After its first reading in Parliament in September 2024, the Renters’ Rights Bill has progressed relatively swiftly. Following the Committee and Report Stages in the House of Commons, the Bill moved to the House of Lords on 15 January. There, it has undergone two readings and completed its Committee Stage. It is now in the Lords’ Report Stage.
The remaining steps are expected to proceed quickly. Once the Lords have concluded their review, the Bill will return to the Commons for a final vote on any amendments before being sent for Royal Assent. The upshot is that, though some aspects of the Bill will not be implemented for a number of months, it could be the Renters’ Rights Act by June – in other words, turned into law.
For landlords, brokers and investors in the UK’s buy-to-let (BTL) market, understanding what the changes mean and planning accordingly will be vital to navigating the new regulatory landscape that the private rental sector (PRS) will soon find itself in.
Therefore, here’s a brief overview of the key changes that the Bill will make, and how RAW Capital Partners can help brokers and landlords respond effectively.
Understanding the Renters’ Rights Bill
At RAW Capital Partners, we believe in supporting a more professional and responsible market, so we’re engaging closely with the changes that this Bill will introduce. The key changes that the bill would make are as follows:
Ending ‘no-fault’ evictions: Scrapping Section 21 “immediately” was one of Labour’s election-winning manifesto pledges and aims to make the eviction of tenants a fairer process. Alternative eviction routes will be strengthened instead, including Section 8 – a notice that states one or more valid grounds for eviction.
Measured rent controls: The Bill will convert all fixed-term assured tenancies (ASTs) into periodic tenancies. It means that rent review clauses, fixed-term tenancy renewals and mutual written agreements will no longer be available to landlords, so Section 13 notices – a proposed rent increase – will be landlords’ only option. It means that rents can only be raised once every 52 weeks.
Improving quality and standards: More generally, whether it’s through Awaab’s Law or the introduction of a new landlord ombudsman, the bill aims to improve home quality, standards and processes across the rental market.
Responsible reform, not hostility
What’s clear is that, for all the talk of Labour being “hostile” towards landlords, the truth is that Labour’s proposals should professionalise the market.
The changes won’t demonise responsible landlords and BTL investors who provide essential housing across the UK. Instead, they’re an attempt to build a healthy rental market that relies on mutual respect between tenants and landlords, which builds a more sustainable future for all involved.
At RAW Capital Partners, much of our success comes from working with responsible landlords – in other words, those who treat their portfolios like a business and their tenants like customers.
Indeed, many of the landlords we’ve partnered with in recent years already meet or exceed the standards the bill is aiming to implement. In our view, these changes reinforce what most serious investors are already doing on a day-to-day basis, and means that the rental market can evolve into a space where well-managed portfolios can thrive.
How can RAW Capital Partners support brokers with the Renters’ Rights Bill?
We also recognise the challenges that the new legislation presents.
Any change in PRS regulatory brings with it speculation as to how to best manage a BTL portfolio, so brokers and lenders must work together to ensure landlords can make the best possible decisions for their needs.
At RAW Capital Partners, our approach to lending is tailored to do exactly that. From the very first day we were founded, we’ve rejected a tick-box approach to lending. Instead, we treat every application on a case-by-case basis, carrying out deep due diligence and Know Your Client (KYC) processes to take on cases that other lenders may shy away from.
This approach enables us to take a borrower’s full circumstances into account, rather than what fits neatly into a traditional form. As a result, we’re able to support a wide range of borrowers – particularly those from overseas, who may not be aware of the regulations in place in the UK market.
The flexibility and expertise that we provide means that, as the sector improves standards under the Renters’ Rights Bill, we can support brokers and their clients as they adapt their portfolios and practices.
Get in touch with the team at RAW Capital Partners to find out more about how our lending solutions can help your clients stay ahead of the rest of the market: https://rawcapitalpartners.com/