FURTHER MEASURES ADDED TO THE RENTERS’ RIGHTS BILL

Tuesday saw the Renters’ Rights Bill return to the House of Commons, and several amendments were brought forward by the government which add further regulation for private landlords, writes Catherine Hunt.

The most important of these would prohibit landlords from charging more than a month’s rent upfront before a tenant moves in, a measure which has been welcomed by tenants’ groups but which could have unintended consequences, according to several experts.

Designed to put those who cannot afford to offer multiple months’ rent in advance on a level playing field, the move has been described as ‘hugely exclusionary’ for those who cannot pass credit referencing and overseas students, who might otherwise mitigate their lack of credit history by offering landlords the security of paying six or even 12 months’ rent at the start of their tenancy.

It is true that in London in particular, there have been cases of landlords favouring prospective tenants who can come up with such lump sums; but it is also true that the request to pay many months’ rent at the start of the tenancy often comes from the tenant themselves.

Alongside this amendment comes another which would ban landlords from charging family and friends of a tenant who have acted as guarantors in the event of the tenant dying.

The Bill has stopped short of limiting how much landlords can increase rents during a tenancy, although 36 Labour, Green and independent MPs have signed an amendment which calls for any such increases to be limited either to inflation or average wage rises.  So far ministers have resisted this call, contending that such a move would mean that fewer new homes would be built – a major governmental priority.

Whatever landlords might think about the Renters Rights Bill (and it is still not too late for them to lobby their MP in the hope of softening the measures it contains), it is clear that it is certain to pass into law with very little watering down: the government has a huge majority in the House of Commons, and as it was a clear manifesto promise, it cannot be blocked by the House of Lords. 

So the sector has to find a way of dealing with these changes and adapt how they operate accordingly.  It will require a new way of thinking.  Whilst the RRB brings in some radical changes which will take some getting used to, the private rented sector will remain an important part of the housing market, and a vital source of homes for many millions of people.