Over the past six months, there has been no news story that has caused more fierce debate amongst letting agents, landlords and property managers than the Renters’ Rights Bill.
We have explored the details of the bill in a past blog, but as the bill continues on its path towards royal assent, many landlords are wondering if some of the more controversial elements of the bill might be changed.
Passing bills in England is full of deliberation; the Renters’ Rights Bill needs to pass three readings in the House of Commons and three in the House of Lords, with committees held and reports published to determine whether it will pass or if there will be amendments added.
Here are some of the potential amendments that could be added and the effects they would have on landlords.
Delay To Section 21 Eviction Ban
The biggest and most impactful part of the Renters’ Rights Bill is the end of Section 21 “no-fault evictions”, one that would dramatically change the relationship between landlord and tenant.
However, there is a fear that such a dramatic change could put landlords in difficult positions legally, particularly smaller landlords who only own a single property and may not be able to afford the legal proceedings required.
The other concern is capacity; the new laws would lead to an influx of legal challenges and new court orders, and concerns have been raised that launching this aspect of the bill too early would have far-reaching ramifications.
Three amendments have been launched to try and help this, one which would delay the abolishment of Section 21 until a comprehensive review is carried out, one which requires the government to explain how it will increase county court capacity and one that would provide an exemption for small landlords.
However, conversely, other amendments such as those tabled by Lord Bird, founder of The Big Issue, would require the government to ban Section 21 evictions as soon as the bill becomes law.
Keeping Fixed Term Tenancies
The sweeping ban on fixed-term tenancies has caused concerns that it could affect student letting, which by design is fixed-term based around term times and the year as a whole.
An amendment has been launched to allow for 12-month fixed tenancies to be retained within the rental framework, which would avoid the potential unintended side effects of radically altering how the rest of the rental market functions.
Index Linking Rent Increases
The Renters’ Rights Bill has proposed radical changes to how rent increases are handled for the same ostensive reason that Section 21 evictions are to be abolished. Instead of landlords choosing rent increases, they are allowed to increase rents to the market rate once per year, with renters able to challenge this.
One amendment would alter this to index-link rent increases to the rate of inflation, allowing landlords to have a clear indication of their incomings and outgoings.
These amendments plus over a hundred more will be considered by the House of Lords and voted on. Any which are added will be debated by the House of Commons before the Renters’ Rights Bill becomes law.
