Members of the House of Lords are set to scrutinise the legislation later today.
After just seven months, the Renters’ Rights Bill is due to progress to the Committee Stage in the House of Lords today (22nd April 2025). During this stage, policymakers perform a line-by-line examination and debate potential amendments to the proposed legislation.
As it stands the Renters’ Rights Bill aims to introduce a raft of changes some of which include abolishing no-fault evictions, ending fixed term contracts, the mandatory use of the Section 13 notice for rent increases and the prohibition of pre-tenancy rent payments.
When the Labour government first proposed the bill in September 2024 it was earmarked to give renters ‘greater security and stability’, but as the legislation has advanced industry experts have warned the changes to the rental market could likewise bring some negatives – a concern that should be addressed by policymakers today.
‘The bill is ostensibly an attempt to make life easier and more secure for ordinary renters,’ Oli Sherlock, managing director of insurance at Goodlord said. ‘However, with concerns mounting over the impact these changes could have on tenants, significant questions remain about the potential harm this legislation could do to the very people it’s intended to protect.’
Against this backdrop, Oli points to the cynical repercussions that could come with implementing a ban on bidding wars for rental properties – another change the bill is looking to introduce.
‘The ban on bidding wars could unintentionally cause a rapid increase in average rent prices as soon as the new legislation comes into effect. With landlords forced to accept no more than the advertised rent, many will understandably be tempted to up their prices from the off,’ he explained.
‘When it comes to Section 21, there is a real risk that removing this power from landlords may lead to more rental disputes going to court. This could see thousands more tenants receiving County Court Judgements (CCJs) for issues such as rent arrears – damaging their credit scores and potentially restricting their access to properties further down the line.’
While these problems are supremely possible, Oli, most alarmingly, remarked the new legislation could trigger an ‘exodus’ among landlords, reducing the supply of affordable housing. To give context on how drastic this consequence could be, the most recent statistics show the UK needs around 145,000 new affordable homes per year.
‘With the increased pressure of these changes coming on top of the potential costs of complying with measures such as new Energy Performance Certificate requirements, there’s a danger this bill will be the straw that breaks the camel’s back for many across the sector. Without serious action to address these concerns, we could see a landlord exodus when the new rules are introduced,’ Oli added.
‘If that happens, the supply of adorable housing will be reduced and rents will only increase, further exacerbating the problems faced by tenants.’
Image supplied via Openverse.
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