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

My Lords, I thank the noble Baronesses, Lady Scott, Lady Wolf and Lady Jones, and the noble Lords, Lord Carrington and Lord Howard, for their amendments on rent increases and the tribunals, as well as the noble Lords, Lord Hacking and Lord Carter, and the noble Baronesses, Lady Eaton and Lady Thornhill, for their contributions to the debate. Government Amendment 37 will enable the Secretary of State to make regulations to change the date from which tenants are required to pay a new rent in instances where the First-tier Tribunal has set one following a challenge to a proposed rent increase. Government Amendments 38 and 39 are consequential to that. Our Government were elected on the clear manifesto promise to empower tenants to challenge unreasonable rent increases. It is essential that we deliver on this commitment, not only to protect tenants from undue financial pressure but to prevent rent hikes being used as a form of backdoor eviction once Section 21 notices have been abolished. During the Bill’s passage, the House has debated at length the capacity of the justice system to enable the smooth implementation of reforms in the Bill. This is particularly the case on the subject of rent increase challenges, in relation to which noble Lords have expressed very serious concerns that strengthening tenants’ rights might lead to the First-tier Tribunal being overwhelmed by a sharp increase in challenges. Set against that concern, we have heard powerful testimony from many tenant groups that private renters, many of whom are struggling to juggle family life, multiple jobs and financial challenges, are unlikely to spend what little time they have navigating the justice system unless they have a compelling reason to do so. Given the cost and effort that challenging a rent increase at tribunal would require, as well as the risk it poses to a tenant/landlord relationship, there is good reason to doubt that a significant number of tenants will bring rent increase challenges that have little prospect of success—who knows what will happen if Martin Lewis gets involved, but we will wait and see. We also know that the majority of landlords act responsibly, and we do not expect that many will seek to serve unreasonable rent increases given that this will increase the likelihood of a tenant challenging them at tribunal, as the noble Baroness, Lady Thornhill, said. If landlords do not impose egregious rent increases, they will not get taken to tribunal. We recognise, however, that there is inherent uncertainty as to the volume of rent increase challenges that will be brought when the new tenancy system comes into force. The noble Baroness, Lady Wolf, mentioned the system in Scotland; as she will know, the changes made there are very different from the ones that we are proposing. As the House will know, we are already working very closely with the Ministry of Justice to make sure that the justice system is well prepared for our reforms. In the Property Chamber, work is progressing to increase capacity, as well as reviewing resource and working practices in readiness for any increase in demand.