Having already has its first reading in the House of Lords, the Renters’ Rights Bill is due for a full debate on 4 February.
The first reading in the Lords is just a formality and peers now have the chance to scrutinise it. The government is determined to pass the legislation as quickly as possible.
Property lawyer David Smith predicts that Royal Assent will probably happen in the spring, based on the current passage through parliament, with very few alterations expected to be made in the House of Lords.
“Second reading in the Lords, which marks the start of actual debate in the Lords is set for 4 February. I have previously said that this could be done by the end of March, and that timeline seems to be right on current performance,” he said.
Several government amendments to change the Bill were passed by MPs, which included preventing landlords and letting agents from asking for more than one month’s rent in advance of a tenancy. A move which concerns Smith.
“There will now be a potential risk for all landlords that they will have to hand over the keys to a tenant only to find that the initial rental payment will not clear and the tenant will fall into arrears immediately,” he said.
“The nightmare scenario here is that a tenant might sign an agreement with a move in date for a week later, pay the rent and deposit, have that money fail to clear, and then still demand and be entitled to move in because the contract specifies that they are entitled to possession,” he added. “There is plenty here for the PRS to be worried about.”
Recent data commissioned by Propertymark has found that 50% agents are concerned about the forthcoming Renters’ Rights Bill that has now reached Report Stage in the House of Commons.
Some agents added that they worry once the Renters’ Rights Bill becomes law that it will add more administrative burdens to letting agents, which includes ensuring landlords are aware of these upcoming changes, and the wider impact it will have on the private rental sector in general.
Of the responses, 12% were also concerned about stamp duty changes taking place from April 2025, 12% were worried about the UK Government’s Energy Performance Certificate reforms, and 7% about landlords exiting the market.
Some 3% of agents surveyed were anxious about the each of the following separate categories: the 2024 Autumn Budget; leasehold and commonhold reform; decreases in homebuying and selling; decreases in tenants; and interest rate changes.
Finally, 1% of agents were concerned about each of the remaining separate topics: the upcoming Spring Budget on 26 March 2025; the Planning and Infrastructure Bill; surges in homebuying and selling; and surges in tenants.
Details in the Renters’ Rights Bill include ending perceived ‘bidding wars’ by landlords and agents and consists of measures to stop Section 21 ‘no fault’ evictions with a fresh set of possession grounds.
Tenants will be allowed to retain pets, but landlords will be guarded from any damage inflicted by animals via pet suitable insurance policies for tenants.
Furthermore, fixed-term tenancies will be abolished.
Also, the private rental sector will have to abide by a Decent Homes Standard and Awaab’s Law, which was brought about because of the death of Awaab Ishak because of a severe respiratory condition.
There will be a fresh ombudsman service for private rented sector landlords, and essential information for landlords, tenants, and councils will be kept on a digital private rented sector database.
Finally, an enlargement on local authorities’ enforcement powers will happen via enhanced Rent Repayment Orders, and no discrimination against tenants receiving benefits or with children will be allowed.
Some 72% of Propertymark’s landlord members are worried about the end of Section 21, 69% are concerned about the end of fixed term tenancies, and 62% are concerned about the end of rent review clauses.
That’s why I always say that the rent and remainder of the deposit has to have cleared in our account the day before the tenancy is due to start, and if it is not cleared by the day the tenancy starts then I cannot hand over keys. Card payments must be at least 3 working days in advance.
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