Renters’ Rights Bill risks excluding vulnerable tenants

Renters’ Rights Bill risks excluding vulnerable tenants

9:14 AM, 14th January 2025, About 9 hours ago 9

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Landlords, letting agents and build-to-rent providers have warned that the government’s Renters’ Rights Bill could make it harder for vulnerable tenants to access rented accommodation.

In a statement ahead of the Bill’s report stage in the House of Commons this week, a coalition of organisations, including the National Residential Landlords Association (NRLA), British Property Federation (BPF), Goodlord, Leaders Roman Group and Propertymark, expressed concerns about the potential impact of the reforms.

They said: “We accept that Section 21 repossessions are ending, and support measures to ensure every rental property is of a decent quality.

“However, the Government’s proposed changes risk making access to rented housing harder for the very people we want to support.

“Limiting rent in advance, combined with frozen housing benefit rates and not enough rental housing will make it all but impossible for those with poor or no credit histories in the UK to prove their ability to sustain tenancies.

“This includes international students, workers from overseas and those employed on a short-term or variable basis with an income that fluctuates.”

Propertymark published a survey of members this week illustrating that letting agents are becoming increasingly anxious about the new law.

Big changes to the private rented sector

The Bill aims to introduce big changes to the private rented sector, including the abolition of Section 21 ‘no-fault’ evictions and the end of fixed-term tenancies.

The NRLA, among other organisations, has previously raised concerns about the potential impact of these reforms on the supply of rental homes.

During the report stage, MPs will discuss amendments and new clauses to the Bill.

The coalition statement adds: “Cutting off any assurance landlords might seek when renting to those who cannot easily prove their ability to afford a tenancy is neither practical nor responsible.

“Those who will suffer are those most likely to struggle to pass affordability checks.”

Separately, the NRLA says it will continue to lobby ministers and MPs to ensure the legislation meets the needs of both responsible landlords and tenants.


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Crouchender

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9:21 AM, 14th January 2025, About 9 hours ago

What about all the extra red tape that Labour have wrapped round us (especially now that selective licencing has a green light to no longer be SELECTIVE but borough-wide).
More regs means more cost passed to tenants. NRLA should have called this out much earlier now they need to talk to the papers and explain that the bill will crash the PRS economy. Which it will.

Ivor Tennant

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9:43 AM, 14th January 2025, About 8 hours ago

This total detachment of ideology from commercial and legal reality has effectively excluded all of those vulnerable people who the government are seeking to protect. They won’t need protecting because no landlords will house them.
The most fundamental commercial issue is that an AST contractually requires rent paid in advance but UC pay in arrears so it all fails at the first hurdle. In business risk=cost so rents will be driven solely by demand and risk, which the same government has significantly increased for Landlords, this will be managed by selecting tenants with the ability to pay and who pass referencing so essential rent guarantee insurance can be obtained. Anything else is is a fallacy.

GlanACC

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10:08 AM, 14th January 2025, About 8 hours ago

I doubt that many landlords would want a vulnerable tenant in their property, all that would mean is extra hassle and being expected to act as an unpaid social worker.

Crouchender

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11:08 AM, 14th January 2025, About 7 hours ago

Exactly. What it really means is 95% of tenants will be paying the price for this OTT RRB.

Sam Adler

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11:59 AM, 14th January 2025, About 6 hours ago

Given the labor track record over the past few months, this bill is poised to fail, further disadvantaging hardworking individuals. It lacks the necessary framework to address critical workforce challenges and instead imposes additional burdens on those who are already striving to make ends meet. Without meaningful reforms and genuine support for labor initiatives, this legislation risks widening the gap and undermining the very people it aims to support

Mick Roberts

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12:03 PM, 14th January 2025, About 6 hours ago

Isn't that what all the extra anti Landlord rules regs have done since 2015?
harder for vulnerable tenants to access rented accommodation.

In Nottingham, low earners literally cannot get anywhere.

Cider Drinker

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14:59 PM, 14th January 2025, About 3 hours ago

It’s already the case that the most vulnerable are unable to secure affordable housing.

The tax system sucks so much money out of the property market, whether it’s house buying or privately renting.

LHA only covers 30% of private rental costs - or, it did in September 2023 and it’s frozen until (at least) 2026. If Labour cared about the most vulnerable people in Society, they’d make LHA cover all private rents.

Reluctant Landlord

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17:16 PM, 14th January 2025, About 41 minutes ago

Reply to the comment left by Cider Drinker at 14/01/2025 - 14:59
....but even if they did cover the full rent and not just the LHA portion, with the current situation where the tenant can ask the DWP without the LL's knowledge to pay them directly....what's the point?

The 2 things that could change the situation over night is

1. that the DWP agreed to pay the LL the rent contribution directly that they have determined the claimant is eligible for.

2. There is a PRS Landlord portal set up allowing the LL to communicate with the DWP on the same level playing field as social landlords.

Cider Drinker

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17:35 PM, 14th January 2025, About 22 minutes ago

Reply to the comment left by Reluctant Landlord at 14/01/2025 - 17:16
Two great suggestions. Unfortunately, Labour (and the Tories before them) on,y listen to stupid ideas.

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