Today the Renters’ Rights Bill is set to get its second of three readings in the House of Commons before it can progress to the House of Lords.
The legislation intends to introduce a range of new requirements in hopes to further protect tenants in private rented homes.
These include ending ‘no fault’ evictions whereby a landlord can evict a tenant for no specific reason, make it simpler for children and pets to reside at rented properties, and to ensure the private rental sector is protected by a Decent Homes Standard to allow tenants to live in better value homes, alongside extending Awaab’s Law to the private rental market. This legislation was enacted due to the death of Awaab Ishak who died at the age of two when he was exposed to mould in a social house.
Other changes being considered include making renting fairer to both tenants and landlords by ensuring possession grounds result in greater tenant security while guaranteeing that landlords can recover their properties when reasonable.
The legislation aims to stop backdoor evictions by protecting tenants from above-market rents. A Private Rented Sector Ombudsman will be established to resolve tenant disputes, alongside a Private Rented Sector Database to assist landlords with their legal obligations.
Landlords will no longer be able to discriminate against tenants in receipt of benefits or those who have children, and it will be illegal for landlords and agents to accept offers above an asking rent for their property.
Finally, local authorities’ enforcement powers will be strengthened by enlarging civil penalties and a new package of investigatory powers and rent repayment orders will be extended to landlords. Nathan Emerson, CEO at Propertymark commented:
“Legislation must be balanced when it comes to protecting the rights of both tenants and landlords, something Propertymark has long argued for. However, there must be a workable system implemented that delivers fairness for everyone. Tenants should be confident they have a stable and secure home, and landlords must be able to gain possession of their properties from disruptive tenants via adequate means. Propertymark will continue to make its argument to the UK Government as they attempt to legislate their Renters’ Rights Bill.”
The latest research by tlyfe suggest that the number of tenants fighting it out per rental property is estimated to increase in 2024, as the rental market imbalance between supply and demand continues to return back towards pre-pandemic highs – an issue that is only set to become all the more prominent as a result of the Renters’ Rights Bill. CEO of OpenBrix, Adam Piggot, commented:
“The rental market is incredibly fast paced and this is due to the fact that tenant demand has grown substantially whilst the level of available stock simply hasn’t kept pace.
In fact, the number of renters reliant on the private rental sector has increased by 132% over the last 30 years and although the ratio of tenants to available properties has improved, there are still more than two tenants for every privately rented property available.”
More research by Lomond shows that the number of tenanted properties being listed on the sales market has fallen by nearly -20% since the end of June, suggesting that the Renters’ Rights Bill has not yet resulted in the max exodus of landlords that many feared it would. Lomond CEO, Ed Phillips, commented:
“Much has been made about the exodus of landlords from the Buy-to-Let sector and with Labour quick out of the gates to propose yet more pro-tenant legislative changes, there had been worries that more landlords would have made a swift exit.
But, since the relaunch of the Renters’ Rights Bill under our new Labour government in late May, we’re yet to see any evidence of this and, in fact, the number of homes listed across the market for sale with a tenant in situ has actually fallen.”
Gareth Atkins, Managing Director of Lettings at Foxtons, said that today’s second reading of the Renter’s Rights Bill brings “us one step closer” to the scrapping of fixed-term tenancies, a move which could “destabilise” the living arrangements of renters across the nation. He added:
“As it stands, any tenant currently contracted to a fixed-term tenancy will not only have certainty over their living situation, but also clarity on just how much they are going to pay in rent.
This figure is often fixed for an initial term of three years or more, but under the proposed Renters’ Rights Bill, this certainty would vanish and over the space of three years, the same tenant could see their rent increase on multiple occasions.
The issue is further exacerbated by the fact that there is no transition period in place, meaning those currently contracted to fixed-term tenancies could be hit by rental hikes they haven’t budgeted for as soon as the bill is passed.”
Law Society president Nick Emmerson said:
“As the housing crisis spirals out of control, it is vital that renters are afforded clear rights that protect them from unjust treatment and homelessness. Abolishing ‘no-fault’ evictions is a critical step in bolstering these protections and we are pleased the government has prioritised this action in its Renters’ Rights Bill.
The government must also balance tenant rights with landlords’ routes to repossessions. Maintaining this balance is key to reforming the rental market. We remain concerned that an underfunded justice system will hinder any progress made in strengthening renters’ rights.
As the Bill may lead to an increase in eviction hearings in the short term, it is in the interests of both renters and landlords that renters have access to legal help and that the courts are adequately resourced to handle the increasing demand.
Acute underfunding of the justice system has left both a backlog of court cases and more than 25 million people without a local legal aid provider for housing advice.** To ensure renters are protected when facing eviction, funding for the justice system must increase alongside efforts to reform the rental market.
The justice system plays a vital role in ensuring renters can access their rights. If the government is serious about supporting renters, it must recognise this vital role and invest in legal aid and court reform.”