The National Residential Landlords Association (NRLA) has issued a warning that the rental sector could be burdened with impractical reforms unless the Government supports amendments put forward by peers concerning the Renters’ Rights Bill. The caution comes ahead of the Bill’s committee stage in the House of Lords, as the NRLA urges ministers to endorse a series of pragmatic changes.
Among the key proposals is a call for a thorough review of the impact on the justice system before the Government proceeds with scrapping Section 21, which currently allows landlords to evict tenants without providing a reason. The NRLA emphasises that without such a review, the justice system may struggle to effectively handle the repercussions of these legislative changes.
In addition to this, the NRLA is advocating for an amendment that would extend possession grounds to encompass all student housing. Landlords of student properties face uncertainty in ensuring that their accommodations will be available to new students at the onset of each academic year, particularly as fixed-term tenancies conclude. Although the Government has introduced a possession ground intended to address this concern, it presently excludes one- and two-bedroom properties—units that constitute approximately a third of student accommodation stock. Expanding possession rights to these smaller properties aims to provide landlords with greater security and certainty in managing these rentals.
Another significant amendment, originating from a former legal adviser at Number 10, seeks to reverse a recent change that increased the allowable rent arrears threshold before landlords can initiate possession proceedings on mandatory grounds. The Renters’ Rights Bill currently raises the permitted rent arrears by 50%, a move intended to offer tenants more flexibility but, according to the NRLA, may inadvertently hinder tenants from addressing problematic debts promptly. The association contends that this change could also discourage responsible landlords from renting to individuals who lack a robust credit history or who may have difficulties demonstrating their ability to maintain a tenancy.
Ben Beadle, Chief Executive of the NRLA, stressed the importance of governmental support for these adjustments, describing the proposals as “constructive” and “sensible” measures crucial for the Bill’s effective implementation. Speaking to LandlordZONE, he said: “Without changes the justice system will not cope, students will struggle to plan where they will live and responsible landlords will avoid the risk of taking tenants with a poor, or no, credit history in the UK.”
The NRLA’s interventions reflect ongoing debates within the sector about balancing tenant protections with landlords’ capacity to manage their properties sustainably. The forthcoming deliberations in the House of Lords will be closely watched by stakeholders on both sides of the rental market.
Source: Noah Wire Services