The Renters' Rights Bill, which is set to deliver the biggest shake-up to England’s private rented sector in 30 years, has passed what is expected to be its final debate before becoming law.
Housing minister Matthew Pennycook dismissed nearly all non-government amendments to the Bill.
He said that landlords must not be given opportunities to 'abuse the system' through poor property management or mistreatment of tenants.
One proposal rejected was the expansion of possession ground 4A to cover one- and two-bedroom student lets.
It was also confirmed that purpose-built student accommodation (PBSA) will remain exempt from periodic tenancies.
Student tenants will lose out
The chief executive of the National Residential Landlords Association, Ben Beadle, said: "Around a third of housing typically lived in by those in their second year of study and above is one- and two-bedroom properties.
"Under current proposals, neither landlords nor students will have certainty that this type of housing will be available from one academic year to the next.
"The NRLA has proposed a reasonable compromise to protect the annual cycle of the vast majority student housing, whilst also safeguarding the rights of non-traditional students that ministers say they want to protect.
"Regrettably, this has been met with silence from the government."
He added: "Ultimately, it is students who will lose out – left unable to plan with any certainty where, and with whom, they will live at the start of each year of study."
Bill will drive landlords from the sector
Mr Pennycook told MPs: "This government was elected with a clear mandate to do what the Conservatives failed to do during the last Parliament – namely, to modernise the regulation of our country's insecure and unjust private rented sector and empower private renters by providing them with greater security rights and protections.
"Our Renters' Rights Bill does just that, and it needs to receive Royal Assent as quickly as possible so that England's 11 million private renters can benefit from its provisions."
James Cleverly, the shadow housing secretary, demolished a lot of the criticism of landlords and said: "(The Bill) risks driving private landlords out of the sector, reducing the supply of private rented accommodation and pushing up rents for those in the private rented sector.
"Limiting the supply of such accommodation means limiting the options for tenants in the private rented sector and leaving them worse off.
"While I have no doubt that the Bill is full of good intentions, it is poorly though through and counterproductive.”
The Lords' amendments rejected
Peers had tabled around 20 non-government amendments to the Renters' Rights Bill, but most have now been dismissed.
It remains uncertain whether the Bill will enter the 'ping pong' stage, returning to the Lords for revised or fresh proposals.
Given Labour's large Commons majority, plus the determination of Ministers and MPs to secure Royal Assent before the upcoming Labour Party conference, more delays appear unlikely.
That means the Bill's core measures remain intact, including:
- Abolition of Section 21 'no-fault' evictions
- Introduction of the Decent Homes Standard
- Limits on rent increases
- A ban on bidding wars
- Creation of a new renters and landlords ombudsman
- A public database of rental properties
- Ending Assured Shorthold Tenancies.
Among the non-government amendments turned down were:
- Extending possession ground 5A to all agricultural workers, regardless of employment status
- Creating a new possession ground 8A for landlords needing to house a carer
- Cutting the re-letting restriction from 12 months to six, and exempting shared owners
- Requiring councils to prove breaches of rental rules to the criminal, not civil, standard.
The Government also added and approved its own amendments, including:
- Giving landlords three months to evict tenants, provided notices are served before the Bill becomes law
- Empowering the Secretary of State to amend Section 13 rent increase rules if court backlogs emerge
- Allowing landlords to retain advance rent on existing tenancies once the new law takes effect
- Permitting councils to inspect rental properties without giving notice to the landlord.
Smooth transition to new rules
Mr Pennycook told MPs: "This Bill must receive Royal Assent as soon as possible. Following Royal Assent, we will allow for a smooth transition to the new system, and we will support tenants, landlords and agents to understand and adjust to the new rules.
"We want to make that change as smoothly and efficiently as possible, and to introduce the new tenancies for the private rented sector in one stage.
"On that date, the new tenancy system will apply to all private tenancies: existing tenancies will convert to the new system and any new tenancies signed on or after the date will be governed by the new rules.
"We will work closely with all parts of the sector to ensure a smooth transition, and we will provide sufficient notice ahead of implementation."
Landlords need six months
The promise of a smooth transition hasn't gone down well with Mr Beadle who said: "We welcome the Housing Minister's commitment to ensure the rental market has sufficient notice ahead of the implementation of the Renters' Rights Bill.
"However, this does not provide the clarity that renters and landlords desperately need to prepare for its arrival.
"With the Bill now close to receiving Royal Assent, the government needs to make clear how long after this it expects to begin rolling out the widespread reforms.
"The sector cannot operate, and plan, based on vague and ambiguous statements."
He added: "At least six months will be needed, after regulations are passed, to ensure a smooth transition to the new tenancy system.
"Anything less will be a recipe for confusion and chaos."
What this means for student landlords
With the Renters' Rights Bill now on the verge of becoming law, the landscape of student lettings is set to change dramatically.
Simon Thompson, the managing director of Accommodation for Students, said: "For student landlords, the biggest challenge will be the loss of predictability since the sector needs clear rules that respect the unique academic cycle.
"The refusal to extend possession grounds to one- and two-bedroom student lets, combined with the shift to periodic tenancies, will make it harder for landlords to plan from year to year."
He added: "Student landlords don't just provide housing; we provide stability at a time in life when young people need it most. This Bill threatens that stability."
