The NRLA has warned of potentially devastating consequences for the PRS unless the House of Lords approves new amendments to the Renters’ Rights Bill.

As the legislation moves towards its second reading next Tuesday (4th February), the landlord body has identified a number of serious issues which would make it harder for tenants on the financial margins to demonstrate their ability to pay rent, as well as making it harder for students to access housing.

It predicts that property tribunals could be overwhelmed by demand and believes the Bill includes no clear plan for ensuring the courts are ready for change.

The NRLA has urged peers to back a system to assess rent increases before disputes are sent to the tribunal and changes to mitigate the risk of arrears. These include a move which would allow an initial rent payment to be paid as a condition of a landlord agreeing to a tenancy, and the reintroduction of the two-month threshold for rent arrears when it comes to triggering possession proceedings using the mandatory ground.

Changes to the student possession ground would extend the ground, allowing it to be applied to one and two bedroomed student homes and allow students to pay rent by term, rather than monthly, says the NRLA.

Implementation

It is asking for a full implementation plan for the changes being brought forward in the Bill and a clear plan for the justice system, to ensure it has the confidence of landlords and tenants.

Chief executive Ben Beadle (main image) says peers need to understand both the likely implications of the Bill, on tenants as well as landlords, and the simple changes that could be made to ensure that, once passed, the Bill is workable and fair to all.

He adds: “If left unamended, the Renters’ Rights Bill does not provide the promised balance and will destroy any remaining confidence landlords have to invest in much needed homes.”