Renters’ Rights Bill: Progress Paused as Parliament Heads into Recess
As for many of us, the summer holidays have officially started for Parliament. This is not such good news for the Renters’ Rights Bill (“the Bill”), however, which will now be in legislative limbo until 8 September, when the amendments made by the House of Lords can be considered by the Commons. It then seems very likely that Labour will push for the Bill to receive Royal Assent as quickly as possible and quite possibly ahead of the party’s annual conference which starts on 28 September.
A ‘Commencement Date’ will then be announced, i.e. the date on which most existing Assured Shorthold Tenancies (“ASTs”) will automatically become periodic assured tenancies. Although it has not been confirmed, it is thought that this will be three to six months after Royal Assent, meaning that at least some aspects of the Renters’ Rights legislation could be in force by the beginning of 2026.
So what are some of the latest proposed amendments?
- PETS – Following the government’s decision to shelve plans to require tenants to take out special pet damage insurance, a requirement for them to pay an additional pet damage deposit of 3 weeks’ rent as a condition of consent for keeping a pet has been inserted into the Bill;
- ADVANCE PAYMENTS – A government-backed amendment clarifies that existing tenancy agreement terms requiring rent in advance will remain valid after the Bill comes into force;
- RE-LETTING BAN – A Conservative amendment seeks to reduce the re-letting restriction should a sale fall through from twelve to six months;
- ARMED FORCES – In one of the last amendments to be agreed by the Lords, members voted to extend the Decent Homes Standard to armed forces family accommodation.
What’s Next?
It remains to be seen which (if any) of the Lords’ amendments will be approved, but it is likely that Labour will try to keep any ping-ponging to a minimum.
What should I do about Section 21 Notices and Possessions?
Under the current AST rules, landlords can bring proceedings for possession based on a Section 21 notice for 6 months after the notice has been served.
As the Bill currently stands:
- If a valid Section 21 notice has been given and proceedings have been filed for issue, or have been issued, before the Commencement Date then the notice will remain valid until those possession proceedings have concluded;
- Where a valid Section 21 notice has been given but proceedings are not yet afoot at the Commencement Date then landlords will have until the earliest of the usual six months from the notice, or three months from the Commencement Date, to issue proceedings.
The final form of the Bill or when it will come into force is not yet known, but what is clear is that landlords won’t get a second bite of the cherry to obtain possession using the Section 21 process if the notice is invalid or possession proceedings fail for other reasons.
Landlords should consider their portfolios and take action now to ensure that everything necessary has been done to allow for valid Section 21 notices to be served, should possession be required.
Want to know more? Forsters’ Real Estate Disputes Team can help
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