Renters’ Rights Bill under fire in part two of Committee Stage

Peers in the House of Lords have hit out at the government’s Renters’ Rights Bill during stage two of the committee stage.

Members raised concerns over the abolition of fixed-term tenancies, new possession grounds, and fears the Bill could drive good landlords out of the market.

Heavy burden on landlords

During the debate, Baroness Scott of Bybrook slammed the government for trying to force the Bill through without thinking of the consequences.

She said: “In its haste to publish this Bill, the government appears willing to abandon the principle of prospective law-making, placing an immediate and heavy burden on landlords.”

The Earl of Leicester, a landlord himself, warned that the Bill could drive out good landlords from the private rented sector.

He said: “I have 47 tenants who have been my tenants for between 21 and 40 years, and 45 who have been my tenants for between 11 and 20 years.

“Many noble Lords have spoken about the importance of not losing good landlords, and this Bill, as it is currently written, is very much in danger of creating that reality.”

Baroness Scott pointed out that 45% of landlords only own a single property and said many landlords are self-managing with “no teams behind them and a lack of infrastructure to comply with complex regulations.”

Concerns around abolotion of fixed-term tenancies

Lord Jackson of Peterborough also called on the government to be clearer about when the Renters’ Rights Bill will come into force.

Lord Jackson raised concerns that, as things stand, the Bill would scrap all fixed-term tenancies and turn them into rolling (periodic) ones straight away.

He said: “All existing assured shorthold tenancies even those mid-term would be immediately converted upon commencement of the Bill.”

“We need clear commencement dates and transitional periods for all new obligations.”

Baroness Scott of Bybrook echoed Lord Jackson’s thoughts.

She pointed out that if a tenant signs a tenancy agreement in January 2025 under one set of rules, and then the Renters’ Rights Bill passes in June 2025, that agreement could suddenly become invalid.

Unfair for landlords

During stage two of the committee stage, Lord Pannick criticised Clause 15 of the Renters’ Rights Bill, which limits landlords’ ability to evict tenants within the first 12 months of a tenancy.

Under this clause, landlords would be required to give four months’ notice before eviction, and would also be prohibited from marketing the property for rent for 12 months after the notice expires or a claim is filed.

Lord Pannick argued that this provision was “extremely unfair to landlords” and warned that it would inevitably “have a negative impact on housing supply”.

Baroness Scott adds: “Landlords should have their rights respected and retain the ability to recover possessions when they need to.”

Baroness Bowles of Berkhamstead from the Liberal Democrats says any new possession grounds should be practical for the courts to handle, and the courts must be streamlined and equipped to manage an influx of cases.

Baroness Taylor of Stevenage, Parliamentary Under-Secretary of State for Housing, says the 12 month is designed to prevent abuse of possession grounds.

She said: “In the current form of the Bill, landlords will be unable to market or relet a property for 12 months after using the moving or selling grounds. This constraint was designed to be easy for tenants to identify when seeking rent repayment orders or for local authorities wishing to prosecute abuse of the ground, which carries a fine of £40,000. This also ensures that tenants who leave during the notice period, as we believe many do, are protected, not just those where possession is sought via the courts.”

“I think the current 12-month restriction on re-letting is the right one to prevent abuse of those possession grounds.”

Landlords should not be punished

Baroness Scott agreed with Lord Carter of Haslemere’s amendment to retain the current threshold for rent arrears.

Under the Bill, the threshold would increase from two to three months before a landlord could enforce repossession by serving notice. However, one of the amendments, proposed by Lord Carter of Haslemere, would keep the existing two-month threshold in place when the Bill comes into force.

Baroness Scott said: “This strikes an appropriate balance, recognising that landlords need to be protected from bad actors who could have a devastating financial effect on them.

“Landlords should not be punished for supplying rental properties to the market. Maintaining the existing possession grounds for rent arrears would mean that they can operate in the market with confidence that they will not be left out of pocket.”

The Bill will go through a few more debates during the committee stage in May before moving on to the report stage, with four more debates scheduled.

Watch the Earl of Leicester warn that the Renters’ Rights Bill could drive good landlords out of the market below.

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