Renters’ Rights Bill

As I have previously outlined, the Government are committed to driving up the standards of military accommodation further. Earlier this year, the Ministry of Defence announced an additional £1.5 billion investment in service family accommodation over the next five years, above that already committed. Later this year, the Government will publish a defence housing strategy, setting out clear renewal standards and further steps to improve the lived experience of our personnel.

I welcome the amendment in lieu tabled by the noble Baroness and can confirm that the Government support this approach in principle. We have therefore tabled Amendments 39B and 39C as amendments in lieu, which will introduce a statutory requirement for annual reporting on the extent to which service family accommodation meets the decent homes standard. This amendment will place on a statutory basis the commitments the Housing Minister made in the other place for greater transparency and accountability on the quality of military accommodation. Alongside the Government’s wider actions that I have already highlighted, this will make a real difference in ensuring that service personnel and their families have homes of the quality they deserve. I have discussed the Government’s amendment in lieu with the noble Baronesses, Lady Thornhill and Lady Grender, and with Gideon Amos MP, to whom I am grateful for his strong advocacy on this issue in the other place. They have indicated their support, and I hope that noble Lords will also support this amendment.

Finally, Lords Amendments 26 and 27, which were tabled by the noble and learned Lord, Lord Keen of Elie, would require local authorities to meet the criminal, rather than civil, standard of proof when imposing penalties for rental discrimination and rental bidding breaches. I am grateful to the noble and learned Lord, Lord Keen, for his constructive engagement on this issue. We believe that local authorities will enforce these measures against the relevant standard of proof effectively. However, we understand the concerns from noble Lords that if this is not the case, there is a risk of an unsatisfactory decision.

With that in mind, I can confirm that the Government will include in the relevant statutory guidance to local authorities advice that a local authority exercises a quasi-judicial function when imposing a civil penalty, and should therefore be satisfied by credible, reliable and sufficient documentary or other evidence on the balance of probabilities that a person has breached a relevant requirement before imposing a penalty. Moreover, the Bill already gives a person against whom a local authority proposes to impose a penalty a right to make representations before a final decision is made, as well as a right to an appeal by way of rehearing against a penalty. I am pleased to have come to an agreement with the noble and learned Lord, Lord Keen of Elie, on this issue. I hope this is sufficient to address the concerns of noble Lords and that they will agree to the Motion not to insist from the other place.

Motion A1 (as an amendment to Motion A)

It may be that if a pet damages a property, a good tenant will repair it. Sadly, not all tenants are the same, just like we have a range of good and bad landlords. If a tenant has a pet that causes some damage and it is not repaired, is it not likely that, if there are other damages, they will not be repaired? That is what the five-week deposit will cover, and an additional pet deposit could cover the pet damage.

There is good evidence that tenants with pets tend to stay longer, and many take care of their properties to a high standard. One conclusion would be that these tenants stay in certain properties for longer due to the lack of supply of alternative rental properties—which, happily, the Bill wishes to address—but we need to support landlords with this change. By supporting this amendment, we will be supporting landlords and making the process of more landlords accepting pets without objection a far greater reality, as they will have the protection of an additional deposit. It will, I hope, also encourage existing landlords to stay in the private rental sector market and potentially encourage new landlords to choose long-term tenancies over short-term holiday and Airbnb lets, so maintaining supply of rental properties.

A table in the University of Huddersfield report asks landlords whether different policies or incentives would encourage them to consider pet owners as tenants in the future. Some 53% asked said that having a tenant with insurance cover for pet damage would help. Sadly, this is not available. Some 51% said that allowing landlords to charge for a deep clean would help; this would be covered by a pet deposit. Some 43% said that allowing landlords to be allowed to hold a pet deposit would help them, and this is what this amendment does.

Pets provide so much to us human beings in companionship and health benefits and provide friendship and support at difficult times. When owning a pet, we have a responsibility to maintain their welfare and health. This is both a time commitment and a financial commitment for the owners. If someone is a potential tenant with a pet, an additional deposit for a property should be thought of as part of that financial commitment.

I hope my revised amendment will find some support with your Lordships today, and that we can find a balance between landlords and tenants to increase the supply of pet-friendly accommodation. I beg to move.

Another problem with the addition of a pet deposit is the potential lack of transparency regarding what a landlord decides should constitute pet damage and what constitutes the type of damage that would otherwise be funded by the standard security deposit. Many landlords, I fear, would see this as an extra fund to provide an option to withhold more money simply for standard wear and tear.

The pet provisions in the Bill have been thoroughly and energetically debated, both inside and outside this House. It is clear from all those discussions that the standard security deposit is more than adequate to cover any damage caused by a pet and that this amendment is completely unnecessary. Its only result would be to neuter one of the key planks of this vital legislation, destroying the hopes of so many tenants who dream of having a pet in their home. Today, we should make that dream a reality, so I am afraid that, if the noble Lord presses his Motion, I shall be voting against it.

Finally, I thank the Government for their constructive engagement and the assurances given in writing and from the Dispatch Box on the standard of proof. Those commitments provide much-needed clarity and reassurance on how this will be applied in practice, and we are grateful for the Minister’s response.

Taken together, we believe that these measures improve the Bill, and make it fairer, more workable and more balanced for tenants and landlords alike.

It is important to say that, as I noted in my opening speech, we will continue to keep this under review. We have powers to allow for higher deposits for pets, if needed. We are satisfied at the moment that the existing requirement of five weeks’ deposit for typical tenancies is sufficient to cover the risk of any increased damage by pet ownership. I know some landlords are concerned about potential damage that may be caused by pets. Landlords can deduct damage costs from the normal tenancy deposit, as they do now. In rare cases, where the deposit did not cover the cost of the damage, the landlord could take the tenant to the small claims court and bring a money claim to recoup any outstanding amounts, in line with the wider rules in the sector.

We do not want to put tenants in a position where they cannot have a pet because there are no suitable insurance products available or they cannot afford the additional cost of a deposit. We will keep this matter under review, and I hope the noble Lord will consider withdrawing his Motion.