On 4th February 2025, the House of Lords conducted the second reading of the Renters’ Rights Bill, marking a significant step towards reforming the Private Rented Sector (PRS) in England. This stage allowed peers to debate the bill’s core principles, raise concerns, and highlight areas that may need amendment—issues that are highly relevant for landlords and property managers.
The Landlord Insurance team at Lansdown breaks down the key points highlighting what landlords and property managers need to know.
What is the second reading (Lords)?
According to the parliament.uk:
“Second reading is the first opportunity for members of the Lords to debate the key principles and main purpose of a bill and to flag up any concerns or specific areas where they think amendments (changes) are needed.”
What happens at second reading?
“The Government Minister, spokesperson or a member of the Lords responsible for the bill opens the second reading debate,” which was, in this case, Baroness Taylor of Stevenage, Parliamentary Under-Secretary (Housing, Communities and Local Government), Labour.
“Any member can speak during second reading – this stage can indicate those members particularly interested in a bill, or a specific aspect of it, and those who are most likely to be involved in suggesting changes at later stages.”
Important developments for landlords and property managers:
1. Student Tenancies:
The treatment of student housing was a prominent topic. Peers discussed how the bill’s provisions would impact student accommodation, considering the unique nature of short-term rental agreements and the academic calendar. Landlords managing student lets should be aware of potential changes to tenancy structures and notice periods.
2. Supply and Demand Concerns:
Several members expressed concerns about the potential effects on the housing supply. Some warned that certain measures might unintentionally reduce the availability of rental properties, exacerbating the current housing shortage. Property managers should consider how these changes might influence occupancy rates and rental yields.
3. Legal Enforcement:
The effectiveness of enforcement mechanisms within the bill was scrutinised. Peers emphasised the importance of comprehensive legal frameworks to ensure compliance, protecting both landlords and tenants. Landlords and property managers should prepare for stricter compliance checks and potential new legal obligations.
4. Pets in Rental Properties:
The bill’s stance on allowing pets in rental homes sparked debate. While many support tenants’ rights to keep pets, landlords raised valid concerns about property maintenance and potential damages. This could lead to a need for revised tenancy agreements and insurance policies to cover potential risks.
Darren Bee, Associate Director at Lansdown Insurance Brokers, commented:
“The Renters’ Rights Bill represents a pivotal shift for landlords and property managers alike. While it’s encouraging to see steps being taken to modernise the sector, landlords should prepare for potential changes that could impact their responsibilities and insurance needs. At Lansdown, we’re here to support property owners in navigating their insurance ensuring they have the right cover in place to manage new risks effectively.”
Next steps for landlords and property managers:
The bill will now move to the committee stage in the House of Lords, where its provisions will undergo detailed examination. This phase allows members to propose and debate specific amendments before it proceeds to the report stage and third reading.
As the Renters’ Rights Bill advances, Lansdown Insurance Brokers will continue to monitor developments, providing insights and guidance to help landlords and property managers stay informed.
This article is for informational purposes only and should not be considered legal advice.
About Lansdown
Lansdown Insurance Brokers are specialists in Landlord Insurance and Block of Flats Insurance. We are able to provide flexible policies to suit your requirements and provide advice on what cover is needed. For more information call the team on 01242 524498 or email enquiries@lansdowninsurance.com.
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