Renters' Rights: Amendments we're backing in the Lords

The Renters’ Rights Bill moves to Committee stage in the House of Lords from 22nd April, where more than 200 amendments will be debated. Public Affairs Manager, Ellie Bateman, highlights the proposed changes we are supporting to ensure the Bill is workable and fair.  

In its current form, the Renters’ Rights Bill fails to get the balance right in a number of areas. And while the 200 amendments tabled will be discussed - as is custom at Committee stage in the Lords - very few will be accepted. 

Why amendments matter  

There are several reasons for tabling an amendment, from probing the Government on a certain issue to challenging specific proposals or policies.

These may make for an interesting debate, but most have a near zero chance of acceptance and only those that support the core principles of the Bill will make it to the next stage.

This means any proposals to retain fixed term tenancies or Section 21 – even where restricted to small portfolio landlords – will not make it into the final legislation.   

We are supporting a series of targeted amendments aimed at ensuring the Bill delivers a fair balance between the rights and responsibilities of tenants and landlords. At the heart of our campaign is the principle that, while we accept reform is needed, it must be practical and proportionate.  

Clarity on transition arrangements 

Following concerns we raised, the Government has tabled a helpful amendment about the transition period for possession claims.

The Government’s amendment clarifies that, where a landlord has served a valid Section 8 or Section 21 notice before the Bill comes into force, they will have three months from commencement to make a claim for possession.  

Without this change, landlords would need the court to issue the possession claim within three months to be certain they could gain possession. Given current court delays, this could have invalidated the claims of landlords – including those who acted promptly to regain possession.  

Preventing unmanageable debt 

The Bill raises the arrears threshold under ground 8 from two months to three. This means that, once in force, a landlord will need to wait until a tenant has accrued three months of arrears before they can serve notice to end a tenancy.  

Not only does this increase potential risks for landlords, who face a minimum of four months unpaid rent before they can apply for a possession claim, but tenants will be allowed to slip further into debt.

We are therefore supportive of Lord Carter of Haslemere’s amendment to retain the two-month threshold, which we feel offers more balanced protections for both parties.  

Lord Carter has tabled a second amendment on ground 8, which we’re also supportive of. In addition to the arrears threshold increase, the Bill inserts a caveat to ground 8 that means that, where arrears arise due to a delayed Universal Credit (UC) payment, these will not count towards the threshold.  

Our concern with this is that, unlike social housing providers, private landlords have no way of verifying whether a tenant is receiving UC, let alone whether payment has been delayed.

This risks a landlord making what they believe to be a valid claim for possession only to find that all or part of the arrears are due to a delayed UC payment.  

Lord Carter’s amendment simply removes this unworkable provision, which threatens to add further strain to the courts, which will be under pressure following Section 21 abolition. 

Safeguarding the supply of student housing 

The new regime will need all landlords to adjust, but student landlords are likely to need to make fundamental changes to their businesses. Our focus is on ensuring that, while operational changes will be necessary, the student cycle can continue to operate in line with the academic year.  

An amendment proposed by Lord Willetts would ensure that all student properties – not just larger Houses in Multiple Occupation (HMOs) – benefit from the certainty provided by the student ground for possession (ground 4A). The exclusion of one and two-bedroom student properties from ground 4A risks up to one-third of private rented student accommodation leaving the student market, which will limit options and restrict access to higher education.  

Certainty of a minimum tenancy 

The Bill will remove fixed terms and make all assured tenancies open-ended. It will also enable a tenant to serve two months’ notice at any time, which will create uncertainty for landlords.

We support Lord Truscott’s amendment to introduce a four-month notice restriction at the start of a tenancy, effectively creating a minimum six-month tenancy. This would provide some stability for both parties and help landlords manage rental income and plan for necessary maintenance.  

Streamlining rent appeals 

The Bill intends to make it easier for tenants to challenge above market rent increases, yet the only way a tenant will know whether a proposed increase is above market rent is to challenge it at the First tier Tribunal.

Baroness Wolf’s amendment would enable a tenant to check with the Valuation Office Agency (VOA) whether a rent increase is within market rates or not. This would filter out cases without merit.  

A separate amendment tabled by Baroness Thornhill calls on the Government to consult on whether the Tribunal is sufficiently resourced to handle the likely increase in challenges, and ensure adequate resources are provided, should they be needed.   

Reviewing the impact of the Bill 

We continue to warn that the Bill risks reducing landlord confidence if it does not strike the right balance - the ultimate impact of his being the potential loss of rental homes from the private rented sector at a time when 12 families are competing for each home to let.

We have also highlighted the critical need for court reform to ensure the shift to a purely grounds-based possessions procedure does not overwhelm the system and worsen possession timeliness.

Baroness Thornhill’s amendments to require the Government to review the Bill’s impact on the sector, including supply of rented homes and the regulatory and financial burden on landlords and judicial system, are essential given the limited analysis provided by the Bill’s impact assessment and lack of clarity on court reform.  

We are supporting these and several other amendments, including those focused on easing restrictions on the use of the for sale ground (1A), rent in advance, and pet liability insurance, and will continue to demonstrate the need for pragmatic changes to improve the Bill’s workability.  

While there are no guarantees that these changes will be accepted, Committee stage in the House of Lords does offer the opportunity to debate the issues and test the Government’s thinking. We expect Committee stage to conclude in early May and will continue to keep members updated on key developments. 

More information

• For more information about the process by which the Bill progresses through the House of Lords click here.   
• For the NRLA’s guides outlining how you can start to prepare for the Bill click here.   
• For more on the NRLA's approach to the Bill and our campaigns work read a blog by our policy director Chris Norris here.    
• 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.      
• 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.    

Watch our video explainer, below: