Unpacking the Renters’ Rights Bill Second Reading

Earlier this week, Angela Rayner held the second reading of the Renters’ Rights Bill. The Bill was announced in September, but this is the first time it has been debated in Parliament. 

Rayner asserted that the primary goal of the Renters’ Rights Bill is to ensure that all tenants can live ‘in a decent, safe and affordable home’. 

Shadow Secretary of State for Housing, Communities, and Local Government, Kemi Badenoch, has stated that the Bill will cause ‘unintended consequences’ for the sector and called for an amendment to stop it from progressing further. This amendment was not accepted. 

The Renters’ Rights Bill will now move to the Committee Stage, chaired by Florence Eshalomi MP for Vauxhall and Camberwell Green.

What was discussed in the second reading of the Renters’ Rights Bill?

The Renters’ Rights Bill second reading discussed many of the key proposed legislative changes outlined when the Bill was initially announced.

Abolishing Section 21 ‘no-fault’ evictions

The abolition of Section 21 evictions is one of the main proposed legislative changes in the Renters’ Rights Bill and was one of the primary points of discussion during the second reading. 

Angela Rayner said, ‘millions of people live in fear of Section 21 no-fault evictions that could uproot them from their homes and communities and are forced to live in homes that are riddled with damp and mould’.

She re-asserted Labour’s commitment to ‘abolish Section 21 no-fault evictions immediately for new and existing tenancies to give tenants the same security immediately’. 

MPs voiced concerns about a potential increase in repossession orders placing strain on the courts. 

The Renters’ Rights Bill proposes that the court system will become digital to help resolve disputes more efficiently and ensure landlords can regain possession efficiently when justified. The new PRS Landlord Ombudsman will also help to reduce strain on the courts by resolving tenant-landlord issues before they escalate to legal proceedings. 

The end of fixed-term tenancies

Angela Rayner confirmed that the Renters’ Rights Bill will end fixed-term tenancies and tenants will only need to give two months’ notice. She claimed that this would ‘end the injustice of tenants who need to leave at short notice’.

She added that the Government will ‘address specific cases such as student accommodation, which will have dedicated possession grounds to ensure fairness’. Further detail into this matter has not been provided at this time, leaving purpose built student accommodation providers uncertain as to if they will be exempt from key terms in the Bill.

There will be a possession ground for landlords who want to sell or live in their properties but safeguards will be added to protect tenants. Tenants must be given four months’ notice ‘so they have time to find a new home’ and landlords will have to wait a year from the beginning of the tenancy before they can use these grounds for eviction. Rayner says, This honours our commitment to level the playing field for renters’. 

She adds, ‘Landlords will still be able to quickly evict tenants who cause anti-social behaviour that makes others’ lives a misery’. 

Limits on rent increases

Rayner says the Bill will, ‘empower tenants to challenge unfair rent increases designed to drive them out. It will prevent tenants from being bound by rent review clauses putting them in a position to challenge unreasonable rent hikes.’

Landlords and letting agents will have to publish an asking rent for their property and will not be allowed to accept offers above this. 

Rayner says, ‘Unlike in the previous government’s Bill, the tribunal will not be able to increase rent above what was originally proposed by the landlord. In cases of undue hardship, we will give the tribunal the power to defer rent increases by up to two months, thereby finally ending the injustice of economic evictions.”

Independent MP, Jeremy Corbyn, argued that rent controls are needed to manage rising rents.

However, Rayner argued that, ‘Rent controls restrict housing supply which doesn’t help anyone’, although JMW solicitor David Smith has highlighted that the draft provisions around rent increases would amount to ‘rent suppression’, given tenants’ rights to challenge increases that exceed ‘market rate’ in the first tier tribunal.  

Online database for landlords

The Renters' Rights Bill introduces a new online private rented sector database which will make it mandatory for landlords to provide detailed information about each rental property they have, including property standards and compliance with the law.

Rayner stated that the database will be ‘to the benefit of landlords and tenants’ as it will help tenants ‘to understand more about the property and the landlord’ while helping landlords ‘meet their legal and basic duties’ with ‘greater guidance and support from the Government’. 

Additionally, Rayner stated that, ‘the database will provide local authorities with the information they need to support their enforcement activities to drive out rogue landlords’. 

Energy Performance Certificates (EPCs)

During the second reading, MPs raised discussion around Labour’s plans to ensure that all private rental properties have an Energy Performance Certificate (EPC) rating of C or above.

Rayner has clarified that these EPC changes will not be enforced through the Renters' Rights Bill at this stage. 

Conservative Party Response to the Renters’ Rights Bill

The Renters’ Rights Bill faced criticism from the Opposition during the second reading. Kemi Badenoch, Shadow Secretary of State for Housing, Communities, and Local Government, argued that increased regulations will ‘cause more chaos’ and ‘push good landlords out and empower bad landlords who will ignore the rules’. 

Badenoch asserted that the Bill could reduce housing for the private rental sector and stated ‘reduction of supply is affecting tenants as well as landlords’.

She added, ‘The truth is the Bill is still not ready because they can’t fix the rental market by tying it in knots with further intervention’.

Badenoch also questioned why the Government has not provided a public impact assessment. Rayner did not provide an answer as to why an impact assessment had not taken place.

Despite this criticism, the suggestion of an amendment to the Bill was not accepted. 

What happens to the Renters’ Rights Bill next?

The Renters' Rights Bill will now move to the Committee Stage, chaired by Florence Eshalomi,  for a more detailed examination. The exact date for the Committee Stage has not been announced yet.

Eshalomi has asserted the importance of the Committee Stage, stating, ‘Fixing the housing crisis and ensuring more homes are built are crucial missions for the country, and I am sure my Committee will wish to scrutinise the Government’s progress in these areas’.

Are you prepared for the Renters’ Rights Bill?

The Renters’ Rights Bill outlines key legislative changes that could have a major impact on the property sector. To help you, we’ve created a checklist for property managers outlining actionable steps you can take to get ready for the proposed reforms.

Download it today to prepare for the Renters’ Rights Bill effectively.