There are two more House of Lords committee sittings during which amendments to the Renters Rights Bill will be debated.
These are next week on May 12 and May 14.
Once this stage is concluded later this month, the Bill is expected to rapidly complete its passage through the Lords and then return to the Commons. Both Houses must agree on the exact wording of the Bill but there is expected to be rapid agreement and the Bill is expected to be passed well before MPs begin the summer recess on July 22.
Much of the Lords committee’s time is spent considering amendments, such as these supported by the National Residential Landlords Association:
- Allow landlords to use the new student possession ground in all student homes, not just HMOs;
- Introduce a minimum six month tenancy period;
– Improve the new rent increase process by allowing the Valuation Office Agency (VOA) to filter out spurious challenges of fair rent increases;
- Safeguard landlords if the tenant does not pay the initial rent after the tenancy is signed;
- Review the impact of the Renters Rights Bill on the private rented sector.
However, even if the Lords do vote to include these amendments, they will still need the support of the government when the Bill returns to the Commons.
Propertymark says that if the Bill is enacted in its current un-amended form, it will require substantial changes to how agents and their landlord clients operate, including:
- Section 21 evictions will be abolished, meaning agents will no longer serve no-fault notices. Instead, landlords must rely on revised grounds for possession (e.g. for rent arrears or misconduct), so agents will need to guide clients through the proper legal processes for regaining possession when necessary;
- Open-ended tenancies: Fixed-term tenancies are being replaced by a new periodic tenancy regime. Letting agents will need to adjust tenancy agreements and advise both landlords and tenants on the implications of open-ended tenancies – for instance, how landlords can regain possession under the new rules and how tenants can give notice;
- Rent increase safeguards: Stronger protections against unfair rent increases are part of the Bill’s aim. Agents may only be able to raise rents once per year under the proposals, and excessive increases could be challengeable. This will require agents to implement compliant rent review practices and keep clear records to justify changes;
- Private Renters’ Ombudsman and Portal: All landlords will be required to join a new private rented sector Ombudsman scheme and register their properties on a new digital Property Portal . In practice, letting agents are likely to handle these registrations and membership obligations on behalf of landlords. Agents should prepare for additional administrative duties to ensure every tenancy is registered and any disputes can be resolved through the Ombudsman;
- Higher property standards: The Bill extends the Decent Homes Standard to private rentals , meaning minimum standards for property condition will be enforced. Agents will need to work with landlords to carry out any necessary improvements and ensure properties meet the required standards (for example, regarding safety and state of repair) before letting them out.
