The Renters’ Rights Bill begins its first day at the committee stage in the House of Lords, which will see peers scrutinise the wide-ranging legislation and debate amendments.
Its measures include banning Section 21 no-fault evictions, limiting rent increases to once a year, moves to end bidding wars, and scrapping fixed-term tenancies.
The Bill was first introduced in the Commons in September by Deputy Prime Minister Angela Rayner, and in the Lord’s is overseen by Baroness Taylor of Stevenage.
The legislation faces a range of amendments including mandatory qualifications for letting agents, retaining fixed-term tenancies as an option, and moves to ensure court capacity when no fault evictions are abolished.
However, Goodlord Group managing director of insurance Oli Sherlock says “significant questions” remain over the impact these changes may have on tenants.
Sherlock points out: “When it comes to Section 21, there is a real risk that removing this power from landlords may lead to more rental disputes going to court.
“This could see thousands more tenants receiving county court judgments for issues such as rent arrears — damaging their credit scores and potentially restricting their access to properties further down the line.
“The extension of the notice period in the event of arrears [increasing from two months to three months] may seem favourable for tenants but the reality is that by the time tenants are in two months arrears it is often hard to reverse their position.
“Adding a further month to this process will inevitably lead to larger personal debt. Such measures should be focusing on speedy resolutions for both parties, not extensions.”
Sherlock adds: “The ban on bidding wars could unintentionally cause a rapid increase in average rent prices as soon as the new legislation comes into effect.
“With landlords forced to accept no more than the advertised rent, many will understandably be tempted to up their prices from the off.”
Propertymark head of policy and campaigns Timothy Douglas says: “The UK government must listen to peers and act on amendments to the Renters’ Rights Bill to strike a fair and workable balance for all parties involved.
“It remains imperative there is adequate support for landlords to plan and implement all necessary changes, and that all new legalisation is kept under full review ensuring it remains relevant, evidence-based and fit for purpose moving forwards.”
However, the Bill’s supporters say the legislation grants key rights to tenants and will act as a break on costs.
UK rents increased by 7.7%, to £1,332, in the year to March.
This annual growth rate is down from 8.1% in the year to February — but is still almost three times higher than headline inflation, at 2.6%.
Generation Rent chief executive Ben Twomey says: “The ending of Section 21 ’no fault’ evictions is a milestone to be celebrated after a decade of Generation Rent campaigning.
“But some landlords will inevitably start using unaffordable rent hikes as ‘no fault’ evictions in all but name, dampening the impact of this major reform.
“Thankfully, the government can protect us from this. It must listen to peers from across the political spectrum and urgently slam the brakes on soaring rents.”
