Renter’s Rights Bill

After amendments from the Committee Stage were voted on in the House of Commons on 14th January, the Renter’s Rights Bill has moved on to the House of Lords for further scrutiny, and we are a step closer to knowing its full implications for both renters and their landlords.

As its name implies, this bill is being introduced to protect renters, but the residential rental sector is already under severe pressure, and many landlords and property professionals are concerned that if new regulations are skewed too far in the renters’ favour, a growing number of landlords will sell their properties, further reducing the UK’s already stretched rental stock, raising demand and prices for affordable property.

Key Amendment Concerns

Among the amendments just proposed, the government has declined to change their minds on the removal of fixed-term tenancies, but it has been confirmed that the Bill will not contain any regulations for minimum EPC standards, which will be separately consulted on by the Department for Energy Security and Net Zero in the coming months.

By retaining limits on the payment of rent in advance as security, the Bill may reduce the housing options available to financially vulnerable people, such as those on fixed or lower incomes, the self-employed and overseas students, who may find it difficult to pass the affordability checks.

The Government’s Housing Minister, Matthew Pennycook MP, has offered the limited reassurance that landlords will still be allowed to request one month's rent in advance, alongside a security deposit of up to 5 or 6 weeks’ rent, but he adds that referencing and affordability checks, and potentially guarantors, should give landlords the assurance they need to accept applicants.

On the landlord’s rights to eviction for student tenancies, the Bill currently only makes Eviction Ground 4A available for student HMOs in cases where the tenancy is signed less than six months before its start date. Students often want to secure agreements up to a year in advance, and landlords are concerned that if in those cases Ground 4A cannot be used, this may undermine their ability to regain possession of their property ahead of each academic year and jeopardise future tenancies.

Additionally, Eviction Ground 4A does not apply to one- and two-bedroom properties rented to students, further reducing landlord security and potentially reducing the availability of essential private rental accommodation for students.

More financial risks for landlords

The Bill includes the requirement for landlords to pay fees for the creation of a private rented sector Ombudsman, providing renters and landlords with access to a fair dispute resolution service.

The Amendments passed in the Commons include the stipulation that a guarantor will not be asked to pay rent for a property after the tenant they are standing guarantor for dies.

The information required about the landlord and the properties they rent out has been clarified. This includes the name, address and contact details of the landlord and managing agent, details of any enforcement action taken against the landlord or agent, and details of any previous eviction notices that have been served to a tenant. Registration will be compulsory and costs will be covered by fees payable by the landlord.

The amendment covering home adaptations for disabled tenants was withdrawn but the government’s Housing Minister has confirmed it will be discussed at the next stage. The proposal would allow disabled tenants to appeal if landlords do not agree to ‘reasonable adjustments’ such as installing ramps and grab rails, changing taps and light switches, widening doorways, or installing motion-activated lighting recommended by a local authority Home Assessment under the Equalities Act 2010.

For the Renter’s Rights Bill to be workable, it must have some balance between protection for renters without being onerous on the landlords to comply with. The Residential Lettings sector still has no certainty on which way the outcome will fall.