Hello readers,
Since my last update on February 11th, the Renters’ Rights Bill has continued to evolve, with a wave of amendments and ongoing concerns from landlords about its potential impact. As a letting agency owner, I’ve been actively engaging in discussions to ensure our voices are heard.
I recently joined 250 other letting agents and Propertymark members in writing to members of the House of Lords to highlight some of the biggest challenges this bill presents. While it’s encouraging to see some of these issues being addressed through proposed amendments, there’s still a long road ahead.
Thanks to Propertymark and other industry resources, we have raised some key points, including:
- The removal of fixed-term tenancies
- Court capacity concerns
- Restrictions on upfront rent payments
- Regulations around short-term lets
- Extending the deposit cap for tenants with pets
Beyond these, we need a clear timeline for when these changes will take effect and a thorough evaluation of the resources councils require to regulate the private rental sector effectively. Without proper funding and support, enforcement will be chaotic at best.
Key amendments to watch
At the time of writing, there are 129 proposed amendments. Some providing much-needed flexibility, others adding new restrictions. Here are a few that stand out:
Fixed-term tenancies
A new amendment suggests landlords and tenants should still have the option to agree on fixed-term tenancies, particularly for student lets. This would be a significant win for both landlords and renters who prefer stability.
Repossession for student HMOs
Currently, landlords can repossess a student HMO (House in Multiple Occupation) under specific grounds. However, an amendment proposes extending this to include non-HMO student accommodation as well, offering more consistency in repossession rights.
Pet deposits
One proposal would require tenants to provide an additional pet damage deposit equal to three weeks’ rent. This change would offer landlords more security while making pet-friendly rentals more viable.
Changes to rent arrears rules
Under current rules, landlords can seek possession when a tenant is two months in arrears. The bill initially proposed extending this to three months, but an amendment is pushing to keep the two-month threshold.
The argument is simple: many landlords, especially those with smaller portfolios, can’t afford to go without rent for what would effectively be four months when factoring in notice periods.
Universal credit and rent arrears
A concerning clause in the bill would prevent landlords from using rent arrears as a reason for eviction if the tenant’s unpaid rent is due to delayed Universal Credit payments.
While this is intended to protect tenants from benefit system delays, it leaves landlords exposed. Since landlords aren’t informed when a tenant is on Universal Credit, they could go through the entire legal process, paying court fees and attending hearings only to be told their case is invalid due to a delayed payment.
An amendment proposes removing this restriction, which would provide more clarity and protection for landlords. Keeping it could make finding housing even harder for those on universal credit.
Rent Increase Restrictions
One of the more controversial amendments suggests limiting rent increases for four years based on either inflation (CPI) or national earnings growth (currently 5.9%).
This is essentially a form of rent control and whilst I think that it’s unlikely to pass, the fact that it has been proposed at all is concerning for landlords.
What’s Next?
We can expect the bill to move forward in the next few weeks. In the meantime, I’m working on resources to help landlords navigate the changes, and I’ll be sharing these as soon as they’re ready.
What are your thoughts so far? If you’re a landlord, what concerns you the most? I’d love to hear your perspective. Feel free to email me at hasan@home-share.co.uk.
Hasan
