The House of Lords should be reformed, it has been a major promise of political parites since 1911, but it has yet to be reformed. The major problem with the House of Lords is that it is too elitist, and as a result that makes it hard for it to address issues of the common people. In 2000 a Royal Commision proposed 132 recomendations for change, but very little came out of it.
It is an antiquated institution that is an anachronistic vestige of the formation of the current British system of government. The House of Lords is far too elitist and far too unfairly appointed and closed in comparison to their place in government and in the public view and public discord.
Any reformation in favor of protecting the people is a good thing. If a group in Government is overstepping it's bounds, then that group should be reformed. This could be a good thing for Parliament in a whole, as long as it doesn't hurt the people it was set up to help protect.
No, I do not think that the House of Lords should be reformed, because they have the freedom to do what they want and speak their mind. I do not always agree with the actions that they take, but they have a fairly efficient administrative system, and there is no need to fix something that isn't broken.
The UK is fortunate as it pertains to the HOL. Compared to the US, the representatives in the HOL have a fairly high turnover rate. If British citizens are unhappy with how their government is working, they will quickly find a new representative. He HOL and HOC have a long and interesting past. Creating something new would not alleviate the issues they have. The politicians can find a way to muck up anything. It's better if the UK leaves the HOL as it is.