The House of Lords has relented in its attempts to modify the Renters’ Rights Bill, including with an amendment that would have allowed landlords to charge a deposit when renting to tenants with pets.
The deposit would have covered three weeks of rent, and came after the government dropped the idea of mandating pet insurance for tenants.
The Lords also tried to extent student possession grounds to one and two-bedroom properties, while they attempted to make it so landlords would be able to re-list properties after six months if they serve an eviction notice with a view to selling. Now they will have to wait a year instead.
The trio of amendments were rejected in the Commons, and unsuccessfully re-tabled in the House of Lords.
The bill will now return to the Commons before being granted Royal Assent.
William Reeve, chief executive at Goodlord, said: “Despite rumours that they would dig their heels in, the House of Lords has clearly run out of steam.
“Once again, demand amongst the Lords for both a pet deposit scheme and changes to Ground 4A sparked much debate, but ultimately the government won out and these amendments won’t become part of the final bill.
“With all votes for the outstanding amendments going in the government’s direction, the process of ‘ping pong’ comes to an end and the bill will move towards Royal Assent following final approval in the Commons.”
Greg Tsuman, managing director for lettings, Martyn Gerrard Estate Agents, said: “Any further proposed amendments will only prolong parliamentary ‘ping-pong’.
He said: “Whatever was debated in the Lords was little more than political posturing and will not deliver meaningful change to the Bill given the overwhelming Commons majority. By delaying the inevitable, the Lords know they are helping no one.
“While the Bill undoubtedly falls short of striking a fair balance and will likely make life harder for tenants through unintended – or perhaps otherwise – consequences, we must now pivot to preparation.
“The focus must shift to educating both landlords and tenants so they can adapt ahead of Royal Assent, which could come within weeks, and a full rollout, which is likely to happen by April next year.”
Aside from hoping the industry will move on, Tsuman is worried the government could tax investors more heavily in the upcoming Autumn Budget next month.
If that happens, he could see supply dropping worrying low.
Tsuman added: “What poses the greater risk now are the tax changes on the horizon – these will determine whether landlords stay in the market or exit, and whether the rental sector can remain stable through the transition ahead.”
