Key Amendments from the House of Lords

Various quarters have raised concerns about the Bill, leading to a number of amendments proposed by the House of Lords. These reflect a keen eye on balancing tenant protections with landlord viability.

One significant amendment that is backed by the Government seeks to clarify pre-existing arrangements for rent in advance. This change stipulates that existing agreements for advance rent payments (such as yearly intervals) will remain unaffected once the Bill comes into force, limiting rent payments to monthly intervals. This is a welcome development for landlords, potentially prompting a flurry of new tenancies with such terms before the Bill’s full commencement.

Backdating rent increases has also seen a Labour-proposed amendment. While it does not immediately grant the Tribunal the power to backdate rent increases to the original Section 13 notice date, it simplifies the legal process for the Secretary of State to introduce such a power in the future. This move anticipates a potential surge in rent challenges and aims to prevent unwarranted delays to fair rent adjustments.

Amendment 53A – New pet damage deposit: This crossbench amendment successfully introduced the ability for landlords to ask for a “pet deposit” of up to three weeks’ rent. Pet ownership has always been a contentious issue, but has also seen surprising turns. Surprisingly, the Government removed the ability of landlords to insist tenants take out or pay for pet insurance, a stance later somewhat softened by the introduction of a pet deposit. This allows landlords to request an additional three weeks’ rent through a ‘pet deposit’. This reflects an attempt to address landlord concerns about potential pet-related damage, moving away from the previously mooted insurance model.

Amendment 58 – Ground 1A – reduction of period during which landlord cannot re-let: A crossbench amendment was passed to reduce the re-letting restriction from 12 months to 6 months for landlords using Ground 1A (sale of property). Possession Ground 1A, which allows landlords to seek possession if they wish to sell the property, has undergone a notable modification. Initially, this ground was accompanied by a prohibition on re-letting an unsold property for 12 months. A Conservative amendment now seeks to reduce this restricted period to six months, offering landlords greater flexibility if a sale falls through.

While the final composition of these amendments remains subject to the “ping-pong” process as the Bill moves backwards and forwards between the Commons and the Lords, many proposed changes are seen as landlord-friendly, addressing concerns that property owners have raised throughout the legislative process.

Purpose-Built Student Accommodation (PBSAs) and the Transition Period

The student accommodation sector has been of particular interest throughout the Bill’s progression because of its unique operating model. The Government’s intention from the outset has been to exempt PBSA providers from the core provisions of the Bill. However, defining what constitutes a PBSA for exemption purposes and navigating a potential transition period has been a source of ongoing discussion.

The scope of the PBSA exemption has been widened. Crucially, the exemption, which hinges on membership of a Government-approved code of practice (such as ANUK/Unipol and UUK), will now apply not only where the landlord is a member but also where they have appointed a managing agent who is a member. This extension benefits smaller, non-member landlords by providing a pathway to exemption through professional management.

While the Lords recognised concerns about the transition period for existing PBSA tenancies, they concluded that retrospective application of the exemption would risk diminishing students’ existing tenancy rights. Therefore, PBSA providers must plan for this transition, understanding that relevant tenants will, among other things, be able to terminate their tenancy on two months’ notice.

In recognition of PBSA providers’ need to guarantee vacant possession, Possession Ground 4A has been significantly extended. Previously limited to HMOs and specific timeframes, this ground will now apply to all properties. Remove the July to September time frame limitation and the prohibition on its use where the tenancy was signed more than six months before commencement.

These sector-specific changes highlight the Government’s attempt to strike a balance between providing broad tenant protections and acknowledging the distinct operational requirements of specialist housing sectors like student accommodation.

The Timetable Ahead

The Government planned to finalise the Bill before the summer recess (22nd July). However, upon Parliament’s return, a swift progression of the Bill is now fully expected. The precise timetable will depend on the Government’s response to the Lords’ amendments and the extent of any further negotiation during the “ping-pong” stage.

The “ping-pong” stage, commencing on 8th September, will see the House of Commons consider the Lords’ amendments. This process involves the Bill “bouncing” between the two Houses until agreement is reached on the final text.

Given the Bill’s political weight, there is a strong push for it to receive Royal Assent before the Labour Party conference on 28 September 2025. This would allow the Government to formally mark the legislation’s place on the statute book.

The exact timing of implementation remains less specific, with a definitive timeframe yet to be provided. Many in the sector believe a six-month implementation period would be reasonable, suggesting that most of the Bill could take effect from Spring 2026. However, the Government retains the power to vary the implementation period for different parts of the Bill. Regarding the abolition of Section 21 Notices, this may be prioritised and implemented at the earliest opportunity.

 

Preparing for the New Era of Renting

As the Renters’ Rights Bill enters its final, decisive stage, the overarching direction of travel towards greater tenant security and modified landlord responsibilities is undeniable. Landlords should begin familiarising themselves with the proposed changes, particularly regarding the abolition of Section 21, the shift to periodic tenancies, the new grounds for possession, and the evolving requirements around pets and rent increases. Likewise, tenants should be aware of their enhanced rights and responsibilities under the forthcoming legislation.

The “ping-pong” stage will be a critical period, as the Houses of Parliament work to find common ground on the remaining points. Royal Assent, now firmly expected in September, will mark the official birth of the Renters’ Rights Act, bringing a new era for renting in the UK. The promised implementation period will provide a vital window for the sector to adapt to these changes, ensuring a smooth and successful transition for all.

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