The first debate covered around 50 of the 125 or so amendments tabled so far. Each amendment is explained by the Lords member who put it forward, and other Peers speak either to support or challenge it. The proposer can then decide if they want to put their amendment to a vote, based on how much support there is. If the House votes in favour of an amendment, it is added to the current draft of the Bill.
At the end of the Report Stage, the amended Bill will receive a Third Reading in the Lords, before returning to the House of Commons to gain approval from MPs.
If there is disagreement on any of the amendments, the Bill will be passed between the two Houses in a process called ‘ping-pong’, until agreement is reached. Only then can the final version of the legislation move forward towards Royal Assent.
Accepted amendments from Day 1
Student accommodation ground
Mandatory Ground 4a will apply to properties rented to students which are needed for occupation by new students in line with the academic year. As originally drafted, it only applied to Houses of Multiple Occupation, defined as having three or more bedrooms.
However, Baroness Scott of Bybrook – with whom Propertymark has worked closely throughout the progress of the Bill – successfully put forward an amendment to remove this restriction.
She stated that many students, in particular postgraduates, international students and mature students, live in one-bedroom or two-bedroom properties, and without a workable ground 4a many would face prolonged uncertainty, making it harder for them to plan, budget, and study.
Ban on rent in advance only for new tenancies
A UK Government amendment was accepted, which excludes existing leases, i.e. any started before the enactment of the legislation, from the prohibition on rent due in advance.
Tenancies for carers
Peers voted in favour of a new ground for possession which would allow a landlord to seek possession of a property needed to house a carer for the landlord, or a member of the landlord’s family, if the property is near the person requiring care.
Homes provided by an employer
A detailed section of the debate was led by Lord Carrington and focused on arrangements for agricultural workers who are required to live on-site to carry out their duties. Amendments were accepted that will allow landlords to gain possession of a property to house a full-time worker, and to evict the worker at the end of their employment.
A new body for rent determination
Baroness Taylor, the Parliamentary Under-Secretary for Housing, stated that the UK Government believes there is a compelling case for an alternative mechanism to make initial rent determinations before cases reach the First Tier Tribunal. The UK Government intends to introduce such a system as soon as possible and will give more details in due course.
The aim would be to reduce the number of cases that progress to the Tribunal, relieving pressure on the service and helping to ensure the long-term sustainability of the system.
Pets will be a key issue in upcoming sessions
The UK Government has removed the requirement for pet insurance from the Bill, prompting a new call for pet damage deposit options.
Propertymark has campaigned for pet deposits since the introduction of the Tenant Fees Act. This is because the legislation does not allow deposits to be set at a more flexible level to reflect the greater risk renting to tenants with pets.
In January, we met with The Earl of Kinnoull, convenor of the Crossbench group of Peers, to discuss a proposal to introduce an additional pet deposit, and we are pleased to see the amendment has been tabled again at Report Stage. The amendment requires the tenant to make an additional pet damage deposit, which must be of equivalent value to three weeks' rent. We are continuing to lobby the UK Government and Peers to accept this proposal and provide a better way to support renters and protect landlords.
