"Matthew Pennycook has justified rejecting the majority of Lords’ amendments by suggesting that landlords would exploit any concessions to behave poorly. This narrative is both unfair and inaccurate"
- Marc von Grundherr - Benham and Reeves
The Renters’ Rights Bill has cleared its final stage in the Commons, with Housing Minister Matthew Pennycook confirming that the Government has rejected almost all amendments proposed by the House of Lords.
The legislation is now set to proceed through its final ‘ping-pong’ stage before receiving Royal Assent, with all of its major measures intact, including the abolition of Section 21, the introduction of a Decent Homes Standard, and the end of Assured Shorthold Tenancies.
Key Provisions of the Renters' Rights Bill:
Abolition of Section 21 'No-Fault' Evictions: Landlords will no longer be able to evict tenants without providing a reason, offering greater security to renters.
Conversion of Assured Shorthold Tenancies (ASTs) to Periodic Tenancies: All new ASTs will automatically become periodic, providing tenants with more flexibility and stability.
Introduction of Lifetime Deposits: Tenants will be able to transfer their deposit from one rental property to another, reducing the financial burden of moving.
Tighter Rent Increase Controls: Landlords will face stricter regulations on how and when they can increase rent, aiming to prevent sudden and unaffordable hikes.
Mandatory Minimum Standards for Property Conditions: Landlords will be required to maintain properties to a higher standard, addressing issues such as damp, mould, and inadequate heating
The bill is expected to provide significant benefits to tenants, including increased security, reduced financial strain, and improved living conditions. However, some landlords have expressed concerns about the potential impact on their operations. According to a survey by Rightmove, 66% of landlords feel unsupported by the government, and around one-third are considering exiting the market due to increasing regulation and taxation concerns.
Industry reaction
Scott Clay, a director at property lender Together, said: “Ahead of the Renters’ Rights Bill getting its much-anticipated royal assent, discussion of the last few elements are vital – especially as some landlords, particularly those with smaller portfolios, could be at risk of being caught unawares.
“The potential end of AST agreements and clampdown on surging rent pricing – while possibly contentious for individual, private landlords, should hopefully create a more balanced and fair system. The allowance of pets and inclusion of prospective tenants on benefits, provided there are watertight financial agreements and clear and honest communications from all parties, should help this too.
“Indeed, these new measures may be an easier pill to swallow than the removal of Section 21 or ‘no fault’ evictions. This could see unjust cases overlooked or ignored – causing costly and time-draining situations for legitimate landlords. For example, landlords can evict tenants to sell their property, but this cannot be re-let for up to a year if the sale falls through. This could mean houses are left empty for months on end, worsening rather than improving our housing crisis.
“The bill is under immense pressure to positively deliver from both sides – hopes are it properly addresses the concerns of landlords and tenants equally. We shall see.”
Sam Humphries, head of M&A at Dwelly, commented, “Even before this Bill has been implemented, we’re already seeing a rise in landlord repossessions, driven by a lack of trust in the court system and a desire to regain control of their portfolios before these changes come into effect.
"With only minor amendments made to the Bill and the abolition of Section 21 evictions set to go ahead, this trend is only likely to intensify, putting even greater strain on the courts and leaving many more tenants without a roof over their head.
"It underlines the unintended consequences of pushing through sweeping reforms without properly considering the realities of the rental market.”
Marc von Grundherr, director of Benham and Reeves, said, “Matthew Pennycook has justified rejecting the majority of Lords’ amendments by suggesting that landlords would exploit any concessions to behave poorly. This narrative is both unfair and inaccurate.
"The vast majority of landlords are honest, hard-working individuals who operate in an ethically sound manner and provide a vital service to millions of tenants.
"Demonising them is not only misleading, it risks further destabilising the rental market at a time when supply is already critically short - so it’s extremely disappointing to see landlords used as a scapegoat to prevent the necessary changes required to balance the Bill.
Sián Hemming-Metcalfe, Operations Director at Inventory Base, commented, “This Bill cannot be allowed to drift endlessly between the Commons and Lords. Minor amendments are no substitute for real direction, and the reality is stark: only one in six landlords is ready for the RRB. Unless Parliament delivers clarity now, uncertainty will harden into paralysis across the rental sector.”
Vann Vogstad, CEO of Coho, noted, “HMOs will be hit first and hardest by this legislation. These properties are already subject to a huge amount of regulation, yet they play a crucial role in providing affordable, flexible accommodation across the UK. Any further pressure risks reducing availability in this vital part of the sector, ultimately to the detriment of the very tenants the Government claims to be protecting.”
