The government appears to be in no rush to make progress with the Renters Rights Bill – no space has been made for it in the House of Lords this week.
The Bill completed its committee stage in the Lords on May 15, almost four weeks ago. The parliamentary process is that it then moves on to the Report stage: this is when all members of the Lords have a further opportunity to review and amend the Bill after it’s been amended at the committee stage.
Once the bill has completed its Third Reading in the Lords, it will be sent to the House of Commons for further consideration and potentially amendments. Finally, if the bill is approved by the Commons and Lords, it will receive Royal Assent, becoming law.
However, the government’s order of business for the Lords this week – published over the weekend – finds no space for the Bill’s Report stage. This is despite time being allocated for debates including one on reinstating the UK’s membership of the European Geostationary Navigation Overlay Service, and support of the UK craft industry.
Meanwhile a prominent analyst of the housing market is warning that the Bill – when it eventually becomes law – could destabilise the broader housing market after the summer.
Professor Joe Nellis, co-creator of the Halifax house price index and an economic adviser at accountancy and advisory firm MHA, was speaking after his own index produced its most recent data, reflecting a dip in prices.
Nellis comments: “The Halifax House Price Index has recorded a surprising 0.4% dip in UK house prices in May. However, year-on-year growth remains strong, with the annual growth rate coming in at 2.5%. This comes as rising wages is pushing affordability up and greater competition in the mortgage market is leading to more favourable rates.
“This growth is set to continue as huge demand for houses persists in the UK. This is something that the government has recognised, setting an ambitious target to build 1.5m new homes by 2029, but recent estimates suggest that this is looking overly optimistic.”
He is also warning that the Renters Rights Bill may alter the balance of the broader housing market as its new restrictions make buy to let less attractive for investors. He continues: “These new restrictions could disincentivise landlordism, encouraging the sale of rental properties and increasing supply, or discouraging potential landlords from buying properties and reducing demand.
This article is taken from Landlord Today