Baroness Warwick of Undercliffe (Lab)

My Lords, I will speak to Amendments 80, 80A, 82 and 83 in my name. Each relates to the potential unintended consequences of Clause 7 for registered providers of social housing. I am grateful to the noble Lord, Lord Best, for his support. Before turning to my amendments, I express my strong support for the Government’s ambition to give greater rights and protections to people renting their home. Since the previous Conservative Government first promised to end no-fault evictions in 2019, almost a million renters have received a Section 21 eviction, which is a leading cause of homelessness. It is right that the Government have acted decisively to end this unacceptable situation for good. While most of the Bill is focused on reforming the private rented sector, some reforms will affect housing associations because the majority of homes that they provide use assured tenancies. This includes housing for people on low incomes, people needing high levels of support, people in crisis and people in need of short-term and emergency accommodation. I understand that significant progress has been made to amend the Bill to negate any unintended consequences for social landlords. This has been strongly welcomed by the National Housing Federation and others that support this legislation. There have been welcome changes to ground 1B and ground 6, as well as the introduction of ground 6ZA, which will allow social landlords to gain access to properties both to meet housing need and to deliver essential redevelopment and improvement works. However, housing associations would still very much like to see further clarity in the Bill on proposed changes to the process for rent increases. Housing associations are not-for-profit social landlords: they invest any income back into the development and maintenance of the homes they provide and into supporting residents and communities. To maintain fairness for tenants, to ensure administrative efficiency and alignment with benefits and utility rates increases, and to provide business certainty for repairs, maintenance and services, housing associations increase all tenants’ rent on the same day, usually in April. The Bill helpfully acknowledges this and attempts to provide a mechanism by which social landlords can still administer annual rent increases in the form of contractual clauses instead of Section 13A notices. Retaining registered providers’ ability to use clauses in tenancy agreements to increase rents is positive, as it provides them with a practical method for increasing rents on the same day for all tenants. The loss of this rent-harmonisation mechanism would have been a significant disruption—and, indeed, unnecessary, given how heavily regulated this sector is compared with the private rented sector. However, the ability to use contractual clauses instead of Section 13A notices could be clearer than is stated in the Bill currently. The Explanatory Notes clarify that contractual clause increases can be used, but the Bill says: “For the purpose of securing an increase in the rent under a tenancy … the landlord may serve on the tenant a notice”. It goes on. This reflects the wording applying to PRS tenancies, where the word “may” is used in a mandatory sense, as the only way that the landlord can increase the rent is through the process in Section 13 of the 1988 Act. In contrast, where it applies to relevant registered provider tenancies, “may” is used in a permissive sense: the landlord can use a Section 13A notice, but they also have the option to increase by a clause in the tenancy agreement. The Bill provides for this method of increase by agreement between the landlord and the tenant. However, it does not make it clear whether each increase must be agreed or whether a mechanism for increase in the tenancy agreement covers all increases.