The Renters’ Rights Bill has passed it’s third reading in parliament last week, confirming amendments including landlords being banned for asking for more than one month’s rent in advance.
The Bill will abolish Section 21 no-fault evictions and apply Awaab’s law to the private rented sector.
There was no action on reforming the courts, raising furthering concerns about the abolition of Section 21 evictions.
As it stands, it’s commonly taking landlords over six months to evict a tenant using the Section 8 route owing to the court backlog and the time it takes to appoint bailiffs.
In parliament housing minister Matthew Pennycook said “court readiness is essential to the successful operation of the new system. That is why my officials and I are working closely with the Minister for Courts and Legal Services and her team to ensure that the Courts and Tribunals Service is ready when the new tenancy system is brought into force.”
The third reading was the final opportunity for the Commons to debate the Bill, typically followed immediately after the report stage. At the end of the debate, the House voted on whether to approve the Bill’s third reading.
After this, the Bill will move to the House of Lords for its first reading.
Once the Bill reaches the House of Lords it goes through the same stages as it did in the Commons, although the detailed Committee Stage – when the legislation is examined line by line – is normally less exhaustive in the Lords.
If the Lords disagree with the Commons they can amend the Bill and will then send it back to the Commons.
The Commons will consider the amendments made and if they disagree the House of Lords will have to consider their position again and will usually agree to the Bill as returned to them from the House of Commons.
There has been generally widespread agreement between the Labour and Conservative MPs on most parts of the Renters Rights Bill, which is expected to become law in the spring.
The Renters’ Reform Coalition praised the government for bringing back the Bill to Parliament.
On a post on X, formerly Twitter, the tenant campaign group said “we welcome return the bill – it has a lot of positives – but it doesn’t go far enough to deliver for renters.”
The campaign group demands the government provide compensation for ‘no-fault’ evictions. They say evicted tenants should be given ‘an automatic right’ to two months’ non-payment of rent at the end of their tenancy.
Matthew Pennycook, housing minister, addressed concerns about the move, saying there’s still the option of the landlord requesting a guarantor or using landlord insurance.
Pennycook, speaking in parliament for the third reading of the bill, said “requiring multiple months of rent from a tenant in advance when agreeing a tenancy is unfair, places considerable strain on tenants and can exclude some people and families from renting altogether. Landlords will continue to be able to take a holding deposit of up to one week, a tenancy deposit of five or six weeks’ rent and up to one month’s rent in advance before a tenancy has begun.
They will also be free to undertake the necessary referencing and affordability checks to give them confidence that a tenancy is sustainable for all parties. If and when they are not satisfied by the outcomes of pre-tenancy checks, options are available to tenants and landlords to ensure that rent in advance need not be used—requesting a guarantor or engaging in landlord insurance, for example.”
In terms of other amendments in the Rights’ Rights Bill:
- Students can no longer be locked into a rental agreement more than six months in advance
- The fee landlords will pay towards a national database will directly fund the private rented sector Ombudsman, which will judge disputes between landlords and tenants
- Guarantors will not be liable for rent if a tenant dies, if they are a family member
Brendan Geraghty, chief executive of the Association for Rental Living, said “he greatest impact of these ‘unintended consequences’ will be felt by the self-employed and retirees, who are often able to make lump-sum payments but cannot provide sufficient proof of income to satisfy landlords. The move will also impact overseas students and professionals who are unable to pass referencing checks due to the inability to perform financial checks.
This measure would also prevent students from paying their rent in line with their student loan (in three tranches across the academic year) and may lead to an increased number of students falling into arrears and facing financial pressures.”
How about Landlords’ Rights Bill?
Since this is the time for reflection on what has happened last year and thinking about New Year resolutions, I think that since no-one else is going to put our side of what tenants should be expected to do, I think we should put together a Landlords’ Rights Bill.
2024 was a rollercoaster ride for landlords with financial pressures and the idiotic Renters’ Rights Bill and dealing with moronic ideas from the government.
We also have the prospect of the government pumping more money – said to be £1 billion – for tenants to fight an eviction notice and remain in their home. But we don’t have the cash to keep pensioners warm?
EPC rating of C for rented homes
Plus, the nonsense announced by Miliband as soon as he took office that the EPC rating of C for rented homes will be in place by 2030. It won’t.
And there’s the announcement that councils can impose selective licensing schemes without Secretary of State approval – that’s a recipe for disaster. Plus, isn’t this what the landlord’s database is going to do?
As the Renters Rights Bill moves to ‘level the playing field’, they never involve the opinions of landlords.
Or Awaab’s Law that will make landlords responsible for mould and damp – even when it’s caused by tenants. Stop believing that all tenants are beyond criticism.
I dread what special investigatory powers that councils will get – they are inept now and the prospect of charging landlords even higher penalties when their own housing stock standards are shameful is beyond parody.
Landlords need to be heard and everyone from tenants, MPs and the media need to understand the challenges they face. A Landlords’ Rights Bill that addresses these concerns will help create a more stable and equitable environment for both landlords and tenants.
It also means that everyone wins which means it won’t happen because landlords must always be the bad guys, right?
Renters’ Rights Bill will reshape the rental market this year
2025 looks set to be a seismic year for the private rented sector, with the Renters’ Rights Bill expected to become law by summer, one firm says.
Other policy changes include more clarity on energy-efficiency targets. While Ed Miliband has announced that all private rented sector properties must meet EPC C targets by 2030, the government has provided little detail on how this will be achieved.
Tenant reference company Vouch says landlords and agents need to prepare for the challenges ahead.
Tom Goodman, managing director of Vouch, says "landlords and agents will need to prepare for high demand next year. I think 2025 will be characterised by three P’s; pace, policy and pragmatism. There is still a lot of heat in the market and house building won’t come quickly enough to disrupt the upward trajectory around rents and demand any time soon. Both landlords and agents should expect the pace to remain brisk and demand to stay strong throughout 2025.
It will also be a huge year for policy changes. The seismic change will come in the form of the Renters’ Rights Bill, but this won’t be the only regulatory or legal shift the sector will face over the coming 12 months. It’s likely that we’ll get further clarity on EPCs next year, as well as the introduction of a host of changes around taxation, including the National Insurance rise. To that end, there will be a lot for agents to contend with, both on behalf of landlords and for their own businesses.
Despite the challenges landlords and agents face, the market should remain resilient. I believe it will be a year of pragmatism. With a market that’s moving so quickly and set to experience a huge regulatory overhaul, agents and landlords will be deploying large doses of pragmatism to get themselves through the upheaval. As it’s proved before, the sector is incredibly resilient and good at adaptation. This spirit will be required in spades during the coming year.”