Sector urges clear timeline and sufficient notice for major reforms
A group of landlords has emphasised the need for at least six months’ notice before the implementation of the Renters’ Rights Bill, warning that a lack of a clear schedule could create uncertainty for both landlords and tenants.
Housing minister Matthew Pennycook said the government intends to provide “sufficient notice” before the new rules take effect, but did not specify a date for the rollout. He confirmed that changes would apply to both new and existing tenancies simultaneously.
“We welcome the Housing Minister’s commitment to ensure the rental market has sufficient notice ahead of the implementation of the Renters’ Rights Bill,” said Ben Beadle (pictured top centre), chief executive of the National Residential Landlords Association (NRLA). “However, this does not provide the clarity that renters and landlords desperately need to prepare for its arrival.
“The government needs to make clear how long after this it expects to begin rolling out the widespread reforms. The sector cannot operate, and plan, based on vague and ambiguous statements.
“At least six months will be needed, after regulations are passed, to ensure a smooth transition to the new tenancy system. Anything less will be a recipe for confusion and chaos.”
The call comes as the bill moves closer to Royal Assent, following the House of Commons’ decision to reject most amendments proposed by the House of Lords.
“Ahead of the Renters’ Rights Bill getting its much-anticipated royal assent, discussion of the last few elements are vital – especially as some landlords, particularly those with smaller portfolios, could be at risk of being caught unawares,” said Scott Clay (pictured top left), director at property lender Together.
“The potential end of AST agreements and clampdown on surging rent pricing – while possibly contentious for individual, private landlords, should hopefully create a more balanced and fair system. The allowance of pets and inclusion of prospective tenants on benefits – provided there are watertight financial agreements and clear and honest communications from all parties should help this too. Indeed, these new measures may be an easier pill to swallow than the removal of Section 21 or ‘no fault’ evictions.
“This could see unjust cases overlooked or ignored – causing costly and time draining situations for legitimate landlords. For example, landlords can evict tenants to sell their property, but this cannot be re-let for up to a year if the sale falls through. This could mean houses are left empty for months on end, worsening rather than improving our housing crisis.”
The Commons voted to dismiss all but one of the Lords’ suggested changes. During the debate, MPs voted against extending the student possession ground to smaller student properties, restricting it to houses in multiple occupation (HMOs) only. The proposal to allow landlords to charge a higher deposit for tenants with pets was also rejected, with concerns raised about affordability for those on lower incomes.
One area of agreement was the government’s acceptance of recommendations to prevent the First-tier Tribunal from being overwhelmed by rent increase challenges once the bill is enacted. Pennycook acknowledged uncertainty about the number of cases that might arise and committed to establishing an alternative mechanism for initial rent determinations.
The bill retains its core provisions, including the abolition of Section 21 “no fault” evictions, the introduction of the Decent Homes Standard, restrictions on rent increases, a ban on bidding wars, a new ombudsman for the sector, a public database of rental properties, and the end of Assured Shorthold Tenancies.
The bill now returns to the House of Lords for consideration of the Commons’ revisions. Final approval is required before the legislation can become law.
“The Renters’ Rights Bill represents one of the biggest evolutions of housing legislation across England in over 30 years,” said Nathan Emerson (pictured top right), chief executive of industry body Propertymark. “Implementing such a wide-ranging overhaul of law must prove dynamic by design to help deliver a fair and workable balance between tenants and landlords.
“Housing fundamentally affects everyone, and there is an immense pressure on this new legislation to deliver tangible results. There is an essential ongoing need for new sustainable housing stock across all regions, and for this to efficiently happen, there must be long term investment within the private rented sector, especially as population growth continues to move at pace.”
“The bill is under immense pressure to positively deliver from both sides,” Clay added. “Hopes are it properly addresses the concerns of landlords and tenants equally. We shall see.”
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