Members of the House of Lords started their detailed examination of the Renters’ Rights Bill in committee yesterday, which saw the Conservatives voice strong opposition to the proposed legislation in its existing form.
Speaking yesterday, as part of the debate in the House of Lords, Baroness Scott, vice president of the Local Government Association, warned that the Renters’ Rights Bill risks driving landlords from the market, reducing rental property supply, and ultimately pushing up rents.
Committee stage is a thorough examination of the individual parts (clauses) of the Renters’ Rights Bill, which seeks to abolish fixed term assured tenancies and assured shorthold tenancies. It will also impose obligations on landlords and others in relation to rented homes and temporary and supported accommodation.
Four days of committee stage have been scheduled so far, with the next debate scheduled to take place tomorrow (Thursday 24 April).
You can watch yesterday’s debate here.
Alternatively, you can read the Lords Hansard transcript below:
Committee (1st Day)
Relevant document: 14th Report from the Delegated Powers Committee. Scottish Legislative Consent granted; Welsh Legislative Consent sought.
My Lords, before we start the debate on the first group, following a number of questions, the Chief Whip has asked me to remind the House of the protocol on declaring interests. Noble Lords should declare any relevant interest at each stage of proceedings on a Bill. This means that, in Committee, relevant interests should be declared during the first group on which a noble Lord speaks. Declarations should be specific and brief. Members should briefly indicate the nature of their interest and not simply refer to their entry in the Register of Lords’ Interests.
Amendment 1
Moved by
1: Before Clause 1, insert the following new Clause—
“Purpose(1) The purpose of this Act is to improve the ability of renters in the rented sector to obtain secure, fairly priced and decent quality housing.(2) The Secretary of State must, in taking any actions under the provisions of this Act, have regard to this purpose.”Member’s explanatory statement
This amendment would place a duty on the Secretary of State to have regard to the purpose of the Act, namely, improving the ability of renters to obtain secure, fairly priced and decent quality housing.
My Lords, I rise to move Amendment 1 and to speak to Amendment 261 in my name. I am delighted to be opening the first day of Committee on the Renters’ Rights Bill and declare my interest as vice-president of the Local Government Association.
The clause I am proposing would place a statutory duty on the Secretary of State to have regard to the purpose of the Bill when exercising powers under this legislation. In debating this amendment, we seek to test and clarify what the Government are attempting to solve and to understand more fully whether the measures that will be implemented by this legislation will achieve the Government’s intended results.
The “purpose” clause narrows how the Minister can use the discretionary powers afforded by the Bill. The clear benchmark set out in this clause would ensure that the Government must have regard to improving the ability of renters to obtain secure, fairly priced and decent quality housing. We believe the Government must be clear on the Bill’s purpose, and this amendment gives Ministers the opportunity to provide that necessary clarity.
Renters and landlords alike are following the Government’s planned changes very carefully, so it is crucial that Ministers are clear from the beginning of Committee on what they intend to achieve with this Bill. Clarity from Ministers will enable us to scrutinise the Bill much more effectively as we test each part of it against the Government’s intentions as we progress with Committee stage.
This group of amendments also gives us an opportunity to debate the Bill’s impact on the rental sector. Noble Lords across the House agree that we must protect tenants and ensure that they enjoy security, stability and decent housing conditions at a fair price. In order to achieve this, we need a functional market with sufficient supply of good quality homes to meet the growing demand for secure housing.
Ensuring the availability of homes will underpin the obtainability of accommodation and ensure that rents are affordable. Any legislation in this area must tread a difficult but essential line between these interests. Only by striking the right balance with this legislation can we hope to achieve an efficient and effective rental market that delivers the safe, secure, decent and affordable homes renters need. From these Benches we regret to say that the Bill does not achieve that balance. It has become increasingly clear that it will not serve to enhance the availability of homes but risks the supply of rental properties in the market, driving up costs for renters at a time when we have already seen significant increases in the cost of renting.
The surge in rents beyond inflation has been driven by limited housing supply, and rising mortgage costs, maintenance expenses and property taxes. We on these Benches sincerely hope that the effects of this Bill do not add to that list, further exacerbating the challenges faced by renters. Rather than making houses more affordable, this legislation risks increasing burdens on landlords, discouraging them from remaining in the rental market and ultimately reducing supply at a time of rapidly growing demand. In economic terms, this can only mean one thing: higher housing costs for renters.
A survey by Paragon, based on responses from over 500 landlords it works with, paints a clear picture of the real-world consequences of this Bill. A striking 65% of landlords said that they were more likely to reduce the size of their portfolios. An overwhelming 79% said that they were likely to increase rents. Why? Not out of preference, but as a direct response to the pressures introduced by the Renters’ Rights Bill. This is not speculation; it is data-driven and must give us pause for thought.
If the Government do not wish to listen to the work of Paragon, perhaps they will take note of the English Private Landlord Survey instead, which shows that more landlords are selling up. In 2024, 31% of landlords reported planning to decrease the size of their portfolio in the next two years, including 16% who were planning to sell all their properties. This reduction in rental supply is not good for tenants. It places added cost pressures on those already just about managing, and in many cases removes the option of renting a home altogether. According to Savills, the number of rental properties available on its books in quarter 1 of 2025 was down 42% compared with the same period of 2024. That is 42% fewer homes on its books, 42% less choice for people trying to find a place to live, and, crucially, 42% fewer opportunities for people to move, stay mobile and access the most productive parts of our economy. This is not how we support renters; this is how we shrink their options.
Delays in Section 8 notices, weakened court support and the end of fixed-term assured tenancies are just three areas we will probe for answers across the forthcoming groups. In the coming days, from these Benches we will set out why this Bill does not meet the Minister’s own worthy ambitions, shared by noble Lords across the House, to enhance the availability of decent, secure, safe and affordable homes for all.
If the Government are confident in the positive impact of this Bill, what reason does the Minister have for not reviewing its effects on the housing market, specifically how this Bill will influence the availability of rental homes, rents charged and house prices, and the demand for social housing? If this Bill is not to have a damaging effect on the rental market, should Ministers not know about that?
Before concluding, I will say a brief word about the approach of the SNP-led Scottish Government. Their experience offers us a clear lesson. Similar changes to those proposed by this Bill were implemented in Scotland with noble aims, but we have seen a sharp rise in landlords leaving the market there and the fastest rent increases in the UK as demand quickly outstrips supply. Research by Indigo House, the housing expert, has found that none of the Scottish legislation since 2017 has protected the majority of private residential tenants against excessive rent increases or high advertised market rents. Its research showed that tenants have found it increasingly difficult to find a place to call home and, perhaps most alarmingly, that the legislation has had a particularly negative impact on those in the greatest need, including homeless households and those claiming welfare benefits.
At its core, this Bill is about achieving the right balance, but it falls short. It fails to meet its purpose and its promises. The Minister cannot simply stand by as thousands of homes fall out of the rental market while still claiming that this Bill will deliver for renters. Getting this balance right is paramount. It is the difference between a functioning, accessible rental market and one that is suffocated. It is the difference between tenants being able to find a secure and happy home they can afford and landlords leaving the sector. It is the difference between young people being able to build independent lives or being priced out of renting altogether. That is why this amendment matters. It would place a duty on the Secretary of State to have regard to the core purposes of this Bill: the improved performance and sustainability of the rented housing market.
My Lords, I remind the Committee that I am a vice-president of the Local Government Association.
I listened carefully to the noble Baroness, Lady Scott of Bybrook. I can see the merit in a clause defining the Bill’s purpose, and Ministers will advise us on that—except that the whole Bill defines its purpose.
I noticed that the noble Baroness, Lady Scott, used the word “secure” several times in her speech, confirming that:
“The purpose of this Act is to improve the ability of renters in the rented sector to obtain secure, fairly priced and decent quality housing”,
as in subsection (1) of the proposed new clause in Amendment 1. I do not understand how the noble Baroness can propose an amendment that talks about the security of decent-quality housing at the same time as Amendment 8 proposes that small landlords—that is, those having fewer than five properties—could continue to be able to issue Section 21 no-fault notices.
I have to assume that it is now the Conservative Opposition’s intention to withdraw Amendment 8, for otherwise I do not see how, in all honesty, a statement can be made in Amendment 1 that the objective is for secure, decent-quality housing in the private rented sector when for many properties no-fault evictions would be allowed to continue under the Conservatives’ Amendment 8.
My noble friend Lord Shipley has eloquently kicked things off for our Benches. I will make a few general comments about how we will conduct ourselves during the course of the Bill.
We do not agree with the assertions made by the noble Baroness, Lady Scott of Bybrook. We think that the intentions in the Bill are perfectly clear. Whether it will live up to those intentions only time will tell, which is why we too would be looking at reviews. In fact, the noble Baroness’s Amendment 261 is very similar to my own Amendment 263, so I will reserve comments on reviews until we discuss that group.
I say to the Minister that we really want the Bill to go through, and for that to be done professionally and swiftly, in a well-scrutinised way, so we will not be making Second Reading-style speeches or commenting on every single item and amendment. I would therefore like the Minister to take it that silence means we agree with the Government’s position. However, we will probe, challenge and seek evidence and reassurances, and I think the Minister would expect no less from us.
We all know that the main problem is the shortage of homes, particularly social homes. The Bill is not intended to solve that problem. It has to be seen as part of a suite of policies that the Government are trying to bring in—and, to use the same phrase again, only time will tell. However, landlords have cried wolf before—over the Tenant Fees Act, I believe—and Armageddon did not happen. That is not to say we should not take their concerns seriously, nor that the Government should not monitor and review, but the most important thing in the Bill is the abolition of Section 21. That was promised by the noble Baroness, Lady May, when Prime Minister, back in the mists of time, so it is long overdue. It is time that we cracked on with this, and we will do our bit to ensure thorough scrutiny but swift passage.
My Lords, I declare an interest as vice-president of the Local Government Association and as part owner of rented properties in Bingley, West Yorkshire. I support Amendment 261, tabled by my noble friend Lady Scott of Bybrook, with its proposed new clause:
“Review of the impact of the Act on the housing market”.
Specifically, I welcome the proposed addition of a review of the impact the Bill will have on requests for social housing. The vast majority of landlords in this country are good, honest people who do a real service in maintaining Britain’s housing supply and providing decent homes to people before they start the journey of getting on to the property ladder, but the reality is that, with the ever-increasing regulation placed on landlords, not least the abolition of Section 21 no-fault evictions, which has already been mentioned, the signing of tenancy agreements will become more of a risk.
In reality, landlords will no doubt be more reluctant, under the new burdens placed on them, to take on more vulnerable tenants—for example, those who enter the market for the first time, without references, and those in receipt of housing benefit. Amendment 261, on reviewing the impact the Act will have on social housing, is necessary because local authorities and housing associations are going to come under pressure as never before to provide social housing, either because supply in the private rented sector will become more challenging to access or because rents are likely to spiral out of control under these proposals. I therefore support fully the amendment tabled by my noble friend.
My Lords, I thank the noble Baroness, Lady Scott, for her Amendments 1 and 261, and the noble Lord, Lord Shipley, and the noble Baronesses, Lady Thornhill and Lady Eaton, who have spoken in this short debate. I will keep my response to Amendment 1 short, as the purpose and aims of the Bill were debated in full at Second Reading. I agree with the noble Lord, Lord Shipley, that the Bill is perfectly clear in what it sets out to do.
The private rented sector has grown significantly over the past 20 years and is now used by over 11 million renters in England, with the support of 2.3 million landlords. I should say that most of those landlords are very good landlords who look after their tenants very well. Despite this growth, it still provides the least affordable, poorest quality and most insecure housing of all tenures, and that just cannot continue. A functioning private rented sector can provide a secure stepping stone for aspiring home owners, as the noble Baroness, Lady Eaton, said, and flexibility for those who want it, but the chronic insecurity embedded in the current tenancy system fails both those tenants looking for a stable home for their families and those landlords who are undercut by the rogues and the chancers who we know are there—they may be few, but we know they are there. This is a drain on aspiration. Reform of the sector is central to our opportunity mission, so that all have the chance to achieve their potential.
Although I understand the aims of the amendment, I do not believe that it is necessary. The Government made a clear manifesto commitment to transform the experience of private renting by levelling the playing field decisively between landlords and tenants—the very balance that the noble Baroness, Lady Scott, was talking about. This Bill delivers that promise. As I outlined at Second Reading, the Bill will strengthen the security of tenure for tenants, ensure that they are paying a fair rent, guarantee a minimum standard they can expect from a property, provide new robust avenues to redress, and much more. The noble Lord, Lord Shipley, referred to the attempts in later amendments to reintroduce Section 21 evictions. We will debate those when we get to them but I will say that 83% of landlords have five properties or fewer, so those amendments would be significant and really take the guts out of the Bill. The aims I set out align with the purpose in the noble Baroness’s amendment and lie at the heart of all our current and future decision-making.
The Government also recognise the work done by the majority of landlords, who provide safe and decent homes for their tenants. Both these issues of balance were mentioned by the noble Baroness, Lady Scott, but I was surprised at her assertion that the Bill would not achieve that balance. It is a very similar Bill to the one which she herself brought forward a few months ago.
We have been clear that good landlords have nothing to fear from these reforms. The Bill will bring much-needed certainty to the sector after years of inaction and delay. The noble Baroness, Lady Thornhill, commented on the Armageddon that we hear about; I remember hearing something similar many years ago during the discussions on the minimum wage. I understand landlords’ concerns and I hope we can address them as we scrutinise the Bill, but I am sure we can continue to debate the aims and impacts as we make our way through the 300-plus amendments tabled for debate.
I turn to Amendment 261, which would introduce a legal requirement for the Government to publish an annual review of the impact of the Bill’s reforms on the availability of homes in England, Wales and Scotland. Such a report would be required to assess the impact on four areas in particular: the availability of homes in the private rental sector; rent charged under tenancies; house prices; and requests for social housing. I recognise that, underlying this amendment, is an interest in this legislation’s impact on the housing market in England and the question of whether our reforms will drive landlords from the sector; I know that is a matter of concern.
At Second Reading, the noble Baroness, Lady Scott, referred to a report from Rightmove on the proportion of properties for sale in London that were previously rented. I acknowledge before the Committee that the Rightmove report also highlighted that the number of new properties coming into the rental market is stable compared with last year.
Committee (1st Day) (Continued)
Clause 2: Abolition of assured shorthold tenancies
Amendment 14
Moved by
14: Clause 2, page 2, line 30, leave out paragraph (a)
Member’s explanatory statement
This amendment would retain social landlords’ ability to apply for a demotion order in response to the anti-social behaviour of a tenant.
Finally, I will speak to Amendment 67, tabled in my name. This amendment probes the Government’s reasoning for applying consideration of the past impact of behaviour in cases involving shared HMO accommodation, but not the continuing impact nor the future effects of repeated behaviour. We believe that this amendment offers a straightforward improvement to the drafting of the Bill. The same consideration of impact against other persons under the 1988 Act should surely apply equally to those sharing HMO accommodations or facilities. From these Benches we struggle to understand why the Government have chosen to apply only subsection (2)(a), on the past impact of behaviour, in this instance. Does the Minister agree that the ongoing impact of behaviour really matters? This may be well be an honest drafting oversight, but we believe that the Government should apply the whole of subsection (2) here. As I have already noted today, the legislation is technical and detailed, and so where we believe we can help to amend for accuracy, I hope to constructively put such amendments forward for debate.
Anti-social behaviour is a scourge on our communities, and landlords should have access to tougher powers to tackle it. Those with experience in local government will be well aware that when a tenant engages in anti-social behaviour, it is the landlord who faces enforcement action from the council. It follows, therefore, that the landlord must be equipped with the necessary powers to respond effectively. I ask the Minister: have the Government thought this through?
The impact of anti-social behaviour, past, present and future, should be considered in its capacity to destroy community trust and increase costs. The Home Secretary has spoken strongly in the other place about tackling anti-social behaviour. This Bill should align with the Government’s rhetoric and address its effects head on. Anti-social behaviour is ruinous to people’s lives. When a person returns home at the end of a long day, they should feel safe. When we remove the deterrent of demotion, we risk sending a dangerous message that disruptive and harmful behaviour carries no real consequence. In doing so, we fail both those suffering its impact and those who might otherwise be guided back to a more responsible path. I beg to move.
However, although we understand the cause, we must never lose sight of the effect. The burdens of an individual’s personal difficulties, however real and profound, should not fall on their neighbours, nor on the wider community to have to put up with or deal with. Why should those living beside them be expected to simply endure the consequences? Their daily lives can be diminished or even ruined while they wait for long-term interventions to take effect. Sympathy must not be mistaken for consent. Communities have the right to safety, peace and stability in their homes as well.
A balanced system must protect both the individual in need of help and the community in need of protection. It is a wider issue than just the Bill. Compassion and accountability must go hand in hand: if you overlook either of them, you do a disservice to the community we are all trying to serve and look after.
That a local authority has more tools in its toolbox to deal with this important issue still needs to be looked at. Anti-social behaviour, as we have said, can be absolutely ruinous to communities. Individuals simply wanting to get on with their lives can be stopped in their tracks. I have seen it myself in certain communities. Social housing providers should have access to tougher powers to tackle it, as should private landlords. Stripping away any deterrent of demotion or eviction will send a clear and dangerous signal that such behaviour will be tolerated, no matter what harm it causes our communities. Having said that, I withdraw my amendment.
Amendment 14 withdrawn.
Amendment 15
Moved by
15: Leave out Clause 2 and insert the following new Clause—
“Assured tenancy exemption: new build propertiesAssured shorthold tenancies are abolished except in relation to premises whose current tenants are the first tenants since the construction of the premises, and only for the period of six months beginning with the day on which the tenancy began.”Member’s explanatory statement
This amendment would allow an assured short-term tenancy for six months after a premises is constructed.
In future, all tenancies will be assured. Landlords will be able to take back possession only where they use one of the statutory grounds, and tenants will be able to challenge an eviction in court if they feel the ground is not being used legitimately. This will encourage landlords to respond to tenants’ concerns and to seek to resolve any issues. This simpler, single system of assured tenancies will ensure both parties also understand their rights and responsibilities and feel confident in exercising them.
Many of the arguments I have made will be deeply familiar to noble Lords on the Benches opposite, the Opposition having made them here many times. We heard a bit about damascene conversions earlier, and it is deeply regrettable that we seem to have a reverse damascene conversion here, and now opposition to the abolition of Section 21. I need not remind the Opposition Benches that this policy was first proposed in 2019 and, indeed, endured through four Conservative Prime Ministers. This Government will stand firm. Section 21 has loomed over tenants for far too long and we will be the ones to finally abolish it.
Amendment 15 seeks to retain assured shorthold tenancies and the use of Section 21 for tenants who are the first to live in new-build properties. These would be allowed for the first six months of the tenancy. I am afraid to say that the Government will not support any amendment that seeks to retain Section 21 for any purpose. In future, tenants should not be evicted from their homes unless landlords can establish a reason for that eviction by way of a statutory possession ground. Tenants must be provided with a reason for eviction and must have the opportunity to challenge that reason in court.
Of course, I agree with the noble Baroness, Lady Grender, that we need to drive forward the increase in housing supply, especially, as I have mentioned often in your Lordships’ House, the biggest increase in social and affordable housing for generations. We are straining every sinew as a Government to make that happen, and included in it is the 1.5 million homes that we have set as our target. But I do not accept that it is fair to penalise some tenants because they are living in a new build. The supply of new homes is a priority for this Government, but not at the cost of renter security.
I agree with the noble Baroness that the growth of build to rent is very important for the future of the private rented sector. It boosts housing supply and increases choice for renters in cities and towns across England. The noble Lord, Lord Carrington—who is not in his place—has raised this issue with me as well. We are working with the build-to-rent sector to increase supply through more appropriate and, I would suggest, fairer routes than those outlined in this amendment. While we understand the laudable aim of the amendment, I would, with respect, ask the noble Baroness to withdraw it.
Amendment 15 withdrawn.
Clause 2 agreed.
House resumed.
House adjourned at 8.51 pm.
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