Peers debated the Government’s proposals for the PRS in the second reading of The Renters’ Rights Bill in the House of Lords yesterday.
The issue of student tenancies, supply and demand, pets in lets, and legal enforcement were key themes, with many questions remaining unaddressed. Nevertheless, the Bill is progressing quickly and 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 will happen next. 👇
What is the second reading in the House of Lords?
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.
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.
13 thought-provoking talking points from the second reading:
- Baroness Taylor said that “private purpose-built student accommodation will be removed from the Assured Tenancy System”Other Peers suggested that any exemptions for student tenancies should extend to landlords renting one and two-bedroom flats to students
- Conservative Peers criticised the Labour Government for rushing this legislation through without proper due diligence
- Some Peers still feel landlords will be driven from the sector, further exacerbating issues with supply and demand, whereas others insist that these concerns are overblown
- Concerns about 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 the Bill’s impact
- As bidding laws will be outlawed, there are fears this will simply result in much higher asking rents
- Although pets in lets were welcomed by many Peers because of their mental health benefits, the fact that there’s no comprehensive pet damage insurance policy could leave landlords at risk
- Many fear that local councils won’t be able to enforce new rental rules due to underfunding, despite their new powers
- A decrease of properties in 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 struggle to remove problem tenants without long legal delays
- While the abolition of Section 21 is novel for the English market, it can learn lessons from Scotland’s adaptation to a world without no-fault evictions
- Although the Decent Homes Standard is welcomed by many, there are concerns about how small landlords would afford the necessary improvements without passing costs onto tenants
- Self-employed and international renters are likely to suffer from the banning of up-front rent payments
Conclusion
The committee stage will follow the second reading in around two weeks, where detailed line by line examination and discussion of amendments takes place. You can track the progress of the Bill here.
