Renters’ Rights Bill: Where are we now?
The Renters’ Rights Bill had its Second Reading in Parliament this week, on its way to becoming law. Here NRLA Chief Executive Ben Beadle gives his thoughts on the plans, and what needs to happen next.
This week saw the Government’s Renters’ Rights Bill back before Parliament for its Second Reading in the Commons. Second Reading is a stage in the Bill’s passage through parliament that allows MPs to debate proposals for the first time.
So, what can we take from what was said?
Introducing the Bill, the Housing Secretary and Deputy Prime Minister, Angela Rayner acknowledged the ‘important role of landlords, most of whom provide good-quality homes for their tenants’, recognising the vast majority of us are responsible and compliant – providing the homes the country so desperately need.
There was a pledge to digitise the county court system and – vitally – the Housing Secretary dismissed the idea of rent controls which she quite rightly recognised ‘restrict housing supply, which does not help anyone’.
"Good landlords", MPs were told, "would have nothing to fear from the Bill".
Will reform break the market?
Despite the Bill being not dissimilar to the Conservatives’ Renters (Reform) Bill, the Shadow Housing Secretary, Kemi Badenoch, argued it will ‘break’ the rental market and cause ‘gridlock’ in the justice system.
The impact on the courts is a legitimate concern, and one of the pillars of the NRLA campaign since reform plans were first mooted; the association had called for court reform BEFORE section 21 is axed, however the Government has said improvements will happen alongside abolition.
When similar reforms were introduced in Scotland the courts system was quickly overwhelmed – and we will be presenting evidence from north of the border to this effect to key decision makers in the coming weeks.
While the Housing Minister Matthew Pennycook argued that ensuring the Courts and Tribunals Service are prepared for the implementation of the new system is 'essential', he did not elaborate as to what the Government believes the system being prepared means in practice. We are now asking for greater clarity on this as the Bill continues its passage through Parliament
Lead-in time
Another of the NRLA’s major concerns centres on the implementation date for the Bill.
In opposition, the Labour Party indicated it wanted the provisions related to the end of Section 21 to be enacted immediately upon Royal Assent.
However, during the debate on Wednesday, the Housing Minister gave the clearest indication yet that this could be subject to change.
He revealed that ministers acknowledge it will take time for the sector ‘to adjust to a significant change in regulation’ continuing: "We will appoint the commencement date by regulations at an appropriate interval after Royal Assent. Our intention is to give the sector as much notice as possible."
Tenant debt
In addition to the issues around the courts and implementation timescales, we are also seriously concerned about the issue of tenant debt and plans to increase the level of arrears a tenant can build from two to three months before landlords can serve notice to repossess.
The proposals also double the notice periods landlords must give in these cases.
To make it fair for both tenants and landlords, we are calling for:
• A requirement for landlords and letting agents to work with tenants at the first sign of rent arrears building, using the NRLA’s ready-made ‘golden rules’.
• Housing benefit rates to be linked to market rents for the duration of this Parliament.
• The retention of landlords’ right to repossess once two months of arrears have built.
We will also continue to share our calls to extend the student possession ground to the whole of the student market and for greater accountability from local authorities when it comes to housing standards.
What happens next?
Now that the Bill has passed its Second Reading it will move to Committee Stage, and I will be among a number of industry stakeholders presenting oral and written evidence to the committee on behalf of landlords on October 22.
In addition to this, we are providing evidence-based briefings for MPs and members of the House of Lords on our key asks, as well as continuing to meet with high-ranking civil servants, outlining the issues as we see them and sensible alternatives that can work for all.
Keep an eye on our Renters’ Rights Bill hub for all the latest news on the Bill and its progress through Parliament.
More information
- To read a full transcript of the debate click here.
- The NRLA is running a second member webinar on the Bill this Monday. The 'Renters' Rights in focus: understanding key aspects of the second reading' webinar will offer invaluable insights into the upcoming reforms, including how they will be implemented and their potential impact on landlords and the wider housing market. We will also update members on what we are doing to advocate for landlords during this time. The webinar will be held on Zoom on 14 October, between 12pm and 1pm. For more information and to register click here.
- The NRLA's annual Landlord Conference, being held on November 6 will offer a unique opportunity for property professionals to find out more about the Bill - and the changes we can expect to see - from expert speakers from across the industry. Tickets for the event, which will be held at Birmingham's NEC, are selling fast, so to find out more and book your place, click here.
