Rental Reform Bill clears Commons sparking concerns over landlords and housing market impact

Published on

Reforms to renters’ rights took a significant step forward as MPs approved the Renters’ Rights Bill, which now moves to the House of Lords for further review.

The Bill aims to ban no-fault evictions, halt tenancy bidding wars, curb excessive rent hikes and limit upfront rent demands to one month.

The House of Commons passed the Bill by 440 votes to 111, a majority of 329. However, Conservative MPs warned that stricter regulations might drive landlords out of the market, reducing rental housing supply and pushing rents higher.

Housing Minister Matthew Pennycook (main picture) described the current private rental system as “broken,” calling it is the “least affordable, poorest quality and most insecure” form of housing.

NEED FOR CHANGE

While acknowledging most landlords offer good homes and services he also emphasised the need for change to address affordability and insecurity.

Neil Duncan-Jordan, MP
Neil Duncan-Jordan, MP

Opposition MPs, including Labour’s Neil Duncan-Jordan and the Green Party’s Carla Denyer, criticised the Bill for falling short.

Duncan-Jordan highlighted that it lacks measures to prevent extortionate rent hikes, citing a government survey where rent increases of 15% or more were common.

He called for capped rent increases to provide genuine security for renters.

RENT CONTROLS
Carla Denyer, MP
Carla Denyer, MP

Denyer echoed calls for rent controls, arguing that rights alone are insufficient without affordability.

She also welcomed new rights for renters and discussions on adapting homes for disabled tenants but stressed the need for broader reforms.

While the Bill represents progress, critics argue it leaves renters vulnerable to financial pressures without stronger safeguards against excessive rent increases.

STARK WARNING

Mortgage Soup revealed yesterday how a coalition of property industry chief executives had issued a stark warning about the unintended consequences of the Renters’ Rights Bill on the UK’s private rental market and its potential ripple effects on mortgage lending.

In a letter to Housing Minister Matthew Pennycook, signed by the chief executives of both Paragon and Keystone Property Finance as well as chief executives from the National Residential Landlords Association (NRLA), the British Property Federation, Goodlord and Propertymark, the industry leaders point out the risks posed by New Clauses 13 and 14 of the proposed legislation.

More to follow…

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Newcastle widens mortgage support scheme with 95% LTV option

Newcastle for Intermediaries has relaunched its Joint Mortgage Sole Proprietor (JMSP) range with broader...

Shamplina joins Panorama rental fraud investigation

Landlord Action founder Paul Shamplina will appear in a BBC Panorama investigation into criminal...

Scotland leads Q2 landlord yield growth

Landlord gross rental yields strengthened during the second quarter, driven by growth in Scotland,...

HSBC UK raises residential and buy-to-let mortgage rates

HSBC UK is increasing rates across a range of residential and buy-to-let mortgages from...

Afin Bank joins Mortgage Advice Bureau lender panel

Afin Bank has joined Mortgage Advice Bureau’s lender panel, giving its advisers access to...

Latest publication

Other news

Newcastle widens mortgage support scheme with 95% LTV option

Newcastle for Intermediaries has relaunched its Joint Mortgage Sole Proprietor (JMSP) range with broader...

Every rate shock is becoming a test of the modern mortgage business

Halifax, Barclays and HSBC increased selected mortgage rates by up to 0.20% this week,...

Your next client is probably more complicated than your last one

There's a shift happening in the mortgage market that most small firms aren't ready...