Renters’ Rights Bill: What amendments have been made in the House of Commons

The Renters’ Rights Bill has undergone its third reading, introducing new amendments that landlords need to know about. While legislative changes can sometimes feel one-sided, it’s essential to understand how these updates can be implemented to benefit both landlords and tenants. These amendments are designed to make renting fairer for tenants, but they also present important implications and advantages for landlords. Here’s what you need to know:

Limits on rent in advance

The government is tackling high upfront costs for tenants by limiting how much rent can be demanded in advance. While landlords will no longer be able to request several months’ rent upfront, you can still ask for one month’s rent in advance and a security deposit of up to five or six weeks’ rent. As Deputy Prime Minister Angela Rayner explained, this amendment is aimed at cracking down on “unscrupulous landlords” who exploit the housing crisis, ensuring that renting remains accessible to tenants.

Protection for bereaved guarantors

Another amendment will safeguard bereaved guarantors, often family members, from having to cover the rest of a tenancy’s rent if their loved one passes away. This change will balance compassion with practicality, preventing families from falling into financial hardship during times of grief. As stated by the Secretary of State for Housing, these measures are part of a broader plan to “raise living standards and deliver the biggest boost in social and affordable housing in a generation.”

Protection for students

For landlords renting to students, the Bill introduces a new rule designed to prevent pressure on early tenancy commitments. Landlords can no longer ask students to sign agreements more than six months before their move-in date. This change benefits both parties by ensuring that tenancies are agreed closer to the academic year, reducing unnecessary stress.

Changes to Rent Repayment Orders

The Bill also strengthens Rent Repayment Orders (RROs), closing loopholes to make superior landlords liable for offences even if rent is paid through an agent or intermediary. This highlights the need for compliance at all levels of property management. Housing Minister Matthew Pennycook noted that the reforms aim to “drive up the quality of private rented housing” while empowering tenants with greater security and rights.

Private rented sector Ombudsman funding 

Finally, the introduction of a private rented sector Ombudsman, funded by landlord fees, will provide a clear pathway for dispute resolution. This system is designed to be fair and effective, benefiting landlords and tenants by avoiding costly legal battles.

While these changes aim to modernise the rental market, they also place new responsibilities on landlords. As Pennycook emphasised, the goal is to create a rental sector where tenants have access to “good quality and safe homes as a matter of course.” Staying informed and prepared for these amendments will help landlords navigate the evolving market and maintain positive relationships with tenants.

How to protect your property investment

With so many changes on the horizon, landlords must stay informed to protect their investments and mitigate any further future costs – even when you’ve done everything right to protect your property, unexpected issues can still arise. That’s where Rent Protection and Legal Expenses cover comes in, making sure you continue to receive your rental income, giving you peace of mind until your tenant can continue with payments. If you are a landlord and wish to add Rent Protection Insurance to protect against the loss of rental income, please give us a call to add to your package. By partnering with Goodlord, the claims process is streamlined and aligned with tenant referencing, giving you peace of mind and quick resolutions when you need them most.

With benefits like no excess on claims made within the first 45 days, up to £100,000 in legal expenses cover, and 90% of rent paid for up to six weeks after vacant possession, this service covers any losses. It also covers property damage, contract disputes, and even eviction costs. Legislation changes can feel overwhelming and leave landlords facing the uncertain balancing act of the private rental sector alone. Our experienced property managers can support you during times of uncertainty, having examined all new legislation with a fine-tooth comb. Think of us as your partner in ensuring your property continues to thrive, no matter what changes come your way. 

Telephone                                           

Liverpool: 0151 363 6686

Manchester: 0161 302 8141

البريد الإلكتروني

Liverpool@quberesidential.com

Manchester@quberesidential.com