UPDATED 27/03/25: The second reading of the Renters’ Rights Bill took place in the House of Lords on February 4th. During this session, members debated the bill’s key objectives and identified areas requiring amendments. Topics discussed included student rentals, tenants’ rights regarding pets, market supply and demand, and legal enforcement. However, many questions about the bill remained unanswered.
On March 20th, the Government announced two committee sessions in the House of Lords, scheduled for April 22nd and April 24th. These sessions will involve a detailed, clause-by-clause examination of the bill before it returns to Parliament for the Government to review any proposed amendments.
Based on the current timeline, the bill is expected to receive Royal Assent and become law before Parliament’s summer recess in July. However, it will not take effect for at least two months afterward, meaning it will likely be implemented between October and December 2025.
Here’s some background and our thoughts on what to look out for:
Background
The Renters Rights Bill had its third reading in the Houses of Parliament on the 14th January.
Opposition MPs proposed 55 amendments in favour of both Tenant and Landlord. The amendments included:
- allowing a six-month minimum period for tenancies, where landlord and tenant agreed to them
- at tribunals, where rent increases are deemed to be fair, they are backdated to the date of the rent increase being proposed rather than the date of the tribunal decision
- a proposal to make all grounds for repossession discretionary
- a proposal to limit rent increases to the Bank of England interest rate
All 55 amendments were rejected, and the Bill was passed with 329 in favour and 111 against.
The Government proposed two key amendments that were accepted:
New Clause 13 – Prohibition of Rent in Advance (except initial rent)
This clause will limit a tenant to paying a maximum of one month’s rent at the start of the tenancy. If Landlords ask for and accept more, they could get a £30,000 fine.
New Clause 15 – Guarantor not liable for rent payable after tenant’s death
If a tenant with a guarantor dies, the guarantor will only be liable for up to the end of that monthly rent period. If the tenancy is not surrendered, rent arrears must be paid from the deceased’s estate.
What happens now?
The Bill will now be passed to the House of Lords for consideration, and there will be an important second reading on the 4th February.
At Grace Miller, we know that the changes being brought about by the Renters’ Rights Bill will revolutionise the relationship between tenant and landlord. As Propertymark members, we are kept informed of the Bill’s progress, so we are well-placed to advise our client landlords about the inevitable changes ahead.
What worries us about the Bill?
In our view, clause 13 is particularly concerning.
If a tenant has a poor credit history, no guarantor or cannot get a rent guarantee insurance policy as they’d fail the credit check, they will find it very hard to secure a rental property. This is made more challenging by tenancies moving to not being fixed term but open-ended rental agreements.
If you have any questions about the Bill or there’s anything else we can do to help you, please get in touch with us today.
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