NRLA calls take centre stage in Lords debate

The NRLA's calls on the Renters' Rights Bill have taken centre stage in this week's debate in the House of Lords.

Lord Carter of Haslemere, who tabled two amendments in line with the NRLA's proposals on possessions should tenants stop paying rent, told fellow peers: “I am grateful to the National Residential Landlords Association for very helpful discussions. These amendments would benefit both tenants and landlords.” 

He argued landlords and tenants are: "Two sides of the same coin – one cannot exist without the other," adding, "any weighting of the scales in favour of one, while it may be well-motivated, risks being counter-productive and detrimental to both,” going on to echo the NRLA argument that "we must keep good landlords in the sector to avoid making tenants homeless.” 

He was not the only peer to recognise the NRLA's arguments, outlined in a comprehensive briefing ahead of the debate, with the Earl of Leicester warning that the Bill as it stands could force landlords out of the sector, telling peers: “Many noble Lords have spoken about the importance of not losing good landlords, and this Bill, as it is currently written, is very much in danger of creating that reality.” 

The plight of smaller landlords was also flagged by Baroness Bowles of Berkhamsted who said new possession grounds must be workable and backed by a robust, and speedy court process, something the NRLA has been calling for since the plans were first mooted. She said: "It would be both unsound and unreasonable if the balance, through costs or hurdles for regaining the possession of property, were, in general, further loaded against small private landlords.” 

And amendments called for by the NRLA - that possession notices served before the Bill takes effect should remain valid for three months (which were subsequently tabled by the Government) were also agreed, providing some certainty on transitional arrangements.  

What else has been said during the debate?

The Renters’ Rights Bill began its Committee stage in the House of Lords this week after a two month wait, focussing on the initial clauses in the Bill, including those relating to the abolition of fixed term tenancies, student tenancies and grounds for possession. 

Committee stage in the House of Lords marks a significant step for the Renters’ Rights Bill in the Government’s efforts to reform the private rented sector. More than 300 amendments have been proposed by peers, and all will be debated over the coming weeks – at the time of writing, six sittings have been scheduled.   

Abolition of fixed terms and Section 21  

As anticipated, efforts to reintroduce fixed term tenancies and Section 21 were firmly rejected by the Government on the basis that they are incompatible with the Bill’s core objective to improve security of tenure.

While certain peers argued that the abolition of fixed term tenancies could bring instability and increased costs, the Housing, Communities and Local Government Minister, Baroness Taylor of Stevenage, made clear that the Government will not support the retention of fixed term assured tenancies under any circumstances, including for students in the private rented sector.  

Student accommodation 

There was a lengthy discussion on the student accommodation sector, and despite reasoned argument from peers including Lord Willetts and Baroness Wolf to extend the student ground to one and two bedroom student properties, the Government held firm, despite NRLA warnings.

The Government maintains that the removal of fixed terms will not “have a destabilising effect on the student rental market” and refused to accept that ground 4a will likely result in up to one-third of private rented student accommodation being lost from the sector.  

Amendments that would have enabled student landlords to offer fixed term tenancies, including those where they adhere to a statutory code of conduct, have therefore also not made it into the Bill.  

Ending a tenancy  

A range of amendments to grounds for possession were debated, most notably on the arrears threshold for ground 8, the mandatory arrears ground. Lord Carter of Haslemere argued compellingly for the current two-month threshold to be retained and for non-payment of Universal Credit (UC) to count towards a rent arrears claim. Although there was widespread backing, the Government, again, failed to accept these amendments. 

And despite agreement that the Bill must strike a balance between security of tenure for tenants and certainty for landlords, an amendment that would have restricted tenants from serving notice in the first four months of a tenancy failed to attract the support of the Government.  

On a positive note Baroness Taylor of Stevenage agreed that there should be no changes to compel landlords to compensate tenants should they have to move out - an idea currently under discussion in Wales. She told the House: "A landlord who needs to sell or move into a property may be in financial difficulty themselves and requiring them to forgo the last month’s rent from the tenant would be an undue burden. 

“We ... believe that it is key for the market that landlords have the flexibility to move into or sell their property when this is necessary.” 

What’s next? 

The Bill still has a considerable way to go, and many of the proposed changes are likely to be revisited at Report stage. We will continue to make the case for balanced and workable reforms, but the direction of travel is clear, and the Government is committed to delivering a fundamental shift in the tenancy regime.  

Peers will consider the legislation again on Monday (28th April) for the Bill’s third sitting, and we will keep members informed of its progress. As always, we will continue to push for fairness and pragmatism – ensuring your voice is heard throughout the process.  

With the likely final Committee stage sitting scheduled for 14th May, our webinar on 15th May will give members a timely summary of what’s been discussed and crucially what’s changed in the Bill. You can register for the event here. 

Previous articles and videos have outlined how Committee stage works and explained that most non-government amendments are highly unlikely to be accepted. No non-government amendments have been accepted so far, so the Bill remains largely unchanged. You can find out more by watching the video below: