The second reading debate of the Renters (Reform) Bill took place in the House of Lords on 4th February 2025 and offered a fascinating glimpse into the upper chamber's perspective on this landmark legislation. While the Commons has already given its broad support, the Lords' scrutiny is proving crucial, with peers raising important points and suggesting potential amendments. Here's a breakdown of the key themes and talking points that emerged:
Focus on Detail and Practicalities: Unlike the often broader discussions in the Commons, the Lords' debate delved into the nitty-gritty of the bill, focusing on the practical implications of its various proposals. Peers were keen to understand how the changes would work in practice, particularly for smaller landlords and vulnerable tenants.
Abolition of Section 21: Support, but with Caveats: While there was general support for the abolition of Section 21 "no-fault" evictions, many Lords emphasized the need for a robust and efficient court system to handle possession claims in legitimate circumstances. Concerns were raised about potential delays and the burden on the courts, with some peers calling for increased funding and resources. The discussion also touched upon the need for clear and comprehensive grounds for possession to protect landlords from genuinely problematic tenants.
Periodic Tenancies: A Mixed Reception: The proposed shift to periodic tenancies sparked considerable debate. Some Lords welcomed the increased security for tenants, while others expressed concerns about the impact on landlords' flexibility, particularly those with short-term mortgage arrangements or those who may need to regain possession quickly for personal reasons. The length of notice periods and the mechanics of ending a periodic tenancy were key points of contention.
Rent Controls: The Elephant in the Room (Almost): While not directly addressed in the bill, the issue of rent controls surfaced during the debate. Some peers argued that the bill doesn't go far enough in addressing affordability concerns, while others cautioned against rent controls, citing potential negative impacts on the supply of rental properties. This is an area to watch as the bill progresses.
Enforcement and the Ombudsman: Calls for Clarity: Lords emphasized the importance of effective enforcement against rogue landlords. They questioned whether local authorities have the necessary resources and powers to tackle poor housing conditions and illegal evictions. The role and powers of the proposed Private Renters Ombudsman were also debated, with some peers calling for greater clarity on its remit and how it will interact with existing redress mechanisms.
Impact on the Market: A Balancing Act: As expected, the potential impact of the bill on the private rental market was a major talking point. Lords acknowledged the need to balance the rights of tenants with the legitimate interests of landlords. Concerns were raised about the potential for the bill to discourage investment in the sector, leading to a reduction in the supply of rental properties. The government reiterated its commitment to a healthy and functioning rental market.
Next Steps:
The second reading in the Lords marks the beginning of a crucial stage of scrutiny. The bill will now proceed to the committee stage, where peers will have the opportunity to propose amendments. Given the range of concerns raised during the second reading, it's likely that the bill will undergo significant changes before it returns to the Commons for further consideration. The debate in the Lords has highlighted the complexities of reforming the private rental sector and the need for careful consideration of all stakeholders' interests. It will be fascinating to see how the bill evolves in the coming weeks and months.
You can follow the progress of the Renters’ Rights Bill here - Renters' Rights Bill - Parliamentary Bills - UK Parliament
