Renters (Reform) Bill – The key amendments to look out for

Renters (Reform) Bill – The key amendments to look out for

9:41 AM, 24th April 2024, About 2 years ago 14

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The Renters (Reform) Bill is heading back to the House of Commons, with several key amendments set to be debated and Goodlord has examined the most interesting proposals that could impact landlords and tenants.

The firm’s managing director insurance, Oli Sherlock, said: “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.”

He adds: “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.”

Conservative amendments

  • Section 21: Conservative MP Anthony Mangnall proposes a review of court procedures used in eviction cases before a ban on Section 21 ‘no-fault’ evictions is implemented. This delays the abolition of Section 21.
  • Longer tenant notice periods: Another amendment by Mr Mangnall would require tenants to give landlords four months’ notice before leaving, potentially offering landlords more stability.

Labour amendments

  • Mandatory rent price advertising: Labour proposes requiring landlords to advertise the asking rent to prevent bidding wars and ensure transparency.
  • Ban on rent bidding: Another Labour amendment aims to stop landlords from encouraging tenants to bid above the advertised rent.
  • Guarantor ban: Labour MP Alex Sobel proposes a ban on landlords requiring guarantors, potentially making it easier for some tenants to find accommodation.
  • Flexible student tenancies: Labour MP Paul Blomfield’s amendment aims to give students more flexibility when signing tenancy agreements.

Green Party amendments

  • Minimum EPC rating: Green MP Caroline Lucas proposes raising the minimum energy efficiency rating for rental properties to an EPC C rating.

Landlords are less opposed to the removal of Section 21

Goodlord’s data suggests landlords are becoming less opposed to the removal of Section 21.

It says that support for keeping Section 21 fell from 71% in 2022 to 62% in 2023, according to its research.

The firm’s analysis also shows the number of tenants required to find a guarantor has risen from 17.73% in 2020 to 18.88% in 2023.

And the issue of tenants being allowed pets is controversial – just 5% of tenancies in 2023 allowed pets, Goodlord says.

The Bill proposes a right to request pets unless landlords have a good reason to refuse.


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Martin Roberts

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Member Since November 2016 - Comments: 227

10:04 AM, 24th April 2024, About 2 years ago

Requiring 4 month’s notice from tenants is unworkable, let’s say T gets made redundant then gets a job offer 100 miles away.

Stay with no income to pay rent, or move for job?

No Guarantor – no home, how on earth could that make it easier for a prospective tenant?

No ‘rent bidding’ – Let’s say you are going to let out a house which should go for about £1,000 pcm, advertise at £1,500 and accept the nearest offer?

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Vanessa McViety

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Member Since April 2024 - Comments: 1

10:08 AM, 24th April 2024, About 2 years ago

Fortunately I am on an exit strategy but if I had any doubts labours proposed ban on guarantors would have been the nail in my coffin. I have never taken tenants for years without a guarantor, if your family and friends don’t trust you why should I? people today expect and demand as a right a house/home to be provide without any consideration to the cost to others to provide a roof over their heads. In Labour La La land houses will appear by magic funded by local landlords who enjoy losing money. There is no incentive for anyone to enter letting now, to many people winging about unaffordability after spending years in useless education, taking gap years, having the latest designer gear and mobile phones or producing families that they have no ability to support. The worlds gone mad. Rights have taken over from responsibility. But, I am on the road out and I cannot wait. I had 39 rentals at one point heading for single figures now, all sold to residents so that’s a substantial amount of local properties no longer available to rent. Fortunately its not going to be my problem. Without guarantors I would have lost many more £1000’s of pounds in damages and unpaid rents.

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John MacAlevey

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Member Since May 2014 - Comments: 134

10:32 AM, 24th April 2024, About 2 years ago

`Guarantor ban: Labour MP Alex Sobel proposes a ban on landlords requiring guarantors, potentially making it easier for some tenants to find accommodation.`

bye bye applicant..

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Stella

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Member Since May 2014 - Comments: 581

10:59 AM, 24th April 2024, About 2 years ago

Reply to the comment left by John MacAlevey at 24/04/2024 – 10:32
They must live in “Noddy land”

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Warren

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Member Since August 2015 - Comments: 16

11:34 AM, 24th April 2024, About 2 years ago

Agree completely with what others have said here. It’s a bit scary how ill thought out these proposals are. Take the ban on requiring a guarantor. I have in the past let to people who I needed a guarantor for, else my rent guarantee insurance would not except the tenant. So no guarantor, no tenancy. It will force landlords to only rent to people with a high income and perfect credit record.

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Yvonne Francis

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Member Since August 2015 - Comments: 342

11:44 AM, 24th April 2024, About 2 years ago

I’ve rented to students for forty five years. Not only are they to decimate my tenancies by the ban on fixed term tenancies but now they are having a go at banning Guarantors. I never accept a tenant without a Guarantor. They are young people and almost still in the care of their parents. Student houses such as mine are really needed and liked by my tenants. If this comes to pass then I am sure most Landlords of student houses will run to the hills! Do these idiots know what they are destroying?

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Darren Peters

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Member Since January 2016 - Comments: 458

12:04 PM, 24th April 2024, About 2 years ago

The next step will be the council chooses your tenants for you to ensure no discrimination…

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PH

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Member Since May 2021 - Comments: 354

12:56 PM, 24th April 2024, About 2 years ago

Reply to the comment left by John MacAlevey at 24/04/2024 – 10:32
Exactly what I was thinking ?. It really is laughable.

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Jimmy Smith

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Member Since August 2023 - Comments: 26

13:49 PM, 24th April 2024, About 2 years ago

Reply to the comment left by Vanessa McViety at 24/04/2024 – 10:08
You mean England’s gone mad

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Simon F

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Member Since October 2020 - Comments: 188

15:08 PM, 24th April 2024, About 2 years ago

Reply to the comment left by Darren Peters at 24/04/2024 – 12:04
You to ensure discrimination on the basis of what suits the council.

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