Date Published 07 February 2025
The Renters' Rights Bill has now passed its second reading, taking place on the 4th of February 2025, in the House of Lords and will proceed onto the Committee stage. Peers debated the Government's proposals for the Private Rental Sector (PRS) of the Renters' Rights Bill. Discussed was the subject of student tenancies, supply and demand, pets in lets, and legal enforcement was also a key theme, with many concerns remaining unaddressed. Nevertheless, the Bill is progressing rapidly and key elements of it are expected to become law by the end of Spring 2025. Below, you'll find everything you need to know about what was discussed and what is planned to be implemented next.
What was the second reading in the House of Lords
According to the Government website:
"Second reading is the first opportunity for members of the Lords to debate the key principles and main purpose of a bill and to flag up any concerns or specific areas where they think amendments (changes) are needed."
It continues to convey:
"The Government Minister, spokesperson or a member of the Lords responsible for the bill opens the second reading debate," which was, in this case, Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government), Labour.
"Any member can speak during second reading – this stage can indicate those members particularly interested in a bill, or a specific aspect of it, and those who are most likely to be involved in suggesting changes at later stages."
Significant points from the second reading
• Baroness Taylor indicated that "private purpose-built student accommodation will be removed from the Assured Tenancy System."
• Other peers recommended that any exemptions for student tenancies should also cover landlords renting one and two-bedroom flats to students.
• Conservative peers criticised the Labour Government for the haste nature this legislation has been rushed through without proper due diligence.
• Some peers still sense landlords will be driven away from the sector, leading to further aggravation of detrimental issues with supply and demand, whilst others insist that these concerns may be exaggerated.
• Apprehensions regarding the courts remain, despite reassurance from Baroness Taylor that the Government is working with the Ministry of Justice to ensure that it's prepared for effect of the Bill.
• As bidding laws will be deemed illegal, there are concerns this will just simply lead to the outcome of much higher asking rents.
• Despite pets in rental properties being welcomed by many Peers because of the positives on mental health, the fact that there's not yet any comprehensive pet damage insurance policy set in stone could leave landlords at risk.
• Many landlords remain distressed that local councils won't be able to enforce nor handle new rental rules due to underfunding, despite their new powers.
• A fall in properties within the PRS may not necessarily be negative as long as the supply of social housing increases.
• Concerns were raised about the impact on small-scale landlords who may face substantial issues to remove problem tenants without long legal delays.
• While the abolition of Section 21 is a new transformation for the English market, it can acquire lessons from Scotland's adaptation to a world without no-fault evictions.
• Although the Decent Homes Standard is being viewed as a welcome change by many, there are valid concerns about how small landlords would afford the necessary improvements without passing costs onto tenants.
• Self-employed individuals, international renters, those on a pension and other renting groups relying on advance rent as referencing cannot be passed are almost certain to suffer from the banning of up-front rental payments.
Industry reaction to second reading
Timothy Douglas, head of policy and campaigns at Propertymark, quoted: 'As anticipated members of the House of Lords delved into the detail of the Renters' Rights Bill and discussed the intended and unintended consequences it will bring. Importantly, many peers outlined key changes to property standards and the challenges on local authority enforcement drawing attention to the vital role letting agents will play in ensuring education and compliance to tenants and landlords. Disappointingly, some peers have fallen into the trap of not understanding the costs and taxes impacting landlords and seeing rent control as an additional measure to tackle affordability issues in the private rented sector. Similar policies have failed in Scotland and must be, at all costs, avoided by the UK government. Sensible amendments were talked about to support student renters, much needed clarity on court reform and the implementation timeline, tackling short term lets and local authority funding as well as practical application of the grounds and amending deposit rules to allow more tenants to rent with pets. These are the areas that the UK government must focus their attention during the remaining stages of the Bill.'
To conclude, the second reading will now be followed by the upcoming committee stage which should take place in around a fortnight; this stage is where comprehensive line by line scrutiny and discussion of amendments is due to take place.
