Renters’ Rights Bill passes second reading in the Lords

Renters’ Rights Bill passes second reading in the Lords

9:47 AM, 5th February 2025, About 2 weeks ago 23

Text Size

The Renters’ Rights Bill has passed its second reading in the House of Lords and will now go to the Committee stage.

A total of 44 members of the House of Lords spoke at the second reading of the Bill.

Baroness Taylor of Stevenage, Parliamentary Under-Secretary of Housing, who introduced the second reading of the Bill claimed the Labour Party recognises the work of good landlords and landlords will be able to reclaim their properties when they need to.

She said new expanding possession grounds are being introduced and will be as “watertight as possible” and no loopholes for landlords to abuse the grounds.

Baroness Taylor also confirmed that councils WILL have powers to enter a business and possibly a landlord’s home and rental property to ‘gather evidence where required’.

Abolishing fixed term tenancies will create a simpler system

Baroness Taylor also claimed abolishing fixed-term tenancies would create a “simpler system” without tenants being trapped in tenancy agreements.

Many members of the Lords,  also warned of the “unintended consequences” of abolishing fixed-term tenancies arguing it would create chaos for students.

Lord Truscott argued during the debate that most tenants prefer fixed-term tenancies because they offer greater security

He said: “Tenants will have less security, not more, as instead of a one or two-year tenancy, if mutually agreed, landlords will be able to give notice at any time, up to four months if reoccupying or selling their property.

“Why cannot reasonable people agree a fixed term, with a break clause if required? Incidentally, the majority of tenants want fixed-term tenancies.”

The Renters’ Rights Bill will ensure landlords cannot unreasonably deny tenant requests to keep pets in their homes, allowing tenants to challenge unfair decisions.

Labour adds that it understands that some landlords have concerns about potential pet-related damage. To address this, the Bill will permit landlords to require insurance coverage for pet damage.

Baroness Taylor told the debate: “We are committed to supporting responsible pet ownership in the private rented sector. The Bill will ensure that landlords do not unreasonably withhold consent when a tenant requests to have a pet in their home, with the tenant able to challenge unfair decisions.

“We know that some landlords are concerned about potential damage caused by pets. That is why the Bill will allow landlords to require insurance covering pet damage.”

EPC C changes will cost thousands of pounds

Baroness Scott of Bybrook, from the Conservative party, labelled the Renters’ Rights Bill as “counterproductive and will make landlords leave the market.”

Baroness Scott also pointed out that Ed Miliband’s plans to have all homes reach EPC C targets by 2030 could cost the private rented sector £25 billion, an average cost of £5,400 per home.

Ms Scott said of the EPC changes: “This is a cost that many landlords, particularly those with only one or two properties, just cannot take.”

Ms Scott also pointed out that the government’s own impact assessment acknowledges that tenants will face increased costs due to the Renters’ Rights Bill.

The assessment says: “it is likely that landlords will pass through some costs of new policies to tenants in the form of higher rents—to offset those costs and maintain a degree of profit”.

‘Identify and find unscrupulous landlords’

On councils being handed investigatory powers, Baroness Taylor said: “New investigatory powers will make it easier for councils to identify and find unscrupulous landlords.

“Local authorities will be able to request information from third parties and to enter business premises and, I have to say in much more limited circumstances, they may able to enter residential premises to gather evidence where required.

“The new powers contain safeguards to ensure they are used appropriately and proportionately.”

The Lords’ notes state:

The bill would provide a power to require information from third parties such as banks, accountants, and client money protection schemes, as an additional route to get vital evidence to build cases.

The bill will also include the power to enter business premises and — in more limited circumstances — residential premises to obtain on-site evidence. Often essential evidence, such as email exchanges, text messages, bank statements and tenancy agreements, are held on business premises.

Watch a clip below of the Renters’ Rights Bill second reading being introduced by Baroness Taylor

Industry reaction to second reading

Timothy Douglas, head of policy and campaigns at Propertymark, said: “As anticipated members of the House of Lords delved into the detail of the Renters’ Rights Bill and discussed the intended and unintended consequences it will bring. Importantly, many Peers outlined key changes to property standards and the challenges on local authority enforcement drawing attention to the vital role letting agents will play in ensuring education and compliance to tenants and landlords.

“Disappointingly, some Peers have fallen into the trap of not understanding the costs and taxes impacting landlords and seeing rent control as an additional measure to tackle affordability issues in the private rented sector. Similar policies have failed in Scotland and must be, at all costs, avoided by the UK government.

“Sensible amendments were talked about to support student renters, much needed clarity on court reform and the implementation timeline, tackling short term lets and local authority funding as well as practical application of the grounds and amending deposit rules to allow more tenants to rent with pets. These are the areas that the UK government must focus their attention during the remaining stages of the Bill.”


Share This Article


Comments

Liam

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

10:09 AM, 5th February 2025, About 2 weeks ago

"Baroness Taylor also confirmed that councils WILL have powers to enter a business and possibly a landlord’s home and rental property to ‘gather evidence where required’."

Powers to "enter a landlords home"

Seems KGB-esque to me.

You'd have to be mad to remain in this sector.

Phil Hayward

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

10:23 AM, 5th February 2025, About 2 weeks ago

The Renters Rights Bill will undoubtedly cause many landlords to sell up. I hope the government has factored this into their plan to build 1.5 million homes per year, or whatever fantasy figure they have in mind.

If you want to save the PRS then vote for Reform UK.

Blodwyn

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

10:44 AM, 5th February 2025, About 2 weeks ago

1984 was a remarkably prescient book?

Boris

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

10:55 AM, 5th February 2025, About 2 weeks ago

I watched the first couple of hours of the Lords debate, and found it presented many varied arguments both for / against the bill, and for / against various new possible amendments.

Whilst there were some calls for tighter controls, with one Lord requesting the ban on upfront payments, ban on guarantors, and rent rises strictly limited to CPI, I was re-assured to hear many 'voices of reason' within the Lords.

Hopefully those voices of reason will shine through and have some impact on the bill as it passes through.

Rod

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:09 AM, 5th February 2025, About 2 weeks ago

Complete agreement with Lord Best and his suggestion that landlords who sell their properties to councils and other social operators should be exempt from CGT.

Earl of Lytton made a very prescient point - developers are currently sitting on 100,000 plots with planning as they are waiting for house prices to rise but forcing landlords out will bring supply that will keep prices low. This impacts the treasury in lost taxes.

iHowz have already provided briefings and proposed amendments to peers and will continue to do so as the bill progresses through the committee stage.

Why not join us as we campaign for hardworking landlords?
https://ihowz.uk/

Liam

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:23 AM, 5th February 2025, About 2 weeks ago

Reply to the comment left by Rod at 05/02/2025 - 11:09
I have considered iHowz before after my displeasure with the NRLA. What's your experience with them (iHowz)?

Selling to the council would be a win, win all round if the sales would be CGT exempt. We could always buy them back too once they have run them into the ground.

Rod

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:30 AM, 5th February 2025, About 2 weeks ago

You'll find the team at iHowz friendly and knowledgeable.

Given what is coming landlords way and the need to revisit our documentation and business models once the Bill passes, it makes sense for all landlords to take education and advice from those who know, rather than simply rely on internet searches.

Duncan Forbes

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

13:40 PM, 5th February 2025, About 2 weeks ago

EVICT and SELL Before it’s too late
I got out last year no point in staying Scotland made all mandatory to discretionary grounds for eviction!!
They will do the same in England you will have sitting tenants and will be a real problem when you die, inheritance tax!! your descendants will be forced to sell at rock bottom so 50% of value + IHT at 40%
Don’t believe the grounds for possession the courts will side with the tenants, trust me I have been through the courts.

Ian Narbeth

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

15:28 PM, 5th February 2025, About 2 weeks ago

"Baroness Scott also pointed out that Ed Miliband’s plans to have all homes reach EPC C targets by 2030 could cost the private rented sector £25 billion, an average cost of £5,400 per home."
Baroness Scott does nobody any favours citing this statistic. There are about 5,000,000 properties in the PRS so the figure of £5,400 counts the total cost and divides by the number of homes. Useless!
A great many homes already have an EPC of A, B or C and do not need expenditure to upgrade.
What we need is the number of PRS houses with D and E ratings. I expect the average required cost is substantially above £5400. Assuming a bell curve distribution of costs, we also need to know how many houses will cost more than £10,000 to upgrade. This cold be tens or hundreds of thousands. If some of those are removed from the market, that will make the housing shortage even worse. For some landlords the cost could wipe out several years' net income.

Liam

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

16:51 PM, 5th February 2025, About 2 weeks ago

Reply to the comment left by Rod at 05/02/2025 - 11:30
Thanks. I think I'll give them a try for the last year I'm in this game. Last one is going next year to the man who lives there when my fixed term is up. Have an agreed price we are both happy with so it's bye bye UK then for me.

Returns of 5 percent net and the madness that's coming just aren't worth it.

1 2 3

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

[nextend_social_login provider="facebook"] [nextend_social_login provider="twitter"]
or

Don't have an account? Sign Up

Landlord Automated Assistant Read More