Baroness Scott of Bybrook (Con)

My Lords, I rise to move Amendment 1 and to speak to Amendment 261 in my name. I am delighted to be opening the first day of Committee on the Renters’ Rights Bill and declare my interest as vice-president of the Local Government Association. The clause I am proposing would place a statutory duty on the Secretary of State to have regard to the purpose of the Bill when exercising powers under this legislation. In debating this amendment, we seek to test and clarify what the Government are attempting to solve and to understand more fully whether the measures that will be implemented by this legislation will achieve the Government’s intended results. The “purpose” clause narrows how the Minister can use the discretionary powers afforded by the Bill. The clear benchmark set out in this clause would ensure that the Government must have regard to improving the ability of renters to obtain secure, fairly priced and decent quality housing. We believe the Government must be clear on the Bill’s purpose, and this amendment gives Ministers the opportunity to provide that necessary clarity. Renters and landlords alike are following the Government’s planned changes very carefully, so it is crucial that Ministers are clear from the beginning of Committee on what they intend to achieve with this Bill. Clarity from Ministers will enable us to scrutinise the Bill much more effectively as we test each part of it against the Government’s intentions as we progress with Committee stage. This group of amendments also gives us an opportunity to debate the Bill’s impact on the rental sector. Noble Lords across the House agree that we must protect tenants and ensure that they enjoy security, stability and decent housing conditions at a fair price. In order to achieve this, we need a functional market with sufficient supply of good quality homes to meet the growing demand for secure housing. Ensuring the availability of homes will underpin the obtainability of accommodation and ensure that rents are affordable. Any legislation in this area must tread a difficult but essential line between these interests. Only by striking the right balance with this legislation can we hope to achieve an efficient and effective rental market that delivers the safe, secure, decent and affordable homes renters need. From these Benches we regret to say that the Bill does not achieve that balance. It has become increasingly clear that it will not serve to enhance the availability of homes but risks the supply of rental properties in the market, driving up costs for renters at a time when we have already seen significant increases in the cost of renting. The surge in rents beyond inflation has been driven by limited housing supply, and rising mortgage costs, maintenance expenses and property taxes. We on these Benches sincerely hope that the effects of this Bill do not add to that list, further exacerbating the challenges faced by renters. Rather than making houses more affordable, this legislation risks increasing burdens on landlords, discouraging them from remaining in the rental market and ultimately reducing supply at a time of rapidly growing demand. In economic terms, this can only mean one thing: higher housing costs for renters. A survey by Paragon, based on responses from over 500 landlords it works with, paints a clear picture of the real-world consequences of this Bill. A striking 65% of landlords said that they were more likely to reduce the size of their portfolios. An overwhelming 79% said that they were likely to increase rents. Why? Not out of preference, but as a direct response to the pressures introduced by the Renters’ Rights Bill. This is not speculation; it is data-driven and must give us pause for thought.