The Renters’ Rights Bill has reached a significant milestone, recently passing its second reading in the House of Lords. The debate, led by Baroness Taylor of Stevenage (Labour), saw 44 members of the Lords discussing key aspects of the proposed legislation. Below is a breakdown of the key points and what they could mean for landlords and property investors in Kent.
Abolishing Fixed-Term Tenancies
One of the most controversial elements of the Bill is the proposed abolition of fixed-term tenancies. Baroness Taylor argued that this change would create a simpler system, preventing tenants from being locked into agreements unnecessarily. She assured that new possession grounds would be as “watertight as possible” to avoid exploitation.
However, concerns were raised by several members of the Lords about potential unintended consequences. Lord Truscott warned that this move could create chaos for student housing and reduce security for tenants.
He noted: “Tenants will have less security, not more, as instead of a one or two-year tenancy, if mutually agreed, landlords will be able to give notice at any time, up to four months if reoccupying or selling their property. Why cannot reasonable people agree on a fixed term, with a break clause if required? Incidentally, the majority of tenants want fixed-term tenancies.”
Permission for Pets
The Bill aims to ensure that landlords cannot unreasonably deny tenant requests to keep pets in their homes. Tenants will also have the right to challenge any unfair decisions.
Acknowledging concerns from landlords about potential damage caused by pets, Baroness Taylor noted that landlords would be permitted to require insurance coverage for pet-related damage.
She explained: “We are committed to supporting responsible pet ownership in the private rented sector. The Bill will ensure that landlords do not unreasonably withhold consent when a tenant requests to have a pet in their home.”
EPC C Changes Could Cost Thousands of Pounds
The debate also focused heavily on the proposed changes to Energy Performance Certificate (EPC) requirements, with concerns about the financial burden this would place on landlords.
Baroness Scott of Bybrook (Conservative) described the Renters’ Rights Bill as “counterproductive” and warned it could drive landlords out of the market. She highlighted the estimated cost of meeting EPC C targets by 2030, which could reach £25 billion for the private rented sector, averaging £5,400 per property.
She cautioned: “This is a cost that many landlords, particularly those with only one or two properties, just cannot take.” The Baroness also pointed out that landlords may pass these costs on to tenants through higher rents.
Identifying Unscrupulous Landlords – New Powers for Local Authorities
Baroness Taylor highlighted the introduction of new investigatory powers for councils, designed to help identify and address rogue landlords.
She stated: “Local authorities will be able to request information from third parties and enter business premises. In more limited circumstances, they may enter residential premises to gather evidence where required, including landlords’ homes and rental properties.”
Industry Reaction
Timothy Douglas, Head of Policy and Campaigns at Propertymark, shared his thoughts on the debate:
“As anticipated, members of the House of Lords delved into the detail of the Renters’ Rights Bill and discussed the intended and unintended consequences it will bring. Importantly, many Peers outlined key changes to property standards and the challenges on local authority enforcement, drawing attention to the vital role letting agents will play in ensuring education and compliance for tenants and landlords.”
Douglas expressed disappointment that some Peers failed to grasp the financial pressures already facing landlords and cautioned against rent controls, which have proven ineffective in Scotland.
What’s Next for the Renters’ Rights Bill?
The Bill will continue to move through the legislative process, with further discussions expected around court reform, timelines for implementation, and amendments to deposit rules. These changes could have a significant impact on landlords, tenants, and the wider private rented sector.
What Kent Landlords Should Do Now
As the Bill progresses, it’s crucial for landlords and property investors in Kent to stay informed and proactive. Understanding these proposed changes can help you adapt and safeguard your investments.
At Lifeboat Lettings, we understand the challenges landlords face in navigating legislative changes. Our expert team is here to provide tailored advice and full property management services, ensuring your rental portfolio remains compliant and profitable.
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Let us be your trusted partner in navigating the future of property letting in Kent. If you want to learn more about how we can help you and your investments in 2025, book a chat with the team and we will go through all your options with you.
