Baroness Taylor of Stevenage (Lab)

That is my mistake, and I apologise to the noble Lord, Lord Cromwell. Amendment 2, tabled by the noble Lord, Lord Truscott, would allow landlords to create fixed-term assured tenancies of 12 months or less. As I set out during the debate at Second Reading, our Government are clear that there is no place for fixed terms in the future tenancy system. Landlords and tenants all want the same thing in the private rented sector: long-term tenancies, well-maintained properties and the rent paid —on time, we hope. That is the balance that we seek to strike. A core principle of the future assured tenancy regime is that all tenancies will be periodic. As the previous Government also advocated, the removal of fixed terms is fundamental to improving tenants’ rights and ensuring that they can hold their landlord to account. Fixed terms just do not offer the best outcome for renters. They can oblige tenants to pay rent for substandard properties and restrict them from moving house if they need to. All the examples that the noble Baroness, Lady Scott, gave are of those who need secure tenancies—they need them for themselves and their families, and for the communities that they live in. The noble Lord, Lord Truscott, mentioned that I have been a local government leader. My experience with social housing tenants who have long-term secure tenancies makes it clear to me that they help them to stabilise life for their families and to develop the communities we know that people prefer to live in. I was not going to mention domestic abuse, but I am afraid that the noble Lord, Lord Truscott, and his dismissal of it has provoked me into doing so. Domestic abuse is just one reason to not have this type of tenancy, and I may come back to that later. Just this lunchtime, I met the person I set up the Stevenage domestic abuse service with, and that situation is getting worse, not better. We do not want people to be trapped in properties that they do not want to stay in. I do not believe that this amendment would offer tenants more choice. In reality, initial fixed terms would become just another way that tenants would be forced to compete in a difficult market. I understand that there are concerns from landlords about the impact of removing fixed terms. However, the move to periodic tenancies does not pose a threat to good landlords—in fact, it will make it easier and simpler for them to operate by preventing them being locked into a fixed term. Amendments 4, 5 and 6, in the names of the noble Lord, Lord Shipley, and the noble Baroness, Lady Scott, would allow for short fixed-term assured tenancies. The amendments would allow assured tenancies to contain a two-month, three-month or six-month fixed term. As I have set out, the Government do not believe such changes are necessary. Where a tenant wishes to live somewhere for a short period of time, the Bill allows them to serve notice at any point as long as they provide two-months’ notice. If one of these amendments were accepted, it is likely that short fixed-term tenancies would become the market norm, forcing fixed terms on to tenants who may not be looking for a short-term let and reducing flexibility for all tenants. In addition, tenants already need to give two months’ notice to landlords. Having two-month or three-month fixed terms would not add anything meaningful to this position, and would be contrary to our aims to simplify an overcomplicated system. The noble Lord, Lord Shipley, referred to the issue of rent up front, which I am sure we will debate under future amendments. The point is that it cannot be required as a condition of taking on the tenancy. If, once the tenancy is in place, the tenant chooses to pay rent in advance—and it is their choice—they will be able to do so. Amendment 173, in the name of the noble Lord, Lord Truscott, would prevent tenants serving notice to end the tenancy within the first four months of a new tenancy. This, coupled with the two-month notice period, would effectively lock renters into tenancies for six months. I have been clear today that the Government will not support any amendment that seeks to lock tenants in for any period of time. Tenants must have the flexibility to end tenancies when they need to. The noble Baroness referred to people whose jobs change; that might be the case, and to be locked into a fixed term would prevent them doing that. The Bill still requires tenants to provide two months’ notice when ending an assured tenancy, which will give landlords time to find new tenants. I heard the points from the noble Lord, Lord Carrington, about build to rent. I do not think there is a case for treating that differently, but no doubt we will return to this in future debates. I look forward to meeting with the noble Lord tomorrow to discuss his concerns in more detail. It is very unlikely that tenants will move unless they absolutely have to. Moving house is costly and comes with significant upheaval. In practice, tenants will usually be asked to complete a series of steps in order to enter into an assured tenancy, and that will include referencing checks, committing for two months and paying up to five or six weeks’ deposit, none of which they are likely to do if they are looking for a very short-term tenancy. Finally, I turn to the intention of the noble Baroness, Lady Scott, to oppose the Question that Clause 1 stand part of the Bill. Clause 1 will prevent the creation of tenancies with a fixed term under the future assured tenancy regime. As I have already set out, the Government do not support the retention of fixed-term assured tenancies under any circumstances. The move to fully periodic tenancies is critical to strengthening tenants’ rights and enabling them to hold landlords to account. To be clear, fixed terms force renters to pay rent regardless of the property’s condition. This disincentivises landlords from resolving repairs and can force tenants to remain in poor-quality housing. They also reduce flexibility for tenants to move when they need to—for example, if they have had a relationship breakdown or because they need to take up a new job. I am sorry to the noble Lord, Lord Truscott, for coming back to it, but they can prevent tenants leaving potentially dangerous situations such as domestic abuse. Clause 1 will therefore ensure that all assured tenancies are periodic in future. The tenancy will roll from period to period until either party ends it. It will be prohibited to include a contract term that tries to create a fixed term, and any such term would be legally unenforceable. As I have already explained, good landlords have nothing to be concerned about with these changes. They will not have to wait until the end of a fixed term to access some of the possession grounds, and a simpler set of rights and responsibilities will also make it easier for them to understand and follow the rules. The removal of fixed terms was the policy position of the previous Government, in which the noble Baroness, Lady Scott, served, and it is the policy position of this Government. Clause 1 is essential to delivering a strengthened and more secure tenancy system. It will improve the ability of tenants to move house and challenge poor practice. For all the reasons I have set out, I kindly ask that noble Lords do not press their amendments.