Peers Debate Renters’ Rights Bill: Key Insights from the Second Reading in the House of Lords
The House of Lords convened to discuss the Government’s proposals for the private rented sector (PRS) during the second reading of the Renters’ Rights Bill. The debate covered critical topics such as student tenancies, supply and demand, pets in rental properties, and legal enforcement. While many questions remain unanswered, the Bill is progressing swiftly, with some provisions expected to become law by Spring 2025.
Here’s a clear breakdown of what was discussed and what comes next.
Key Points from the Debate
The second reading brought forward 10 significant points of discussion:
- Student Tenancies and Exemptions
- Baroness Taylor announced that private purpose-built student accommodations would be removed from the Assured Tenancy System.
- Other Peers argued that exemptions should also cover landlords renting one- and two-bedroom flats to students.
- Concerns About Rushed Legislation
- Conservative Peers criticised the Labour Government for pushing the Bill forward without conducting adequate due diligence.
- Impact on Supply and Demand
- Some Peers warned that landlords might exit the sector, worsening supply issues. Others dismissed these fears as exaggerated.
- Court System Preparedness
- Despite reassurances from Baroness Taylor about collaboration with the Ministry of Justice, concerns persist about whether courts can handle the Bill’s impact.
- Outlawing Bidding Wars
- With bidding wars set to be banned, there is apprehension that this could lead to significantly higher asking rents.
- Pets in Lets
- The inclusion of pets was praised for its mental health benefits, but the lack of comprehensive pet damage insurance was flagged as a risk for landlords.
- Enforcement by Local Councils
- Many Peers expressed doubts about local councils’ ability to enforce new rules due to underfunding, despite their expanded powers.
- Small-Scale Landlords and Problem Tenants
- Concerns were raised about small landlords potentially struggling to remove problematic tenants due to lengthy legal delays.
- Lessons from Scotland
- The abolition of Section 21 no-fault evictions is new to England, but lessons can be drawn from Scotland’s approach to similar reforms.
- The Decent Homes Standard
- While widely supported, questions remain about how small landlords will afford property improvements without passing costs onto tenants.
What Happens Next?
The Renters’ Rights Bill is advancing at a fast pace, with elements expected to become law by Spring 2025. The upcoming committee stage will delve into specific details and refine the Bill further.
This pivotal legislation could reshape the PRS landscape, addressing long-standing issues while raising new questions about enforcement and unintended consequences. Stay tuned for updates as the Bill progresses.
