Renters’ Rights Bill: Government backs NRLA review call

Wins on pet deposits and letting restrictions for landlords were the big talking points following the Renters’ Rights Bill’s Report stage debate this week, both representing big wins for the NRLA.

An amendment enabling landlords to take an additional ‘pet deposit’ of three weeks’ rent was accepted, along with one that would reduce the restrictions on landlords reletting homes repossessed to be sold from 12 to six months.

However, given the lack of government support for these changes there is a real risk that they will fail to make it into the final Bill.

The Government did, however, give it's clearest commitment yet that it will undertake and publish a review of the Bill’s impact two- and five-years after implementation, in line with NRLA calls.

While we welcome both the amendments tabled on Monday, we need to stress that they are likely to be overturned when the Bill goes back to the Commons, where Labour has a clear majority.

Pets and lets

We have repeatedly warned that landlords do need to be able to guard against the risk of damage caused by pets. Having recognised the need to reduce these risks, the Government’s recent decision to remove landlords’ ability to require pet insurance raised immediate concerns.

In response to this an amendment was proposed by Lord de Clifford,which would enable landlords to take an additional ‘pet deposit’ of three weeks’ rent where a pet request is accepted.  

We were pleased to see Peers support this proposal and echo our arguments, with Lord De Clifford stating that if no damage occurs, ‘the deposit is returned…whereas the initial proposal for pet insurance was money never to be returned, regardless of whether a claim was made or not.’ 

While the amendment was accepted, the Government did not back it, meaning that it is highly unlikely to be removed when the Bill returns to the Commons. 

We will however continue to work with MPs and pressure Government to retain this amendment and allow landlords to have some form of protection from pet damage. 

 Re-letting restrictions 

Another key campaign ask has been for the removal or loosening of restrictions on landlords who attempt to sell their property or properties.

That the Renters’ Rights Bill as published would prevent landlords using the ‘for sale’ ground (1A) to repossess from re-letting their property for 12 months should, for example, a sale fall through.  

 We have argued such a severe restriction on landlords’ ability to let out their property could result in much-needed homes being left empty. 

Peers agreed, passing an amendment loosening these restrictions and cutting the period in which a property cannot be re-let to 6 months. This is another welcome change by peers and shows yet again that our arguments around the restrictive nature of this provision have been getting through. 

However, yet again, the Government is highly likely to remove this provision when the Bill returns to the Commons.  

What about the review?

Given the vast scope of the Renters’ Rights Bill, we have been consistent in calling for a formal review of the Bill’s impact on the PRS. Such a review would also be crucial in identifying whether the Bill has met the Government’s own goals of improving standards in the PRS and protecting tenants.

Although no review amendments were included in the Bill, when responding to amendments calling for a review, Baroness Taylor confirmed the department will publish its assessments of the Renters’ Rights Bill on gov.uk two years and five years after implementation.

Given how vital these reviews are in evaluating the effects of the Bill against the stated goals, we firmly welcome this commitment from Government and are pleased to see our concerns and campaigning being reflected in the Government’s policy.

Unlike the non-government amendments accepted, this commitment is likely to have longer-term significance, and we are now working on ensuring these reviews encompass key indicators, including the impact on the justice system, supply and local authority enforcement capacity. 

What happens next?

The final Report stage debate is due to take place on the 15th July, with Third Reading provisionally scheduled for the 21st July. These amendments, while welcome, lack government backing, meaning they risk being overturned in the House of Commons, so the remaining stages of the process are critical.

We will continue to engage with key stakeholders to defend these wins and attempt to see these changes included in the final bill. 

In the meantime you can keep up to date on all things Renters’ Rights by signing up for our member’s webinar on the 17th July and checking out the Renters’ Rights Hub on our website. 

More information

• The news comes after an NRLA win on the student possession ground. To learn more click here.
• For the NRLA’s exclusive member guides outlining how you can start to prepare for the Bill click here.     
• Extra dates have been added for our new Renters’ Rights course, after training sessions sold out in record time. For more information and to book click here.      
• We have also added a new eLearning option for the Renters’ Rights course, allowing you to take the training at a time and place to suit you. For more information and to book click here. 
• For a more detailed look at the NRLA calls ahead of Report stage click here.