Renters' Rights Bill: Peers continue the debate
Pets and penalties took centre stage this week as the House of Lords held its fourth Committee sitting of the Renters' Rights Bill. With two further sessions scheduled, there is still a lot of legislation still to scrutinise. Public affairs officer, Mia Rotaru, reflects on the debate and outlines what’s ahead.
Pets and pet insurance
In another wide-ranging discussion on the Renters’ Rights Bill (RRB) this week, peers considered a series of amendments aimed at clarifying landlords’ rights and responsibilities around pet ownership. There was broad agreement that tenants should not be unreasonably prevented from keeping pets, and calls were made across the House for clearer guidance on what constitutes “reasonable refusal.”
Baroness Taylor also emphasised that the Bill, as drafted, allows for flexibility on a case-by-case basis, something the Government aims it’s essential when balancing the needs of landlords and tenants.
The Earl of Kinnoull raised concerns about the current lack of suitable insurance products covering pet-related damage. While the Bill allows landlords to require tenants to obtain pet insurance, Peers noted that such products are not widely available. Additionally, Baroness Scott’s proposal to consult with insurers about pet damage cover before Clause 13 takes effect, which the NRLA supported, was not moved.
Baroness Taylor acknowledged the current gap in the insurance market but expressed confidence that the requirement would encourage product development over time and strike a fair balance.
“In order to boost the market for pet-friendly rentals, it is important that landlords are assured that, were there to be negative effects due to pets, there is adequate legal recompense… [but] it appears extremely unlikely that there will be a product on the market which a tenant could buy to insure against the problem.” Lord Trees CB
One amendment sought to extend the right to request a pet to tenants in social housing. Although it received cross-party support, it was ultimately not moved. Responding for the Government, Baroness Taylor supported encouraging social landlords to be more open to pet ownership and confirmed that official guidance would be issued.
Written statements
The amendments which passed were Government amendments that require landlords to provide a written statement of terms, or in other words a written contract, to their tenants within 28 days of an agreement becoming an assured tenancy.
This is a change from the previous position where landlords would have to do this prior to the tenancy changing to an assured tenancy
This may occur for instance where the landlord of a lodger moves out of the property, meaning that the lodger is no longer with the landlord and instead has exclusive possession of the property.
In such a scenario, you would still have 28 days to provide a contract rather than breaching the bill by not providing the written statement of terms beforehand.
It should be noted that for a standard tenancy set up, we would advise that landlords must provide a written statement of terms prior to the tenancy being entered into.
While there was support for increased transparency, some Peers raised concerns about the practical implications for small landlords.
Fees and penalties
Peers also debated the level of financial penalties for non-compliance. Several members called for greater clarity and proportionality. Peers stressed the importance of finding the correct balance by targeting rogue landlords while protecting responsible ones. At the same time others cautioned that excessive penalties could risk driving landlords out of the sector.
“A well-designed penalty framework should uphold the law, encourage compliance and support the functioning of housing authorities. The success of this legislation depends not just on good intentions but on practical deliverability, balanced implementation and trust from those who must operate within it.” — Lord Jamieson (Con)
What’s next?
The Committee will meet again on 12th and 14th May. To help you stay informed, we’re hosting a webinar on 15th May covering the key developments from Committee stage and what they mean for the sector.
Register for the webinar here.
The NRLA has been named-checked a number of times during the debates - find out more in the video below: