Contribution
My Lords, before I turn to the amendments, I will respond to the Minister’s comment. On this side of the House, we want to see a successful, thriving private rental market which gives everyone the opportunity to have a stable and secure home. However, as we have seen in Scotland, rental reform can have a deleterious impact on the availability of rental homes, and increase pricing. It is our concern that some of the reforms being proposed may harm tenants and the market. It is perfectly reasonable for us to have different views on what the potential reforms may or may not do, but let us be absolutely clear that, on this side of the House, we want successful tenanted private rentals. The Committee should have no doubt about that.
I turn to Amendments 72, 73, 74 and 81 in the name of my noble friend Lady Scott of Bybrook. The group addresses the matter of notice periods. Amendments 72, 73 and 74 are all probing amendments and seek to question the purpose of increasing the notice periods for rent increases and why the retention of one month is not kept. The Government have failed to sufficiently explain why the Bill looks to change the minimum period for notice of a rent increase from one month for assured periodic tenancies, particularly as landlords will now be able to increase rent only once a year, which we support.
In that case, a rent increase could reasonably be anticipated by the tenant. It should also reflect the current market conditions and economic factors such as interest rates, particularly with the increased powers to challenge by the tribunal. Increasing the notice period means that those data points are more out of date. Surely the Government would wish for rent increases that reflect current market and economic conditions, and to reduce the likelihood of tribunals. This change will undoubtedly have significant implications for landlords and the rental market more broadly. On a personal level, many landlords rely on the funds they intend to retrieve from an increase in rent payments to meet loan repayments and other financial obligations.
It is important that all noble Lords consider this change in the wider context of this Bill and the other factors which landlords will have to tackle. Changing notice periods for rent increases is just one obstacle that landlords will have to address. Others include the annual rent increase, which tenants will be able to challenge through First-tier Tribunals, which will subject landlords to greater risk of court backlogs. These changes may result in increased administrative burdens for landlords, brought about by the use of Section 13 notices for rent increases and the two-month notice period.
The ultimate issue with the rental market is one of supply. There are simply not enough homes to meet the demand. We must look not only to incentivise landlords to stay in the market but to encourage new entrants. It is vital that the Government avoid introducing unnecessary measures that create a hostile market.
The proposed changes to the notice period will, with many other new measures, cumulatively create significant consequences for landlords across the country. Will the Minister confirm whether the Government have consulted with landlords on the impact of these measures, and will they publish the findings from this consultation? If not, do they intend to do so? Similarly, will the Minister confirm whether the Government have conducted, or intend to conduct, an impact assessment on the changes to the notice period for rent increases?
Amendment 81, also in the name of my noble friend Lady Scott of Bybrook, seeks to question the Government’s reasons for having one-month notice periods for rent increases in the low-cost tenancy sector, despite the fact that those who are not in those tenancies are entitled to two. For clarity, we are not decreeing that it should not be one month; we are asking why there is the difference and seeking to understand the logic behind it. I look to the Minister to explain exactly why someone in a low-cost tenancy would get less notice of a rent increase compared with someone renting in the open market, such as those on assured periodic tenancies. Should not those who are the poorest in our society require greater notice, particularly given the importance of financial planning?
I look forward to the contributions of all noble Lords on this group of amendments and to the Minister providing clarification on the concerns I have raised. I beg to move.