This stage in the Parliamentary process is crucial because it is the first opportunity for the Lords to debate the legislation in detail, allowing for scrutiny of the Bill's main principles, and it creates a space where Propertymark and other stakeholders can engage with the legislative process and seek to amendments before it moves forward.
Many of the issues we have raised in our lobbying were mentioned by Lords, Ladies and Bishops during the debate, and a number of speakers indicated that further careful consideration was needed during the next Committee stage to ensure that the Bill doesn’t have unintended consequences.
Representing members
Central to our work is ensuring that the voices of agents are heard throughout the legislative process. In our recent engagement with Lords, including Lord Best, Lord Lytton, Lord Kinnoull, Baroness Taylor, and Baroness Thornhill, we have emphasised the vital role letting agents have in shaping reforms and achieving positive outcomes. If the legislation doesn’t properly recognise this, the Bill will not deliver fairness and stable rents.
Our lobbying efforts have included meetings with policymakers and government officials, providing evidence to parliamentary committees, submitting written briefings to Peers ahead of debates, and encouraging our members to contact the Lords to raise concerns.
Furthermore, we want clarity on when the legislation will be implemented to reduce uncertainty for letting agents, landlords, and tenants.
Impact on housing supply
One of our primary concerns is that the Bill introduces overly restrictive regulations that could lead to landlords withdrawing from the PRS. This would reduce the availability of rental homes, driving up rents and making it harder for tenants to secure accommodation. Without clear policies to incentivise investment, these unintended consequences could worsen the housing crisis rather than solve it.
Lord Best predicted that the PRS would continue to shrink at around 2% per year, and several other speakers stated that loss of housing options during the current housing crisis would be highly detrimental. Best also noted that the increasing burden of legislation would make professional agents invaluable for landlords.
Fixed-term tenancies and student housing
We strongly oppose the removal of fixed-term tenancies, particularly given the negative impact on student renters. The UK Government’s refusal to reconsider this measure is troubling. Student landlords rely on fixed-term agreements to ensure properties are available for incoming cohorts, and without them, the supply of student accommodation could shrink significantly.
Baroness Warwick and Lord Willetts, have both powerfully highlighted the importance of extending Ground 4A to include one and two-bedroom houses and flats for students.
We were clear in our briefing to the Lords ahead of this reading—this extension is vital to ensure that the student housing market remains sustainable, responsive, and fit for purpose.
It’s encouraging to see critical issues being recognised at such a high level. The student rental market plays a unique role within the private rented sector, and policies like this are key to balancing the needs of both landlords and student tenants.
Balance needed in rules for pets
Propertymark was pleased to see broad support for changes to make it easier for tenants to keep pets in their rented homes. We know that pets are important to people’s mental health and well-being and that renters with pets tend to stay longer, which is positive for landlords. However, property owners must be able to ask for reasonable security in case of damage to the home.
Lord Kinnoull clearly set out the current situation that there are no insurance products on the market suitable for tenants to cover pet damage. Instead, he suggested that Ministers must consider the Scottish model, whereby landlords can request a larger deposit to give them confidence that any damage to the property can be put right when the tenancy ends.
Rent in advance restrictions
The Bill proposes limits on rent in advance, which could disproportionately affect certain tenant groups, including overseas students and those without guarantors. Propertymark has pushed back against this measure, highlighting the need for flexibility to ensure landlords can mitigate risk while maintaining access to rental properties for all tenants. This was backed by Lord Truscott, who cautioned that the most vulnerable tenants could be worst impacted.
Court system and possession rights
Removing Section 21 ‘no-fault’ evictions will significantly increase the burden on the court system. Our research shows that 88% of letting agents believe the courts do not have the resources to handle the expected caseload. Propertymark has called for urgent court reform, including digitisation and dedicated housing courts, before abolishing Section 21. Additionally, we advocate for more mandatory grounds for possession, such as addressing breach of contract and persistent late payment of rent.
Introducing the Bill for debate, Baroness Taylor of Stevenage reiterated the UK Government’s position that they would ensure the court system was ready. However, there has been no detail about how or when this will be achieved, leaving the sector with significant concerns.
Enforcement and local authority resources
The success of any new regulation depends on effective enforcement. However, we are concerned that local councils lack the resources to, effectively oversee compliance and tackle rogue landlords.
Propertymark has urged Ministers to ensure sufficient funding and a robust enforcement framework before implementing new rules.
Supporting agents and a call to action
We remain committed to working with policymakers to ensure the best possible outcomes for agents, landlords, and tenants alike. We will continue to campaign for a fair, functional, and well-regulated PRS that supports all stakeholders in the market.
Our members play a crucial role in shaping these discussions, and we encourage them to stay engaged with the campaign by contacting members of the House of Lords, attending Propertymark training sessions, and staying informed on legislative developments.
Propertymark continues to equip our members with the resources to navigate these legislative changes. We have developed toolkits, webinars, and fact sheets to help agents understand the evolving legal landscape.
Renters' Rights Bill moves to the Lords
As the Renters' Rights Bill moves onto the Lords, hear from the Propertymark team about the Third Reading and Report Stage, and the next steps.
As anticipated members of the House of Lords delved into the detail of the Renters’ Rights Bill and discussed the intended and unintended consequences it will bring. Importantly, many Peers outlined key changes to property standards and the challenges on local authority enforcement drawing attention to the vital role letting agents will play in ensuring education and compliance to tenants and landlords.
Disappointingly, some Peers have fallen into the trap of not understanding the costs and taxes impacting landlords and seeing rent control as an additional measure to tackle affordability issues in the private rented sector. Similar policies have failed in Scotland and must be, at all costs, avoided by the UK Government.
