LogoLogo

Renters' Rights Bill: Where are we now?

about 2 months ago
Renters' Rights Bill: Where are we now?

The Renters' Rights Bill underwent its Second Reading in Parliament last week, marking a step forward on its path to becoming law. NRLA Chief Executive Ben Beadle shares his views on the proposals and outlines what needs to happen next:

This week, the Government's Renters' Rights Bill was back before Parliament for its Second Reading in the Commons. This stage allows MPs to debate the proposals for the first time.

So, what can we take away from the discussions?
Introducing the Bill, the Housing Secretary and Deputy Prime Minister, Angela Rayner, acknowledged the 'important role of landlords, most of whom provide good-quality homes for their tenants', recognising that the vast majority are responsible and compliant, providing the homes the country so desperately needs.

There was a pledge to digitise the county court system and, crucially, the Housing Secretary dismissed the idea of rent controls, which she rightly noted 'restrict housing supply, which does not help anyone'. MPs were told that "good landlords" would "have nothing to fear from the Bill".

Will reform damage the market?
Despite the Bill being quite similar to the Conservatives' Renters (Reform) Bill, the Shadow Housing Secretary, Kemi Badenoch, argued it would 'break' the rental market and cause 'gridlock' in the justice system. The impact on the courts is a legitimate concern and has been a key pillar of the NRLA campaign since reform plans were first discussed.

The association had called for court reform to be implemented *before* the abolition of Section 21; however, the Government has stated that improvements will occur alongside its abolition. When similar reforms were introduced in Scotland, the courts system quickly became overwhelmed, and we will be presenting evidence from north of the border to key decision-makers in the coming weeks.

While the Housing Minister, Matthew Pennycook, stressed that ensuring the Courts and Tribunals Service is prepared for the new system is 'essential', he did not elaborate on what this would mean in practice. We are now seeking greater clarity on this as the Bill continues its journey through Parliament.

Lead-in time

Another major concern for the NRLA centres on the implementation date for the Bill. While in opposition, the Labour Party suggested that provisions related to the end of Section 21 should be enacted immediately upon Royal Assent. However, during Wednesday's debate, the Housing Minister gave the clearest indication yet that this stance might change.

He revealed that ministers recognise it will take time for the sector 'to adjust to a significant change in regulation', adding: "We will appoint the commencement date by regulations at an appropriate interval after Royal Assent. Our intention is to give the sector as much notice as possible."

Tenant debt

Beyond concerns about the courts and implementation timescales, we are also seriously worried about tenant debt and the proposal to increase the level of arrears a tenant can build from two to three months before landlords can serve notice to repossess. The proposals also double the notice periods landlords must give in these cases.

To ensure fairness for both tenants and landlords, we are advocating for:

- A requirement for landlords and letting agents to work with tenants at the first sign of rent arrears, using the NRLA’s established 'golden rules'.

- Housing benefit rates to be linked to market rents for the duration of this Parliament.

- The retention of landlords’ right to repossess once two months of arrears have accrued.

The NRLA will also continue to push for the extension of the student possession ground to the entire student market and call for greater accountability from local authorities concerning housing standards.

What happens next?

Now that the Bill has passed its Second Reading, it will move to the Committee Stage, where I will be among several industry stakeholders presenting oral and written evidence on behalf of landlords on 22 October. Additionally, we are preparing evidence-based briefings for MPs and members of the House of Lords on our key concerns, while continuing to meet with senior civil servants to outline the issues as we see them and propose sensible alternatives that can work for all

Share this article

Sign up for our newsletter

Subscribe to receive the latest property market information to your inbox, full of market knowledge and tips for your home.

You may unsubscribe at any time. See our Privacy Policy.