NRLA backing Lords arrears amendments
The NRLA is throwing its weight behind new rent arrears amendments tabled in the Lords.
Lord Carter of Haslemere has tabled two amendments in line with NRLA proposals, which we believe will give landlords the confidence to know they will still be able to regain possession – in a timely manner – should their tenants stop paying rent.
Currently landlords can seek possession under ground 8 once a tenant is in two months of arrears, with the new Bill, in its current form, suggesting that is extended to three months.
In the first of his amendments Lord Carter proposes the existing (two month) threshold remains when the Renters' Rights Bill comes into force, in line with NRLA recommendations.
The association has also been lobbying for this, arguing the three-month rule will have a significant impact on landlords, particularly those with smaller portfolios, many of whom simply cannot afford to go without rent for what would effectively be four months once the notice period is taken into account.
As we have taken pains to point out throughout the consultation process, most landlords are not the fat cats the media makes us out to be, with 70 % basic rate taxpayers.
The change to a three-month threshold will also have the unintended consequence of making it more difficult for those on lower or uncertain incomes to find homes to rent, as landlords are likely to become much more risk-averse when it comes to choosing who to rent their homes to.
Universal Credit caveat
Lord Carter’s second amendment, also backed by the NRLA, is in relation to Universal Credit.
The Renters’ Rights Bill, in its current form, further restricts landlords’ ability to use ground 8 by excluding any rent arrears that come about if someone hasn’t received their Universal Credit payments.
While this caveat has no doubt been introduced to protect tenants should there be administrative errors when it comes to their benefits, the knock-on impact for landlords will be no rent payments and no way of regaining possession.
This is complicated by the fact that – unless they receive direct payments – a landlord has no way of knowing whether their tenant is in receipt of Universal Credit in the first place.
Tenants are under no obligation to tell their landlord, nor is the Department for Work and Pensions (DWP). In practice this could mean a landlord could start a possession claim, pay court fees and attend a hearing, only to be told the claim is invalid due to a delayed Universal Credit payment.
Lord Carter’s amendment would get rid of this rule, something that would not only reduce courts’ workload (by preventing possession claims with no chance of success), but provide valuable assurances to landlords that if their tenants stop paying rent, they can regain possession.
NRLA policy director Chris Norris said: “Lord Carter has tabled two practical, sensible amendments, in line with calls we have been making for some time.
“It is vital that landlords have confidence that, if tenants do not pay their rent, they can regain possession in a timely manner and it is crucial we retain the two-month limit, or risk debt spiralling out of control, both for the tenants and landlords housing them.
“We will continue to work with peers to gather support for these, and other amendments, to ensure we have a bill that is balanced and fair for all.”
In all 46 pages of amendments have been tabled since the Renters’ Rights Bill’s Second Reading in the Lords on 4 February.
A date has yet to be confirmed for Committee stage, in which each amendment must be debated, with an open-ended time limit and all Lords given the opportunity to speak.
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More information
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For more on the NRLA's approach to the Bill and our campaigns work read a blog by our policy director Chris Norris here.
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Extra dates have been added for our new Renters’ Rights course, after training sessions sold out in record time. For more information and to book click here.
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We have also added a new eLearning option for the Renters’ Rights course, allowing you to take the training at a time and place to suit you. For more information and to book click here.
