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Just when we thought that everything had been said and expected Royal Assent by early summer THIS happened
On Friday 28th February a new list of proposed amendments to the bill was published and will now go forward for discussion at the Committee stage at a date still to be announced. The list is here
HL Bill 60—Running List 26 February
This list contains some of the fundamental issues which the Bill proposed to change and, in fact, some of the issues which have caused concern among both landlords and tenants.
- NOT TO REMOVE FIXED TERM TENANCIES
For landlord this speaks for itself but surprisingly there are also many tenants who don’t want this change to happen because they fear the loss of security of the fixed period during which they cannot be evicted without having broken a term of their contract via section 8. If the proposal to remove section 21 from law does go forward this is less of an issue but (and this is now proposed) if it remains in place, tenants will be no better off than they are now and this is supposed to be the purpose of this Bill.
Those living in shared accommodation who are all on one tenancy agreement have the knowledge that at any time any one of them can end the tenancy for all of them without discussion, simply by giving notice – this can happen now but only when the fixed term has ended and the tenancy has become periodic.
In the student market this change would make a big difference, I wrote about this last November
Amendments to Renters Rights Bill – update as at 4th November 2024 – Landlord insider
Students need the stability of the well-oiled mechanism that has for many years brought about the annual migration from one accommodation to another. Students have a timetable during which they first hunt for their next share home, then go through the referencing process etc., signing up and finally moving out to enable the next group to move in – all without anyone having no where to live even for one night. When you think about the numbers nationally this is a huge operation which generally goes fairly smoothly without an interference or supervision every year. Why anyone would want to throw a spanner in the works I cannot imagine? Especially when we are facing a housing crisis where some “interference” might help. In my opinion this is probably the most stable market in housing.
IT IS NOW PROPOSED TO AMEND THIS SO THAT FIXED TERM TENANCIES UP TO 12 MONTHS CAN BE OFFERED WITH ONLY TWO GROUNDS FOR EVICTION POSSIBLE FOR THE LANDLORD BUT WITH 2 MONTHS NOTICE FOR TENANTS
“Member’s explanatory statement
This amendment and another in the name of Lord Cromwell seeks to ensure on the face of the Bill that the tenant is able to request (after 4 months of occupancy) a voluntary extension agreement with a specified term. The tenant would retain the ability to leave on 2 months’ notice, and the landlord would voluntarily limit rights of recovery to the anti-social behaviour and not paying rent grounds, thereby incentivising an uninterrupted occupancy.”
I’m not sure what to think about this. For those letting to students it might be an alternative to no fixed term but why would a landlord want to be tied to a tenancy for 12 months where the only possible way to remove delinquent tenants is if they don’t pay the rent or exhibit anti-social behaviour serious enough to support grounds for eviction – unless I’m missing something? Outside of the student market I can see no benefit for the landlord at all and if the legislation were to “force” us to agree to this extension I personally would prefer no fixed term at all to lower my risk.
A SECOND AND SEPARATE PROPOSAL ON THE SAME SUBJECT PROPOSES THAT ONLY STUDENTS CAN BE OFFERED A FIXED TERM
“Member’s explanatory statement
This amendment would allow student tenancies to remain as fixed tenancies to provide the certainty that both student tenants and student landlords require.”
This has the potential to take the student market out of the changes and hopefully will get enough support to make it into the Bill.
A THIRD AND SEPARATE PROPOSAL ON THE SAME SUBJECT PROPOSES THAT PROPERTIES WHICH ARE LESS THAN 12 MONTHS OLD AND HAVE NOT BEEN LET BEFORE SHOULD HAVE A FIXED TERM TENANCY
“Assured tenancy exemption: new build properties Assured shorthold tenancies are abolished except for in relation to a premises in which they are the first tenants since its construction, not less than twelve months before the date on which the notice is to take effect.”
“Member’s explanatory statement
This amendment would allow an assured short-term tenancy for one year after a premises is newly constructed.”
For what reason I have no idea! Build to rent?
- ALLOW LANDLORDS WITH 5 OR LESS PROPERTIES TO CONTINUE TO USE SECTION 21
There is no doubt that one of the most controversial proposals in the Bill is the ending of “no fault” evictions. This is the one thing which all tenants agree on and which make living in a privately rented property high risk. Unfortunately, and ironically that risk has become a reality for thousands of tenants as landlords serve section 21 to evict their tenants, many very long term tenants, before the Renters Rights Bill becomes law. My Facebook group is overwhelmed with posts from these tenants every day. For a reason I really do not understand it has been proposed to enable some “small” landlords with 5 or less properties to continue to use section 21. To be honest I will be shocked if this makes it through and if it does I dread to think of the repercussions
“Member’s explanatory statement
This amendment would allow small landlords, who are less likely to have capacity to fund legal proceedings, to continue to be able to issue Section 21 notices.”
This MP needs a reality check
- RESTRICTIONS ON FUTURE USE OF THE PROPERTY WHEN POSSESSION HAS BEEN GRANTED TO SELL THE PROPERTY OR MOVE A MEMBER OF THE FAMILY INTO IT
“Member’s explanatory statement
This amendment requires landlords to submit verified evidence within 16 weeks of a possession order, detailing the property’s occupancy status and progress of any sale, to ensure accountability under grounds 1 or 1A.”
“ 1. where the dwelling house is required by a member of the landlord’s family, the court must be provided with evidence verified by a statement of truth signed by that family member
1A, the evidence must include a letter of engagement from a solicitor or estate agent concerning the sale of the dwelling house.”
This question comes up frequently on my Facebook group, mainly but not only, from tenants “how will anyone know if the landlord evicts a tenant and then relets the property” It’s a fair requirement, which will hopefully make it into the Bill and may prevent most landlords from using this to gain possession when in reality they have no intention of doing anything other than re-letting to another tenant.
- Assessment of operation of possession process
- RENT!
“Member’s explanatory statement
This probing amendment would cap in-tenancy rent increases to the Bank of England base rate.”
AND
“Member’s explanatory statement
This amendment provides for in-tenancy rent increases to be index-linked on the basis of CPI or increases in national annual earnings. This avoids the uncertainties for a period of up to four years of rents being determined at unknown – and perhaps unaffordable – market levels.”
AND
“Member’s explanatory statement
This amendment renders unnecessary an application to the First-Tier Tribunal where the proposed in-tenancy rent increase does not exceed a measure of inflation specified in section 13(4F) as inserted by another amendment in the name of Lord Best.”
AND
“Member’s explanatory statement
This amendment would remove the requirement that agreed tenancy rents can only be decreased by the Tribunal, therefore removing the potential incentive for tenants to appeal all rent increases when they would only go down or stay the same.” I would like to see this one get through
AND
“Member’s explanatory statement
This amendment would stop the Tribunal from being able to require landlords to make a backdated payment to a tenant where it determines that a rent amount is too high, despite the tenant having agreed to the rent amount when they agreed to the tenancy.” I would like to see this one get through
AND
“Member’s explanatory statement
This amendment would stop the tribunal delaying the date that a rent increase would come into effect, removing the incentive for all tenants to appeal all rent increases to guarantee a delayed implementation.”
Finally, a couple of important ones for landlords
“Member’s explanatory statement
This amendment ensures that tribunals handling rent determinations are adequately resourced to manage the additional workload arising from the Bill.”
Unless the proposed amendment gets through all tenants will be incentivised to take any rent increase to tribunal because they have nothing to loose and could delay the proposed increase. The tribunal service would be overwhelmed with case and its important that it is manned and fit for purpose before the change is made.
- We need the service to be able to agree, increase or decrease the proposed rent increase
- We need the increase to go ahead once agreed by the tribunal no later than a month following the section 13 notice of increase and any delay in the process will not delay the increase
Without these there is no doubt that tenants will automatically refer every increase to the tribunal with the chaos that will cause the landlord, the system and the tenant who thinks that they don’t need to pay until the tribunal decides (not even their usual rent) This is a regular question on my facebook group
“Member’s explanatory statement
This amendment would require the Lord Chancellor to assess the operation of the possession process to ensure that the courts service has the capacity to deal with the increased demand expected because of this Bill.”
Any landlord who has been in the process to evict a tenant over the past few years will be very aware that the delays in getting a hearing and in getting a bailiff once possession is granted are running into many months and in some areas longer than others. The perception of tenants is that when they are served a section 21 notice the date doesn’t matter because it will be months later before they need to leave, unfortunately some tenants stop paying rent at this point because they believe that nothing worse will happen. Many local councils tell them to wait until the bailiff evicts them before they will be offered accommodation by the council.
Seldom are they told that the landlord will ask the judge to award the costs of the case against the tenants and that if they do not pay they will end up with a ccj which may prevent them from ever getting into a private rental again. The tenants as stuck between a rock and a hard place, if they leave to avoid the humiliation and cost of the bailiff, they will be deemed to have made themselves homeless and if they stay they will face the cost and consequently be stuck in council accommodation permanently. I could write and entire article on this subject but suffice to say that the starting point is to make sure that the court service and bailiffs are fit for purpose before over burdening them further. This is one amendment that we can all get behind. BEFORE anything changes it needs to be established exactly what is needed to bring the service up to scratch, it would be totally irresponsible to do otherwise and this should have been begun before the Bill got to this point.
When members of my Facebook group were asked what their concerns were about the new legislation these were some of their comments
- Do tenants realise that when they need to give 2 months notice a landlord will not wait 2 months and will let to those who can move in sooner
- Council Tax would be an issue, at the moment tenants are liable for council tax until the end of their fixed term even if they move out sooner. With no fixed term they will only be liable for the time that they occupy leaving the landlord to pay after that
- I think that tenants should be worried, if they aren’t, because with banning guarantors and rent up front
- Banning rent in advance will make it extremely difficult for tenants from overseas
- Periodic tenancies will attract the “in between properties” house buyers short term contractors as well as those trying an area before they settle down this will increase, set up fees
- How will agents charge fees
- No, it’s business as usual for me. I will adapt.
- Who will be responsible for answer the request for pets – the landlord or the agent?
- A lot of it is well overdue but it also needs some protections for landlords against bad tenants. In particular a guarantee of speedy process to remove tenants that can’t or won’t pay and tenants that are guilty of antisocial behavior or malicious property damage. Having tenants pay a small monthly contribution to a landlords compensation scheme rather than a deposit so a registered compliant landlord is guaranteed compensation for missed rent or damages would be great too
- It just means landlords have to tread very carefully as mistakes will be costly and gastromical rent for tenants when the supply of rental properties falls even further behind demand
- Several landlords said that they were planning to sell up but no details
- LL here. On the face of it it looks as though it’s doing tenants a favour? But in reality I feel it’s going to make things so much more difficult for them. Lots of LL’s selling up, rents will almost certainly rise? Testing times?
- Fantastic time to be buying and a landlord. Rents are going up up up
- I have two student HMOs. The renters rights bill will require separate tenancy agreements, meaning if a tenant leaves mid-year, I’d need to find a replacement unknown to the rest of the group, potentially causing conflicts. This is a bigger issue for students who usually share with friends.
- Currently, tenants pay quarterly in advance aligned with their student finance. This helps them budget, but monthly payments could lead to budgeting issues and unpaid rent.
- To use ground 4a ensuring property return for the next academic year, tenancy agreements can’t be signed more than six months in advance, causing stress for both tenants and landlords due to last-minute arrangements.
- Mainly I feel the language used by this gov and the last has been an attempt to vilify LL’s. I worry it might embolden bad tenants who have no intentions of paying rent or looking after their rental home. Hope I’m just worrying about nothing!
- I prefer my tenants periodic, gives flexibility. The extra notice from the tenant is a bonus to relet and prevent voids.
- The eviction system currently is a joke with section 21, take 6 months plus, then bailiffs, at least this way it should be more streamlined and with the mediation service should make evicting on a section 8 easier, as they won’t be coming up with fairytales to knock the rent down in court. Plus if you have rent guarantee the rent & court action isn’t your worry. So going from 2 to 3 months makes no difference as insurance covers it. So if anyone doesn’t have it. I’d get it asap!
- Your ability to insist on pet insurance is great, rather than tenants sneaking pets in.
- All the stuff regarding discrimination & condition is expected anyone and anyone who has concerns about this should give there head a wobble as there not providing decent property & being a decent landlord in the first place.
- I never take advanced rent anyway as you then can’t get rent guarantee, they have to pass references for that, not bypass it with money or your just kicking the problem down the road, so that’s not a worry.
- The main issue is the strength and criteria for discretionary evictions, for damages, breach of contract and the like…. But if you have rent guarantee and legal expense, it won’t cost to do the court proceeding & it’s down to the judge on the day….
- I think the landlord register & ombudsman will ultimately be a good thing for the industry. Weed out the bad landlords. & mean us good landlords dont get the bad rep we currently do, if the industry improves as a whole.
- its not only landlord disaster. Its also tenants huge issues as landlords will be even more picky for tenants and will simply rather wait for the right one with an empty property, who ever will be on better financial security rather than dss or lower income, families. So its all about landlords which is bad enough but it will be HUGE change for tenants.
These were from tenants:
- There are a lot of renters like me who will find a place, look after it and make it a long term home
- sorry to ask, I know there’s a link on this post with more in depth detail but it’s all a bit over my head. What’s happening in April? And how does it affect tenants?
- I have to leave my rented accommodation around June/ July time to rent somewhere else, I was not aware of any changes? Posting anonymously as my LL may see this post (and don’t want to get in trouble)
- American here. I’m appalled at how badly I’ve been treated by landlords in London, especially compared to the US. I feel like I have had no rights as a UK tenant. I’ve been an excellent tenant in all ways and pay high rent, but I’ve found it difficult to get my LLs to do even standard repairs. I get instructed that it’s LLs legal responsibility and I should contact EH, but the process just doesn’t work. I’ve been given a section 21 as retaliation after almost a decade in my flat because I said it was unacceptable that my shower had been broken and not fixed for a month (because the landlord forgot to follow up with the plumber). I then moved into a new flat that ended up having many repair issues that still haven’t been addressed, and I was recently served a section21 just 9 months in “just in case the owners want to sell” but it now appears it was a actually a move to scare me into paying a full year of rent upfront for my renewal. So what I’m very much looking forward with the new RR Bill is the end of S21!
- “No fault” is completely unfair for many circumstances and gets abused by many LLs. Times are hard and good tenants shouldn’t have to be fearful of retaliation for insisting on repairs. Section8 definitely has its place for justified reasons.
- Personally, I’m happy to see the end of upfront annual payments and price bidding- I’ve had to deal with both in order to secure a decent flat.
- I’m also looking forward to having the Private Rented Sector Landlord Ombudsman as I found the current system doesn’t work well for tenants.
- In addition, I also welcome the Private Rented Sector Database for the transparency as a tenant entering into a tenancy
- Would someone be able to give a snapshot of the bill. It is 250 pages long. What are the main points that are changing?
- Tenant and landlord here and what is inhuman and I don’t understand as I am European living between London and Europe is that Ll can increase rent per year without limit !!!! Rent increase should according with inflation and high rates not more as the rest of Europe
- Can’t wait. Doesn’t completely remove the possibility of landlord needing property back due to selling up or needing it for themselves, but gives a lot more security and means I don’t have to tiptoe around eg repairs/issues in case a landlord decided to s21. Outside of personal circumstances, I welcome the end to bidding wars which were largely driven by rogue letting agents “encouraging” people to offer more
A series of amendments have been tabled to be discussed including allow fixed term tenancies of up to 12 months, linking rent rises to inflation and letting small landlords, who are less likely to have capacity to fund legal proceedings, to continue to be able to issue Section 21 notices.
