Matthew Pennycook

This Government were elected with a clear mandate to do what the Conservatives failed to do in the last Parliament—namely, to modernise the regulation of our country’s insecure and unjust private rented sector, and empower private renters by providing them with greater security rights and protections. Our Renters’ Rights Bill does just that, and it needs to receive Royal Assent as quickly as possible so that England’s 11 million private renters can benefit from its provisions. Before I turn to the Lords amendments, I want to thank Baroness Taylor for so ably guiding the Bill through the other place. I put on record my appreciation of all the peers who contributed to its detailed scrutiny. As you will know, Madam Deputy Speaker, the Government made several important changes to the Bill in the other place with a view to ensuring that it will work as intended and in response to the legitimate concerns raised about the implementation of specific provisions. In the interests of time, I will update the House only on the two that are most apposite. The first change concerns the date from which a tenant is required to pay a new rent in instances where the first-tier tribunal has set a new rent amount following a tenant’s challenge to a proposed increase. The Government were elected on a clear manifesto commitment to empower tenants to challenge unreasonable rent increases. It is essential that we deliver on that commitment not only to protect tenants from undue financial pressure, but to prevent rent hikes from being used as a form of back-door eviction once section 21 notices have been abolished. However, recognising that there is inherent uncertainty about the volume of rent increase challenges that will be brought when the new tenancy system comes into force, and as a safeguard against a scenario in which the first-tier tribunal is overwhelmed by a sharp increase in challenges, Lords amendments 6 to 8 introduce a new delegated power that will enable the backdating of rent increases following determinations by the tribunal of new rent amounts. I want to reiterate what Baroness Taylor made clear in the other place—namely, that it is not the Government’s intention to make use of this new power unless and until it is considered necessary to avoid lengthy delays for genuine cases to be heard. If used, it would be subject to the affirmative procedure to allow appropriate parliamentary scrutiny. In addition to introducing that important safeguard, the Government also concluded that there is a compelling case for the use of an alternative body or mechanism to make initial rent determinations. Subject to a final viability assessment, we intend to establish such an alternative body or mechanism as soon as possible, and will confirm further details in due course. The second important change the Government made in the other place concerns insurance to cover potential damage from pets. As hon. Members will be aware, the Bill as originally introduced, mirroring provisions in the previous Government’s Renters (Reform) Bill, enabled landlords to request such insurance in instances where a tenant had requested a pet. In response to concerns expressed by several peers that the insurance industry appears unlikely to provide suitable financial products at the speed and scale required, and that the reasonable request of tenants to keep pets might be hampered as a result, Lords amendments 10, 12 and 13 remove the provisions in the Bill which made landlord consent to a request to keep a pet conditional on the tenant taking out, or paying for, pet damage insurance.