Mixed views on Renters (Reform) Bill’s return to the Commons today

The much-delayed Renters (Reform) Bill is finally returning to the House of Common today.

The Bill will receive its second reading with a number of amendments, including a review of the courts before Section 21 is abolished for existing tenancies, to ensure they can cope with a higher workload.

In addition, tenants will not be able to give two months’ notice leave until they have been in a property for at least four months, for fixed term tenancies, while Student housing will be given a new ground for possession to ensure student landlords can retain the annual cycle of student tenants.

Ben Beadle, chief executive of the National Residential Landlords Association, said: “This Bill delivers a fair deal for tenants and responsible landlords. In the interests of certainty for the sector it is now time to ensure the Bill passes through Parliament.

“For renters, the Bill will abolish section 21 repossessions and fixed term tenancies, introduce a Decent Homes Standard for the sector, a new Ombudsman and Property Portal which landlords will have to join as well as measures to protect families and those in receipt of benefits from discrimination.

“Going forward, it will always be for the courts to decide if landlords have met the threshold to repossess a property based on a series of legitimate reasons. This includes tenant anti-social behaviour, serious rent arrears or where a landlord plans to sell a property.

“That said, the tenant group, Generation Rent, has rightly warned that landlords selling properties is ‘a leading cause of homelessness.’ The only answer to this is ensuring responsible landlords feel confident enough to stay in the market. Greater security for tenants will mean nothing if the rental homes are not there in the first place.

“A number of the amendments proposed to the Bill enact recommendations by the cross-party housing select committee. Taken together they would ensure a balanced Bill that protects tenants and ensures it is viable for responsible landlords to continuing renting properties out.”

The Renters (Reform Bill) has been described as a ‘once in a generation opportunity to improve the rental market’

Sam Reynolds, CEO of Zero Deposit, commented: “The Renters Reform Bill and the latest proposed amendments is a once in a generation opportunity to improve the rental market to benefit tenants and landlords alike, providing both with greater protections and ensuring a more harmonious rental sector.

“That is, of course, when it finally comes to pass, as so far it’s been subject to lengthy delays, largely due to the abolition of Section 21 notices and fears over the ability of the courts to manage with an increase in demand. But issues within the market are proliferating and need an urgent and viable response.

“As one of the most significant proposed amendments, it’s likely that it will continue to prove problematic. However, it is vital that landlords are properly protected and provided with adequate means to regain control of their rental property when the basic obligations of the tenancy aren’t being met.”

“The tabled amendment preventing tenants from giving two months notice until four months of the fixed term has passed will also be warmly welcomed, largely because the alternative was so unattractive. While greater flexibility for tenants is needed, it’s simply unviable for landlords not to have a certainty of rental term, so the guarantee of a six month minimum term should help reassure landlords and prevent them from exiting the sector.”

But not everybody is impressed with the existing proposals, including some of the amendments tabled.

Anthony Kyriacou, CEO and founder of krispyhouse, believes that the Renters (Reform Bill) is failing the UK rental market.

Kyriacou said: “Despite the plethora of amendments suggested by government MPs and the Labour Party, the Bill in its current state still does not strike the right balance between the interests of landlords and tenants. The intention is noble, to give tenants better security of tenure, more certainty over their future in a tenanted property, while trying to ensure the Bill does not make the private rental market so unattractive that landlords don’t continue to leave the market as they have been doing for the past few years.

“Now spanning more than 112 pages and set for a second reading in the Commons tomorrow, the Bill still fails in its purpose to streamline the needlessly complex property market, while also not meeting the real needs of both tenants and landlords. As drafted, I fear that more landlords will decide to leave the market, leaving tenants in a worse position as stock diminishes, prompting a further rise in rents.

“While ultimately well meaning, the Bill fails to address the real problem of supply and demand which faces the UK rental market. With more than 25 tenants now competing over a single property in the UK on average, change is clearly needed, but this is not it.

“Properly addressing the challenges facing our rental market requires a solution which benefits tenants, landlords and estate agents alike and what’s needed is greater investment and a much more accessible and streamlined rental arena matching people’s fast paced lifestyles.”

Darren Baxter, Principal Policy Adviser at JRF, believes that in its current form, the Renters (Reform) Bill will be a failure.

He added: “As it stands the Renters (Reform) Bill prioritises placating landlords and backbenchers over strengthening tenants’ rights. The Renters’ Reform Coalition is right to highlight the serious inadequacy of the Bill, which has been repeatedly watered down. While its primary aim has been to end no-fault evictions, it offers no clear timeframe or commitment as to when this will be done, reneging on promises made to renters over five years ago.