The Renters’ Rights Bill returns to the Commons for its second reading next month, as the new government fast-tracks its shake up of the PRS.

MPs will consider the updated legislation on 9th October after the party conference season, with expected widespread support, particularly among the Labour and Lib Dem benches.

Giles Peaker, property lawyer at Anthony Gold, believes there is a good chance it will become an Act before the new year, and that the sector will see reform sooner rather than later.

Accomplished

He explains that the end of section 21 will be accomplished by turning assured shorthold tenancies into periodic assured tenancies, with a term of no more than one month. However, unlike in the previous Renters’ Reform Bill, there are no transitional provisions for current/pre-commencement fixed term tenancies.

“Rather than the confusing and unwieldy ‘when the fixed term expiries or after 12 months from the commencement date for new tenancies’, there is a single date,” says Peaker. “At that point, all existing ASTs, whether statutory periodic, contractual periodic or in a fixed term, will become as assured periodic - save where there are existing possession proceedings, including under section 21.”

Additional

He predicts this will happen “not very long after the Bill has Royal Assent”. Adds Peaker: “My view is that if landlords are going to pre-emptively serve section 21 notices, they will do this as long as they can regardless of any additional transitional period, so it makes sense to make the period clear and limited.”

The failed Renters’ Reform Bill had its second reading almost a year ago but after a number of amendments tabled by 50+ ‘rebel’ Conservative MPs were accepted by the government, it finally ran out of time before reaching committee stage in May.

This revamped Bill will also extend Awaab’s Law into the PRS, ban rental bidding wars, and launch a new PRS database.

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