Renters Reform Bill- the amendments to watch
There are over 200 amendments to the Renters Reform Bill having its Third Reading in the Commons today.
PropTech supplier Goodlord has waded through the amendments and regards these as the most contentious.
Conservative Amendments
Section 21 evictions - In what appears to be an attempt to delay the ban on these evictions, an amendment proposed by Conservative MP Anthony Mangnall and backed by a large number of others, states that the Secretary of State must commission and publish a review into the operation of residential possession proceedings in the County Courts used by residential landlords and tenants and the enforcement of possession orders, before a date can be set for the introduction of so-called no-fault evictions.
Tenant notice periods - This new clause, also being proposed by the Conservative MP Anthony Mangnall and backed by a large number of others, means that tenants cannot give notice on their lease until they have lived in the property for four months, unless agreed to by the landlord in writing. This means landlords have the assurance of having a tenant in their property for at least 6 months (i.e. 4 months tenancy plus 2 months notice).
Labour Amendments
Obligation to advertise rental price - A proposed amendment by Labour’s Shadow Housing Minister Matthew Pennycook MP seeks to make it a requirement that landlords or persons acting on their behalf state the proposed rent payable when advertising the premises.
Preventing bidding wars - A proposed amendment also by Labour’s Shadow Housing Minister Matthew Pennycook MP seeks to prevent landlords or persons acting on their behalf from inviting or encouraging bids that exceed the rental price stated in the advertised price, to discourage bidding wars amongst tenants that escalate prices.
Prohibition of requirement for rent guarantors - This new clause, being proposed by the Labour MP Alex Sobel, would prohibit landlords from requiring prospective tenants to provide rent guarantors or equivalent upfront payments, and prohibit them from prioritising prospective tenants who offer them over those who do not.
Academic tenancies - This amendment being proposed by the Labour MP Paul Blomfield, would end the pressure for joint tenancies to be signed too early in the academic year, committing students to accommodation before they are ready.
Others
Energy performance regulations - This new clause, proposed by the Green Party MP Caroline Lucas, would upgrade the Minimum Energy Efficiency Standards for private rental properties to EPC C.
By way of context, Goodlord cites its latest annual survey of 2,000+ landlords, agents & tenants:
- Whilst still very unpopular, sentiments around the scrapping of Section 21 had been shifting over recent years;
- In 2022, 71% of landlords believed abolishing section 21 would have a negative impact on the lettings industry;
- However, in the 2023 survey, this had dropped to 62%;
- In contrast, in 2022, 27% of letting agents believed the abolition of section 21 would have a positive impact. In 2023, this number had dropped to just 11%.
Guarantor numbers have been rising in recent years, according to Goodlord’s analysis:
- 17.73% of all tenants were asked to provide a guarantor in 2020;
- 18.88% of all tenants were asked to provide a guarantor in 2023 (an increase of 6.5%).
A key feature of the Renters Reform Bill is the ability for tenants to have pets in their property, unless there are specific reasons why they can’t. According to Goodlord data, in 2023 just 5% of tenancies were proactively open to pets.
Oli Sherlock, managing director of insurance at Goodlord, comments: “There are some sensible and logical amendments on track to be debated during the third reading of this Bill. The biggest talking point for most will be regarding Section 21; looking at how and when the government will abolish the measure. It is imperative that our legal system can manage cases effectively and efficiently, however there seems to be little commitment as to how the government will achieve this and, as importantly, the timelines involved.
“At risk of sounding like a broken record, the industry just needs clarity on details and timelines. Landlords, tenants and agents need to know exactly what is changing and when. This legislation was promised as part of the Conservative manifesto and the clock is ticking ahead of a general election, all whilst patience in the market is wearing very thin.”
