The Renters’ Rights Bill is a significant piece of legislation the Government claims will reform the private rental sector in the UK, but landlord organisations like iHowz are raising concerns about unintended consequences that could affect both landlords and tenants.

The actual Bill can be seen here; the iHowz summary here.  The proposed amendments can be seen here, with the iHowz response here.  It will be debated in the House of Commons on Tuesday, January 14th and can be followed on Parliamentary TV here.

Here’s an overview of the key issues being debated:

Key Amendments and Concerns

1. Restrictions on Guarantors and Deposits:

  • Proposed Changes:
    • Tenants paying a deposit or assisted through a deposit scheme wouldn’t need to provide a guarantor unless they demonstrate insufficient financial means.
    • A guarantor’s liability would be capped at six months’ rent.
  • iHowz’s Concerns:
    • Guarantors are vital for mitigating financial risks, particularly for tenants with unstable incomes, poor credit, or limited rental histories (e.g., students, international renters).
    • Larger deposits or guarantors provide security, ensuring landlords are protected in the event of non-payment.

2. Limits on Advance Rent Payments:

  • Proposed Change:
    • Landlords would be restricted to requesting only one month’s rent in advance.
  • iHowz’s Concerns:
    • Advance rent payments are often used to mitigate risks with higher-risk tenants. Limiting this option could discourage landlords from renting to such tenants, potentially reducing housing availability.

3. Student Tenancy Restrictions:

  • Proposed Change:
    • Student tenants would be barred from signing leases before March 1st for tenancies beginning later in the year.
  • iHowz’s Concerns:
    • Many students prefer to secure housing early, often before Easter holidays and exams, to reduce stress.
    • Early signings allow landlords to plan for maintenance and compliance checks before the new tenancy starts.
  • Potential Impacts:
    • Delaying agreements could create a last-minute rush, complicating preparations for both landlords and tenants.

4. Home Adaptations Through Disabled Facilities Grants:

  • Proposed Change:
    • The Bill includes measures for fully funding home adaptations through Disabled Facilities Grants.
  • Implications:
    • While this could make properties more accessible, landlords might face delays or administrative hurdles, particularly if grants are underfunded or slow to process.

Broader Implications for the Private Rented Sector

Reduced Landlord Confidence:

  • The amendments might deter landlords from letting properties to high-risk tenants, such as students or individuals with uncertain finances, reducing housing availability in an already strained market.

Administrative and Financial Burdens:

  • Changes to guarantor and deposit rules could add complexity to tenancy agreements, creating additional administrative work for landlords.

Potential Impact on Tenants:

  • While the Bill aims to protect renters, restricting landlords’ ability to mitigate risks might lead to higher rents or fewer properties available, counteracting the intended benefits.

Looking Ahead

The Report Stage of the Bill, which allows MPs to propose and debate amendments, will be critical in determining its final shape. Landlord organisations like iHowz are advocating for revisions to ensure the Bill achieves its goals without unintentionally harming landlords or reducing rental housing availability.