Renters’ Rights Bill: What happens next?

With still no news over when we can expect Report stage in the Lords or any firm indication as to whether Royal Assent will be before or after summer recess – we look at where we are now, and what happens next. 

With the Renters’ Rights Bill entering the final stages of the legislative process we are redoubling our efforts to secure support from Peers on key amendments.  

Court capacity, student lets and arrears are all key campaigns areas ahead of Report stage which the Government has indicated will take place in early June. 

What are we calling for? 

1: A court system ready for the new rules 

With the abolition of section 21 a central pillar of the Renters’ Rights Bill, landlord claims for possession will rely on the grounds-based route, meaning they will have to go through the courts. This makes efficient processing of these claims absolutely vital for a functioning private rented sector (PRS). 

We know from the most recent Ministry of Justice data from the first part of this year that the average time for a landlord to regain possession is over six months and two weeks higher than a year ago - pointing to a system already struggling to cope  

We want:   

• Extra funding for the judicial system to ensure there is capacity to cope.  

• We are also supporting peers in their efforts secure a commitment from the Government to review the impact on the courts along with recommendations on how negative impacts can be mitigated. 

2: A sensible approach to rent appeals  

Another serious issue is the proposed rent appeals process. Under the Bill, tenants will be able to challenge any increase at the First-tier Tribunal – even if the increase is below market rent. There’s no filter or screening process, and every incentive for tenants to challenge an increase. Even if just 10% challenge an increase the Tribunal will be swamped. 

We want:  

• A triaging system, to help tenants establish whether a proposed increase is in line with market rents or not, working alongside the Valuation Office Agency (VOA). 

3: An extension of protections for student landlords 

The Government says it wants to protect the annual rental cycle in the student market, and has introduced ground 4A to allow landlords to regain possession in time for the new academic year in shared properties. However, this new ground does not currently apply to one and two-bedroom properties, despite these making up 32% of off-street student housing. 

We want:  

• An extension of ground 4A so that it applies to all off-street student homes 

• A modification of the ‘student test’ to enable full-time students living in smaller homes to fall within its remit, while part-time students with children are still protected. 

4: Existing arrears thresholds maintained 

The rent arrears possession ground, ground 8, is set to change under current proposals. The Government plans to allow arrears to build for up to three months before landlords can serve notice under the rent arrears ground (up from two months now) and to increase the notice period from two weeks to a month. In practice this means landlords will have to go without rent for four months before they are able to begin possession proceedings. The change will also exclude rent arrears arising from the non-payment of Universal Credit (UC) from being included.  

We want: 

• Existing thresholds re: arrears and notice to be maintained 

• A complete rethink on the UC clause entirely to ensure the benefit system is working efficiently  

What happens next? 

Now is a crucial moment to push for real improvements to the Bill and we are working to secure cross-party support for our recommendations. We’ll keep you updated via our news and social media channels. 

For more information on the Bill and its progress visit our exclusive members' hub here.

Watch our video explainer of Committee stage of the Bill below: