The Renters' Rights Bill has passed its second reading in the House of Commons and now moves to the Committee Stage. Find out what this means for letting agents.
The Second Reading of the Renters’ Rights Bill was held by Deputy Prime Minister Angela Rayner on 9 October 2024.
The second reading is the first time the bill has been addressed in Parliament since it was announced in September, and therefore the first time it's been debated by other parties.
According to Rayner, the main goal of the Renters’ Rights Bill is to ensure that all tenants can live “in a decent, safe and affordable home”.
She highlighted that good landlords have nothing to worry about and that this legislation will eliminate the “bad apples” in the sector.
Kemi Badenoch, the Conservative Party's Shadow Secretary of State for Housing, Communities, and Local Government, has called for an amendment to stop the bill from progressing further due to the “unintended consequences” it will cause to the sector, however, this was not accepted.
Now that the second reading is complete, the Bill will move to the Committee Stage, chaired by Florence Eshalomi MP, where more detailed scrutiny will take place.
Here is an overview of what was discussed during the second reading:
- Section 21 “no-fault” evictions
- Modernising the dispute process
- Introducing a new landlord database
- Energy Performance Certificates (EPCs)
- Conservative Party response
- What happens next to the Renters’ Rights Bill?
Section 21 “no-fault” evictions
Abolishing Section 21 "no-fault" evictions was a focal point of the second reading. Angela Rayner stated that many tenants “live in fear of Section 21,” and scrapping it would bring much-needed stability to families.
Labour MPs argue that removing this provision will give tenants the confidence to report issues like damp, mould, or rent hikes without fear of eviction.
However, as MPs highlighted, there are growing concerns about how the courts will handle a potential increase in repossession orders.
Dame Siobhain McDonagh MP pointed out that letting agents and landlords already face long waits of up to 12 weeks for bailiff warrants. Strengthening the court system will be key to ensuring landlords can regain possession swiftly when justified.
Modernising the dispute process
To support these changes, the Bill proposes a digitised county court process, which aims to resolve disputes more efficiently.
Angela Rayner noted that the Property Ombudsman will play a crucial role in helping resolve issues before they escalate to legal proceedings, reducing the strain on the courts.
For letting agents, this could mean faster resolutions for disputes between landlords and tenants.
Introducing a new landlord database
The Renters' Rights Bill introduces a mandatory landlord requirement, which will ensure that they provide detailed information regarding each rental property they may have, including their standards and compliance with the law.
Rayner stated that the aim is to improve transparency and raise standards across the rental sector, aiming to “benefit landlords and tenants alike.”
Letting agents will need to ensure their landlords are fully compliant, as failing to register or provide accurate information could lead to penalties.
Energy Performance Certificates (EPCs)
MPs also raised the Energy Performance Certificates (EPCs) issue during the second reading, particularly around Labour's plans to upgrade private rental properties to an EPC band C.
However, Angela Rayner clarified that these changes will not be enforced through the Renters' Rights Bill - at least, not at this stage. Letting agents should still be aware of upcoming EPC regulations that could affect their properties in the future.
Conservative Party Response
During the debate, Kemi Badenoch, the Conservative Shadow Secretary of State for Housing, Communities, and Local Government, expressed concerns about the Bill. Despite the Bill's incredible similarity to the original Renters (Reform) Bill, Badenoch claimed that it would create “unintended consequences” for the sector.
She argued that it could reduce “housing for the private rental sector due to these regulations. This reduction of supply is affecting tenants as well as landlords”.
Badenoch also urged the Labour government to consider the experiences of the Scottish rental sector when assessing the potential impact on the English market.
Conservative MP Priti Patel also called for transparency regarding the costs this Bill could impose on landlords and any further clauses that might affect them.
What happens next to the Renters’ Rights Bill?
The Renters' Rights Bill will now move to the committee chaired by Florence Eshalomi, MP for Vauxhall and Camberwell Green.
Eshalomi emphasised the importance of this stage, stating, “Fixing the housing crisis and ensuring more homes are built are crucial missions for the country, and I am sure my Committee will wish to scrutinise the Government’s progress in these areas.”
A date for the Committee Stage has not yet been set, but letting agents should stay informed of any updates. This stage will dive into the finer details of the Bill, determining how various elements will be implemented. Staying on top of these developments will be essential for agents to understand how the new regulations may impact their operations.
This article is intended as a guide only, and should not be considered legal advice. For more information, visit gov.uk
