The government wants to stimulate economic growth, and creating the conditions for a thriving housing market is necessary for this.
The private rented sector (PRS) is an important part of the UK’s housing provision, so it is crucial that the regulations governing it are carefully conceived and well-implemented.
With the Renters’ Rights Bill, the clue is in the name – Labour’s legislative overhaul of the PRS primarily focuses on protecting tenant rights. I think we can all agree that homes for Great Britain’s almost five-and-a-half million PRS households must be of good quality and affordable.
Keeping good landlords in the PRS
It’s crucial, however, that rules designed to achieve this are not detrimental to landlords, who I feel are a vital – but often underappreciated – component of UK housing provision.
It’s also important that they address genuine issues in the sector, rather than perceived problems. I fear the latest amendments to the bill fall into the latter camp.
How the housing landscape is set to shift
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The bill has again attracted media attention after two amendments were tabled at the recent report stage, the last before its first reading in the House of Lords.
The first suggested amendment to the bill prohibits landlords from asking renters to pay several months’ rent upfront.
The practice helps those who don’t have a strong UK credit history to secure a PRS home, such as those without a static income due to flexible employment contracts or those moving to the country for the first time, particularly foreign students.
Banning tenants from putting down rent in advance could actually be a disadvantage in such circumstances and is another example of how well-intentioned policies can inadvertently negatively affect those they aim to benefit.
People fall into payment difficulties for a whole host of reasons, and that can damage their credit rating in the long term. Many people with a poor credit history have used rent in advance to give comfort to the landlord that they can meet their rent obligations. Removing the option for them to do so will likely inhibit their ability to secure a tenancy, especially if the landlord has the option of somebody with a better credit rating.
The second relates to the student market, a sector success story that has worked without issues for decades. Recognising the differences in the student letting sector, the bill includes a specific ground for landlords to claim possession for houses in multiple occupation (HMOs) let to students.
However, the new amendment states that this can only be enforced if the contract is signed no more than six months before the tenancy begins, so in most cases March for a September start.
Having recently trawled around Durham to find new accommodation for my own daughter for the 2025/26 academic year, I know the majority of students want to secure their property well in advance of the spring months – a time when exams are on the horizon and dissertation deadlines are looming.
Imposing such a deadline is unnecessary and shows a lack of appreciation of how this market has operated without issue for years.
We wrote to the housing minister to make this point and also engaged with Lords as the bill moved to its next phase in the House of Lords.
The proposed changes to the bill have been welcomed by bodies representing renters, such as Generation Rent, and cautioned against by landlord body, the National Residential Landlords Association (NRLA).
This highlights the challenge facing the government in implementing legislation that fosters a fair and functioning PRS.
Staying informed to reassure landlord clients
Speaking to landlords, we know that many have been keeping a keen eye on the bill since it was announced by the Labour government in September 2024. While some seem pretty unphased, others are anxious, understandably so.
Either way, brokers who stay on top of the legislative landscape can position themselves as industry experts and add another reason for landlords to choose them when looking for advice.
