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Renters (Reform) Bill - Sitting 8

23 November 2023

Proposing MP
Makerfield
Type
Public Bill Committee

At a Glance

Issue Summary

The statement addresses amendments related to regulating rental increases and providing tenant rights in disputes over rent. The statement discusses new clauses aimed at regulating rental practices including preventing landlords from inviting higher bids than advertised and limiting advance rent payments. The statement discusses concerns regarding rent increases under the Renters (Reform) Bill and proposes several amendments to protect tenants from unaffordable rent hikes and economic evictions. The statement discusses issues related to excessive rent increases by corporate landlords affecting tenants in the constituency of Cities of London and Westminster. MP Lloyd Russell-Moyle discusses the Renters (Reform) Bill and argues for clearer guidelines on rent determinations and broader consideration by tribunals. The statement discusses amendments to Clause 7 of the Renters (Reform) Bill, focusing on the right to request permission to keep a pet and ensuring landlords respond within a specified timeframe. The statement addresses a proposed amendment to insurance contracts that would prevent clauses prohibiting tenants from keeping pets. The statement discusses amendments to Clause 7 of the Renters (Reform) Bill, which aims to protect tenants' rights to keep pets by setting a reasonable timeframe for landlords to consider pet requests and providing clarity on what constitutes a reasonable refusal. Craig Tracey discusses clause 8 of the Renters (Reform) Bill, which aims to allow landlords or tenants to obtain insurance to cover damage by pets. The statement discusses the introduction of a new duty for landlords and contractors to provide tenants with a statement of terms and other relevant information. The statement discusses Government new clause 3, which aims to formalise existing good practices by requiring landlords to provide tenants with a written statement setting out tenancy terms and conditions. Yvonne Fovargue discusses amendments related to extending the period before landlords can re-market properties after obtaining possession for occupation or selling, as well as prohibiting short-term lets or holiday lets. Yvonne Fovargue discusses amendments to strengthen protections against abusive evictions by landlords under the Renters (Reform) Bill. The statement discusses the regulation of holiday lets under the Renters (Reform) Bill and the interaction between short-term let regulations and the main property portal. The statement discusses proposed changes to financial penalties for landlords who contravene certain provisions of the Housing Act 1988. The statement discusses clauses in the Renters (Reform) Bill aimed at regulating private landlords and introducing fines for breaches of tenancy rules. The statement discusses the enforcement measures and financial penalties proposed by the Government in response to breaches of tenancy requirements, focusing on amendments that would increase these penalties. The amendments address updates to the Renters (Reform) Bill by inserting new sections and updating numbering in response to previous clauses. The statement addresses the restriction on landlords' obligation to pay tenants' removal expenses under specific grounds. Yvonne Fovargue is proposing amendments to maintain and extend local authorities' homelessness prevention duties. The MP is addressing the Renters (Reform) Bill and its potential impact on tenants' rights under section 21 and section 8 eviction notices, specifically concerning the prevention of homelessness. Jacob Young discusses reforms to the Renters (Reform) Bill, focusing on changes to homelessness legislation and fixed-term tenancies. The statement discusses a technical amendment in the Renters (Reform) Bill to ensure that local authorities can provide temporary accommodation without it being classified as an assured tenancy, allowing private landlords to regain possession once the duty ceases.

Action Requested

Proposes several amendments including ensuring tenants can recover costs if landlords increase rents improperly, requiring tribunals to determine appropriate rents based on proposed regulations, limiting rent increases to the lower cap of CPI or medium income growth, and mandating that advertisements for rental properties state the amount of rent.

Key Facts

  • Amendment 159 would allow tenants to recover costs if landlords increase rents improperly.
  • Amendments 197 and 201 require tribunals to consider original rents, housing allowance, average market rents, CPI, and median income growth when determining new rents.
  • Amendments 198 and 199 limit rent increases based on the lower cap of CPI or medium income growth.
  • New clause 58 requires landlords to state the amount of rent in advertisements for residential properties.
  • New clause 59 would prevent landlords or letting agents from encouraging bids that exceed advertised rent.
  • New clause 62 limits advance rent requests to five weeks for annual rents under £50,000 and six weeks for higher amounts.
  • Amendment 199 and new clause 66 require the Secretary of State to issue guidance on in-tenancy rent increases.
  • The Government’s reform package lacks robust means of redress for tenants facing unreasonable rent rises.
  • An analysis by Generation Rent indicates that only 341 cases were heard between January 2019 and August 2021, out of approximately 4.4 million privately renting households in England.
  • Amendment 160 would ensure the tribunal process does not increase rent beyond what landlords initially asked for.
  • Amendments 161 and 162 aim to provide a two-month grace period after a tribunal determination before a rent rise becomes payable.
  • Shelter research shows that 59% of tenants were asked to pay rent in advance, with some needing to take out loans or use credit cards.
  • AXA Insurance is carrying out a major refurbishment of Dolphin Square in Pimlico.
  • Tenants facing relocation are being asked to take on new tenancies with a 40% increase in rent.
  • The Bill amends section 13 and 14 of the Housing Act 1988 to protect tenants from excessive rent increases.
  • The tribunal cannot currently take into account alterations made by tenants at their own expense.
  • There is no requirement for landlords to accept the tribunal's final outcome regarding rent levels.
  • Bidding wars are not illegal, according to the Minister.
  • Amendments ensure landlords respond within 14 days.
  • Additional time can be granted if information is provided within 14 days.
  • Superior landlords must also respond within 14 days.
  • The Secretary of State will publish guidance on reasonable grounds for refusal within 180 days after the Act passes.
  • The new clause applies to contracts entered into or whose duration was extended on or after its implementation date.
  • Clause 7 aims to strengthen tenants' rights to keep pets.
  • Nearly half of all landlords are unwilling to let to tenants with pets.
  • Amendment 183 seeks to reduce the landlord's consideration period from 42 days to 14 days.
  • Battersea Dogs & Cats Home and the Dogs Trust support these amendments.
  • Clause 8 amends section 1(4) of the Tenant Fees Act 2019.
  • The current take-up rate of tenant’s contents policies is between 10% and 15%.
  • Shelter mentioned that insurance products are often one of the first things to be cancelled during financial shocks.
  • The new clause introduces a duty for landlords and contractors to give tenants a statement of terms and other relevant information.
  • This is intended to increase transparency in the rental process.
  • New clause 3 will replace existing clause 9 in the Renters (Reform) Bill.
  • The written statement must include terms such as start date, rent level, landlord’s address, and rights and responsibilities of both parties.
  • Landlords are required to specify when they may use certain grounds for eviction.
  • Amendments 132 and 133 seek to extend from three months to six months the period before which a property can be re-marketed.
  • Amendment 134 clarifies that a landlord cannot let a property as a short-term or holiday let for at least three months after taking ownership of the property.
  • Amendment 135 would clarify that a landlord cannot market a property as a short-term or holiday let for at least three months after taking ownership of the property.
  • Fovargue supports amendments 140 and 141 to extend the no-let period from three months to twelve months.
  • Amendment 142 aims to ensure that tenants can seek redress if they are wrongfully evicted through court proceedings.
  • New clauses 3 and 4 raise questions about how assured tenancies transition and when new duties kick in.
  • Amendments seek to extend the three-month period to six or 12 months.
  • Local councils have powers to fine landlords up to £5,000 for minor breaches and up to £30,000 for serious offences.
  • Government new clauses replace clause 10 but retain the policy intent in the original drafting.
  • Amendment 163 would increase the penalty from £5,000 to £30,000.
  • Amendment 164 would increase the penalty from £30,000 to £60,000.
  • The amendments target contraventions of clauses 9 and 10 inserted into the Housing Act 1988.
  • Clauses 11 and 12 give local housing authorities the power to fine landlords who break rules.
  • Clause 13 allows fines of up to £5,000 for less serious breaches.
  • Fines can be increased to £30,000 for repeated or serious offences.
  • The government is issuing guidance and exploring a national framework for setting fines.
  • Amendments propose increasing the maximum fine to £30,000 for initial breaches and up to £60,000 for serious offences.
  • Clause 11 introduces financial penalties of up to £5,000 for contraventions and £30,000 for serious offences.
  • Amendments 163 and 164 propose raising the maximum penalties from £5,000 to £30,000 and from £30,000 to £60,000 respectively.
  • Clause 12 requires local authorities to issue a notice of intent before imposing financial penalties.
  • Amendments are made to clause 11 of the Renters (Reform) Bill.
  • They include updates to section numbering, insertion of new provisions for financial penalties and offences related to unlawful possession notices.
  • Amendment 50 clarifies that certain sections apply only in England.
  • Landlords of assured tenancies are currently required to pay tenants’ reasonable removal expenses under grounds 6 and 9 of the Housing Act 1988.
  • Clause 16 restricts this requirement to registered providers of social housing only.
  • The Government argues that it is an unfair burden on private landlords to cover moving costs for redevelopment or financial difficulties.
  • Amendment 178 aims to maintain and extend homelessness prevention duties.
  • Amendment 179 ensures the continuation of these duties while a valid section 8 notice has expired or will expire within 56 days.
  • The amendments refer to section 8 of the Housing Act 1988.
  • Over 640,000 households have been prevented from becoming homeless or supported into settled accommodation since the 2017 Act came into force in 2018.
  • According to Government data, 298,000 people are currently homeless, marking a rise of 6.8% on the previous year.
  • The end of a tenancy in the private rented sector is a leading cause of homelessness in England, accounting for over a quarter of households seeking support.
  • The Bill removes fixed-term tenancies and section 21 evictions.
  • Clause 18 amends section 193 of the Housing Act 1996 to refer to an assured tenancy instead of a fixed term.
  • Amendments 178 and 179 are opposed due to potential resourcing pressures on local authorities.
  • Government new clause 7 delivers a technical change in the Housing Act 1996.
  • Clause 18 was ordered to stand part of the Bill.
  • Further consideration is ordered to be adjourned till Tuesday 28 November.
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