Renters’ Rights Bill

Committee (1st Day) (Continued)

20:12:00

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.

My Lords, I will speak to Amendments 14, 66 and 67 standing in my name. Anti-social behaviour is a scourge on our communities but is particularly devastating from a housing perspective. Quite often, anti-social behaviour replaces productive community spirit with fear and tension, leading to residents feeling trapped and helpless. Anti-social behaviour strips away the very essence of what makes a house a home. The consequences of anti-social behaviour are often forgotten. The costs of repairing damage, the need to enhance and increase security measures, and the day-to-day administration involved in responding to complaints from neighbours all place a significant and often unsustainable financial strain on housing associations, local authorities and landlords across the country. As drafted, the Bill reduces the powers available to local authorities and social housing landlords in cases where tenants are responsible for anti-social behaviour. Amendment 14, tabled in my name, seeks to preserve the ability of landlords to demote tenancies in response to such behaviour. Loud noise, vandalism and intimidation leave residents helpless, and local authorities must have the power to uphold community stability without the detriment of demotion. How can the Government ensure that there are consequences for this ruinous behaviour? Amendment 66, tabled in my name, probes the Government’s objectives in creating a duty on the court to consider any co-operation on the part of the tenant against whom an order is sought. On these Benches we wish to understand the real-world impact of this change. I ask the Minister: what constitutes co-operation? Is it replying to an email or answering a call, or does it require a tenant to display a serious and notable change in their behaviour? Is this simply a requirement for engagement or would there be a requirement to take practical steps to prevent anti-social behaviour in the future?

20:15:00

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.

My Lords—

My Lords—

My Lords, I support Amendment 14, tabled by my noble friends Lady Scott of Bybrook and Lord Jamieson. Local authorities have a duty to ensure fairness for their social housing tenants, and I believe the steps taken in the Bill to restrict local authorities and housing associations in their use of demotion orders are wrong and unnecessary. The reality is that a small minority of tenants cause misery to other tenants through anti-social behaviour. A report from Nottingham Trent University in 2018 suggested that 30% of social housing tenants are more likely to come across anti-social behaviour, crime and drug dealing. Likewise, a social housing residents’ survey report from 2022 found that 26% had been impacted by anti-social behaviour. Local authorities and housing associations are already severely restricted in the action they can take against the small minority of tenants who cause misery for other tenants who are law-abiding and play by the rules. Withdrawing the ability for local authorities and housing associations to issue demotion orders will severely diminish their ability to combat anti-social behaviour. As far as I am aware, the Government do not even collect data on the number of demotion orders that are issued each year to social housing tenants, so one has to question how big an issue this really is at present. I hope that the Government will accept Amendment 14, given that it is an instrument used by housing associations as the treatment of last resort.

I apologise for interrupting the noble Baroness earlier; she was on my blind side. She mentioned those of us who have been involved in local government. Well, I had the pleasure, I would say, of being in a beacon council under the Blair Government when the now noble Baroness, Lady Casey, was actually doing all the work with the then Labour Government on anti-social behaviour. We recognised that it was a serious issue on many of our estates—and a deeply challenging one at that. I would argue that councils are not necessarily restricted in what they can do, but it is very challenging. It is difficult, and we often found that the courts were very sympathetic to tenants while we were sitting there going, “But you don’t have to live next door to them”. Very often, another issue that occurred was that neighbours, after months of ongoing, low-level, constant nuisance, retaliated in some way. Such incidents were then reduced to being 50/50, when in actual fact you had only to speak to the people around the neighbourhood to know that that was not the case. These things are difficult to prove and difficult to get evidence on. People do not always write the dates down—“Oh, please keep a diary”—you know. Sometimes, even that is quite difficult for people. This is an area, Minister, where we would like to explore more what the route is for proving and what the bar is, what the level is, that has to be satisfied. I must admit that I did not read into the Bill that it was that much of a restriction or a difficulty, but perhaps I have missed something. The National Housing Federation certainly has not listed it as one of its key concerns. That, in itself, perhaps tells me how much of an issue it is, but I would support the noble Baroness if that proved to be the case. As I say, I know from very bitter experience just how difficult this area is, and it is most likely to be the one that would come up most in certain areas.

My Lords, I thank the noble Baroness, Lady Scott, for her amendments relating to anti-social behaviour, and I agree with her powerful statement on ASB. As a councillor, I saw at first hand, as the noble Baronesses, Lady Thornhill and Lady Eaton, did, the utter misery that is caused to individuals and communities through the irresponsible actions of others and I properly understand why it is important that we have provisions to tackle it. Amendment 14 seeks to reintroduce social landlords’ ability to apply for a demotion order in response to the anti-social behaviour of a tenant. This amendment seeks to enable landlords to demote social tenants to a less secure form of tenancy because of anti-social behaviour. However, the amendment as drafted would not work; the Renters’ Rights Bill will move tenants to a simpler tenancy structure where assured shorthold tenancies and the ability to evict shorthold tenants via Section 21 are abolished. There will therefore no longer be a tenancy with lower security to demote tenants to. To work, it would require a reversal of measures in the Bill to remove demoted tenancies and assured shorthold tenancies; that is the issue with the amendment as drafted. I reassure the noble Baroness that tackling anti-social behaviour is a top priority for our Government and a key part of our safer streets mission. The Bill will shorten the notice period for the existing mandatory eviction ground, with landlords being able to make a claim to the court immediately in cases of anti-social behaviour. In addition, the Bill amends the matters that judges must consider when deciding whether to award possession under the discretionary ground. This will ensure that judges give particular regard to whether tenants have engaged with efforts to resolve their behaviour and the impact on other tenants within HMOs. As well as the positive changes that the Bill makes towards tackling anti-social behaviour within the rental sector, we will crack down on those making neighbourhoods feel unsafe and unwelcoming by introducing the new respect order, which local authorities will be able to apply for and which will carry tough sanctions and penalties for persistent adult offenders. Together, those changes will ensure that the needs of victims are at the heart of our response to anti-social behaviour—that is what is important. Too often victims have felt that the power is all on the side of those who are committing the anti-social behaviour and not on the side of victims—that cannot carry on. In response to the comments from the noble Baroness, Lady Eaton, about local authority housing tenants, the Bill introduces reforms to the assured tenancies framework, which applies to both the private rented sector and private registered providers of social housing. Local authority tenants are provided secure tenancies under a different tenancy regime. The vast majority of local authority tenants are secure lifetime tenants, and therefore they already enjoy a high security of tenure. Local authority landlords also have existing powers to tackle ASB, including eviction grounds similar to those in the Bill. The point is taken from the noble Baroness, Lady Thornhill, about the further information about evidence and where the bar is going to be set; I will take that back to the team and come back to her. For these reasons, we feel this amendment is not needed and kindly ask that the noble Baroness withdraws it. I turn to Amendment 66, which seeks to remove the requirement imposed upon judges, which has been introduced by the Bill, to give a particular consideration to whether a tenant, against whom a possession order is sought under ground 14 for anti-social behaviour, has engaged with attempts by the landlord to resolve the behaviour. We believe this change represents the wrong approach, for two reasons. First, the Government believe that landlords should attempt to resolve problematic behaviour issues with tenants before attempting to evict them. By directing courts to particularly consider whether a tenant is engaged with these efforts, landlords will be incentivised to make them. Secondly, it is right that the court should give particular consideration to whether a tenant has engaged with attempts to resolve the behaviour so that courts may be more likely to evict a tenant who has, for example, been obstructive throughout the process. Where a tenant has shown willingness to engage constructively with the landlord, it is right that the court considers this factor, and it is for those reasons that we introduced the requirement. I turn to Amendment 67, also tabled by the noble Baroness, Lady Scott, which seeks to expand the factors that a court is specifically directed to consider when deciding whether to make an order for possession against a tenant in a house in multiple occupancy for anti-social behaviour under ground 14. Currently, courts will be directed to give particular consideration to the past impact of the tenant’s behaviour on their fellow HMO tenants. This is in recognition of the increased impact that anti-social behaviour can have when victims have to share facilities and live in close proximity with the perpetrator, as the noble Baroness mentioned. Judges will also consider all factors relevant to the case and will already be directed generally to have consideration of the future and ongoing impact of that behaviour. As such, we do not think this amendment is strictly necessary to achieve the intended effect, although we are very grateful to the noble Baroness for flagging up that point.

My Lords, first of all, I thank the noble Baronesses, Lady Eaton and Lady Thornhill, and the Minister. All are from local government and understand anti-social behaviour over many years and the effect it can have. We on these Benches recognise that what is often described as anti- social behaviour may indeed be a symptom of much deeper, complex personal struggles. Those underlying issues, of course, deserve serious compassionate attention. So it is important that the Government are looking at the issues surrounding anti-social behaviour. I am particularly interested—I do not need an answer tonight —in bolstering the capabilities of support services within local government, to ensure that intervention can give people a real chance to turn things around before they get to the stage of being evicted.

20:30:00

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.

My Lords, this is my first speech today, so I will take the opportunity to thank the Minister and her team for all the discussions so far. I support the fundamental principles underpinning this legislation, in particular the long-overdue abolition of Section 21 no-fault evictions—a change that, as we have heard, cannot come soon enough for countless renters across the country. However, as we work to create a much fairer and more secure private rented sector, we on these Benches are also hugely aware of the pressing need to increase the supply of high-quality rental homes. For that reason, we have tabled Amendment 15, which aims to provide a very specific and targeted temporary exemption to the abolition of ASTs—assured shorthold tenancies. Specifically, the provision would allow assured shorthold tenancies for a period of six months for premises whose current tenants are the first tenants since the construction of the premises. This is a carefully considered proposal, designed to support the laudable aims of the Bill by incentivising the creation of much-needed new rental stock. My honourable friend in the House of Commons, Gideon Amos, and noble Lords on these Benches have consistently championed the cause of increasing housing supply, particularly through new innovative models such as build-to-rent accommodation. This highlights the urgent need to restore hope to millions aspiring to a decent home after decades of decline in social housing provision. Indeed, ours was the only manifesto with a direct target of 150,000 new social homes to rent—a vital underpinning building block to change the lack of balance in tenures to match and accommodate the desperate need that has reached a crisis level today. My colleague tabled an amendment in the House of Commons that would have specifically incentivised more build-to-rent accommodation by offering a degree of initial security for developers. Although that original amendment proposed a longer initial term of about two years, the underlying principle remains the same. New developments, particularly in the build-to-rent sector, require a degree of certainty. We have heard directly from the British Property Federation, which is the representative body for the build-to-rent sector. It has expressed its support for measures that increase the certainty of rental income for institutional investors developing these new homes. It has engaged with us and our colleagues in the Commons on a similar amendment and explicitly stated support for its general thrust. The British Property Federation supports the new supply of rental housing and has said that six months would be an adequate period to incentivise investment in new construction and build to rent. I thank the British Property Federation for its engagement and advice, specifically on this issue. In the previous group, I explained why I think ASTs are not very secure. This proposed six-month assured shorthold is a one-off exemption that would genuinely offer a limited period of certainty for developers to encourage them to build. That is what we are aiming for. It is a narrowly defined exemption that would apply only to properties being let for the very first time after their construction. It would not affect existing tenancies or undermine the core principles of abolishing no-fault evictions for the vast majority of renters, which we strongly support. Indeed, by encouraging the creation of new rental homes, we believe the amendment would be a small, modest but useful way of ultimately expanding the options available to renters and contributing to a better balance in the market. The proposal is so modest, unlike other amendments that we have heard today, with build to rent currently estimated to be around 0.1% of the overall housing stock. We believe it would have minimal impact on the much broader move towards periodic tenancies. It may be appropriate at this point to say that we would not support removing Clause 2 from the Bill as we agree with its broad principles, but this approach would recognise the practical realities of bringing new developments to market. In conclusion, while we rightly focus on enhancing security and rights for existing renters, we must not lose sight of the fundamental need to find ways to increase the supply of decent homes. That is what we are attempting to do with this amendment. We believe that it will act as a catalyst for increased investment in new rental properties, ultimately benefiting renters by providing more choice and contributing to a more sustainable and responsive housing market. I urge the Minister and noble Lords to give this proposal careful consideration. We will be more than happy to do further work if it is not exactly to order. We believe that there is an opportunity to try to at least encourage a bit more supply in the market sector, even if we do not entirely agree with the suggestions that the whole market will suddenly disappear in the wake of this Bill. With that, I beg to move.

My Lords, I am grateful to the noble Baroness, Lady Grender, for introducing an amendment that would allow short-term tenancies to continue for six months after a premises is constructed. The noble Baroness has highlighted the fundamental importance of increasing the supply of rented properties. Her case is compelling. This amendment would allow support for newly constructed properties by providing greater certainty for investors in that property. Additionally, it is often true that new properties have periods of vacancy while long-term lets are secured. We must consider, evaluate and listen to all solutions to ensure that liveable accommodation is not left empty and to help develop a stable and thriving community. I am thankful that the noble Baroness has brought this discussion to the attention of the Committee. However, I wish to probe more widely why the Government are seeking to abolish assured shorthold tenancies, and therefore will speak to my opposition to Clause 2 standing part of the Bill. The short-term rental market supports job mobility, especially industries which require relocation or even temporary positions. Enabling the mobility of working-age adults to reach the depth and breadth of the United Kingdom is vital for economic growth. The modern workforce requires flexibility—the ability to move and adapt, and to pursue opportunities wherever they may arise. By discouraging the ebb and flow of economic activity, we discourage the labour market flexibility required for an expanding economy. Jobs must follow demand, not be restrained by the state removing the option of a short-term tenancy. While the economic argument is compelling, so is the practical one. For individuals undertaking a home renovation or experiencing family breakdown, short tenancies provide not only a practical solution but an important reprieve, allowing people to escape the chaos of building works or to rebuild a new life without haste. Have the Government considered the benefits of shorthold tenancies for the tenant? Has the Minister considered both the economic and practical benefits of their existence? With this Bill, the Government are overseeing a huge change to the rental market. Can the Minister please set out the impact on long-term housing pressures as a result of this ban? In markets with soaring demand and low capacity, is it not the case that short-term tenancies can alleviate some of the pressures that tenants face? The Government have been consistent in highlighting the perceived drawbacks of short-term tenancies. Of course, as with any housing arrangement, there will inevitably be aspects that are less than desirable, depending on one’s individual circumstances. However, in identifying these challenges, it is only right that the Government also acknowledge and weigh the very real, tangible benefits that short-term tenancies offer to many others. As other noble Lords have mentioned, such tenancies expand the availability of housing which might otherwise remain empty. The decision to impose an outright ban is, in effect, the most extreme course of action—the so-called nuclear option. From these Benches, we cannot help but wonder whether sufficient consideration was given to alternative, more balanced solutions that might have addressed the concerns identified while preserving the flexibility and choice that short-term tenancies provide for so many. I hope the Minister will carefully reflect on these benefits and acknowledge the convenience of shorthold tenancies, as well as the key role they play in enabling economic mobility and the use of homes which might otherwise remain empty.

My Lords, I thank the noble Baroness, Lady Grender, for her amendment, and the noble Lord, Lord Jamieson, for speaking to the opposition that Clause 2 stand part of the Bill on behalf of himself and the noble Baroness, Lady Scott. The assured shorthold tenancy regime and Section 21 mean that millions of tenants live with the knowledge that they could be uprooted from their homes with little notice. Some of them end up living in substandard properties for fear of retaliatory action and eviction should they complain. This has embedded chronic insecurity in the private rented sector. It affects both tenants who want a stable home and the many good landlords who operate professionally but are undercut by rogue landlords. It is a drain on aspiration and prevents tenants having the chance to achieve their potential. Removing Section 21 is critical to giving renters greater security and stability. They will be able to stay in their homes for longer and avoid the risk of homelessness. They will also have the confidence to challenge poor practice and unjust rent increases. Clause 2 therefore removes the assured shorthold tenancy regime and in doing so abolishes Section 21 as well.

20:45:00

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.

What we are trying to achieve with this amendment is a guaranteed fixed period for a developer. Authoritative bodies in this sector have suggested that some kind of guaranteed period does not necessarily mean that Section 21 has to remain. Or is it the Minister’s firm belief that you cannot give a fixed period to a developer in order to encourage construction without an element of Section 21 being there?

We do not want to see Section 21 in place for this. We are talking to the build-to-rent sector about the issues it believes it faces, but I genuinely believe that if somebody is going to be evicted from a property, there must be a reason why they are being evicted. We have provided in the Bill the grounds for why people can be evicted. When I come back to the House on this, I will update noble Lords on the work we are doing with the build-to-rent sector to increase supply. There are fairer ways of doing that than continuing to impose Section 21 evictions on people, just because they happen to have moved into a new-build property.

I thank the Minister and the noble Lord, Lord Jamieson, for participating in this short but quality debate. We will go back to our drawing board on this because we think that it is a way of delivering construction. We believe that we can get to a point where this is done without Section 21 being part of it. That was the intention behind the amendment; if it would not achieve that then we will go back and look at it again, because we believe that there must be a way to provide some kind of incentive to increase supply. This is a very modest approach and not about wrecking the Bill or taking 85% of landlords out of the equation, so we will take another look at it. We believe that it can proceed without Section 21 being imposed; clearly the Minister does not, so we will go back to the drawing board. With that in mind, I beg leave to withdraw the amendment.

Amendment 15 withdrawn.

Clause 2 agreed.