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The long-awaited Renters’ Rights Bill returns to the House of Commons for debate today, with many analysts expecting it to be passed into law before the end of this month.
Although the Bill could technically go through a period of “ping pong” between the House of Commons and House of Lords, it is likely this will be cut short so Royal Assent can be granted before the end of this month.
Oli Sherlock, MD of insurance at Goodlord, commented: “The legislative equivalent of Groundhog Day is finally coming to an end. Monday’s Commons debate is practically the last hurdle before the much-delayed and even more discussed Renters’ Rights Bill receives royal assent.”
After Monday, and once the final details are ironed out, many analysts predict that the Bill will pass before Parliament rises for conference season on 16 September.
Sherlock said: “There are a few elements that remain undecided and which will be debated on Monday. This includes the details around pets in lets and whether tenants will be required to take out pet insurance to cover any potential damage. However, we don’t predict any major surprises. As a rule, expect any Government-backed amendments from the Lords debate to be approved by the Commons, and assume that the majority of opposition amendments won’t make it into the final version of the Bill.
“This means that we are incredibly close to this legislation becoming a reality and the beginning of the implementation period. Agents and their landlords must prioritise preparation, education, and internal reforms to ensure they can embrace the changes with minimal disruption.”
As the Renters’ Rights Bill reaches its final stage in Parliament, we are approaching a major turning point for the private rented sector.
Eddie Hooker, CEO of mydeposits, commented: “The Bill’s reforms will affect both landlords and tenants, from the end of no-fault evictions to stronger rights and greater accountability.”
He continued: “While the Bill does not change deposit law directly, the shift to open-ended periodic tenancies will alter how deposits are managed. Without fixed end dates, it becomes even more important that tenants and landlords understand the process for closing a tenancy and releasing the deposit. We will continue to ensure deposits are handled fairly and returned promptly when agreements end, whatever form those agreements take.
“These changes will bring new responsibilities for landlords and fresh protections for tenants. What matters now is clear guidance and smooth implementation so that everyone understands their rights and obligations.”
It is important to note that Royal Assent does not mean immediate changes. But before thar happens, this week’s debate in the House of Commons provides MPs with a final opportunity to ‘improve’ the Renters’ Rights Bill, according to Propertymark, which is urging legislators in the House of Commons to accept key changes to improve the Bill.
Extending Ground 4A to all student properties, including one and two beds, not just Houses in Multiple Occupation (HMOs) will provide greater stability for student lets and ensure a sufficient supply of student accommodation says the trade body, Propertymark argues. Under Ground 4A, student HMOs will receive a special dispensation, allowing landlords to reclaim properties to prepare for the next cohort of students for the academic year.
The UK government has removed the requirement from the Bill for pet insurance. Under the Tenant Fees Act, deposits are capped at five week’s rent in the majority of cases. Research from Propertymark shows that the Tenant Fees Act 2019 is a barrier to renting with pets with one in five landlords who previously allowed pets no longer doing since the passing of the Act.
Furthermore, 57% of landlords and agents said they were unable to recoup the cost of damage caused by pets. Therefore, the industry body says that allowing an additional pet damage deposit of three weeks’ rent will ensure more tenants can rent with pets.
Propertymark also stresses that by reducing the restricted period for landlords to relet a property from 12 months to six months, where a property sale falls through, would prevent much needed private rented property from being left empty for half a year.
Lastly, by encompassing the Tenant Fees Act into the Regulatory Enforcement and Sanctions Act 2008 would allow Primary Authority to support local authorities to give assured advice to lettings agents on achieving compliance under the Tenant Fees Act.
Propertymark currently has a Primary Authority partnership with Warwickshire County Council Trading Standards to benefit businesses through the issue of ‘Assured Advice’ on a range of matters that guarantees nationwide consistency in regulation and protection against regulatory challenges. Local councils must respect this Assured Advice even if they interpret the regulations differently.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Despite extensive campaigning from Propertymark and others, it is disappointing that the UK Government haven’t accepted more changes to ensure the legislation is fair for both landlords and tenants.
“However, MPs now have a final opportunity to retain the proposed changes passed in the House of Lords when the Renters’ Rights Bill returns to the House of Commons.
“These are practical amendments that ensure the legislation is fair and evidence based. They are vital to ensure the regulations aren’t overly restrictive, prevent a reduction in the supply of rental homes and do not drive up rent prices, which would make it even more difficult for people to find affordable housing.”
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