Propertymark has warned of the unintended consequences of the current Renters’ Rights Bill, which in practice feels will potentially damage the sector and ultimately compound issues that renters already face.
Over the last decade, the English private rented sector has been subject to several legislative changes including the introduction of a three per cent stamp duty supplement on second homes and buy-to-let properties, the introduction of minimum energy efficiency standards and a ban on tenant fees amongst other changes.
Many of these issues have impacted the viability of prospective or current landlords continuing in their investments, and with the prospect of further updates in law via the Renters’ Rights Bill, the consensus across the sector is that this trend is set to continue.
DETERIORATION
Therefore, it’s believed there will be further deterioration in the number of available rental properties in the system which has the potential to raise rents even more.
Whilst Propertymark agrees that reform is needed to irradicate any rogue landlords from the market, it has also made clear that by not taking a balanced approach and by over-regulating an already pressured market, renters will likely face even fewer housing options and ultimately end up paying more rent in the future.
Introductions as part of the new Renters’ Rights Bill include ending ‘no fault’ evictions, making it simpler for children and pets to reside in privately rented properties, ensuring the private rental sector is protected by a Decent Homes Standard, extending Awaab’s Law to the private rental market and ending fixed term tenancies.
Not only does the industry body highlight the issue of continued undersupply and the effect this has on rising rents, but various other unintended consequences too. These include the ramifications of ending fixed-term tenancies – especially for students, courts not having the correct infrastructure in place to deal the anticipated influx that will be seen once Section 21 is abolished. There is also concern regarding the lack of clarity on the UK Government’s plan and timeline to digitalise the court system and the effects this could also have.
BALANCED
Nathan Emerson (main picture), Chief Executive at Propertymark, says: “Legislation must be balanced when it comes to protecting the rights of both tenants and landlords, something Propertymark has long argued for. However, there must be a workable system implemented that delivers fairness for everyone. Tenants should be confident they have a stable and secure home, and landlords must be able to gain possession of their properties from disruptive tenants via adequate means.
“If this legislation is not carefully implemented it has the potential to cause long-term issues that might be extremely difficult to undo. Propertymark will continue to make its argument to the UK Government for fairness within any new legislation, as the Renters’ Rights Bill moves closer to becoming law.”
