On the 11th of September 2024, the government published the Renters’ Rights Bill. The Renters' Rights Bill is aiming to giver private rented tenants’ greater protections, most of the changes relate to the private rented sector (PRS), however some parts of the Bill will relate to housing associations as they use assured tenancies. The Bill is high priority for the government, and is likely to gain continued support amongst Labour MPs, therefore the Bill could gain Royal assent and come into law as early as summer 2025.[1] Our last update on the Renter’s Rights Bill was last month, as it went into the second reading. It went to committee stage on the 22nd of October, and it will now progress to the Report Stage. Since our last update, there have been some important debates, amendments, to the landmark bill on renter’s rights as it enters the report stage in the house of commons. We will outline below some of the important amendments and parliamentary debates that concern the renter’s rights bill. The Report Stage of the Bill gives a chance for the whole House to discuss the Bill and consider further amendments to the Bill. All MPs can suggest amendments, or if necessary, new clauses they believe should be added.
Parliamentary Debates: The Committee Stage[2]
Earlier this month there were a variety of parliamentary debates on the Renters’ Rights Bill that may warrant attention. On the 5th of November, there was a Public Bill Committee on a variety of new clauses proposed for the renter’s rights bill. We will summarise and present some of the main takeaways from some key members of parliament.
New Clause 4: ‘Assessment of operation of possession process’
“(1) The Lord Chancellor must prepare an assessment of the operation of the process by which— (a) on applications made by landlords, the county court is able to make orders for the possession of dwellings in England that are let under assured and regulated tenancies, and (b) such orders are enforced. (2) The Lord Chancellor must publish the assessment at such time, and in such manner, as the Lord Chancellor thinks appropriate. (3) In this section— ‘assured tenancy’ means an assured tenancy within the meaning of the 1988 Act; ‘dwelling’ means a building or part of a building which is occupied or intended to be occupied as a separate dwelling; ‘regulated tenancy’ means a regulated tenancy within the meaning of the Rent Act 1977.”
Introduced by MP David Simmons, he stated that ‘concern was expressed on the part of landlords that the backlog in the courts may make it difficult to secure possession when necessary’
Matthew Pennycook, Minister of State for Housing and Planning, replied in response ‘New clause 4 would require the Lord Chancellor to prepare an assessment of the operation of the process by which the county court is able to make possession order for rented properties and by which such orders are enforced’
However, it was deemed that an ‘assessment required by new clause 4 is entirely unnecessary and unhelpful, because data on the operation of possession proceedings for rented properties is already published by the Ministry of Justice’
The clause was thereby withdrawn from David Simmonds MP.
On selective licensing for local authorities, as proposed in clause 9, Matthew Pennycook stated:
“As we have heard, new clause 5 seeks to abolish selective licensing. This would remove the ability of local authorities to set up a selective licensing scheme of any size in their area. In contrast, new clause 9 seeks to extend selective and additional licensing of houses in multiple occupation by allowing local authorities to increase the maximum duration of schemes from five to 10 years. It also seeks to allow local authorities to use licence conditions under selective licensing to improve housing conditions, as the hon. Member for Bristol Central made clear. This Government support selective licensing. It allows local authorities to proactively and more intensively target specific issues in private rented properties, where it is needed most. That includes tackling poor housing conditions and antisocial behaviour. If we abolish selective licensing, local authorities will lose a crucial tool in taking effective enforcement action against landlords who flout the rules. However, I take the shadow Minister’s point, and I reiterate that it is important that the selective licensing system, and the system introduced by the Bill, operate effectively alongside each other. That is very much our intention.”
Therefore, new clause 5, which would remove the ability of local housing authorities to designate areas as subject to selective licensing, was withdrawn.
Amendments
There are several amendments of note, one of the key ones as reported yesterday, is the ‘limit on rent in advance of tenancy’, introduced by MP for Leeds North-West Alex Sobel. The proposed amendment would insert a ‘new clause’ that ‘would make it unlawful for a landlord to demand or accept more than one month’s rent in advance in respect of a tenancy or licence of residential accommodation. This applies to schedule 1 of the Tenant Fees Act 2019, that prohibits various fees such as administration, check-in and other fees.
Alex Sobel also proposed to move the clause ‘Signature of lease for student accommodation’, as an explanatory statement, it was described that ‘this new clause would prevent student leases being signed before March in the year in which they are intended to commence’.
On the 18th of this month, MP Gideon Amos, proposed to move a clause concerning the ‘Impact of Act on provision of short-term lets’. This would mean that the ‘secretary of state must, within two years of the passing of this Act, publish a review of the impact of sections 1 to 3 on the number of landlords offering properties on short-term lets rather than in the private rented sector’.
Courts, delay and investment: What are stakeholders saying?
There are some concerns from key stakeholders, as the renter’s rights bill progresses along with a worsening housing crisis, that the justice system does not have the investment necessary to support the incoming reform of the rental market. Suzzanah Young, Policy Leader at the National Housing Federation, said at a reading of the Bill on the 22nd October 2024, that ‘housing associations have experience of the impacts of delays in the courts’ in particular ‘fast tracking possession orders during lockdown’, she makes the point that delays in possession orders are a particular problem when ‘possession is being sort, for example, serious ASB and domestic abuse’.[3]
The Law Society of England and Wales has also released a press release, calling for immediate investment in the justice system.[4] Quarterly figures published by the Ministry of Justice show a unfortunate rise in renters at risk of homelessness, landlord possession orders rose 7% (17,987 to 19,254) leading to a possible eviction for almost 25,000 people. Richard Atkinson, Law Society president said “The rising number of eviction order reflects the alarming state of our housing crisis and the urgent need for rental reform”. Going on to articulate that “It is deeply concerning that 25.3m people (42%) do not have a local legal aid provider for housing advice” this therefore means there is no support for renters, who cannot afford legal help.
Anti-social behaviour practitioners know full well the challenges that the justice system faces in order to deliver justice and restoration, it is therefore welcomed that further calls are being made to bolster the criminal justice system so reforms can deliver as intended, avoiding delays and frustration.
[1] https://housingdigital.co.uk/renters-rights-bill-how-are-labours-plans-for-private-rented-housing-different/
[2] https://publications.parliament.uk/pa/bills/cbill/59-01/0008/PBC008_Renters_Rights_Bill_1st-8th_Compilation_05_11_2024.pdf
[3] https://parliamentlive.tv/Event/Index/c2a549ab-ba8b-4ddb-bd2f-978a1db6abd4
[4] https://www.lawsociety.org.uk/contact-or-visit-us/press-office/press-releases/urgent-need-to-fund-legal-help-for-renters-at-risk-of-eviction
