There are a number of widespread industry concerns ahead if the Report Stage and Third Reading of the Renter’s Rights Bill today.
Sarah Taylor, property dispute resolution partner at Excello Law, has highlighted some of the challenges the government faces when it comes to balancing the interests of landlords and tenants.
Taylor said: “At the second reading of the Renter’s Rights Bill, concerns were raised over the capacity of the Courts and tribunals system, and resources available for local authority enforcement. These concerns have been raised widely across the housing sector.
“There were also calls by some MPs to go further with the reforms by introducing rent controls, preventing landlords from asking for rent in advance (some landlords require payment of 6 months in advance upon grant of an assured shorthold tenancy) and requiring rent guarantors, and also compensating tenants when they are evicted through no fault of their own.”
There are several proposed amendments tabled for the Report Stage.
Reflecting on some of the proposals causing most concern at Report Stage, Taylor added: “The amendment that is causing most concern amongst landlords and agents is the proposed prohibition of obtaining rent in advance. This can leave landlords at risk of unpaid rent. However, it is onerous and potentially discriminatory to require large payments of rent upfront. Tenants may be able to pay their rent regularly but may not be able to save up a significant amount of rent to pay up front. This proposal should assist in making rental accommodation accessible. It highlights the difficulties in trying to balance the interests of landlords and tenants in the legislation.
“Other proposed amendments include limiting the guarantor’s liability for rent following the death of the tenant. This is sensible as it will put the onus on the landlord to recover possession and re-let thereby avoiding a void for the landlord, whilst ensuring that housing stock is available for tenants. There is also a proposal to introduce a new ground for possession of alternative accommodation provided during redevelopment. It will be interesting to see how this is dealt with practically if the amendment is agreed.”
Following the Third Reading and Report Stage, the Renters Rights Bill will move to the House of Lords.
Rental reform plans risk making access to housing harder – agents voice concerns
