Renters’ Rights: Key amendments back on the table

Peers have re-tabled two key amendments to the Renters’ Rights Bill ahead of next week’s debate in the Lords. 

The Bill is currently bouncing between the Commons and the Lords in a Parliamentary process known as ping-pong, where peers and MPs thrash out the final detail of the new rules. 

While MPs in the Commons rejected some amendments approved in the Lords earlier in the process, a number of peers have re-tabled them ahead of the session on Tuesday, hoping to convince MPs to reconsider. 

Both the Commons and the Lords must agree on the final wording of the Bill before it can be sent for Royal Assent. 

Which amendments have been re-tabled? 

There are two amendments that could impact the private rented sector. These include: 

• The student possession ground: Shadow HCLG Minister, Baroness Scott of Bybrook has re-tabled her party’s amendment  to extend the student possession ground (4A) to one-and two-bedroom properties. 
• Re-letting after using sale ground for possession: As things stand, if you were to repossess your home on the grounds you are planning to sell it you would be banned from re-letting or re-marketing it for a year.  Crossbench peer Lord Cromwell has re-tabled his amendment to reduce this to six months. 

Why are these changes so important?

The NRLA is supportive of both amendments – and has issued a briefing to peers as the ping pong process continues. In it we outline our evidence-based arguments that there could be a devastating impact on the supply of homes to let if these amendments are not accepted. 

Student possession ground 

Data shows that approximately a third of the student market is made up of one-and-two bedroom homes; homes that could be lost from the sector for good unless the student possession ground – 4A – is extended to the whole of the student market. 

The briefing points out that almost half of all students – 47% – say they are worried about housing, with 65% of first-year applicants saying accommodation availability influenced their university choice.   

NRLA research has found that without the amendment it is highly likely student landlords of these smaller homes will move out of the student market, as there will be no mechanism for them to take back possession of the homes at the end of the academic year. 

Re-letting after using sale ground for possession 

Once section 21 is abolished under the Renters’ Rights Bill, landlords will instead need to rely on one of a number of ‘grounds’ to repossess. These are legally recognised reasons allowing you to require your tenant to move out. 

Selling your rental property is among these valid grounds for possession. However there have been concerns that landlords could evict tenants on the pretext of selling, then simply re-let their property at a higher rent, claiming it wouldn’t sell. The introduction of the 12-month ban on re-letting was introduced as a deterrent.  

Lord Cromwell, like us, believes this period is too long, meaning landlords who genuinely find themselves with a property that won’t sell will be unfairly penalised. It would also mean a habitable property sitting empty for a year, for no good reason.  

Like the Ground 4A amendment, this change was initially accepted by the Lords, before being rejected in the Commons.  

What happens next? 

If the Lords accept these amendments for a second time on Tuesday, they will go back to the Commons again for debate. 

The ping pong process can continue for some time, but ultimately, if they reach stalemate, the Commons does have the authority to push the Bill through without the consent of the Lords – although it is unlikely to come to this.

When both houses are happy with the Bill it can be presented to the King for Royal Assent, at which point it will move into law. 

Once that happens all eyes will be on the Government to confirm an implementation date, at which point some of the provisions of the new Act, for example the transition to periodic tenancies and the loss of Section 21, will come into force. 

Other elements, for example the new landlord database and ombudsman service, are likely to be introduced later.  

We are now pressing the Government to confirm its timetable for change, to allow you the time you need to prepare. 

More information 

• With big changes coming and implementation dates uncertain, join the NRLA and guests including property guru Sarah Beeny at our annual Housing Conference where we’ll be exploring the ways in which landlords can best navigate what promise to be the biggest changes to private renting in decades.   

• Check out our Renters’ Rights Bill Hub for guidance on what you can do to prepare.  

• You can also join the thousands of landlords who have already taken our Renters’ Rights Bill training course. Click here for more information.