There are over 200 amendments to the Renters Reform Bill having its Third Reading in the Commons today.
PropTech supplier Goodlord has waded through the amendments and regards these as the most contentious.
Conservative Amendments
There are over 200 amendments to the Renters Reform Bill having its Third Reading in the Commons today.
PropTech supplier Goodlord has waded through the amendments and regards these as the most contentious.
Conservative Amendments
Section 21 evictions - In what appears to be an attempt to delay the ban on these evictions, an amendment proposed by Conservative MP Anthony Mangnall and backed by a large number of others, states that the Secretary of State must commission and publish a review into the operation of residential possession proceedings in the County Courts used by residential landlords and tenants and the enforcement of possession orders, before a date can be set for the introduction of so-called no-fault evictions.
Tenant notice periods - This new clause, also being proposed by the Conservative MP Anthony Mangnall and backed by a large number of others, means that tenants cannot give notice on their lease until they have lived in the property for four months, unless agreed to by the landlord in writing. This means landlords have the assurance of having a tenant in their property for at least 6 months (i.e. 4 months tenancy plus 2 months notice).
Labour Amendments
Obligation to advertise rental price - A proposed amendment by Labour’s Shadow Housing Minister Matthew Pennycook MP seeks to make it a requirement that landlords or persons acting on their behalf state the proposed rent payable when advertising the premises.
Preventing bidding wars - A proposed amendment also by Labour’s Shadow Housing Minister Matthew Pennycook MP seeks to prevent landlords or persons acting on their behalf from inviting or encouraging bids that exceed the rental price stated in the advertised price, to discourage bidding wars amongst tenants that escalate prices.
Prohibition of requirement for rent guarantors - This new clause, being proposed by the Labour MP Alex Sobel, would prohibit landlords from requiring prospective tenants to provide rent guarantors or equivalent upfront payments, and prohibit them from prioritising prospective tenants who offer them over those who do not.
Academic tenancies - This amendment being proposed by the Labour MP Paul Blomfield, would end the pressure for joint tenancies to be signed too early in the academic year, committing students to accommodation before they are ready.
Others
Energy performance regulations - This new clause, proposed by the Green Party MP Caroline Lucas, would upgrade the Minimum Energy Efficiency Standards for private rental properties to EPC C.
By way of context, Goodlord cites its latest annual survey of 2,000+ landlords, agents & tenants:
- Whilst still very unpopular, sentiments around the scrapping of Section 21 had been shifting over recent years;
- In 2022, 71% of landlords believed abolishing section 21 would have a negative impact on the lettings industry;
- However, in the 2023 survey, this had dropped to 62%;
- In contrast, in 2022, 27% of letting agents believed the abolition of section 21 would have a positive impact. In 2023, this number had dropped to just 11%.
Guarantor numbers have been rising in recent years, according to Goodlord’s analysis:
- 17.73% of all tenants were asked to provide a guarantor in 2020;
- 18.88% of all tenants were asked to provide a guarantor in 2023 (an increase of 6.5%).
A key feature of the Renters Reform Bill is the ability for tenants to have pets in their property, unless there are specific reasons why they can’t. According to Goodlord data, in 2023 just 5% of tenancies were proactively open to pets.
Oli Sherlock, managing director of insurance at Goodlord, comments: “There are some sensible and logical amendments on track to be debated during the third reading of this Bill. The biggest talking point for most will be regarding Section 21; looking at how and when the government will abolish the measure. It is imperative that our legal system can manage cases effectively and efficiently, however there seems to be little commitment as to how the government will achieve this and, as importantly, the timelines involved.
“At risk of sounding like a broken record, the industry just needs clarity on details and timelines. Landlords, tenants and agents need to know exactly what is changing and when. This legislation was promised as part of the Conservative manifesto and the clock is ticking ahead of a general election, all whilst patience in the market is wearing very thin.”
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Is Matthew Pennycook serious? Do landlords not advertise the rent? Fools if they don’t. None of the portals will take a property without a rental figure, deposit, council tax band etc. Imagine advertising a flat these days and wasting your time answering the phone to people who cannot afford it? Ridiculous. The man is several sandwiches short of a picnic!
Alex Sobel is even more demented wanting to prohibit landlords requiring GUARANTORS. 😠 Well that will upset Bungling Boy Ben and student lets. A number of rent guarantee insurers require guarantors so now those applicants will, if the idiots in Parliament pass this, not be accepted. What a great way to reduce homelessness.😡
MPs should really stick to what they’re best at
Which is very little by the look of it apart from claiming expenses and being as useful as a chocolate teapot
Lucas, should hurry up and go. An Epc minimum of C is totally impractical outside of the Islington set, it will cause a huge housing crisis in many of the old industrial towns were the cost far exceeds the value of the property. D is a reasonable standard but anything higher is unachievable in these areas. I really think these MPs should have to go on a full tour of every town in England and made to see first hand what the effects of their hand wringing will be.
Agree, take it to a D ! But anymore and there will be a mass sell off even bigger than now 👍🏻
I've got most of my properties to an EPC C now but not 5 Victorian terrace houses. They are between 1 and 4 points short of the C and now it would cost about £13k per house to get the internal insulation that would save tenants about £30 a year but cause cause damp and I won't do it. The houses have a good boiler, central heating and individual thermostats on each radiator. Good loft insulation and energy efficient lights. That's the best I can do on these houses without spending silly money on them. Lucas had no idea what the world is like outside of Brighton.
Look at auction catalogues, that will tell you how many landlords are getting out
Most important amendment is by a group of fifty two Conservative MPs who state that fixed term tenancies should still be allowed:
Anthony Mangnall _10
Bob Blackman [R]
Mr Marcus Fysh
Sir Desmond Swayne [R]
Nick Fletcher [R]
Anne Marie Morris [R]
Andrew Lewer
Sir Geoffrey Clifton-Brown [R]
Craig Whittaker
Mr William Wragg
Sir David Davis
Greg Smith
Royston Smith
Mr Ian Liddell-Grainger [R]
Kit Malthouse
Mr Philip Hollobone
Dr Caroline Johnson
Mr Ranil Jayawardena
Sir John Whittingdale [R]
Mr Mark Francois
Sir Gavin Williamson
Marco Longhi [R]
Simon Jupp
Craig Mackinlay
Sir Iain Duncan Smith
Andrew Bridgen
Sir Christopher Chope
Sir Edward Leigh
Sir Robert Syms [R]
Sir William Cash
Robert Jenrick
Miss Sarah Dines [R]
Richard Drax [R]
Lia Nici
Karl McCartney
Priti Patel
Selaine Saxby
Steve Double
Kevin Foster
Mr David Jones
Sir Graham Brady
Sir Bill Wiggin
Sir Jacob Rees-Mogg [R]
Miriam Cates
Nigel Mills [R]
Suella Braverman [R]
Damien Moore
Adam Afriyie
Kelly Tolhurst
Richard Fuller
Sir Alec Shelbrooke
Henry Smith
. Clause 1, page 1, line 11, at end insert “, unless the landlord and the tenant mutually agree
to have a fixed term during which period the landlord agrees to suspend the ability to seek
possession under Ground 1 (Occupation by landlord or family), Ground 1A (Sale of
dwelling-house) or Ground 6 (Redevelopment) of Schedule 2.
(1A) During a fixed term tenancy agreed under subsection (1) the landlord shall
not be entitled to increase the rent as provided for by section 13.”
WHY NO SUPPORT OF THIS BY THE NRLA AND GOODLORD!
Hi Ellie, What is the relevance of [R] after some names?
I am not certain Nick. I thought it might mean that those MPs are "Right Honourable" because they have held ministerial office.
The number of MPs might be significant in that there may be enough of them to force a leadership election by serving letters of no confidence in Rishi Sunak?
[R] for Reform?
Can't be that Sarah; there is only one Reform MP in Parliament.
Listening to the debate today, it seems that those MPs may not support the Bill, and it also seems possible that Labour won't support it either now because of the amendment in relation to court reform.
I recall posting before that that would happen.
Ellie many thanks for digging this up. Really informative.
The NRLA, Hamilton Fraser insurance and Goodlord are all interrelated businesses.
Thanks AJR.
The only hope with regard to that amendment is that it finds some support in the House of Lords. Sir Christopher Chope pointing out the need for this at the moment.
Labour, in fact, not opposing the bill. There wasn't a vote on the bill, only on the Government amendments.
There may be a general election before the bill finishes its journey through Parliament.
The R stands for registered interest.
Thanks, Ellie. That makes sense.
Preventing bidding wars -have they gone nuts? Do they not understand simple Economics of supply and demand of the properties deciding
the correct rent?
They are so biased, not helping tenants or landlords.
Some tenants need not be tenants buy stay in their cost rooms where they grew up with their mum and dads homes. Why is that so much worse than renting from strangers and refuse paying rents and no guarantors?
These tenants will not have anything to rent in future if they are finding something g to rent now. Even less properties will be available for rent due to RRB propaganda. The charities will not exist for long.
I'd just advertise a ridicously high rate and drop it once a week.
The percentage of landlords who have started to come round to abolishing Section 21 hasn’t softened from what I see. I think those who were most scared by it sold up quickest and aren’t landlords anymore, so their opinions are no longer in the figures.
Oh God❗ where do l start?
1. Preventing bidding wars: it is the TENANTS that out bid each other, not the landlords or LA. This tactic doesnt work on me personally- l reject those that flash cash to secure the property.
2. Prohibition of requirement for rent guarantors and banning of up front payments:-
well, genius, that would automatically cut off an entire demographic of renter from renting; from those relocating for work, or with unusual payment intervals, to those with a poor credit score. Plus, many LL insurances & Mortgage providers insist on it. So, theres that dumb dumb.
3. EPC 'C' for Rentals:- EPCs in their current form are recognised as not fit for purpose & are planned to be overhauled. But even so if a C was required to rent out (jumping from an E) that would immediately remove tens, if not hundreds of THOUSANDS of properties from the Sector, as, recently reported in the papers, our housing stock is fecking ancient!
.....I need a drink. 🥂🥴😑
EPC would mean more unlettable properties so they may be left empty or sold so less properties for tenants to fight to rent and even higher rents, so only high paying tenants.
The government should only go this far, if they have unlimited properties to rent to their citizens, otherwise they should not interfere in PRS. They have no clue about the reality of the private housing.
It would be interesting to know the EPC of the Palace of Westminster and what the MPs intend to do to bring it up to a C?
I expect it’s a listed building so doesn’t need an epc
It appears that Kim Jon Norwood no longer accepts ANY criticism of Citizen Khan.
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