NRLA urges changes to the Renters’ Rights Bill in the Lords

A comprehensive briefing paper has been presented to the House of Lords ahead of tomorrow’s (Tuesday 4 February) Second Reading of the Renters’ Rights Bill to highlight its potential detrimental effects.

The National Residential Landlords Association (NRLA) is urging revisions to safeguard vulnerable renters, including those facing financial hardship, ensuring access to available properties.

The four-page document uses data from respected industry sources, substantiating claims of a worsening supply and demand imbalance.

It points to Zoopla figures which reveal rental home inquiries are exceeding pre-pandemic levels by 31%.

Also, the English Private Landlord survey indicates that 31% of landlords intend to sell properties, a rise from 22% four years ago.

And Oxford Economics data suggests only one in eight renters can afford homeownership locally, underscoring persistent rental demand.

‘The NRLA is not anti-reform’

The NRLA’s chief executive, Ben Beadle, said: “Let’s be clear, the NRLA is not anti-reform. There are a number of changes within the Bill that we support, including the introduction of a Decent Homes Standard to the PRS, the extension of Awaab’s Law and measures to tackle discrimination, amongst others.

“However, we need Peers to understand both the likely implications of the Bill, on tenants as well as landlords, and the simple changes that could be made to ensure that, once passed, the Bill is workable and fair to all.”

He added: “If left unamended, the Renters’ Rights Bill does not provide the promised balance and will destroy any remaining confidence landlords have to invest in much needed homes.”

Critical flaws in the Bill

The NRLA has also identified critical flaws in the Bill, arguing it will see financially challenged tenants and international movers from demonstrating rent affordability – excluding them from housing.

Student access to accommodation will also be restricted, and the Property Tribunal will probably face overwhelming demand, resulting in costly delays.

Also, the Bill lacks a clear implementation strategy for the courts and an implementation timeline which will jeopardise its objectives and potential for positive sector change.

Comprehensive implementation plan

The NRLA wants a comprehensive implementation plan, including provisions for the justice system to boost confidence among landlords and tenants.

The organisation is proposing amendments such as a pre-tribunal rent increase assessment system, in collaboration with the Valuation Office, to provide market rent guidance.

It also wants measures to mitigate arrears risk, including initial rent payment conditions and reinstatement of the two-month arrears threshold for mandatory possession proceedings.

A revision to student possession grounds, encompassing one and two-bedroom properties and allowing termly rent payments, are also recommended.

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