The Renters’ Rights Bill passes through the House of Commons

On 14th January, MPs voted to pass the Renters’ Rights Bill through the House of Commons with a sizeable majority (444 ayes to 111 noes).

The Bill contains a number of major reforms of the private rental sector. These include:

  • Ending ‘no fault’ Section 21 evictions.
  • Increasing eviction notice periods under new no-fault grounds from two to four months.
  • Banning rental bidding wars.
  • Introducing a new online Landlord Database and Ombudsman

Since the Bill was first debated in October, the government has made a few changes, including:

  • Limiting the amount of rent a landlord can demand in advance to one month’s worth.
  • Limiting when a landlord can evict students when tenancies are signed more than six months before they start. This is intended to discourage putting pressure on students to find next year’s accommodation early in the academic year.
  • Limiting rent liability for guarantors in the event of the tenant’s death.

During the Report Stage debate of the Bill, MPs from across the house praised the Government for acting swiftly to address the power imbalance between renters and landlords, but raised the concern that the Bill does not address the cost of renting crisis.

An amendment tabled by Labour MP Paula Barker, with the support of the Renters’ Reform Coalition, to cap in tenancy rent rises to the Consumer Price Index level of inflation or wage growth, whatever is lower, was supported by over 35 MPs but unfortunately was not taken forward by the Government.

Elsewhere, Generation Rent worked with MPs to table amendments focused on extending the reach of Rent Repayment Orders and improving protections for renters on low incomes when their landlords receive grants to improve the energy efficiency of their home. While neither of these were added into the Bill, it was good to see a large number of MPs provide their support for each.

The Bill will now proceed to the House of Lords, giving more opportunity to table amendments and raise issues.

Overall Generation Rent welcomes the Bill. Everyone needs a safe, secure and affordable home, but for private renters it can be snatched away only too easily. By abolishing arbitrary Section 21 evictions, the Bill is undoubtedly positive for renters across England. Meanwhile, putting a stop to landlords demanding more than a month’s rent in advance will help many renters avoid falling into debt and poverty when moving home.

But renters across England are facing soaring rents which are far outstripping our earnings. Despite this, there are very few measures in the Bill to give us the breathing space we need from the cost of renting.

It is therefore disappointing the Government didn’t bring forward the amendment to introduce rent caps within tenancies to limit how much landlords can hike the rent on their tenants. Without this measure, many landlords will use rent hikes as a Section 21 eviction in all but name.

In the long-term, the government must act to stop runaway rents and unfreeze the Local Housing Allowance rate to protect families on low incomes from poverty and homelessness.

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