Renters’ Rights Bill heads to the Lords with key amendments

The Renters’ Rights Bill has navigated the House of Commons and is now heading to the House of Lords for further scrutiny and could become law by the summer.

While the Bill incorporates several amendments, including limits on upfront rent payments and protections for bereaved guarantors, there are concerns over how landlords will be affected.

One key amendment included in the Bill restricts the amount of rent landlords can demand in advance.

Housing Minister Matthew Pennycook stated that landlords can still request one month’s rent upfront, alongside a security deposit, and that referencing and affordability checks, along with the option to request guarantors, should provide sufficient confidence for landlords.

‘Unjust private rented sector’

Mr Pennycook said: “The Bill will modernise the regulation of our country’s insecure and unjust private rented sector, levelling decisively the playing field between landlord and tenant.

“It will empower renters by providing them with greater security, rights and protections so they can stay in their homes for longer, build lives in their communities and avoid the risk of homelessness.

“It will ensure we can drive up the quality of private rented housing so that renters have access to good quality and safe homes as a matter of course.”

He added: “And it will allow us to crack down on the minority of unscrupulous landlords who exploit, mistreat, or discriminate against renters.”

Prevent guarantors from being held liable

The Bill also introduces provisions to prevent guarantors from being held liable for rent payments after the death of the tenant they are guaranteeing.

Before the debate, Housing Secretary Angela Rayner emphasised that this amendment will safeguard bereaved guarantors, often family members, from facing financial hardship during a time of grief.

She said: “For far too long working people and families have been at the mercy of a fickle and unfair rental market, faced with outrageous upfront costs, and struggling to find a safe and secure place they can truly call home.

“Another change in law will safeguard bereaved guarantors, who are often family members, from being forced to pay rent for the rest of the tenancy where a loved one has died.

“This will mean families will not be put in unfair financial hardship during a time of grief and will not be liable for extended periods of rent when trying to end the tenancy agreement in unforeseen and tragic circumstances.”

Other amendments to the Renters’ Rights Bill

Eviction grounds for student tenancies

The current draft of the Bill limits the use of eviction Ground 4A, which allows landlords to regain possession of HMOs, to tenancies signed less than six months before the start date. This poses a challenge for student landlords since it is common practice for student agreements to be signed up to a year in advance.

Propertymark warns that this restriction could hinder landlords from regaining possession of their properties before the start of each academic year, potentially impacting future tenancies.

Also, Ground 4A does not currently apply to one- and two-bedroom properties rented to students.

This could deter landlords from offering their properties to students, potentially reducing the availability of suitable accommodation for young people in university towns.

Funding for the PRS Ombudsman

The Bill includes provisions for landlords to contribute fees towards the establishment and operation of the private rented sector Ombudsman.

The government says this funding mechanism will ensure that both renters and landlords have access to an effective and impartial dispute resolution service.

Establishment of a landlord database

The government has outlined the information that will be required for the mandatory private rental sector database. This information includes details about the landlord and their properties, such as their name, address, contact information and any history of enforcement actions or eviction notices.

The costs associated with maintaining this database will be covered by fees paid by landlords.