The Renters’ Rights Bill had its Second Reading in the House of Lords on 4 February 2025, marking another key milestone in its journey through Parliament. As the Bill moves to the Committee Stage, debates have highlighted both its potential benefits and significant challenges. At Ello Property, we understand the concerns of landlords, letting agents, and tenants alike. While the Renters’ Rights Bill aims to improve conditions in the private rented sector, it must be carefully scrutinised to avoid unintended consequences that could negatively impact housing supply, affordability, and the ability of landlords to operate fairly.

Concerns Raised in the Lords Debate

Many Peers echoed the concerns of letting agents and landlords, particularly regarding property standards, enforcement challenges, and the risks associated with rent controls. While there is broad support for improving tenant protections, the Renters’ Rights Bill must strike a fair balance between the rights of renters and the practical realities of property management.

Key areas of discussion included:

1. The Court System and Possession Rights

One of the biggest concerns raised was the state of the court system. With the abolition of Section 21 ‘no-fault’ evictions, landlords will need to rely on the courts to regain possession of their properties when tenants breach agreements. However, without significant court reform, delays in eviction cases could make it harder for landlords to manage risk, leading to reduced housing supply. The government must ensure the Renters’ Rights Bill includes provisions to strengthen the court system and avoid unnecessary delays.

2. Student Lets and Fixed-Term Tenancies

Student accommodation was a hot topic, with Peers recognising that the removal of fixed-term tenancies could create instability in the student rental market. Universities, landlords, and students rely on the predictable turnover of tenancies each academic year. Without exemptions or clear rules within the Renters’ Rights Bill, landlords may become reluctant to let to students, exacerbating housing shortages in university towns.

3. Rules on Pets in Rental Properties

The Renters’ Rights Bill proposes changes to make it easier for tenants to rent with pets, but concerns were raised about the practical implications. While allowing pets can be a positive step for tenants, landlords must still be able to protect their properties. Sensible amendments are needed to ensure balance—such as allowing landlords to request pet insurance or increased deposits for potential damages.

4. Rent in Advance Restrictions

Many Peers debated the impact of restricting rent in advance payments. While this aims to make renting more accessible, landlords often request upfront rent to mitigate risk, particularly when dealing with tenants without a strong financial history. The Renters’ Rights Bill must consider the practicalities of managing risk in the rental market while ensuring fair access for tenants.

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5. Local Authority Enforcement

A key theme in the debate was the ability of local authorities to enforce the Renters’ Rights Bill’s provisions. Councils already face resource constraints, and additional responsibilities without increased funding could lead to ineffective enforcement. The government must ensure that local authorities have the necessary resources to uphold rental standards without creating excessive bureaucracy.

What Happens Next?

The Renters’ Rights Bill now moves to the Committee Stage, where amendments will be considered.

At Ello Property, we will keep landlords and tenants informed of any key changes. Stay tuned for further updates as the Renters’ Rights Bill progresses.

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