Landlords Corner - Limited Exemption Announced for One Part of Renters Rights Bill
The Renters Rights Bill has cleared its final Commons hurdle and stands poised to become law within days, but a late amendment has carved out a narrow exemption that highlights an often-overlooked consequence of the post-Grenfell building safety crisis.
The government has accepted a change proposed by Conservative peer Lord Young of Cookham, creating special provisions for a specific group of shared ownership leaseholders who find themselves as reluctant landlords.
The 12-Month Protection Period
Under the Bill's core provisions, a 12-month protected period will apply at the start of all new tenancies. During this window, landlords cannot serve eviction notices to move back into the property themselves or to sell it with vacant possession.
For most landlords in Leytonstone and across the country, this represents a significant shift in how tenancies can be managed during their initial phase. The protection aims to give renters greater stability and prevent retaliatory evictions disguised as legitimate possession claims.
However, the newly accepted amendment means this ban won't apply to shared owners who can demonstrate they've made genuine efforts to sell their property.
Why This Exemption Matters
The exemption isn't designed for typical buy-to-let landlords. Instead, it targets a very particular group: shared ownership leaseholders trapped by circumstances beyond their control, many of whom are victims of the ongoing building safety scandal.
Lord Young explained the predicament: "The group of shared owners that this amendment seeks to protect are principally those who bought a flat in a block that needs remediation but who have subsequently had to move."
The Grenfell Ripple Effect Continues
The post-Grenfell landscape has created impossible situations for some shared ownership leaseholders. Properties in blocks requiring remediation work often become unsellable due to safety concerns and the associated costs. When these leaseholders need to relocate—for work, family reasons, or personal circumstances-selling their share becomes virtually impossible.
Their only option? Subletting, which creates its own complications.
What makes these landlords different:
● Shared owners cannot sublet without explicit consent from their registered provider
● Subletting is typically banned within their lease terms
● Any approved subletting must follow strict rent controls set by government guidance
● Registered providers maintain oversight of both rent levels and tenant protections
● These landlords lack the freedom to evict tenants simply to increase rental income
Not a Perfect Solution
Sue Phillips, founder of Shared Ownership Resources, offered measured support for the exemption whilst highlighting deeper issues: "It is welcome that shared ownership leaseholders who are accidental landlords will be exempt from the 12-month ban on re-letting if a sale of their property falls through."
However, she added a crucial caveat: "For many people, subletting may not be a desirable long-term solution to difficulties in selling their shared ownership property."
Phillips has called for government review of existing exit routes from shared ownership schemes, suggesting buyback programmes should play a more prominent role in resolving these situations.
What Remains Unclear
Despite the Bill's imminent passage into law, the government hasn't yet confirmed whether implementation dates for various provisions will be set at Royal Assent or introduced gradually at later dates.
For landlords operating in the private rented sector in Leytonstone, this timing uncertainty makes planning challenging. Understanding how the 12-month protection period will interact with existing tenancies, what constitutes valid grounds for possession during this window, and how to structure new lettings agreements requires careful consideration.
The exemption for shared ownership leaseholders, whilst narrow in scope, demonstrates how property legislation must account for complex, real-world scenarios—particularly those created by the ongoing building safety crisis affecting thousands of leaseholders nationwide.
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