The Renters' Rights Bill took another step forward yesterday as it passed through its second reading in the House of Lords. The debate covered key issues affecting landlords, including student tenancies, supply and demand concerns, legal enforcement, and pets in rental properties.

While some elements remain unclear, the bill is moving quickly, and parts of it are expected to become law by spring 2025.

Key Takeaways from the Debate:

• Student Tenancies: Private purpose-built student accommodation will be exempt from the Assured Tenancy System, but some Peers argued that smaller private landlords renting to students should also be included.

• Supply & Demand Worries: Some Peers remain concerned that the bill will push landlords out of the sector, worsening housing shortages, while others claim this fear is exaggerated.

• Pets in Rentals: The mental health benefits of allowing pets were acknowledged, but concerns were raised about a lack of suitable pet damage insurance for landlords.

• Court System Concerns: Despite reassurances that the government is working with the Ministry of Justice to handle eviction cases efficiently, many landlords remain doubtful about whether the system can cope.

• Bidding on Rental Properties to Be Banned: While this aims to make renting fairer, some fear it may simply lead to higher asking rents instead.

• Enforcement Challenges for Local Councils: Councils will have greater powers under the bill, but concerns were raised about whether they have the resources to enforce the new rules effectively.

• Impact on Small-Scale Landlords: Some landlords may struggle to remove problem tenants without facing long legal delays, which could put them off remaining in the market.

• Decent Homes Standard: While this is a welcome move to improve housing quality, many small landlords may struggle to afford necessary upgrades, potentially leading to higher rents for tenants.

• Banning of Upfront Rent Payments: This could make it harder for self-employed and international renters to secure a tenancy, creating additional barriers in the market.

What’s Next?

The bill will now move to the committee stage in around two weeks, where Peers will go through the proposals line by line and suggest amendments.

If this legislation impacts your rental business, now is the time to stay informed and prepare.

If you have any questions or concerns about how these changes may affect you, feel free to book a complimentary call with one of the team.