Renters’ Rights Bill Moves to House of Lords Amid Legal & Market Concerns

The Renters’ Rights Bill has progressed from the House of Commons to the House of Lords, where it recently had its Second Reading. This marks a critical phase in its journey to becoming law, with Lords now able to table amendments before it returns to the Commons for final approval.

Key Debates & Concerns in the Lords

1️⃣ Legal Challenges & Court Impact

• Baroness Taylor of Stevenage confirmed that councils would have powers to enter business premises and landlords’ homes to seize evidence, a move that has been questioned as legally unsound.
• Lord Truscott warned that the Bill could be bogged down in courts due to Common Law challenges.
• Many Lords raised concerns about the strain on courts and tribunals if the Bill becomes law before promised court reforms take effect.
• The Government response was vague, stating they were “working with the Ministry of Justice”—often a sign of no immediate solution.

2️⃣ Rent in Advance Restriction

• A last-minute amendment in the Commons limits rent in advance to one month, payable only after the tenant has signed the contract.
• Lords widely opposed this change, with strong support for an amendment to alter or remove it.
• iHowz is actively lobbying MPs to highlight the problems caused by the restriction.

3️⃣ Fixed-Term Tenancies & Student Housing

• The loss of Fixed-Term Tenancies sparked debate, particularly regarding students.
• Lord Jamison warned of its impact on the student rental market.
• Amendments will be tabled to retain fixed terms, with student-specific proposals expected.

4️⃣ Pet Rights & Landlord Deposits

• The Bill allows tenants to request to keep pets, but concerns were raised over damage costs.
• The Earl of Kinnoull proposed allowing larger deposits for pet-owning tenants, as pet insurance often fails to cover normal wear and tear.

5️⃣ CGT Exemption for Landlords Selling to Councils

• Lord Best suggested that Capital Gains Tax (CGT) should be waived if landlords sell to councils or social landlords.
• This idea aims to increase social housing supply while incentivising landlords to exit the market in a controlled way.

6️⃣ Housing Market & Development Delays

• The Earl of Lytton pointed out that developers are holding back 100,000+ plots with planning permission, waiting for house prices to rise.
• Meanwhile, landlords being forced out could keep property prices low, potentially impacting Treasury tax revenues.

7️⃣ Market Intervention vs. Free Market Approach

• Lord Howard (Conservative) called the Bill “a rotten idea, and it still is,” arguing that the market should regulate itself or there will be no rental market in five years.
• Lord Shipley balanced the debate, highlighting that bad tenants exist too, not just bad landlords.
• Lord Marlesford described landlords as entrepreneurs, implying that over-regulation could harm the sector.

Next Steps & Potential Amendments

• Lords will now table amendments for debate and voting.
• If significant changes are made, the Bill returns to the Commons, where MPs can reject or modify Lords’ amendments.
• Expect major debates on court readiness, student tenancies, rent in advance rules, and CGT exemptions.

If you want to see the whole thing, click here.  Be warned, it’s 5 hours long!!

iHowz will continue to lobby Lords and MPs on your behalf.