Latest news with #RentersRights
BBC News
08-07-2025
- Business
- BBC News
Ministers ditch pet insurance rule for renters in England
The government has shelved plans to allow landlords in England to require their tenants to take out special insurance if they own measure was proposed alongside stronger legal rights for tenants to keep animals in the Renters' Rights Bill announced last Labour ministers have now ditched the idea, arguing that appropriate insurance products may not become widely available quickly change was confirmed on Monday night, with the government amending its own legislation in the House of prompted Tory peers to back a plan to make tenants pay an extra 'pet deposit' instead - setting up a fresh battle for when the bill returns to the Commons. Peers voted narrowly to approve an additional amendment that would allow landlords to charge up to three weeks' rent as a returnable deposit, to cover potential damage caused by pets during a move passed by 206 votes to 198, after the Conservatives teamed up with a group of crossbench peers to defeat the government and the Liberal Democrats, who voted against the shadow housing minister Baroness Scott of Bybrook said the "additional risks" posed by pets exceeded traditional deposits paid by tenants, which have been capped at five weeks' rent since added it would give landlords an "essential route to recoup costs" now that the insurance requirement has been the three-week pet deposit idea is almost certain to be overturned when MPs vote on the Lords' changes in the coming weeks, given the Labour government's huge majority in the House of Commons. 'Impractical conditions' The original version of the bill would have granted landlords new powers to require private tenants to take out pet damage insurance, or recoup "reasonable costs" from the tenant for obtaining such insurance was meant to sit alongside strengthened rights for renters, under which landlords will need a reasonable justification to deny prospective tenants the right to live with their pets. When the draft law was introduced, Housing Secretary Angela Rayner told MPs the insurance requirement would ensure "landlords are protected" as renters' rights were speaking on Monday, Housing Minister Baroness Taylor of Stevenage said it was now being dropped after feedback from insurers."Although our view was that a new market will develop for insurance products, following further engagement with the sector we now accept that this may not happen at the scale necessary," she told peers."We do not want to leave tenants in a position where they are unable to comply with impractical conditions that a landlord may place on the tenant as part of their pet consent".She said that, following evidence given during scrutiny on the bill, ministers now believed traditional deposits were enough to sufficiently protect ministers would consider introducing bigger deposit fees if costs from pet damage "frequently" exceeded deposit amounts, she added. 'Shoddy and outrageous' The decision to drop the insurance requirement has been made as the bill nears the end of its passage through Parliament, in its final stage in the House of NRLA, which represents landlords, has called the move a "shoddy and outrageous way to make law" that will force their members to "shoulder even greater risks" when letting out the change has been backed by the Renters' Reform Coalition, a campaign group, which has argued the requirement for additional insurance is group told the BBC it also opposed the idea of a three-week pet deposit, arguing it "could rule out pet ownership for many renters"."Three in four landlords don't experience pet damage at all, and when it happens the average cost is much lower than three weeks' worth of rent," added spokesman Paul Shanks. Sign up for our Politics Essential newsletter to keep up with the inner workings of Westminster and beyond.
Telegraph
08-07-2025
- Business
- Telegraph
Labour's radical Renters' Rights Bill is crippling landlords before it's even law
The war against landlords has been painfully long and drawn out. Now, they must face the latest battle: the Renters' Rights Bill, which will introduce the biggest changes to the rental sector in a generation. It is one vote in the House of Lords away from becoming law. Penalties for rogue landlords will double, stringent new bureaucracy will be introduced and discrimination against renters on benefits or with children or pets will be banned. While tenants are looking forward to more protections, landlords have been bracing for its impact for years. Many say they should be left free to manage their own risk, and be able to get rid of bad tenants. It is not yet law, but the mere threat of the Bill coming into force has had an effect on the market, with huge numbers of landlords selling up, in turn pushing up rents and making properties scarce. A long time coming The Conservatives' Renters Reform Bill, spearheaded by Michael Gove, former communities secretary, became Angela Rayner's Renters' Rights Bill after failing to pass before last year's election. The controversial commitment to scrapping so-called 'no-fault' evictions – also known as Section 21 – previously dropped by the Tories, has been reintroduced. The Bill has sparked confusion and panic in the more than two years since its details were first floated. This has pushed yet more landlords out of the market, driven rents to record highs and made renting more difficult for tenants. Between May 2019 and May 2021, the number of homes available to rent saw a small growth. But by May 2023, when the Bill was first announced, more than 45,000 properties had been taken out of the market. Then, between May 2024 and May 2025, a further 57,000 were removed, data shows. The property market has been flooded with landlords selling up – one in 10 properties currently on the market has been a rental property at some point in the last three years, the analysts found. This constriction of supply has driven a significant surge in rents. The average asking price across the UK is now £1,339 a month, according to the Office for National Statistics (ONS). Rents have jumped significantly since the end of the pandemic, increasing in every nation. The increase between January 2021 and May this year represented a jump of 30pc. Colin Bradshaw, of TwentyCi said: 'From a landlord's perspective, tax and regulatory changes, including the upcoming Renters' Rights Bill, have led many landlords to exit the market, exacerbating stock availability issues. 'It's an unrelenting struggle for prospective tenants looking for a new property to let.' 'A lot of hassle' Tim Prourban, 62, has sold his two rental properties, in Warwickshire and Lecistershire, having decided that it was all too much. He had been a landlord for around 20 years. Mr Prourban said: 'It was a whole accumulation of things really … I don't want the hassle. And there is a lot of hassle. [The Government] just do one thing one minute, then they have an idea and then they do something else another day.' He added: 'My stomach for being a landlord had run its course. I had had enough of tenants calling me up at 3am saying that they couldn't understand how the central heating worked.' Mr Prourban is far from the only landlord who has sold up ahead of the legislation coming into force. The flashpoint of the proposed law – and potentially the most substantial change – is the removal of Section 21 evictions, and of fixed-term tenancies. Landlords will no longer be able to stipulate to tenants how long their tenancy will last. Instead, the contract between the renter and the landlord will be 'periodic', and will renew automatically until either party gives notice. Tenants will have to give two months' notice before they leave. But landlords will be restricted to a limited number of grounds for eviction, known as 'Section 8', and not at all during the first year of a tenancy. The number of months of rent arrears before a landlord can evict will increase from two to three, and the notice period will be four weeks, rather than two. In cases of anti-social behaviour, however, landlords will be able to start eviction proceedings immediately. Landlords who are taking their properties off the rental market in order to sell them will be forced to forgo any rent for a year, as they'll be prohibited from re-letting for 12 months if the home fails to sell. Mr Prourban said he supports the ending of no-fault evictions – but that requiring landlords to use Section 8 grounds would be too 'restrictive' He said: 'I am all for the abolition of no-fault, Section 21 eviction, believe it or not. But I don't think Section 8 was the way to go. It's restrictive, but also, if you want someone out, what are you going to do? You're going to go to the courts. That's just a crazy way of doing things.' Other landlords are less convinced. Hertfordshire-based landlord, Jayne Entwistle-Thomas, said: 'I cannot say how much I dislike the Renters' Rights bill, and not just the name.' In particular, she said that she's concerned about the additional administrative burden of a national landlord database, and the fines for those not on it. She also said that there had been 'no answers' on court readiness – which will be key to being able to evict at all. Referencing checks will likely become more stringent, landlords warned, as they become more cautious about letting to tenants who will be more difficult to remove. State of the courts The state of the courts is another piece of the puzzle. Landlords face waits of up to eight months in central London for a hearing – and that's while hearings are not mandatory. Once the law comes in, landlords will only be able to evict for a very limited number of reasons, using a Section 8 notice, which requires a court hearing. Section 21 notices can be served without a formal hearing. The Government has admitted this could be an issue. Matthew Pennycook, the housing minister, said during debates in the House of Commons on the Bill: 'Court readiness is essential to the successful operation of the new system.' But detail is sparse about how this will work in practice. In June, a group of landlord associations wrote to Baroness Taylor of Stevenage to demand more details on how the courts will handle a surge in evictions. The landlords said: 'We remain extremely disappointed by the lack of substantive responses to the concerns we have consistently raised with ministers. Unless clear answers to the issues we have raised are forthcoming from the Government, landlords have every reason to be concerned.' On July 2, Baroness Taylor, who is the Labour representative for the Bill in the House of Lords, said: 'We are working with the Ministry of Justice and HM Courts & Tribunals Service to that effect, including investing additional court and tribunal capacity to handle any extra hearings generated.' It is believed that some court processes will be digitised in order to lessen the strain. How will renters benefit? The woes of renters stuck in substandard, expensive housing are well-founded. One renter, Jake Dibden, told The Telegraph that when he moved in with friends, the house hadn't been cleaned, and there were mice droppings in the kitchen and mould in the bedrooms. A promised renovation had not been completed. Then, when he wrote to his council to ask if the correct house of multiple occupancy (HMO) licences were in place, the council wrote to his landlord and named him in their response. He was then hounded by the property manager on the phone – and his tenancy was not renewed. Under the new rules, Mr Dibden would have more recourse to challenge his landlord. Under the extended Awaab's Law, named for two-year-old Awaab Ishak who died living in a mouldy socially rented home, landlords will have address mould within a specified timeframe. The penalty for not having a HMO licence will increase from one year's rent to two years, under changes to Rent Repayment Orders. And under the new rules, the landlord would not have been able to evict Mr Dibden – or refuse to renew his tenancy – unless they were planning to move in, sell the property, or for a mortgage repossession. Discriminating against tenants on benefits – or those with children – will also be banned. Landlords will no longer be able to induce bidding wars between competing tenants, and will be required to publish an 'asking rent' when they advertise a property. They will be unable to accept bids any higher than this asking rent – or ask for several months' rent upfront. Rents will only be permitted to rise once a year, and tenants will be able to challenge increases above what is typical for the area or the 'market rent' in tribunals. One further stipulation of the new rules is that landlords will no longer be able to stop tenants having pets without good reason. Nor will they be able to demand a separate deposit for pets, or require tenants to have insurance for any damage caused. Will it work? Chris Norris, of the National Residential Landlords Association, said: 'The Renters' Rights Bill represents the biggest shake up of the rental market for almost 40 years. 'What landlords and tenants need most of all is certainty about when it will start to be implemented. That should, at a minimum, be six months after the bill is agreed by Parliament to allow the sector sufficient time to transition to the new tenancy system as smoothly as possible.' Rents have already increased to record levels, and the number of homes available to rent has fallen significantly. The hope is that this will settle as landlords and tenants gain certainty with the passage of the bill. A Ministry of Housing, Communities and Local Government spokesman said: 'The Renters' Rights Bill will level the playing field and create a fairer housing market for all, with good landlords having nothing to fear from our reforms. 'We are getting on with delivering on this Government's manifesto commitment to implement long-overdue reform, protecting renters across the country – strengthening tenant rights by abolishing section no-fault 21 evictions, challenging excessive rent hikes, and ending unfair bidding wars.'
The Independent
21-06-2025
- Business
- The Independent
Could Angela Rayner's squeeze on landlords hurt the very people it's supposed to help?
On the face of it, Angela Rayner's Renters' Rights Bill has some benefits – not least that Section 21 no-fault eviction notices will be scrapped, giving tenants more security. But experts are now warning that, as part of Labour's reforms currently making their way through parliament, landlords would be prevented from re-listing their properties as rentals for a year if they try – and fail – to sell up. Which, therefore, also means they'll have to forgo rent for a year. Failed sales are not unusual – and with the latest Rightmove stats on the housing market, things are looking especially bleak for homeowners in London and the South East. If they are forced to hold onto their property under these new provisions, not only will they as landlords be out of pocket, we'll end up with even more empty properties gathering dust. Right away, you can see the problem: Britain already has too many of those and this may lead to an even bigger shortage of housing during what the National Rental Landlords Association (NRLA) describes as 'an unprecedented supply and demand crisis'. Indeed, the organisation puts the number of empty properties in the rental sector at roughly half a million in England alone, using data from the government's English Housing Survey. 'We are concerned that the government does not recognise the risk that the number of empty homes in the private rented sector may substantially increase if this proposal passes into law,' says Meera Chindooroy, the trade body's deputy director of campaigns, policy and public affairs. So, has the government lost the plot? Not quite. I can see the method in Rayner's apparent madness. Let me explain… The problem with the private rental market is that the balance between tenant and landlord has been out of whack for too long. The current system, which allows for tenants to be booted out with a couple months' notice at the end of a year's tenancy, can leave them in a horrible jam if the owner decides that it's time to book a quick profit when the property market gets hot. Rayner's policy aim with the bill is to create a situation where this doesn't happen because most landlords will be professional – in it for the long haul, rather than hobbyists who buy themselves a flat or two to fatten up their pensions. The re-listing ban is an explicit attempt to make landlords think very carefully before putting their properties on the market. It makes that option a risky move for them. Other provisions included in the Bill that the NRLA describes as 'the biggest change to renting in over 30 years' include a protected 12 months at the start of a tenancy, where a landlord will be barred from evicting a tenant for the purposes of selling. As also mentioned, there will be the abolition of Section 21 notices, better known as 'no-fault' evictions. A national database for the private rented sector will be created, and there will be an ombudsman to handle disputes. Landlords will no longer be able to discriminate against families or benefit recipients – nor will they be able to create bidding wars. Some of these policies were first mooted by Michael Gove, when housing was part of his portfolio. And while the current chancellor Rachel Reeves introduced a 5 per cent 'second home' stamp duty surcharge, the drive to professionalise the sector began with former Tory chancellor George Osborne. He restricted the tax relief residential landlords could claim on mortgage interest payments to the basic rate of 20 per cent. These measures ramped up costs for the small fry and many left the market as a result. As you can see, there has been a degree of cross-party consensus on the need for reforms aimed at improving life for private sector tenants, who are often left feeling as if they're lost in a swamp with no map and no mobile phone reception. As a package, the reforms should, in theory, improve life for them. If an owner is in it for the long term, the renter can make a home of their tenancy, as often happens on the continent. Needless to say, a long term tenant could also improve life for the landlord, because they will likely be more inclined to look after the place (if you've ever been house-hunting, the ex-rentals stand out – and not in a good way). However, at this point I feel obliged to trot out one of those old sayings: 'The road to hell is paved with good intentions.' You don't help renters if you end up with fewer properties on the market. Constricting supply will inevitably add rocket fuel to rental prices, which are already too high. According to the quarterly tracker by Rightmove, the average advertised rent of homes outside of London rose to a record £1,349 in the first three months of the year. London, meanwhile, recorded its 14th consecutive record, with monthly rents increasing to £2,698. It is true that Rightmove noted a (welcome) increase in supply, but that doesn't mean there isn't still a shortage overall. There are some good things in Rayner's reform package. But facts are facts and markets are markets – and if she squeezes landlords too hard, she will hurt the market and end up squeezing tenants – the last thing anyone wants, least of all her. Banning rents for a year after a failed attempt to sell is a measure that demands a rethink, however well-intentioned.
Telegraph
04-06-2025
- Business
- Telegraph
Rents to surge £900 to pay for Labour reforms
Labour's rent reforms will add almost £900 a year to the average tenancy, a report has warned. Nearly half of Britain's buy-to-let landlords (44pc) plan to increase rents in response to the controversial Renters' Rights Bill, according to research by housing lender Landbay. The landmark legislation, due to kick in this autumn, will limit landlords to just one rent increase per year capped at the 'market rate' – the price that would be achieved if the property was newly advertised to let. Landbay said property owners were planning to increase rent by an average of 6pc, which would add £74 to the average monthly rent, or £888 a year. The survey also found that the majority of landlords (89pc) intended to raise rents in the next 12 months. More than a third (40pc) planned to increase rents by 3pc or more over the next 12 months, while over one in 10 (11pc) said they did not intend to put up rents at all. The Renters' Rights Bill will introduce new protections and rights for the 11 million private tenants in England by reforming the current system of renting. An end to fixed-term tenancies, longer notice periods, and restrictions on rent increases will give tenants more rights and landlords less control over how they manage their property and buy-to-let business. The bill is currently being scrutinised in the House of Lords. The Government aims for the reforms to receive Royal Assent by summer 2025, with implementation expected between October and December this year. The National Residential Landlords Association (NRLA) argued that the bill could force landlords out of the sector and push up rents if it is passed in its current form. Chris Norris, of the NRLA, said the 6pc rent increase figure was consistent with the NRLA's estimates that the Renters' Rights Bill would trigger rent rises of 3pc to 4pc above inflation. He added: '[The bill] is likely to affect tenants directly in many more ways than landlords. 'You have the prospect of tenancies becoming more risky, harder to end – and you have to wait longer to claw back arrears. 'Landlords will be pricing in that risk when setting rents.' A recent survey by Pegasus Insight showed that 37pc of landlords planned to sell a property in the next 12 months while just 6pc said they intended to buy. Rents in England rose by 1pc in May to £1,226, the highest level since October 2024, according to letting agent software firm Goodlord's rental index. William Reeve, Goodlord's chief executive, said: 'Although the pace of year-on-year increases is starting to slow… ongoing supply issues coupled with landlord jitters ahead of the Renters' Rights Bill means that rents remain on track to rise for the foreseeable future.' The Government was approached for comment.
Telegraph
26-05-2025
- Business
- Telegraph
Renters Rights Bill: When will it become law?
Tenants who rent in the private sector are on the cusp of receiving greater protections from eviction, unfair rent increases and greater stability of tenure as the Renters' Rights Bill makes its way through parliament. The controversial body of legislation is the biggest change to renting in over 30 years according to industry body The National Residential Landlords Association (NRLA) which is battling to get some of the proposals changed to soften the blow for the buy-to-let sector. Here Telegraph Money explains the measures laid out in the bill, what that means for landlords and when it is likely to become law. What is the Renters' Rights Bill? The Renters' Rights Bill, which builds on the Renters' Reform Bill introduced by the Conservatives, will introduce new protections and rights for the 11 million private tenants in England by reforming the current system of renting. An end to fixed-term tenancies, longer notice periods to give renters more time to find a new home and restrictions on rent increases will give tenants more rights and landlords less control over how they manage their property and buy-to-let business. Labour says it will 'transform the experience of private renting' which will largely be achieved by ending Section 21 evictions dubbed 'no-fault evictions'. If the bill is passed in its current form, the NRLA argues that it could force landlords out of the sector – reinforced by a survey last month by Pegasus Insight which revealed 37pc of landlords planned to sell a property in the next 12 months while just 6pc said they intended to buy. New rules in the Renters' Rights Bill Evictions and serving notice: Section 21 no-fault evictions will be abolished. Fixed-term tenancies will be replaced with periodic tenancies, also known as rolling contracts that don't have an end date. Tenants will have a 12-month protected period at the start of their tenancy preventing landlords from forcing evictions to move back in or sell. Tenants can serve two months' notice to quit the property at any time. Landlords must serve four months' notice when moving back in or selling to give tenants time to find a suitable home. Landlords will not be able to evict a tenant in arrears until three months' payment have been missed, up from two months while the notice period has been increased from two to four weeks. Prices and payment: Rent increases are limited to once a year and only to the market rate which can be challenged by tenants at the first-tier tribunal if they believe it is excessive. Increases cannot be backdated. Large amounts of rent cannot be demanded in advance of a tenancy starting. Landlords must register with a digital database, failing to do so means that they cannot use certain grounds of possession. Asking rents must be published to prevent bidding wars making it illegal for landlords to accept offers higher than the rent advertised. Standards and safety: The Decent Homes Standard and Awaab's Law, currently applicable to homes in the social housing sector, will be extended to private sector landlords to ensure homes are made safe, are of good value and good quality. A private rented sector landlord ombudsman will be set up to provide an impartial and binding resolution for tenant complaints against landlords. Discrimination: Strengthened rights for tenants to have pets, although landlords can insist on pet insurance to cover any damage to their property. End discrimination against tenants on benefits or with children. Compliance: Councils will have the power to issue civil penalties of up to £7,000 to landlords who don't comply with the reforms rising to £40,000 for a serious breach or repeat non-compliance with the law. More strength will be given to rent repayment orders that can be issued by councils when landlords breach the law. What does the new renters' bill mean for landlords? Sylvie Harris, of property consultancy INHOUS, said: 'Through the abolition of Section 21 no-fault evictions, landlords will only be able to end tenancies using specific grounds under Section 8, such as rent arrears or anti-social behaviour or if they intend to sell or move into the property.' For the latter, an extended four-month notice period must be served. But the pressure this will place on a court system, which Matthew Pennycook, the housing minister, acknowledged during a parliamentary debate was 'on its knees', is raising concerns and has led to an amendment being tabled to review the impact of this plan on the legal system. When the Conservative government brought forward its draft renters rights legislation, then-minister Michael Gove said that the right to make no-fault evictions would remain in place until a full review of the courts had been completed. Currently, the average time between a landlord submitting a claim for an eviction and regaining possession of their property is more than seven months. In response to the Government's claims that the courts will be ready for the impact of the bill, Ben Beadle, chief executive of the NRLA, said: 'Seven months is an eternity for responsible landlords who may be dealing with serious rent arrears and for neighbours having to endure anti-social behaviour.' Not only could it take longer to evict a tenant, landlords will have to endure greater levels of arrears before they apply for possession as the minimum level of arrears for eviction is bumped up from two to three months. Landlords operating in the student let sector could also face challenges in operating their businesses efficiently if the legislation is implemented in its current form. Ending fixed-term tenancies removes the certainty for these landlords that their property will be available to let to a new batch of students when the academic year begins. Although grounds for possession have been included which allows landlords of houses in multiple occupation (HMOs) to evict last year's students to make way for a new group, one and two-bedroom student flats were not mentioned. Banning the receipt of large sums of rent upfront, meanwhile, could put landlords off renting to international students or tenants who have had credit difficulties in the past or do not pass affordability assessments. Without the security of payment in advance, these groups may struggle to be accepted. As the bill continues to undergo scrutiny, amendments to some of the measures may still be made. 'Reforms are still being actively debated and could change,' said Adam Jennings, of Chestertons. 'For example, 12-month fixed tenancies are still under discussion, with some stakeholders advocating for flexibility in terms of tenancy lengths. 'Another potential area for change involves the student housing market. The current restrictions on upfront rent payments are problematic for international students, and there's a push to either exempt certain categories of tenants or find alternative solutions.' Other amendments from the House of Lords include clarifications on the new grounds for possession and adjustments to notice periods. When will the bill become law? The bill is currently undergoing scrutiny in the House of Lords with the committee stage having commenced on April 22 2025. Although there is no definite date yet, Ms Harris says the Government aims for the bill to receive Royal Assent by summer 2025, with implementation expected between October and December 2025. The plan is to implement the changes to tenancies in one go rather than create a two-tier system that applies the rules to new and existing tenancies at different times.
