We were pleased that The Renters’ Rights Bill had its third reading in the House of Commons and is now with the House of Lords.
There were some key amendments made to the Bill which will offer even greater security for renters.
Cap on upfront payments/deposit
Landlords will no longer being able to demand multiple months’ rent in advance as a condition for securing a home. This amendment will crack down on the small number of unscrupulous landlords who are benefitting from the housing crisis by asking some tenants for huge sums in advance
There is currently no limit on how much rent a landlord can request upfront, and some renters are asked to pay up to a years’ worth of rent, amounting to thousands of pounds before even agreeing a tenancy.
Renters often find it impossible to pay large cash sums, making it harder for those on lower incomes to secure housing and can lock them out of the rental market altogether. The current situation can lead to higher levels of debt or an increased risk of homelessness.
Landlords will still be able to request one month’s rent in advance, a security deposit and a guarantor, giving them confidence that their tenants will meet their commitments.
Liability for rent payments
Another amendment to the Bill has been to introduce provisions to prevent guarantors from being held liable for rent payments after the death of the tenant they are guaranteeing.
Housing Secretary Angela Rayner emphasised that this amendment will safeguard bereaved guarantors, often family members, from facing financial hardship during a time of grief.
She said: “This will mean families will not be put in unfair financial hardship during a time of grief and will not be liable for extended periods of rent when trying to end the tenancy agreement in unforeseen and tragic circumstances.”
Other amendments include:-
- A new rule to protect students from feeling pressure to sign a lease for a property early into the academic year
- Closing potential loopholes in rent repayment orders
- Establishing a private rented sector Ombudsman which will provide renters and landlord with access to an effective and fair dispute resolution service
The Bill already pledges to abolish the Section 21 no fault evictions and extend the Decent Homes Standard and Awaab’s Law – which will empower tenants to challenge their landlord over poor conditions.
The Bill cleared the House of Commons on January 15 and its first reading in the House of Lords took place the next day.
The second reading is scheduled for February 4.
Further reading