The Renters’ Rights Bill is scheduled to return to the House of Lords on 14 October, marking the final stage before it can become law.
As anticipated, the government has postponed further progress on the bill until after the main party conference season. It will now enter the ‘ping pong’ phase – a process in which the Lords and Commons exchange the bill back and forth to resolve any remaining disagreements on amendments.
While peers may put forward further changes, expectations are that no major amendments will be adopted at this stage, especially after the government previously rejected all proposed revisions from the Lords.
If no significant delays arise, Royal Assent – the formal step required for the bill to become law – is likely to be granted by the end of next month.
Allison Thompson, national lettings managing director at LRG, said: “The government’s rejection of key Lords amendments sends a clear message. They are holding firm on the core structure of the Renters’ Rights Bill but are unwilling to make concessions that would have brought much-needed clarity and balance. Proposals to widen the student exemption, allow a higher deposit for pet-related damage, or shorten the 12-month re-let restriction were all dismissed, despite being proportionate and carefully considered.
“These were not attempts to weaken tenant protections. They were pragmatic solutions that reflected the day-to-day realities faced by landlords and agents. Instead, the Bill now moves forward with some unresolved tensions, particularly around the practical enforcement of new tenancy terms, the viability of keeping pets, and the risks of re-letting delays after a failed sale. As always, it will be agents on the ground who are left to navigate these challenges and support landlords through the transition.”
While unsurprised by government’s decision to reject the amendments, Greg Tsuman, MD for lettings at Martyn Gerrard Estate Agents, think that the proposals were a “rare injections of common sense” – and their removal highlights a fundamental government misreading of the Private Rented Sector.
He commented: “As expected, the amendments that were not government-backed have not been passed – over 300 of them. This is unfortunate, as they were some injections of common sense into the Bill, which as it stands reveals the government’s fundamental misunderstanding of the Private Rented Sector. A more consultative approach would have yielded a much better piece of legislation.”
Ahead of final debate, Lucy Jones, chief operating officer at Lomond, has recapped what landlords and agents ‘need to know’ about the rejected amendments:
The Bill is still going ahead and will soon become law
The Bill is well on its way to Royal Assent, currently in its ‘ping pong stage’. It is highly anticipated it may become law ahead of Party Conference season.
The Bill is structured so that most reforms will come into force immediately such as abolition of S21, introduction of new possession grounds, end of fixed term tenancies and rent-in-advance restrictions – whilst the landlord database and potentially the Ombudsman requirement will follow later, after a transition period to allow the sector to adjust and infrastructure to be put in place.
It is expected that the final Bill will become the Renters’ Rights Act this Autumn, meaning landlords have only a matter of weeks to make their final preparations ahead of the significant changes.
No requirement for separate pet deposit
One of the suggested changes would have let landlords request a separate pet deposit of up to three weeks’ rent, on top of the usual deposit cap, but that idea was turned down. The Government said the current five-week limit already covers potential damage, and adding more would make things harder for tenants financially.
No requirement for pet insurance
Requiring tenants take out pet insurance was also rejected, with Government noting that the insurance industry is not yet ready to offer suitable products at scale. Whilst pet owners can take pet insurance out if they wish, it won’t be something landlords can enforce.
No change to the 12-month re-letting restriction after a failed sale
Another change that didn’t make it through was a plan to shorten the timeframe a landlord has to wait before re-letting a property after asking a tenant to leave in order to sell. The House of Lords suggested reducing it from 12 months to six, but this was also rejected. The Government asserted the full year is important to stop landlords from abusing the grounds of repossession.
No extension of student possession grounds to smaller properties
Allowing landlords to use the student housing ground for possession for smaller properties, like one- or two-bedroom flats and not just HMO’s, was also rejected. The Government said that the current rules already strike a fair balance and help protect students who don’t fit the typical mould, like postgrads and students with dependents.
Whilst the finer details are still to be solidified, the industry is anticipating the imminent passing of the Bill and is eager to establish the final version of the legislation in order to prepare.
Source Property Industry Eye