On Tuesday, April 22, the Renters’ Rights Bill will enter the committee stage: a line by line examination in which members of the Lords are able to suggest and debate potential amendments to the proposed legislation.
As it stands, the Bill will introduce a raft of changes including the abolition of Section 21 ‘no-fault’ evictions, an end to fixed-term contracts for renters; a ban on landlords accepting offers above the advertised rent, mandatory use of the Section 13 notice for rent increases, and the prohibition of pre-tenancy rent payments.
Timothy Douglas, head of policy and campaigns at Propertymark, comments ahead of the vote:
“The UK Government must listen to Peers and act on amendments to the Renters’ Rights Bill to strike a fair and workable balance for all parties involved.
“It is positive to see amendments which Propertymark have campaigned on included within the proposed new legislation, such as mandatory qualifications for letting agents, retaining fixed term tenancies as an option, court capacity for when no fault evictions are abolished and extending the deposit cap for renting with pets. It’s also vital that measures to register short term lets come in alongside these regulations to level the playing field.
“It remains imperative there is adequate support for landlords to plan and implement all necessary changes, and that all new legalisation is kept under full review ensuring it remains relevant, evidence-based and fit for purpose moving forwards.”
While many have pointed to the added pressures the Bill will impose on landlords, the risk of unintended consequences for renters has received less attention.
The government has said that measures being introduced are designed to give renters “greater security and stability.” However, according to industry figures, “significant questions” remain over the potential impact these changes could have on tenants.
Oli Sherlock, Goodlord’s Managing Director of Insurance, comments:
“This Bill is ostensibly an attempt to make life easier and more secure for ordinary renters. However, with concerns mounting over the impact these changes could have on tenants, significant questions remain about the potential harm this legislation could do to the very people it’s intended to protect.”
He pointed to a number of measures outlined in the Bill which could have negative consequences for renters. He says:
“The ban on bidding wars could unintentionally cause a rapid increase in average rent prices as soon as the new legislation comes into effect. With landlords forced to accept no more than the advertised rent, many will understandably be tempted to up their prices from the off.
“When it comes to Section 21, there is a real risk that removing this power from landlords may lead to more rental disputes going to court. This could see thousands more tenants receiving County Court Judgements (CCJs) for issues such as rent arrears - damaging their credit scores and potentially restricting their access to properties further down the line.
“The extension of the notice period in the event of arrears (increasing from two months to three months) may seem favorable for tenants but the reality is that by the time tenants are in two months arrears it is often hard to reverse their position. Adding a further month to this process will inevitably lead to larger personal debt. Such measures should be focusing on speedy resolutions for both parties, not extensions.”
Most alarmingly, Sherlock fears that the new legislation could trigger an “exodus” among landlords, reducing the supply of affordable housing:
“With the increased pressure of these changes coming on top of the potential costs of complying with measures such as new Energy Performance Certificate requirements, there’s a danger this Bill will be the straw that breaks the camel’s back for many across the sector. Without serious action to address these concerns, we could see a landlord exodus when the new rules are introduced.
“If that happens, the supply of affordable housing will be reduced and rents will only increase, further exacerbating the problems faced by tenants.”
Specific tenant demographics could be affected, too - Calum MacInnes, Chair at SAPRS (Student Accredited Private Rental Sector) said:
“The Government continues to ignore warnings from the higher education sector about the risks the Renters’ Rights Bill poses to UK student housing. Students are already bearing the brunt of the cost-of-living crisis, facing rising expenses for both accommodation and tuition fees."
"Yet a straightforward solution remains – retaining the fixed-term tenancy system for the private student housing sector. This approach offers security to student renters and ensures landlords can make their properties available to new students at the start of each academic year."
"If the Bill remains unchanged, the student housing system – and with it, access to higher education – faces the risk of being irreparably damaged.”
