Renters’ activists groups have slammed landlords and lettings agents for lobbying parliament to introduce further changes to the Renters Reform Bill prior to House of Lords second reading.

Image credit: Unsplash

As reported across the media the Bill received its final reading in the House Of Commons and is described as being ‘watered down’ to appease backbench Conservative MPs and landlords.

The Bill’s original version would have banned Section 21 notices outright which is being delayed until the court’s processes and system undergoes a thorough review and changed where appropriate.

MPs and charities objected to the measure that tenant’s would be unable to hand in a notice to leave in a new tenancy within the first four months, which has now been changed in cases of death or domestic violence.

As the bill moves through the Lords, lobbyists are seeking to further amend the legislation.

Lobbyists are now calling for other amendments to be made to the Bill and an estate agents’ association says that fixed term tenancies should not be banned .. “when it is beneficial for all parties involved”. It  also calls for the government to review property taxes on private rented sector investment.

A spokesperson for the association, said: “With the removal of fixed term tenancies still a concern and open ended tenancies reducing the certainty for agents and landlords the big question is how do we encourage landlords to stay in the Private Rented Sector?”

And now the chief executive of Generation Rent condemned lobbyists’ threats of landlords selling up.

Ben Twomey, chief executive of Generation Rent says: “Landlord lobby groups have taken to quoting Generation Rent’s concern that ‘Landlords selling properties is a leading cause of homelessness’, and are cynically using this to hold parliament hostage to the idea that they will sell up over even the smallest strengthening of tenants’ rights.”

His comments are seen as a direct reference to a statement released by a landlords’ association which mentioned Generation Rent claiming that the biggest threat to tenants is landlords leaving the sector.

The association citing government data said 45 per cent of eligible households for council support are in danger of becoming homeless at the end of a tenancy agreement and desperately need help as their landlords wanted to sell their property in the second half of 2023.

A spokesman for the association, said the figures provides indisputable proof to the Lords that they should not try to reverse any of the amendments made to the bill.

He said “As Peers debate the Renters (Reform) Bill, it is vital that it works for landlords as well as tenants,” he said.

“As it stands it would achieve this balance. We are calling on Peers to support the Bill to give the sector certainty about the future.  

Twomey disputed the association’s  depiction of the threat of landlords selling up, saying: “Long term, if landlords sell up it makes little difference to the housing market. Bricks and mortar do not sink into the ground, and the home could be bought by another landlord, a first-time buyer or even repurposed for social housing. 

“There will always be some landlords wanting to sell, for example because they are retiring or because their mortgages have become too costly. ? ?“The short-term issue is that tenants have an appalling lack of protection when landlords choose to sell up – even under the new Renters (Reform) Bill as proposed, tenants would only have two months’ notice when evicted for this reason. 

“Landlord groups won’t lift a finger to improve this position for tenants, while using the risk of homelessness to demand their own concessions from government. ? ?“That is why the government should incentivise homes being sold with sitting tenants, or to them if they can afford to buy. 

“They should also ban evictions based on sales for the first two years of a tenancy. Meanwhile, relocation relief should be offered if renters are evicted through no fault of their own, so that they do not need to pay the final two months’ rent while they save and look for a new home.”

Richard Merrick of PIMS, says: “There is little chance that this or any other government will review tax changes for PRS investment unless it is to  ‘milk’ even more tax revenues from the sector.

“The idea of a ‘straitjacket’ approach to whom landlords can sell their properties to, and there will only be a small percentage of tenants who could afford the local house price rate…which begs the question……