New Renting Law Moves Forward to End Bidding Wars and Rent Hikes

London: A new law to protect renters is getting closer to reality. The Renters’ Rights Bill is back in Parliament for its report and third reading. This is a big deal for the 11 million renters in the UK. They’re set to gain more security in their homes without the fear of eviction.

The government is making changes to strengthen the Bill, which is the biggest update to the private rented sector in over 30 years. One key change is that landlords won’t be able to demand multiple months’ rent upfront anymore. Right now, some landlords ask for up to a year’s rent in advance, which is just crazy.

This upfront cash requirement is tough for many renters, especially those with lower incomes. It can lock them out of the market or lead to debt and homelessness. Landlords can still ask for one month’s rent in advance and a security deposit of up to 5 or 6 weeks’ rent, which helps ensure tenants can keep up with their agreements.

The new law aims to tackle the few bad landlords who take advantage of the housing crisis. It’s all about making housing fairer and more accessible for everyone. Deputy Prime Minister Angela Rayner said they’re addressing the housing crisis head-on, promising to boost social and affordable housing.

She emphasized that working families shouldn’t have to deal with outrageous upfront costs or struggle to find a safe home. Another important change will protect family members from being forced to pay rent if a loved one passes away. This means families won’t face financial hardship during such a tough time.

Housing Minister Matthew Pennycook is set to speak in Parliament about how the Bill will modernize the rental sector and empower renters. It’s about giving them more rights and protections so they can stay in their homes longer and avoid homelessness.

There are also new rules to protect students from feeling pressured to sign leases too early. Plus, fees paid by landlords will help fund a new Ombudsman for the private rented sector, giving both renters and landlords a fair way to resolve disputes.

Overall, this overhaul aims to give families more security and ensure they have safe, decent housing. The government is also working to end ‘no fault’ evictions, which have affected over 100,000 households in the last five years. They’re committed to improving living standards and building 1.5 million new homes in the next five years. It’s a big step forward for renters in the UK.