The passage of the Renters Rights Bill has been one of the most important issues for landlords, tenants and letting agents since the general election last year. Although many of its provisions match those of the Renters Reform Bill that the previous Conservative administration had introduced to parliament, the legislation has sparked some concerns.
A key feature of both bills has been the pledge to abolish section 21 ‘no fault’ evictions. Not all landlords are opposed to this in principle, but many worry that there could be significant practical problems.
Highlighting the concerns many landlords have, the National Residential Landlords Association (NRLA) has said “pragmatic changes” are needed if the new arrangements are to “have any chance of working”.
The NRLA has called on the government to support three amendments to the bill, which it believes would make it more workable.
First, there is a Liberal Democrat call for a review of the impact of the abolition of section 21 on the court system. The chief concern is that cases already take a long time, and that under the new legislation, the need for litigation could lead to a large increase in cases that could overwhelm the system.
The housing minister has already noted the court system is “on its knees”, the NRLA pointed out.
A second amendment, submitted by a cross-party group, has urged a change to the plan to end fixed-term tenancies as they impact on student housing. The proposals might prevent some student properties from being ready for rent at the start of an academic year.
Although a concession has already been made for one and two-bedroom student properties, these only make up a third of student rentals. The amendment would extend this to all student homes.
Finally, a former legal advisor to Downing Street has proposed that the increase in the amount of arrears a tenant can build up (50 per cent more than before) before they can be evicted on these grounds is reversed.
Urging ministers to adopt the proposals, NRLA chief executive Ben Beadle said: Without changes, the justice system will not cope, students will struggle to plan where they will live and responsible landlords will avoid the risk of taking tenants with a poor, or no, credit history in the UK.”
Some have taken a dim view of attempts to amend the legislation. Property118.com, for instance, has highlighted the criticism levelled by organisations such as Shelter towards members of the House of Lords who are landlords. According to the i newspaper, at least ten of the proposed amendments have been tabled by landlords.
These come from peers representing different parties, but contain significant potential reductions in the scope of the bill.
Among them is a proposal by Lord Jackson of Peterborough to allow landlords with five properties or fewer to issue section 21 notices. Such a move might benefit landlords of more limited means who lack the resources to fight multiple eviction court cases.
Director of campaigns at Shelter, Mairi MacRae, accused Lords who are also landlords of acting in a “self-interested” way and the Renters Reform Coalition accused them of playing “political games” with the lives of renters.
However, many would argue that some of the proposed changes have merit and by focusing on three specific amendments, the NRLA may have some success in achieving some changes before the bill becomes law.
