The House of Lords has introduced several notable amendments to the Renters' Rights Bill following the debate on 4th February. These changes, if accepted, could significantly reshape the legislation, bringing it closer in alignment with the Conservative Party’s Renters’ Reform Bill. Landlords should take note of these developments as they may have a considerable impact on property management and tenant relations. Here are some of the key proposals:

Fixed-Term Tenancies Retained

• Fixed-term tenancies of up to 12 months will be retained, with the possibility of extending the term after four months of occupation.
• Student tenancies will continue to operate under fixed terms, providing greater certainty for both landlords and tenants.

Section 21 and Possession Rights

• Landlords letting fewer than five properties (termed "small landlords") will still be able to issue section 21 "no-fault" eviction notices.
• All possession grounds will be discretionary, eliminating mandatory grounds for eviction.
• Tenants will be required to give notice to quit no earlier than four months after the start of the tenancy, effectively ensuring a minimum tenancy period of six months rather than two.
• The removal of section 21 will be delayed until the Lord Chancellor publishes an assessment of the possession process, ensuring that the courts are adequately prepared for the increased caseload.

Court System and Rent Tribunals

• The Lord Chancellor will assess the court system’s capacity to handle increased possession cases, with a government review of the impact on judicial resources within two years of enactment.
• The requirement that only a tribunal can decrease rent is set to be removed, eliminating the potential incentive for tenants to appeal all rent increases.
• The current delayed effective date for rent increases is to be scrapped, preventing tenants from appealing solely to postpone higher rents.
• The Secretary of State must consult on whether rent tribunals have sufficient resources to handle the expected rise in cases.

Rent and Financial Agreements

• Rent increases during the first four years of tenancies will be index-linked to avoid unpredictable or unaffordable rent hikes.
• Tenants and landlords may mutually agree for rent payments of up to 12 months in advance.

Guarantors and Letting Agents

• Additional restrictions will be introduced regarding when landlords can request a guarantor.
• Estate agents will be subject to new training and qualification requirements to enhance professional standards.

Summary

It is important to note that these are proposed amendments and not a given. They do not have to be accepted by government and the chances are they won’t, however it does provide an indication as to the thought process of some of the Lords in relation to this bill.

We will keep updating you as and when more information is provided.