all about balance between the rights of tenants and those of landlords. I believe that these amendments strike that balance, which is why I tabled them.

I am grateful to the Minister for her comments and her understanding. She has been very constructive throughout our Committee discussions on pets, and I thank her for that. When we last discussed these matters in Committee—last week, I think—she talked about some of the guidelines being drawn up to go alongside this legislation when it comes into force. It occurs to me that this might be one of those areas where there could be some form of guidance to landlords that would ameliorate some of the problems. If she would be happy to do so, perhaps she might look at that and talk to the various animal charities concerned; I know they would be happy to help. In the meantime, I beg leave to withdraw the amendment.

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[Baroness Coffey (Con)]

My Lords, I support my noble friend in these amendments. Two different things are going on here, one of which is not allowing the market to work. I am trying to understand what evidence there is to suggest that this is a real issue.

I will give a personal story. When at university, a group of us wanted to rent a house. Under the rules of the university, you could live only at a certain distance, and so on. Not wanting to take a 12-month tenancy, we were particularly attracted by and sought out houses that would require only a nine-month tenancy. The landlady we were involved with used to make considerably more rent in the summer through tourists and short-term lets, but also gave students the opportunity not to take on the liability of the year. That helped keep rents relatively low. I am sure that your Lordships can imagine that such a scenario, while it may seem niche, was still very important to students at that time, and so was the availability of houses reflecting that opportunity. In effect—this is nothing to be embarrassed about—we gazumped by being prepared to sacrifice a living room and turn it into an extra bedroom. It also gave a little more rent to the landlady, which was a factor when, I was led to believe, 46 groups went to see that house wanting to secure the tenancy.

While I completely understand some of the intentions of this clause about not getting into ridiculous bidding wars, I am surprised, given the real scarcity in certain parts of the country of private sector rentals, as to why we would want to unnecessarily put such handcuffs on the landlord to accept only the rent they advertise and not be creative about the situation in which prospective tenants may find themselves.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Scott, for tabling her amendments relating to rental bidding. I also thank the noble Baroness, Lady Coffey, for contributing. I will respond to the two probing amendments in a moment. First, however, I will set out to the Committee why I consider her fundamental objection to Clause 58 —which will end the unfair practice of renters being pitted against each other in bidding wars—to be misplaced.

The measures in Clause 58 will require landlords and persons acting for them, for example letting agents, to state a proposed rent in any written advertisement for the property. Landlords and those acting for them will then be prohibited from asking for, encouraging or accepting bids above this price. To respond to the comments of the noble Baroness, Lady Scott, these are not rent controls—the landlord may advertise the property at the rent they wish to achieve, but they cannot then increase that rent as other bidders come along. Currently, too many tenants suffer from a lack of transparency in the lettings process. I cannot imagine the heartbreak of thinking that you have found a property at a rent that you can afford only to discover that the landlord or letting agent has pushed other tenants to offer more. Their experience is not that of a viewing but of a kerbside auction. The impact on renters of the practice is clear and our measures will end it for good.

This is a specific problem that we are trying to target, and the majority of landlords do not engage in rental bidding. However, we are trying to stamp out the egregious practice of a minority of landlords who exploit the fact that, particularly in hot rental markets, there is a lack of supply relative to demand. Tenants can be pitted against each other in ways that ensure the rent of a tenancy escalates to a point beyond what many of them can afford, or which, if they can afford it, puts an incredible financial strain on them.

I visited a housing site in Greenwich this week and I heard that, in some parts of London, a house in the private rented sector will cost a public sector worker 94% of their salary just to pay the rent. These measures will improve the experiences of prospective tenants across England and provide clarity to all those involved in the lettings process.

Amendment 199A would remove the prohibition on landlords inviting or encouraging a tenant to offer to pay an amount of rent that exceeds the stated rent. If this amendment were taken forward, landlords would fall foul of the rental bidding provisions only if they accepted rent at a level above the stated rent, not if they invited or encouraged its payment. While I welcome the scrutiny—and I genuinely do—of our rental bidding measures, I am concerned that this amendment would risk allowing a form of rental bidding to continue to be practised. Under this—

[Baroness Scott of Bybrook (Con)]

Sorry. While we are talking about this, does the Minister not think that what could happen—and what may happen—is that the level of rents will be above what they would normally be, because the landlord is going to go for the absolute maximum they can? Is that not a danger?

[Baroness Taylor of Stevenage (Lab)]

I think I answered this question under a previous group on a previous day. This is not intended to be rent cap; it is intended to stop the practice of changing the rent once the rent for that property is published. It will be up to landlords to advertise the property at a rent they think they can achieve for that property and, once they have advertised it at that price, they will not be able to increase that rent when things subsequently come along.

Under this amendment, a landlord could lawfully encourage bids above the advertised price, take the property off the market and then use any bids received to establish a higher price at which to relist it. I think that would start to have an inflationary effect on rents. I am not suggesting that this scenario would be commonplace, but it would be lawful and, if it were to occur, it would clearly be to the detriment of prospective tenants. I therefore consider that our belt-and-braces approach of prohibiting both the accepting and encouraging of bids to be the right one and I ask the noble Baroness to withdraw her amendment.

Finally, Amendment 199B seeks to remove

“by any other relevant person”

from the definition of “stated rent” in Clause 58(4)(b). As I have explained, the rental bidding clauses prevent a landlord, or person acting for them, inviting, encouraging or accepting an offer of rent higher than the “stated rent”. The term “stated rent” is defined as the rent originally proposed in the written advertisement, either by the person who is now doing the inviting, encouraging or accepting of higher offers or, as the case may be, any other relevant person.

A “relevant person” could be either

“the prospective landlord, or a person acting or purporting to act directly or indirectly on behalf of the prospective landlord”.

The latter would usually be a lettings agent, but it could also be a more informal relationship such as a friend of the landlord. It is necessary for us to avoid a loophole whereby, say, the landlord publishes the advertisement containing the stated rent and then asks his friend or letting agent to carry out the rental auction.

As such, the Bill is drafted deliberately to ensure that the prohibition applies in those circumstances, as well as the more straightforward scenario in which it is the landlord who publishes the advert and then proceeds to carry out the rental auction. I therefore ask the noble Baroness to not press this amendment.

[Baroness Scott of Bybrook (Con)]

I thank the Minister for her reply, and for the insight into this issue from the noble Baroness, Lady Coffey. On these Benches, we recognise the challenging balance the Government are seeking to achieve: protecting tenants from unfair and unaffordable rent increases, while also ensuring that the proposed letting value remains aligned with the functioning market.

These market conditions are of course shaped by the availability of housing, and any rent-setting approach must still offer sufficient incentives for landlords to stay in the market and to continue providing the homes that our communities so urgently require. I thank the Minister for her answers, but I urge her to truly reflect on the points that we have raised, to carry them back to her department and, if necessary, to come back with her continued engagement with the House.

This group of amendments, like many others, is not overtly political; it consists of serious and practical probes into serious and practical issues. In our pursuit of stronger protections for tenants, we must be careful not to deter landlords or make it unfeasible for them to continue to provide the homes our communities so badly need. These are concerns that many landlords share, and we believe that they must be at the forefront of the Government’s thinking. We ask them to go back to reflect on what we have brought forward. I ask the Minister to step back and consider any unintended consequences of this part of the legislation—or, at the very least, to acknowledge the genuine concerns of those who oppose this part of the Bill. Having said that, I beg leave to withdraw my amendment.

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[Lord Wilson of Sedgefield (Lab)]

As I said, I want to get to Amendment 206. There is only one amendment that has not been moved. There have been other debates that have gone on until 1 am. If we spent less time discussing this aspect, we could finish quite soon.

[Baroness Taylor of Stevenage (Lab)]

My Lords, the central aim of the Renters’ Rights Bill is to give tenants more security in their homes. Landlords must not be able to evict tenants without a ground for possession, as defined in Section 8 of the Housing Act 1988, which we are expanding and refining to ensure that landlords can gain possession where proportionate.

The noble Baroness, Lady Scott of Bybrook, supported by the noble Lord, Lord Jamieson, has stated that they do not support Clause 61 standing part of the Bill. This clause will repeal Part 3 of the Housing and Planning Act 2016, which, if brought into force, would have allowed landlords to take possession of premises they believed to be abandoned without a court order. However, Part 3 of the 2016 Act was never brought into force. It also wholly pertained to assured shorthold tenancies. Those tenancies will cease to exist in the private rented sector after the implementation of the Bill. The repeal of Part 3, therefore, is necessary to maintain a coherent statute book.

As I mentioned, Part 3 of the 2016 Act would have enabled landlords to reclaim possession of properties under an assured shorthold tenancy that had been abandoned without a court order, provided they had issued three warning notices without response and the tenant was in rent arrears. While we acknowledge that genuine abandonment can present challenges—I dealt with a case that had gone on for years and years in Stevenage—not only for landlords but also for the wider community, these provisions were not the appropriate solution. At the time, they were criticised as a rogue landlord’s charter, and it is appropriate that they were never implemented.

Where abandonment has occurred, landlords will need to establish a ground for possession. It is likely that, in abandonment scenarios, tenants will also be in rent arrears, making those grounds for possession applicable. Landlords may also rely on breaches of tenancy agreements, such as clauses prohibiting prolonged unoccupancy or on grounds relating to deterioration of the property. In clear-cut situations, implied surrender may also apply—for example, where tenants have returned the keys and the landlord has accepted them even if no formal notice was given.

It is vital that tenants have access to justice when facing the loss of their home. Landlords must not be enabled to take possession without a valid ground. Clause 61 ensures the removal of these redundant provisions from the statute book. I commend this clause to the Committee.

[Lord Jamieson (Con)]

My Lords, I will not do a full closing speech. The purpose of this was for the Minister to give us some thoughts on how you might deal with abandonment rather than going through a lengthy court case when clearly the property has been abandoned. I would be very grateful if, before Report, the Minister could give this some thought. None of us wants abandoned properties; we want them back in use and available for rent. We do not want people accumulating rental deficits that have to be chased through the court. There clearly is a special case here that needs to be considered. I look forward to the Minister giving us a thoughtful response before Report on how we address the issue of abandoned properties. None one on either side of the Committee wants abandoned properties.

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Moved by

[Baroness Taylor of Stevenage]

202: After Clause 63, insert the following new Clause—
“Student accommodation that is not an HMO(1) Schedule 14 to the Housing Act 2004 (buildings which are not HMOs) is amended in accordance with subsections (2) and (4).(2) After paragraph 3 insert—“Buildings occupied by students: England
3A (1) Any building in England—(a) which is occupied solely or principally by persons who occupy it for the purpose of undertaking a full-time course of further or higher education at a specified educational establishment, or at an educational establishment of a specified description, and where the person managing or having control of it is the educational establishment in question, or(b) which is occupied solely or principally by persons who occupy it for the purpose of undertaking a full-time course of further or higher education at an educational establishment and where the person managing or having control of it is a specified person or a person of a specified description.(2) In—(a) sub-paragraph (1)(a) “specified” means specified for the purposes of that sub-paragraph in regulations made by the Secretary of State;(b) sub-paragraph (1)(b) “specified” means specified for the purposes of that sub-paragraph in regulations made by the Secretary of State;and the regulations may (in particular) provide that an educational establishment is specified, or of a specified description, for the purposes of sub-paragraph (1)(b).(3) Those regulations may, in particular, specify—(a) as a description of educational establishment for the purposes of sub-paragraph (1)(a), or(b) as a description of person for the purposes of sub-paragraph (1)(b),the members from time to time, or a description of the members from time to time, of a housing management code of practice which is specified in the regulations.(4) The Secretary of State may by regulations—(a) specify a class of building, and(b) provide that a building—(i) does not fall within this paragraph if it is of the specified class, or(ii) falls within this paragraph only if it is of the specified class.(5) The Secretary of State may by regulations—(a) specify a building manager or a class of building manager,(b) specify a class of building in relation to the specified building manager or the specified class of building manager, and(c) provide that a building which the specified building manager, or a building manager of the specified class, manages or has control of—(i) does not fall within this paragraph if the building is of the specified class, or(ii) falls within this paragraph only if the building is of the specified class.(6) Regulations under sub-paragraph (4)(a) or (5)(b) may, in particular, specify as a class of building—(a) the buildings, or(b) a class of the buildings,from time to time subject to a housing management code of practice which is specified for this purpose by regulations under sub-paragraph (4)(a) or (5)(b).(7) Regulations under sub-paragraph (5)(a) may, in particular, specify as a class of building manager—(a) the members, or(b) a class of the members,from time to time of a housing management code of practice which is specified for this purpose by regulations under sub-paragraph (5)(a).(8) For the purposes of this paragraph— (a) “building manager” means an educational establishment or other person managing or having control of a building;(b) “housing management code of practice” means a code of practice approved by the Secretary of State under section 233 (codes relating to the management of HMOs or excepted accommodation);(c) a building is “subject to” a housing management code of practice if it—(i) is a particular building subject to the code, or(ii) is of a class of buildings subject to the code;(d) a reference to—(i) a class of the buildings from time to time subject to a housing management code of practice, or(ii) a class of the members from time to time of a housing management code of practice,includes the buildings or members that are from time to time in a class provided for in the code of practice.”(3) Any regulations made by the Secretary of State under paragraph 4 of Schedule 14 to the Housing Act 2004 before the coming into force of this section are to continue to have effect on and after the coming into force of this section as if made under paragraph 3A of that Schedule (inserted by this section).(4) In paragraph 4 (buildings occupied by students)—(a) in the heading, after “students” insert “: Wales”;(b) in sub-paragraph (1), in the words before paragraph (a), after “building” insert “in Wales”.(c) in sub-paragraph (2), for “appropriate national authority” substitute “Welsh Ministers”.(d) in sub-paragraph (3), for “appropriate national authority” substitute “Welsh Ministers”.(e) in sub-paragraph (4)—(i) in the words before paragraph (a), for “appropriate national authority may have regard to the extent to which, in its opinion” substitute “Welsh Ministers may have regard to the extent to which, in their opinion”;(ii) in paragraph (a), for “authority” substitute “Welsh Ministers”.(5) In consequence of the other amendments made by this section—(a) in paragraph 16E(3) of Schedule 2 to the Finance Act 2019 (inserted by Schedule 1 to the Finance Act 2025) (meaning of “institutional building”), in paragraph (i)(i) and (ii) (buildings occupied by students), for “paragraph 4” substitute “paragraph 3A or 4”;(b) in the Capital Allowances Act 2001, in section 270CF (exclusion from qualifying use: residential use), in subsection (1)(b), for “paragraph 4” substitute “paragraph 3A or 4”.(6) Any regulations made by the Treasury under paragraph 16E(3)(i)(ii) of Schedule 2 to the Finance Act 2019 before the coming into force of this section which designate provision as provision corresponding to paragraph 4 of Schedule 14 to the Housing Act 2004 are to continue to have effect on and after the coming into force of this section as if they designated the provision as provision corresponding to paragraph 3A or 4 of that Schedule.”Member's explanatory statement
Paragraph 4 of Schedule 14 to the Housing Act 2004 provides for certain buildings used as student accommodation not to be a house in multiple occupation. This amendment would enable the exemption to be limited to buildings of a specified description; and for regulations to operate by reference to codes of practice approved under section 233 of the Housing Act 2004.

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[Lord Jamieson (Con)]

My Lords, I thank the noble Lord, Lord Best, for bringing Amendments 203 and 204 before your Lordships’ House today. They propose the insertion of new clauses after Clause 63 and rightly focus on training property agents and the enforcement of agent qualifications. I also thank the noble Lord, Lord Young, who raised the important aspect of parity with the social rented sector, and the noble Baroness, Lady Hayter of Kentish Town, who said that, actually, this is very complex, that people need to understand it and that inadvertent mistakes and omissions are frequently made. The noble Baroness, Lady Warwick of Undercliffe, gave us some statistics—I could not write them down quickly enough, but I am sure I will get hold of them sooner or later. The noble Baroness, Lady Coffey, made a good point, which I will come back to, about proportionality and the risk of overregulation—something that noble Lords may have heard once or twice from this side of the Chamber. I also thank the noble Lord, Lord Truscott, and the noble Baroness, Lady Grender, whose comments I will also come back to.

Your Lordships’ House is correct to consider the value of proper training and qualifications, and the benefits this knowledge can bring to the property market. I shall focus my contribution on the impact that training can have in reducing the risk of regulatory breaches, thereby benefiting tenants. Not only will well-trained agents develop a broader and more cohesive understanding of the law but their ignorance, and the potential for breaches arising from a simple lack of understanding, will be greatly diminished. With this, significant benefits will also be felt by local authorities, as fewer cases of regulatory breaches will be brought to their attention for resolution.

Such a reduction in caseload is particularly important at a time when local authorities are tasked with implementing the Secretary of State’s reorganisation plans as outlined in the devolution White Paper. As your Lordships’ House will be well aware, local authorities are currently operating under immense pressure—facing financial constraints, staffing shortages and increasing responsibilities. It is not just a case of money; I know from my experience with local authorities and their housing teams that it is a lack of enough trained people. We need to seek to minimise the pressure that we put on them.

We must explore proactive measures such as ensuring that property agents are properly trained and qualified from the outset. By doing so, we not only improve standards across the sector but allow local authorities to focus their limited resources on strategic priorities rather than enforcement. However, as the noble Baroness, Lady Coffey, said, there is an issue of proportionality. We must ensure that any powers we pass to the Secretary of State are proportionate and can be implemented. While ministerial oversight is, of course, necessary in certain respects, we must be cautious about top-down regulation of key aspects of training and enforcement.

If we are truly committed to getting this right, we must resist the temptation to defer action or consign this matter to the “deal with it later” category. This argument has been, and will no doubt continue to be, clearly articulated across this House. Not placing provisions in the Bill is not only inadequate but raises more questions than it answers. We must understand the Minister’s intentions fully before we consider granting such significant powers to the Secretary of State. Nevertheless, the intention behind these amendments is well placed. Educating letting agents is vital, as they occupy a central role in the rental housing market and have a direct impact on whether tenants are treated both fairly and lawfully.

Exploring ways to enhance tenant protection without compromising housing supply should be at the front and centre of the Government’s thinking. It is vital that we establish clear, accessible means to ensure that landlords understand their rights and responsibilities, and the regulatory framework in which they operate. Property agents must be at the heart of this ambition.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Lord, Lord Best, for his amendments relating to the regulation of property agents. I also thank the noble Lords, Lord Young, Lord Truscott and Lord Jamieson, and the noble Baronesses, Lady Grender and Lady Coffey, who have all spoken in this debate, as well as my noble friends Lady Warwick and Lady Hayter.

Amendment 203 would enable the Secretary of State, through subsequent secondary legislation, to introduce professional qualifications for property agents who manage assured tenancies. I am very grateful to the noble Lord, Lord Best, for his continued engagement on such an important topic—I do regard it as such. He is an ardent campaigner for driving up standards across all property agents, not just letting agents, who are the focus of this amendment.

The Housing Minister and I have had a number of conversations with the noble Lord on how best to raise levels of professionalism. We recognise the challenges that tenants and landlords can face when using letting agents. Many agents provide a good service, but some do not.

The Government are committed to ensuring that landlords and those living in the rented and leasehold sectors are protected from abuse and poor service at the hands of unscrupulous agents. On the point from the noble Lord, Lord Young, about parity with the social housing sector, we want to ensure consistency with our work to drive up management standards in the social housing sector. We are aware that in some blocks, including those managed by social landlords, managing agents will be providing services for both leaseholders and social housing tenants. It is important to ensure that any measures we bring forward on managing agent regulation take full account of other legal requirements, including qualifications proposed for the social housing sector.

Protections are already in place to make sure that both tenants and landlords are treated fairly by letting agents and can hold them to account. This includes the Tenant Fees Act 2019, which bans most letting fees and caps tenancy deposits paid by tenants in the private rented sector in England, and the requirement for all property agents, including letting agents, to be members of a government-approved redress scheme.

The Housing Minister made a Written Ministerial Statement on 21 November 2024 which set out the Government’s intention to revisit the 2019 report from the noble Lord, Lord Best, on regulating the property agent sector. We continue to engage across the sector to improve standards among property agents. We welcome the ongoing work being undertaken by the industry itself, as well as by the noble Lord, Lord Best, and my noble friend Lady Hayter.

We are continuing to consider this issue carefully and have already announced our intention to introduce minimum qualifications for property managing agents of leasehold properties and estate managers of freehold estates, and to consult on this issue this year. We will set out our full position on the regulation of letting, managing and estate agents in due course. I thank my noble friend Lady Warwick for the strong evidence she provided about why that is necessary.

Amendment 204 would have the effect that a property agent who manages assured tenancies may be part of a mandatory redress scheme only if they meet the relevant qualification requirements. In practice, this amendment would place responsibility for ensuring the appropriate property agent has the relevant qualifications on the Property Ombudsman and Property Redress. It would also give these redress schemes the power to award a financial penalty for non-compliance.

The main role of redress schemes is to deal with individual complaints by tenants against their agent. The existing redress schemes have a number of levers at their disposal, including the ability to award compensation to a tenant or a landlord where things have gone wrong. They may also expel members from their scheme. However, redress schemes are not designed to be enforcement bodies, so it would not be appropriate to give them powers to issue a financial penalty. Such measures should be reserved for enforcement authorities, such as local authorities. Furthermore, expulsion from or failure to join a redress scheme will not expressly prevent an agent from trading, although it does mean that the agent is in breach of regulations and liable for enforcement action by the local authority.

The question of who is best placed to enforce qualification measures is important and is certainly something the Government are taking into account as part of their consideration of the regulation of managing, letting and estate agents. As I have mentioned before, we will set out our position on this in due course. I am happy to meet the noble Lord, Lord Best, and any other noble Lord to discuss this issue further. However, with these assurances, I hope that the noble Lord will withdraw his amendment.

[Lord Best (CB)]

My Lords, I am deeply grateful to all noble Lords who have spoken. The noble Lord, Lord Young, drew attention to the fact that social housing providers are now required to have qualifications, and the same should go for the private sector—perhaps even more so. The noble Baroness, Lady Hayter, reminded us of Awaab’s law, introduced by the previous Government after the death of little Awaab Ishak, and the dangers of housing management not operating smoothly and for the safety of the occupiers. She said that this business was a job for professionals—for properly qualified people—and so it is.

I am grateful to the noble Lord, Lord Truscott, who made the point that managing agents, property agents and letting agents are dealing with millions of pounds-worth of clients’ money. It is actually billions rather than millions. A really serious commitment is required of these agents. The noble Baroness, Lady Coffey, was not so sure that qualifications and training would make any difference. I think this is a bit out of step with the sector itself, the profession, which is asking very urgently for regulation to drive out those who are not worthy of being part of that profession, just as we would expect accountants, doctors and lawyers all to have qualifications before they undertake important tasks.

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[Baroness Scott of Bybrook (Con)]

My Lords, these amendments have raised the serious and emotive issue of the reality of tenants living in poor housing conditions and the remedies that are available when landlords fail to act. It is an area where frustration and vulnerability can understandably run high.

Amendment 206, moved by the noble Baroness, Lady Bennett of Manor Castle, on behalf of the noble Baroness, Lady Jones of Moulsecoomb, proposes a system of mediated rent pauses. Under that model, tenants would be entitled to pay rent to an independent individual rather than their landlord when repairs are not carried out within the expected framework. However, we must be clear-eyed about this. How would it operate in practice? Who would this independent individual be in real terms? Would it be the redress scheme ombudsman? If so, is it appropriate or even realistic for them to be holding and distributing rent payments? Would they have the resources, legal authority or financial infrastructure to do so? It is overcomplicated.

There is also the question of safeguards. What mechanisms would ensure that the process was fair to both parties? What happens if a tenant withholds rent on the basis of a dispute that turns out to be unfounded? How long might rent be withheld, and what impact would that have on smaller landlords with limited financial resilience? It is entirely right that landlords should meet their obligations to maintain safe and decent homes, but we should be cautious about creating a system that effectively withholds rent before any formal adjudication. That could introduce significant uncertainty into the private rented sector. Would this approach encourage resolution or would it risk entrenching disputes? Might it push responsible landlords out of the market while rogue landlords simply continue to ignore the rules?

In short, while the amendment is well intentioned, and of course we sympathise with all individuals living in poor conditions and battling with irresponsible and careless landlords, it raises complex questions about implementation and unintended consequences. On balance, we are not persuaded that the provision as drafted would be workable in practice. However, there must be a better, more practical way to ensure that tenants are protected without creating further layers of bureaucracy and pushing good landlords out of the market.

[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.