The Renters’ Rights Bill, which recently concluded its passage through the House of Commons on 14^th January 2025, has now moved to the House of Lords for further scrutiny. While the Bill introduces several measures aimed at protecting renters, it has also sparked concerns within the housing sector. Notably, the UK Government has resisted calls to reinstate fixed-term tenancies and has excluded provisions for minimum EPC standards, which will instead be addressed in a separate consultation by the Department for Energy Security and Net Zero.

Striking a Balance Between Tenants and Landlords

Propertymark has been actively campaigning to ensure the Bill strikes a fair balance for both tenants and landlords. While the intent to protect renters is commendable, overly restrictive regulations risk reducing the supply of rental properties. This, in turn, could drive up rental prices and make it even harder for people to secure affordable housing. The goal, therefore, should be to create a framework that safeguards renters while encouraging landlords to remain in the market.

Key Amendments Now Included in the Bill

Limiting Rent in Advance

One of the most significant amendments involves limiting the amount of rent tenants can pay in advance. While this aims to protect renters from financial exploitation, it could inadvertently reduce housing options for vulnerable groups. For instance, pensioners, those on low incomes, self-employed individuals, and international students often struggle to pass referencing and affordability checks. Paying a larger sum upfront can provide these tenants with an alternative way to demonstrate their ability to maintain a tenancy, thereby giving landlords confidence in renting to them.

Housing Minister Matthew Pennycook has clarified that landlords will still be permitted to request one month’s rent in advance, alongside a security deposit of up to five or six weeks' rent. He also emphasised the role of referencing checks, affordability assessments, and guarantors in ensuring landlords’ confidence.

Eviction Grounds for Student Tenancies

The Bill’s current provisions pose challenges for student landlords. Ground 4A, which allows landlords to regain possession of a property for student tenancies, is only applicable if the tenancy is signed less than six months before its start date. However, many student agreements are signed up to a year in advance to align with academic calendars. If landlords cannot rely on Ground 4A, it could disrupt their ability to prepare properties for the next academic year, potentially reducing the availability of student accommodation.

Moreover, the restriction does not apply to one and two bedroom properties rented to students, creating further uncertainty for landlords and potentially decreasing the supply of student housing in university towns.

Landlord Fees to Fund Ombudsman

Another amendment establishes that fees paid by landlords will fund the private rented sector Ombudsman. This aims to provide both renters and landlords with access to a fair and effective dispute resolution service.

Guarantors’ Liability After Tenant Death

The Bill now includes a provision to protect guarantors from financial liability after the death of a tenant. Housing Secretary Angela Rayner has highlighted that this measure will safeguard guarantors, often family members, from financial hardship during a period of grief.

Private Rental Sector Database

A mandatory registration scheme for landlords has been introduced, requiring detailed information about landlords and their properties. This includes names, contact details, any enforcement actions, and previous eviction notices. Registration fees will be paid by landlords, ensuring the scheme is self-funding.

Home Adaptations for Disabled Tenants

Although a proposal regarding home adaptations for disabled tenants was withdrawn before the vote, assurances have been given that it will be revisited at the next stage. This amendment seeks to allow disabled tenants to appeal if landlords refuse adaptations recommended by a local authority Home Assessment, provided the changes are deemed ‘reasonable adjustments’ under the Equalities Act 2010. Examples of such adjustments include installing ramps, grab rails, or motion-activated lighting.

Conclusion

As the Renters’ Rights Bill progresses to the House of Lords, it remains a contentious piece of legislation. While it introduces important protections for tenants, the potential for unintended consequences must not be ignored. Balancing the needs of tenants and landlords is crucial to ensuring the private rental market remains viable and accessible for all.

We will keep you appraised of all updates as and when they happen.