The Renters’ Rights Bill has successfully passed its second reading in the House of Lords, marking an important step forward in the legislative process. The Bill will now move on to the Committee stage, where it will undergo further scrutiny and potential amendments before progressing further through Parliament.
During the debate, a total of 44 members of the House of Lords contributed their views, highlighting the significance of the proposed legislation. Many peers shared their perspectives on how the Bill could impact both tenants and landlords, with discussions covering issues such as possession rights, enforcement measures, and tenant protections.
Baroness Taylor of Stevenage, the Parliamentary Under-Secretary for Housing, introduced the second reading of the Bill and provided assurances regarding landlords’ rights. She emphasised that while the Labour Party is committed to improving protections for renters, it also recognises the role of responsible landlords. She reassured that landlords would still have the ability to reclaim their properties when necessary, ensuring that their rights are not overlooked.
She also addressed concerns about potential loopholes in the new legislation, stating that the expanded possession grounds would be designed to be as “watertight as possible.” This is intended to prevent any misuse by landlords while still allowing legitimate cases for repossession to be upheld.
In addition to changes regarding possession rights, Baroness Taylor confirmed that local councils would be granted new enforcement powers. These powers will enable councils to enter businesses, landlords’ homes, and rental properties to gather evidence where necessary. This move aims to strengthen tenant protections and ensure compliance with housing regulations, particularly in cases where there are concerns about substandard living conditions or other legal breaches.
As the Bill progresses to the Committee stage, further discussions and potential revisions will take place. This stage will allow for more detailed examination of the proposals and may lead to adjustments based on feedback from policymakers, landlords, and tenant advocacy groups. The outcome of these discussions will shape the final version of the Bill, which could have a lasting impact on the UK’s rental market.
Abolishing fixed term tenancies will create a simpler system
Baroness Taylor has stated that the abolition of fixed-term tenancies would help create a “simpler system” by preventing tenants from being locked into agreements they no longer wish to remain in. The proposed change aims to provide tenants with greater flexibility and control over their housing situations.
However, several members of the House of Lords have expressed concerns about the possible “unintended consequences” of removing fixed-term tenancies, particularly in relation to student housing. They argue that this shift could disrupt the rental market for students who typically rely on fixed-term agreements to secure accommodation for the academic year.
Lord Truscott, speaking during the debate, argued that most tenants actually prefer fixed-term tenancies because they offer a sense of stability. He warned that the new system could result in tenants having less security, not more. Under the proposed changes, landlords would have the ability to serve notice at any time, provided they give up to four months’ notice if they intend to reoccupy or sell the property. He questioned why a reasonable agreement between landlords and tenants should not be allowed, particularly when the majority of tenants favour fixed-term arrangements.
Another key aspect of the Renters’ Rights Bill is its provision to prevent landlords from unreasonably denying tenants the right to keep pets in their rented homes. This would give tenants the ability to challenge unfair refusals, ensuring that responsible pet ownership is supported within the private rental sector.
Labour acknowledges that some landlords are concerned about potential property damage caused by pets. To address this, the Bill includes a provision that allows landlords to require tenants to have insurance covering pet-related damage.
During the debate, Baroness Taylor reinforced the government’s commitment to protecting tenants’ rights while balancing landlords’ concerns. She explained that the Bill aims to create a fairer rental market by ensuring that landlords cannot withhold consent for tenants to keep pets without justifiable reasons. Additionally, the option to require pet insurance is designed to give landlords peace of mind while still allowing tenants the freedom to have pets in their homes.
As the Bill moves forward, discussions on these issues will continue, with further debate expected around the impact of abolishing fixed-term tenancies and the practicalities of pet-related policies. The final outcome will determine the extent to which these reforms reshape the rental market in the UK.
EPC C changes will cost thousands of pounds
Baroness Scott of Bybrook, a Conservative peer, has strongly criticised the Renters’ Rights Bill, arguing that it could have damaging effects on the rental market. She warned that the proposed legislation would be “counterproductive” and could lead to landlords withdrawing from the sector, potentially reducing the availability of rental properties.
One of her key concerns relates to the financial burden on landlords, particularly regarding the proposed Energy Performance Certificate (EPC) changes. She highlighted Labour’s plan, led by Ed Miliband, to require all rental properties to meet EPC C standards by 2030. According to Baroness Scott, this policy could cost the private rented sector an estimated £25 billion, which equates to an average cost of £5,400 per property.
She stressed that many landlords, especially those who own only one or two properties, may struggle to afford these upgrades. This financial pressure, she argued, could force small-scale landlords out of the market, further reducing the supply of rental homes and increasing pressure on tenants searching for housing.
In addition to these concerns, Baroness Scott also referenced the government’s own impact assessment, which acknowledges that tenants could face higher costs as a result of the new policies. The assessment states that landlords are likely to pass on some of the additional costs to tenants in the form of higher rents in order to maintain profitability.
Her comments add to the ongoing debate about the long-term effects of the Renters’ Rights Bill, with critics warning that while the legislation aims to improve conditions for tenants, it could inadvertently lead to higher rents and fewer available properties if landlords choose to leave the market.
‘Identify and find unscrupulous landlords’
Baroness Taylor has defended the proposed investigatory powers being granted to councils, stating that these measures will help identify and take action against unscrupulous landlords. She explained that local authorities will have greater ability to request information from third parties and access business premises when gathering evidence. In certain limited circumstances, councils may also be permitted to enter residential properties if necessary.
She emphasised that these new powers will come with safeguards to ensure they are applied in a fair and proportionate manner. The intention, she argued, is to strengthen enforcement against landlords who fail to meet legal standards, ultimately improving conditions for tenants.
According to official Lords’ notes, the bill will introduce powers enabling councils to request key information from third parties such as banks, accountants, and client money protection schemes. This additional route will provide authorities with vital evidence needed to build cases against non-compliant landlords.
The bill also grants councils the ability to enter business premises to obtain on-site evidence. In specific cases, entry into residential premises may be permitted, but only under stricter conditions. Often, crucial documentation—such as email correspondence, text messages, bank statements, and tenancy agreements—is stored within business premises, making these investigatory powers an essential tool for enforcing compliance.
Industry reaction to second reading
Timothy Douglas, head of policy and campaigns at Propertymark, highlighted the extensive discussions in the House of Lords on the Renters’ Rights Bill. He noted that peers examined both the intended and unintended consequences of the proposed legislation. A key focus was on property standards and the challenges local authorities face in enforcing regulations. Many Lords acknowledged the crucial role letting agents play in educating both landlords and tenants to ensure compliance with the law.
However, Douglas expressed disappointment that some peers failed to fully grasp the financial pressures landlords face, including the costs and taxes impacting the sector. He criticised suggestions of rent controls as a means to tackle affordability issues, arguing that similar policies in Scotland have been unsuccessful. He urged the UK government to avoid implementing rent controls, warning that they could have negative consequences for the private rental market.
He also pointed out that several sensible amendments were discussed, including measures to support student renters, provide greater clarity on court reforms and implementation timelines, address the impact of short-term lets, and improve local authority funding. Additionally, there was debate around refining the application of eviction grounds and amending deposit rules to make it easier for tenants to rent with pets. Douglas stressed that these issues should be the UK government’s priority as the Bill progresses through its remaining stages.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property