Big update for anyone following the Renters’ Rights Bill , we’re finally in the home stretch!
After another round of “ping pong” between the House of Commons and the House of Lords, the government won the key votes it needed. That means there are no more disagreements left between the two Houses.
The Bill will make one last quick stop in the House of Commons on 22 October. MPs will take a look at the few changes the Lords made earlier this week, but since the government already supports those, it should be a pretty quick and straightforward session.
Once that’s done, the Bill will be ready for Royal Assent, which is the King’s official sign-off, and then it becomes law. It’s been quite the journey getting this Bill through Parliament, but the finish line is finally in sight.
In summary, the passing of the Renters' Rights Bill, soon to be the Renters' Rights Act, is very close, possibly in law by next Wednesday.
Here is an updated overview and latest news (to be read alongside the Parliament website) as follows;
Renters' Rights Bill - Consideration of Commons amendments/reasons to disagree with Lords amendments to the bill, took place in the House of Lords on 14 October.
The final agreements;
Ground 1A – Selling the Property
If a landlord ends a tenancy because they plan to sell, the relet ban, the period during which they can’t immediately rent the property out again, will stay at 12 months.
There was a push to reduce this to 6 months, but the government narrowly won the vote by just 11 votes. So, one year it is.
Ground 4A – Student Tenancies
Ground 4A will continue to apply only to full-time students in HMOs (Houses in Multiple Occupation). That means smaller student flats and houses won’t fall under this rule for now.
Pet Deposits
The proposed amendment to allow a separate pet deposit of up to three weeks’ rent didn’t pass. However, there’s still some flexibility here. Baroness Taylor reminded the Lords that the government already has powers under the Tenant Fees Act 2019 to increase deposits in cases where a landlord agrees to pets. She also hinted that this could be revisited in the future: “If there is clear evidence that pet damage is exceeding normal tenancy deposits, we have the Tenant Fees Act power, which would allow us to remedy this.”
So, while the idea of a dedicated pet deposit was voted down, the door isn’t completely closed.
Proving Rental Discrimination or Bidding
For local councils bringing claims against landlords for rental discrimination or rental bidding, the burden of proof will remain “on the balance of probabilities.” Baroness Taylor did, however, reassure the Lords that new statutory guidance will remind councils to act carefully and base penalties only on credible and reliable evidence.
Landlords - are you Renters' Rights Act ready?
To review your financial strategy, your BTL mortgages, your property insurance and your rent protection plans, the team at Assured Protect can help you. Inaction is no defence. Contact us via the form below and we will call you back to review your business and provide you with the required solutions.
Share this post: