Amendments to the Renters (Reform) Bill – A Straightforward Explanation
A series of amendments have been tabled to the Renters (Reform) Bill which could drastically change this proposed new law. In this post we will summarise these amendments and look at what they could mean for the PRS.
The Renters (Reform) Bill – the story so far
The Renters (Reform) Bill has been described as the biggest change to landlord-tenant law in a generation. It promises some radical changes. These include the introduction of rolling periodic tenancies to replace ASTs, new grounds for possession and the abolition of no fault evictions.
The Bill was announced in the House of Commons at its first reading in May 2023. After a slow start it progressed through its second reading and the committee stage. Before Christmas 2023 it looked like the Bill could potentially be signed into law this summer.
Things went quiet in the early part of 2024, however. Then, after a week or two of rumours in the media, a group of MPs tabled a series of amendments just prior to what is called the report stage of the Bill.
Very significantly, if these amendments are adopted, they could drastically change the nature of the Bill …. and to some extent dilute what it sets out to do.
Here are our previous posts on the Bill:
The Renters Reform Bill: What’s In It And What Does It Mean For Landlords?
The Renters Reform Bill: November 2023 Update
The Renters Reform Bill: December 2023 Update
The story behind the new amendments
This series of amendments, which includes new clauses as well as amendments to existing ones in the Bill, has been tabled by up to 60 MPs. Significantly these include some high profile names in the Conservative Party. They include Sir Graham Brady (1922 Committee Chairman), Sir Jacob Rees-Mogg, Sir Edward Leigh, former housing secretary Robert Jenrick, Sir Ian Duncan Smith, Theresa Villiers, Sir David Davis and John Redwood. Also significant is that around a third of these MPs have declared a personal interest such as that they are PRS landlords themselves.
Some observers suggest that the aim of proposing these amendments is not to amend the new Bill but to prevent it from becoming law.
The new clauses and amendments explained …. in simple terms
Here we will aim to summarise the proposed new clauses and amendments in simple terms.
You can read the full 20 page Amendment Paper published on 28 February here. (The number following each section indicates where more detail can be found in the Amendment Paper itself.)
A major new clause proposes that selective licensing schemes should be abolished. (NC1)
Local authorities would be able to impose financial penalties for housing offences – in the form of rent repayment orders – on limited companies and their directors and not just on individuals as now. (NC2)
A new clause would enable courts to consider so-called hearsay evidence in hearings for possession on the grounds of anti-social behaviour. (NC3)
A new clause would require the proposed PRS database to collect information which could be used in future to establish a system of rent controls. (NC4)
It is proposed that the government will be required to publish a review of the impact of the new grounds for possession within two years of the new law coming into force. This would cover effectiveness, impact on security of tenure and enforcement. It would also have to look at any changes to the law which might be needed as a result. (NC5)
A new clause would require landlords or agents to state the proposed rent in property advertising. (NC6)
It would be unlawful to ‘invite or encourage’ offers of rent that are above the asking rent for a property. (NC7)
Landlords would not be able to ask for more than 5 week’s advance rent. (6 weeks for tenancies over £50,000 pa.) (NC8)
The use of rent repayment orders would be extended to some of the new offences created by the Bill – in addition to offences such as eviction/harassment or operating an unlicensed property as now. (NC9)
A new clause would require private landlords to deal with hazards promptly. (The proposed new Awaab’s law in the social sector would be extended to the PRS.) (NC10)
A new clause would make blanket bans on renting to families with children or benefits’ claimants unlawful discrimination unless proved otherwise. (NC11)
An amendment meaning that if a landlord increases the rent without issuing the appropriate notice the tenant can recover their costs as a debt in court. It would also allow the government to empower the First tier tribunal to rule on this. (21)
An amendment meaning that, where rent is assessed by a tribunal, the rent subsequently decided by the tribunal cannot be higher than that originally requested by a landlord in a section 13 notice. (22)(13)
An amendment to ensure that in cases of undue hardship tenants would have a minimum of two months from the date of determination before the rent can increase. (23)
An amendment to remove the requirement, in cases of undue hardship, for a date determined by a court for rent to become payable to not be later than the date of the determination. (24)
When a tenant asks for permission to have a pet a landlord would need to give or refuse consent in writing within 28 days – rather than the 42 days previously proposed. (31)
Once consent has been given a tenant would also be able to keep a pet for the duration of their tenancy. (32)
An amendment so that where the landlord has taken possession of their property to enable themselves or their family to live in it they cannot then relet it for 6 months rather than the 3 months previously proposed. (3)
In the case of a short term or holiday let this would be at least 3 months. (11)(1)(2)(3)
An extension of the restricted period of a tenancy when a Ground 1 or 1A possession in Schedule 2 is used from 3 to 12 months. (35)(36)
An amendment that would mean tenants cannot give notice until they have lived in a property for at least 4 months. (6)
An amendment that would only require a landlord to be a member of the new official landlord redress scheme that is being proposed if they are not already a member of another approved independent scheme. (4)
Details of any notices of possession previously served will have to be recorded on the new proposed PRS database. (27)
EPCs will have to be recorded on the new proposed PRS database. (12)
Homes rented from the Defence Infrastructure Organisation by service personnel would be subject to the Decent Homes Standard. (37)
An amendment to ensure that the ban on Section 21 evictions would come into force on Royal Assent but with saving provisions for any notices served before that date. (28)
A major amendment would require the Secretary of State to publish a review of the operation of residential possession proceedings in the courts before setting a date for the new style of tenancies and new possession rules to start. (9)
This could potentially mean that the government has to improve the operation of the courts relating to the new evictions process – something that is currently very slow and very problematic – before confirming the Section 21 ban.
An amendment to clarify where social housing providers will be able to use the new grounds for possession in order to offer properties to another social tenant. (33)
An amendment to clarify what a Rent to Buy Agreement is for the purposes of this Bill. (34)
An amendment to extend Ground 2ZA, which relates to financial penalties, to apply in a situation where a tenancy at will (an indefinite but informal tenancy with no formal tenancy rights) may arise. (29)
An amendment to ensure that any intermediate landlord (eg. someone who holds a lease from the freeholder and sub lets the property) retains possession of the property and legally remains as the landlord of the occupying tenant until the end of any possession proceedings. (30)
A very significant amendment so that student landlords will be able to give notice to students at the end of the academic year – even for properties occupied by just one or two students as well as HMOs. (5)
An amendment to retain the existing 12 month minimum period before a landlord can bring proceedings for possession if they wish to occupy the property themselves. (It had been proposed to reduce this to 6 months.) (16)
An amendment to limit the use of Ground 7 of Schedule 2 of the Housing Act 1988, which allows a landlord to recover possession when a former tenant dies and there is no one living there who has a right to succeed the tenancy, to social housing only. (17)
An amendment to remove the proposed new ground for possession for repeated rent arrears. Under current proposals this would be at least 2 months rent unpaid on three separate occasions. (18)
A connected amendment would also make repeated rent arrears a discretionary ground for possession rather than a mandatory one. (19)
An amendment to maintain the existing definition of anti-social behaviour as being conduct causing or likely to cause a nuisance or annoyance. Rather than the new proposed definition of behaviour capable of causing nuisance or annoyance. (20)
An amendment to maintain the homelessness prevention duty owed by local authorities to tenants who have received notice, and also extend it to Section 8 notices for possession. (25)
An amendment to ensure that the homelessness prevention duty owed by a local authority cannot end whilst a valid notice under Section 8 has been issued where it is the only accommodation available to that person. (26)
What happens next
The report stage provides an opportunity to discuss and amend a Bill in the House of Commons. All MPs can speak, suggest new clauses or amendments and vote on them. The report stage is normally followed by the Bill’s third reading. No date has been set for this at time of writing.
Next, the Bill goes to the House of Lords where it passes through the same process as in the Commons.
The Renters (Reform) Bill – will it become law at all?
Many of the provisions in the Renters (Reform) Bill, and in this series of amendments, are not that problematic. Many landlords find them palatable enough. The most difficult issue has been the proposal to abolish Section 21 so-called no fault evictions. This has proved popular with tenants’ rights campaigners. However, it has proved very unpopular with landlords who feel that there must aways be a way to regain possession of their property whenever they need or want to.
A pledge to abolish Section 21 was included in the Conservative manifesto in 2019 as part of a promise of a ‘better deal for renters’. The new Bill originally contained provisions for this to happen but the government later said this would not happen until the court system could cope with the planned new evictions system.
More recently however, housing secretary Michael Gove said no fault evictions would be abolished before the next general election. While that was always going to involve a very tight timetable the latest amendments mean that, in practice, it could be impossible. Even if the Bill becomes law before the next general election, which is looking increasingly less likely, it could end up missing this key element.
The Labour Party have said that, should they win the next general election, no fault evictions will be abolished immediately.
The risk that Section 21 will be abolished has been, and is, no doubt responsible for many landlords leaving the PRS. And for contributing to the current shortage of property to rent as well as sharply increasing rents in many areas.
The content of, and progress of, the Renters (Reform) Bill has always been pretty uncertain ever since it was first suggested. However, this latest series of amendments means that it is even more uncertain, and brings even more uncertainty to the PRS.
