For a fully appointed HOL to work I'd have a fixed number of lords (for the want of a better term), say 601, that can never be altered. Once appointed you can only be removed by death, reaching a suitable age (say 75), senility (attested by independent doctors) or convicted of a serious crime with a jail sentence. This way Blair, or any other pm can't flood the HOL to get his/her way. Each political party (with more than one seat in the commons) then takes it in turn to nominate a lord when a vacancy comes up.