Renters' Rights Bill - 2nd Hearing Summary

The second hearing in the House of Lords on the Renters' Rights Bill discussed significant reforms designed to enhance conditions within the private rental sector. Key proposals include abolishing Section 21 no-fault evictions, offering tenants greater security and reducing the disruption caused by unexpected evictions, which can negatively impact schooling, employment, and mental wellbeing.

The Bill introduces periodic tenancies, allowing tenants to leave substandard housing with two months' notice and preventing landlords from imposing restrictive fixed-term contracts. It also limits rent increases to once per year through a formal process, enabling tenants to challenge unreasonable rises without fear of retaliation. Additionally, measures will prohibit rental bidding wars and restrict advance rent payments to one month, addressing practices that have excluded many renters from the market.

Further provisions extend the Decent Homes Standard to private rentals, ensuring safe and suitable living conditions. Stronger enforcement mechanisms—including increased penalties for non-compliance, a landlord database for transparency, and a new private rented sector ombudsman - will help uphold these standards and resolve disputes impartially.

However, concerns have been voiced by landlords and estate agents regarding potential unintended consequences of these changes. Critics argue that heightened regulation could prompt landlords to exit the market, potentially reducing housing availability and driving rents upward. Specific worries were raised about impacts on student housing, rural accommodation availability, and existing court backlogs.

Overall, while aiming to rebalance tenant-landlord relationships and improve renter stability, the Bill must carefully consider these industry concerns to ensure it achieves its intended outcomes without negatively affecting housing supply and affordability.

At Pink Chilli, we’ll continue to monitor developments and keep you informed. Whether you’re a tenant, landlord or letting agent, staying up to date with these changes will help you prepare for the future rental landscape. Please get in touch if you have any questions or want to discuss anything related to the Renters' Rights Bill.