Renters’ Rights Bill Debate
Full Debate: Read Full DebateLord Jamieson
Main Page: Lord Jamieson (Conservative - Life peer)Department Debates - View all Lord Jamieson's debates with the Ministry of Housing, Communities and Local Government
(2 weeks ago)
Lords ChamberPerhaps the noble Baroness and I should discuss this over a few glasses of wine also, although I do not drink—but she can have the wine. I do not think the amendment creates a new ground for repossession; it gives the tenant greater security of tenure by removing half the causes for which a landlord could serve notice—I think that is what we will have to discuss over the glass of wine. It applies in special circumstances, where a landlord does not anticipate the need to sell or the wish to move in a family member but wishes to incentivise their tenant, who could leave at any moment on two months’ notice, to stay longer. So they say, “I’m prepared to give you greater security of tenure as an incentive to remain and continue paying the rent”. It is not more complicated than that, but I am glad that I managed to lift the bafflement and look forward to a chat afterwards perhaps.
My Lords, before I start, I ask the Committee to note that I am a councillor in central Bedfordshire and therefore have an interest. I welcome the opportunity to speak to this group and to express my thanks to the noble Lord, Lord Cromwell, for raising this amendment and explaining it so carefully. I am quite grateful that I understood all along that the tenant was still eligible for the two-month notice period.
These amendments offer a clear and practical framework for tenants to request a voluntary extension agreement after four months of occupancy with terms that, as the noble Lord said, provide greater certainty and predictability for both parties. This would allow people the freedom to make a mutual agreement and choice that benefited both sides. As Conservatives, we believe that the Government’s role is not to overregulate or restrict but to create the conditions for stability, co-operation and choice. The amendments do exactly that: agreements built on mutual respect rather than compulsion.
Under the proposals from the noble Lord, Lord Cromwell, tenants would enjoy security of tenure for an agreed period. Landlords in turn gain the reassurance of occupancy, with their right to recover their property during the term limited to cases of anti-social behaviour or non-payment of rent. These are reasonable safeguards that encourage constructive relationships and stability in the rental market and will benefit both tenants and landlords.
This approach complements the amendments in my name and the name of the noble Baroness, Lady Scott, which we will discuss in due course. Together, they reflect a shared principle that flexibility, where it is entered into freely and transparently, strengthens rather than undermines tenant protections. We often speak in this Chamber about empowering tenants, but that empowerment must include the ability to make informed choices and enter into arrangements that suit tenants’ lives, reducing the risk that they will be forced to move. Voluntary extension agreements offer a proportionate and sensible way of achieving that aim without diluting the core purpose of the Bill. I hope the Minister will give these proposals the thoughtful consideration they deserve as we continue to shape a Bill that is fair, flexible and fit for the realities of today’s rental market. We look forward to working constructively with the noble Lord, Lord Cromwell, as he considers his approach ahead of Report.
My Lords, I thank the noble Lord, Lord Cromwell, for his amendments relating to mutually agreed voluntary extension agreement in tenancies and I thank the noble Baroness, Lady Thornhill, and the noble Lord, Lord Jamieson, for their contributions as well. Amendments 3 and 12 would allow a form of agreement where tenants can leave the tenancy by providing two months’ notice and landlords could gain possession only for rent arrears or anti-social behaviour. Tenants would be able to request this after four months of the assured tenancy and the landlord would have to agree in writing.
I am grateful to the noble Lord, Lord Cromwell, for meeting me to discuss his proposals. No wine was involved, but other beverages are available. I have considered his amendments carefully and the points he made about their potential efficacy. One of the reasons the Government do not want to reintroduce fixed terms or anything like them is that they add complexity into the system. Having a simple, single system of periodic tenancies will make it easier for both parties to better understand their rights and responsibilities.
Having looked at the noble Lord’s proposal, I say that it is not clear that it will be of much benefit to either party. The noble Baroness, Lady Thornhill, rightly referred to the nature of assured tenancies, and I think there has sometimes been a misunderstanding—perhaps concocted—of what an assured tenancy is. It is a permanent tenancy unless the landlord uses the grounds included in the Bill or the tenant gives two months’ notice. It is not a two-month tenancy; it is a permanent tenancy with two months’ notice on the part of the tenant. If both parties wish the tenancy to sustain for a certain period of time, nothing in the Bill prevents this. The Bill already prevents landlords using the key possession grounds for moving and selling within the first 12 months of a new tenancy. This provides tenants with additional protections for a period of time. Landlords can also communicate their plans to tenants if the tenants need that additional reassurance. It is also unclear what this model would offer to landlords, given that the tenant could still leave at any point, so it is very unlikely landlords would agree to it. For the reasons I have set out here and in previous debates, I hope the noble Lord will withdraw his amendment.
My Lords, in moving Amendment 9, in the name of my noble friend Lady Scott, I will speak also to Amendment 13, in my name and that of my noble friend. These amendments are grounded in a very simple but important principle: when landlords and tenants reach mutual agreement they should be trusted to make arrangements that reflect their individual needs and circumstances. This debate is not about fixed-term tenancies for their own sake; it is about preserving the ability of landlords and tenants to enter into legitimate, mutually agreed contracts that reflect flexibility and choice. If both parties are in agreement, there should be a legal mechanism to support such tenancies.
Amendments 9 and 13 introduce a degree of flexibility into the framework of the Bill, without in any way undermining its core objectives to enhance tenant security and stability in the rental market. Without these amendments the Bill risks reducing the security of tenants. Amendment 9, tabled by my noble friend and supported by noble Lords across the House, would allow fixed-term tenancies to continue, but only where both the landlord and tenant have freely and mutually agreed to such an arrangement.
The Renters’ Rights Bill seeks to strengthen the position of tenants in the rental market. I support these aims but, in our efforts to provide stronger protections, we must also ensure that we do not inadvertently remove tools and options that serve tenants well, particularly where those arrangements are entered into voluntarily and in good faith. Under this proposal the landlord would agree to suspend certain grounds for possession and refrain from rent increases during the fixed term. It strikes a careful and fair balance, giving tenants greater security and predictability while allowing landlords to plan ahead with confidence.
Amendment 13 in my name would ensure that landlords and tenants retain the ability to vary terms of the tenancy by agreement. This is a modest but important provision ensuring that necessary flexibility is not lost under what would otherwise become a rigid and inflexible structure. We cannot predict the future and need to allow scope to enable a tenant and a landlord to mutually agree changes to their agreement to reflect this; for instance, where they both wish to see modifications to the property or to enable a temporary subletting where a tenant is going to be away for a time.
Beyond the immediate relationship between landlord and tenant, this also speaks to something bigger. A modern, dynamic workforce depends on geographic mobility. Working-age adults must be able to move for the opportunity, whether it is a job, an academic course or to support a family. Scrapping the option of a mutually agreed fixed-term tenancy risks restricting that movement and, in turn, limits potential.
We believe that flexibility drives productivity. The economy cannot flourish if people are locked out of areas of opportunity simply because the housing arrangements no longer accommodate short-term needs. This is not just about following a job, it is about making it possible to succeed, wherever life takes you. When we support mobility through flexible, fair rental agreements, we open the door to a future where success is not defined by the postcode of your birth but by your ambition, determination and ability to seize opportunity.
These amendments do not seek to weaken tenant protections—quite the opposite. They create opportunities for tenants to request greater security and encourage landlords to provide it willingly and transparently. In a rental market as diverse and complex as ours, this kind of voluntary flexibility is not just welcome, it is essential. If the Bill is to be a true Renters’ Rights Bill, it must include the right to choose through mutual agreement the housing arrangements that best work for each individual and their family. That is what these amendments seek to enable, and I hope the Minister will give them careful and serious consideration. I beg to move.
My Lords, I declare my direct interest in the private rented sector with lettings in Buckinghamshire and Lincolnshire. I am pleased to support the amendment from the noble Baroness, Lady Scott, and the noble Lords, Lord Truscott and Lord Jackson, and I congratulate the noble Baroness, Lady Scott, on her damascene conversion following the previous Renters (Reform) Bill. I hope we will achieve the same with the current Minister. I will not repeat their well-argued points in favour of the amendment but will make the following additional points and reiterations.
I approach the PRS from a rural background, where the average length of a tenancy is around seven years. There is little churn, in view of the long-term nature of the accommodation in rural areas. As a result, assured shorthold and fixed-term tenancies are popular. This is somewhat different from the urban PRS to which this Bill is largely directed. I cannot understand why the Government would object to the continuation of the freedom to contract for a fixed term if both parties agree, particularly as it provides flexibility and certainty to both. The landlord gets his guaranteed rent and the tenant can negotiate additional conditions such no rent reviews for a certain period, improvements and security for the term.
In Germany there are two types of tenancy: indefinite and fixed-term. Fixed-term tenancies have move-in and move-out clauses and neither party is obliged to renew. Minimum rental periods in Germany, whether indefinite or fixed, can be up to two years. The German system shows that the assured and fixed-term tenancies can work well together. The ability to contract for a fixed term also has the effect of reducing rental pressure in the overall market as longer-term tenancies act as a natural brake on rising rental costs as there are fewer opportunities to increase the rent.
Another major advantage of retaining fixed-term tenancies is that it gives confidence to buy-to-let lenders and to institutional investors, because mortgage payments are more secure, as is the financial return to the institutional investor. These are the types of landlord we should now be encouraging if the PRS is to grow and the problems of bad individual landlords are to be minimised, because they tend to employ professional management and to produce a better product. I urge the Government to look again at this matter.
My Lords, I thank the noble Lord, Lord Jamieson, for moving the amendment in the name of the noble Baroness, Lady Scott, and I thank the noble Lords, Lord Carrington, Lord Jackson and Lord Truscott, for their thoughtful interventions in this debate.
Amendment 9 would retain fixed terms in the future assured tenancy system. Landlords and tenants would be able to agree to include a fixed term in tenancy agreements under which the landlord could not use the grounds for selling, occupation or redevelopment or increase the rent during the fixed period. Amendment 13 would remove the restriction on varying or adding new tenancy terms covering fixed terms or rent periods. I have already set out today why the Government will not accept amendments that would reintroduce fixed terms. I hate to disappoint the noble Lord, Lord Carrington, on the Damascene conversion front, but that is not for me today. Allowing the option of fixed terms only creates the illusion of choice for tenants. In an oversubscribed market, tenants often feel they must sign what is required of them by landlords.
The noble Lord, Lord Truscott, referred to groupthink, with reference to fixed-term tenancies and the purpose of the Bill. I prefer to refer to democracy. We set out an intention in relation to renters’ rights and received a strong electoral mandate for that, which we are now putting in place. So it is not groupthink; it is a democratic mandate that we have to deliver what we have set out in the Bill.
Fixed terms do not place equal requirements on both parties. In reality, landlords retain the ability to end the tenancy when the tenant is at fault, but tenants cannot leave the tenancy for any reason, even if the property is not safe to live in.
The amendments would also create a legal ambiguity about what new contractual terms could cover. The noble Lord, Lord Carrington, raised the issues of rural tenancies—I know we will return to that in future groups—and investors, on which I have already commented so I will not repeat my comments around that. For the reasons that I have set out here and in previous debates, I hope the noble Lord will withdraw the amendment.
My Lords, I am grateful for the thoughtful contributions made by my noble friend Lord Jackson and the noble Lords, Lord Carrington and Lord Truscott, and for the response from the Minister.
What has emerged from this discussion is a shared recognition that flexibility and tenant protection need not be opposing forces. That is a view held not just within this Chamber; across the housing sector, there is broad concern that eliminating the ability for landlords and tenants to enter fixed-term agreements by mutual consent risks overlooking the real-world complexities of today’s rental market. Propertymark has warned that fixed-term tenancies—when agreed freely—offer tenants a sense of security and help landlords to plan with certainty. It notes that these arrangements are particularly valued by renters with lower incomes, as they offer both predictability and peace of mind.
However, we must not overlook that predictability is just as important for landlords. When there is a clear start and end date, both parties benefit from a secure timeline. For tenants, that means a guaranteed period of stability. For landlords, it means reliable income and the ability to plan financially without the fear of an abrupt vacancy. By contrast, rolling tenancies without the option of a mutually agreed fixed term introduce a level of uncertainty. Tenants may leave with just two months’ notice, potentially leaving landlords with no income and limited time to find a new occupant. This kind of unpredictability is not just inconvenient; it undermines the landlord’s confidence and may discourage future investment in the sector, as the noble Lord, Lord Carrington, mentioned, given the difficulty of getting buy-to-let mortgages.
These concerns are not hypothetical. In a recent survey of more than 900 landlords, nearly two-thirds said they planned to leave the sector, reduce their portfolio or shift towards short-term or holiday lets, citing this Bill as a central reason. A key concern on this side of the House is the availability of rental property. We remain concerned, and we have not received assurances from the Minister on that score. Many feel that their voices have not been heard during this process and their legitimate concerns have been too easily dismissed.
Of course we must listen to those who raise valid concerns about the historical misuse of certain tenancy models, but these amendments are not about reinstating the past. They are about creating a future where arrangements are respected and supported. This is not about rebalancing the system in favour of landlords but about recognising that trust and stability can emerge where both parties are empowered to agree terms that reflect their own needs.
We cannot afford to ignore the very real concern that excessive rigidity will push landlords out of the market and make it more difficult for tenants, leaving behind a smaller, less responsive and more expensive private rented sector. If a student, contract worker or family navigating a temporary relocation agree on a fixed term that suits both parties, should we really prevent that flexibility? That is precisely what Amendments 9 and 13 in my name seek to preserve. The ability to fix a term by agreement, or to vary the terms of a tenancy, where both parties consent, reflects the real needs of the modern, mobile and diverse rental landscape. It ensures that, where there is mutual understanding, the law does not become an unnecessary barrier.
I say again that this is not about exceptions to the Bill’s purpose but about contributions to it. The right to housing includes the right to enter into fair agreements that are mutual, transparent and freely chosen. That is also why I have included a probing amendment on why the Government are seeking to end certain types of assured tenancy. I hope the Minister will give these proposals the careful consideration that they deserve. There will still be time for a Damascene conversion as the Bill proceeds. I thank all noble Lords for the richness of today’s debate. With that, I beg leave to withdraw the amendment.