Share
What is the current Renters’ Rights Bill update?
The bill completed the 2nd reading in the House of Lords in February – taking it one step closer to becoming law. The target is to have the law pass by the end of Spring this year.
This bill is meant to give tenants more protection and security while encouraging property owners and landlords to ensure fair rental practices. This was first introduced to address unjust evictions, substandard housing conditions and excessive rent increases. With the passing of this bill, there’s hope that the Private Rental Sector in England will be more transparent and well regulated.
In this article, you’ll learn about the updates on the Renters’ Rights Bill – specifically what was discussed during the 2nd reading at the House of Lords. You’ll get a breakdown of the issues and stipulations that are being debated and how the bill is expected to move forward.
2nd Reading Renters’ Rights Bill Update
On February 4, 2025, the House of Lords held the second reading of the Renters’ Rights Bill. It paved the way for extensive discussions to highlight concerns and issues while expressing support for the proposed changes it will bring to the private rental sector.
While Conservative Peers criticised the Labour Government for rushing the legislation, the latter was strong in their resolve to pass the bill and implement the changes.
Take a look at the highlights of what was discussed during the second reading at the House of Lords.
Exemption of student accommodations or rentals
Baroness Taylor of Stevenage confirmed that purpose-built student accommodations will be exempted from the regulations of the Assured Tenancy System. Some members of the House of Lords also suggested that these exemptions should extend to private landlords leasing their one-bedroom or two-bedroom properties to students.
Possibility of pushing landlords out
Some peers expressed concern over the tighter regulations, stating it might push landlords out of the private rental sector and lead to supply and demand issues. However, other peers countered that a mass landlord exodus may be exaggerated while emphasising that striking a balance between the rights of tenants and landlords should precede this concern. They also argued that this shouldn’t be a huge problem as long as there’s an increase in social housing supply.
Court efficiency in handling additional caseloads
Some members of the House of Lords also raised questions about the court system’s ability to handle more cases. With the abolition of Section 21, it’s expected that there would be an increase in caseloads as tenants have more rights to defend themselves against unfair evictions.
Baroness Taylor assured the House of Lords that they are already working closely with the Ministry of Justice to improve court efficiencies and deal with delay concerns.
Potential rent increases to offset possible losses
Part of the Renters’ Rights Bill prohibits the use of bidding wars in choosing a tenant. Once the bill becomes law, landlords are required to publish their rental fee and can’t accept bids higher than what was published. Some peers speculated that this might lead to affordability issues. They think landlords might raise their rent fees upfront to offset potential losses.
Landlord risks to pet-related damages
While most peers support the idea of pets bringing mental health benefits, they’re not 100% convinced it would protect the rights of landlords. The lack of comprehensive pet damage insurance policies is seen as an issue. Without enough protection to cover pet-related damages, it makes landlords vulnerable to financial risks and property issues.
Local council enforcement challenges
The Renters’ Rights Bill grants local councils with enforcement powers. This is an important role that will define the success of the new regulations. But just like how peers worried about the court system, they’re also concerned about the local council’s ability to implement the new law, specifically their financial ability to enforce the changes.
Small-scale landlord struggles with problematic evictions
The discussion also touched on the plight of small-scale landlords. Some members of the House of Lords are concerned with their ability to deal with problematic evictions. They are worried that the abolition of Section 21 will lead to prolonged legal battles that will aggravate small landlords’ financial risks.
Drawing lessons from Scotland
The House of Lords also discussed Scotland’s Rental Laws and the possible lessons they can get from their experience in eliminating no-fault evictions. This will help them identify possible successes and challenges that they would face once the bill is passed into law and implemented. By studying Scotland’s experience, they can adjust to minimise the negative effects on the private rental sector.
Financial burden of complying with Decent Homes Standards
While the Decent Homes Standards will improve rental property conditions, peers are concerned about the financial burden it will bring. Any property upgrade and renovation will cost landlords. The older the property, the higher the cost to make it comply with the Decent Homes Standard. This might push landlords to pass the cost to tenants – thereby causing affordability issues.
Upfront rent payment restrictions
The Renters’ Rights Bill also restricts the amount a tenant can pay in advance. Peers believe that restricting upfront payments might affect self-employed individuals and international renters who usually rely on bulk payments to secure housing for themselves.
Stay Updated On Rental Property Regulations
After the second reading at the House of Lords, the bill’s next step is to move on to the Committee Stage. Here, every bill clause will be agreed to and any amendment will be voted on. The amendments will be discussed and considered. Issues may be discussed for as long as a member wishes. There’s no time limit compared to the same stage in the House of Commons.
Once the bill goes through the Committee Stage, the amended bill will be reprinted. The bill then moves to the Report Stage where it will be scrutinised further.
As of the writing of this article, there’s still no set date for the Committee Stage. You can check their website for updates on the Committee Stage. While the Renters’ Rights Bill progresses into the House of Lords, landlords should pay attention to the changes implemented to prepare their properties to comply.
If you have questions about the Renters’ Right Bill and how it will affect your rental property business, City Relay is here to help. Contact us so we can discuss how you can prepare your property to comply with the new regulations that this bill will bring.
