The House of Lords recently conducted a second reading of the Renters’ Rights Bill on 4 February 2025, where members engaged in a comprehensive debate, highlighting both support and concerns regarding the proposed legislation.

Here are the key discussions and proposed changes

1. Abolition of Section 21 ‘no-fault’ evictions:

• Support: Many peers endorsed the elimination of Section 21, emphasising that it would enhance tenant security and stability.
• Concerns: Some members cautioned that this move might lead landlords to exit the rental market, potentially reducing the availability of rental properties.
• Our comments: There will still be a means to end a tenancy. Section 8 will be strengthened to include:
  • Selling the property
  • Redeveloping the property
  • Moving themselves or a family member into the home
  • At the moment where the resident decides to stay on once a section 21 is issued due to court delays we are seeing an average timeline of 5.5 months for the resident to leave. It will very much depend on how the courts intend to handle the new process for the new timeline.

2. Transition to periodic tenancies:

• Proposal: The Bill suggests moving all new and existing assured tenancies to periodic agreements without a fixed term.
• Concerns: Certain peers expressed apprehension that abolishing fixed-term tenancies could create challenges, particularly for student housing, where fixed terms are often preferred.
• Our comments: if this is not changed in some respects the student market will be hit badly

3. Rent increase regulations:

• Proposal: The Bill proposes that landlords can increase rents only once per year through the Section 13 process, with tenants empowered to challenge excessive increases at the First-tier Tribunal.
• Concerns: Some members argued that these measures might not adequately address the root causes of housing affordability and could inadvertently lead to higher rents as landlords adjust to new regulations.
• Our comments: We have only ever advised increasing rental on an annual basis and with market information to back up the decision.

4. Property standards and enforcement:

• Proposal: The introduction of the Decent Homes Standard to the private rented sector aims to ensure properties are safe and habitable.
• Concerns: Peers highlighted potential financial burdens on landlords, especially those with limited resources, to meet these standards, which could further incentivise them to leave the market.
• Our comments: Decent homes are what the landlords we work with provide so we do not see this as a concern. Sadly due to the lack of homes there will always be landlords who offer substandard homes which people are willing to take up.

5. Landlord registration:

• Proposal: The establishment of a Private Rented Sector Database would require all landlords to register themselves and their properties.
• Concerns: Some members questioned the effectiveness of this measure in improving housing standards and raised concerns about the administrative burden it might impose.
• Our comments: it’s going to be more form filling.

The Bill will now proceed to the Committee Stage, where these concerns and potential amendments will be further examined and debated. We will obviously keep you informed of any changes as we hear them. If you would like to watch back our recent webinar on the Renters’ Rights Bill, click here to head to our YouTube channel.