NRLA: Renters’ Rights Bill delay causing uncertainty for tenants and landlords
Ministers need to tell landlords and tenants when measures in the Renters’ Rights Bill will take effect the National Residential Landlords Association (NRLA) is today warning.
The Government pledged last year to abolish Section 21 ‘no explanation’ repossessions and to make other changes to the rental market this summer. With the Bill not scheduled to begin detailed scrutiny in the House of Lords until after Easter, this timetable will now be missed.
Whilst the Government has said it will give the sector “as much notice as possible” about when the Bill will be implemented, no further detail has been provided.
Almost five million households will be affected by the decision to end fixed term tenancies, illustrating the scale of the challenge facing the private rented sector. A minimum of six months from the point at which regulations are published will be needed to ensure that landlords, tenants, and the businesses which support them are adequately prepared for these reforms.
The UK Government should learn from the experience of implementing similar reforms elsewhere across the country, which uncovered significant difficulties that took a substantial amount of time to resolve.
Changes needed to ensure the smooth implementation of the system replacing Section 21 include:
• Equipping landlords, agents and legal professionals with guidance and training to manage the transition effectively.
• Adjusting policies and rates across insurance and mortgage providers.
• Adapting court procedures to prepare for an increase of in-person hearings.
• Training letting agents and updating their internal processes and IT systems.
Ben Beadle, Chief Executive of the National Residential Landlords Association, said:
“The lack of clarity is causing needless uncertainty for both landlords and tenants. It is damaging the rental market at a time when there is already a chronic shortage of homes to rent.
“Given the extent of the changes, at least six months will be needed to ensure a smooth transition to the new tenancy system. Anything less will be a recipe for confusion and chaos.
“The idea that such sweeping changes could be made overnight is, at best, wishful thinking.”
-ENDS-
Notes:
• Speaking when the Renters’ Rights Bill was published in September 2024, the Housing Minister, Matthew Pennycook MP, said: "We hope [the bill] will make very quick progress through the House of Commons and that we have that new tenancy system in place within the first half or around summer next year."
• Detailed line by line scrutiny of the Bill in the House of Lords at Committee Stage is not due to start until 22nd April.
• Speaking at Second Reading of the Renters’ Rights Bill in the House of Commons in October 2024 the Housing Minister said in respect of implementation of the Bill that: “Our intention is to give the sector as much notice as possible.”
• According to the property portal, Zoopla, there are now an average of 12 renters are currently chasing each home for rent, higher than pre-pandemic levels.
• According to the most recent English Housing Survey data there are around 4.7 million households in the private rented sector in England.
• In Scotland, the Private Housing (Tenancies) (Scotland) Act 2016 received Royal Assent on 22nd April 2016 but did not come into force until 1st December 2017.
• In Wales, the Renting Homes (Wales) Act 2016 received Royal Assent on 18th January 2016 but did not come into force until 1st December 2022.
• Further information about the NRLA can be found at www.nrla.org.uk. It posts on X @NRLAssociation.
• The NRLA’s press office can be contacted by emailing [email protected] or by calling 0300 131 6363.
