Renters' Rights Bill to bring in periodic tenancies gets its second reading

The Renters' Rights Bill has had its second reading in Parliament - bringing closer the introduction of periodic tenancies for all landlords. 

With the abolition of assured shorthold tenancies, a periodic tenancy will allow tenants to give notice to leave after just two months – which cause chaos for student landlords. 

The Bill will also ban Section 21 'no-fault' evictions for both new and existing tenancies and clamp down on unfair rent rises. 

'Reletting a property in the academic year' 

During the debate, Tory MP Desmond Swayne highlighted the issue of tenants being able to end a tenancy after two months, saying it 'presents a significant risk to the landlord - particularly so in the student rental market where reletting a property in the academic year can present a significant difficulty'. 

He asked the Deputy Prime Minister Angela Rayner: "Will she at least consider amendments in the committee to address that issue?" 

Ms Rayner replied: "There is accommodation within this Bill around the unique circumstances for students and I hope the Honourable gentleman can see that what we are trying to do is strike a balance." 

Shadow Housing Secretary Kemi Badenoch said: "We cannot fix the rental market by tying it in knots with further intervention and directives. 

"The simple truth is that this Bill will not work, the proposals will fail, and we know this will fail because this approach has been tried." 

The Liberal Democrat spokesman for housing, Gideon Amos, highlighted that the Bill doesn't protect student landlords. 

He said the Bill does make provision for student housing but 'that doesn't extend to one or more students renting together'. 

He added: "Without doing that, there could be quite a significant withdrawal of student housing from the market which we would be very concerned to see." 

Reaction from the property sector 

Among the reactions from those in the rented property sector included that from Propertymark. 

It says that plans to remove fixed term tenancies and prevent rent payments from being taken in advance of tenancies starting must be fully assessed before the Bill becomes law. 

Propertymark also warns that removing fixed-term tenancies will impact the student market and it points to the proposed Ground 4A. 

It currently refers to houses in Multiple Occupation which, by definition, is three or more sharers. 

But with rent instalments being limited to one month's rent, this will affect the student sector where tenants typically pay rent from receiving Student Maintenance Loans termly. 

Timothy Douglas, the organisation's head of policy and campaigns, said: "To support renters, we want to see fixed-term tenancies retained as an option and request that an impact assessment is done on the government's plans. 

"To support students, the government must extend Ground 4A to one or more student sharers, move Student Maintenance Loans to monthly instalments and/or, allow rents in advance for student renters and others to keep flexibility and access to housing." 

'Scrapping of fixed-term tenancies' 

Gareth Atkins, the managing director of lettings at Foxtons, said: "The second reading of the Renters' Rights Bill brings us one step closer to the scrapping of fixed-term tenancies, a move which could destabilise the living arrangements of renters across the nation.” 

Siân Hemming-Metcalfe, the operations director at Inventory Base, said: "By sidelining landlords in such sweeping reforms, we risk a shrinking rental market, with fewer available properties and higher rents.” 

The director of Benham and Reeves, Marc von Grundherr, said: "The second reading brings ever closer to a potential rental market Doomsday, and should the government persist with yet another ill-devised legislative overhaul, the result will be fewer landlords, less homes for renters, higher rents and an even tougher time for tenants." 

'Biggest shake up of the rental market' 

The National Residential Landlords Association's policy and campaigns director, Chris Norris, said: "The changes MPs will debate are the biggest shake up of the rental market for over 30 years.  

“Private tenants are more likely to be happy with the housing services provided to them than all other tenures, with 82% reporting satisfaction with their accommodation. 

"With an average of 21 tenants now competing for every available home to rent, the Bill must not worsen an already chronic shortage of homes in the sector." 

'Sparked concerns among student landlords' 

Simon Thompson, the managing director of Accommodation for Students, said: "The Renters' Rights Bill has understandably sparked concerns among student landlords. 

"The proposed introduction of periodic tenancies, which allow tenants to give notice to leave after just two months, has raised fears of increased uncertainty and difficulty in re-letting properties during the academic year." 

He adds: "As highlighted by Desmond Swayne, this change could pose a significant risk to student landlords - and while there needs to be a balance between tenant rights and landlord interests, the Bill doesn't adequately address the unique challenges faced by student landlords."