Propertymark has issued a strong warning over Labour’s Renters’ Rights Bill, following heated debate in Parliament on Monday in which Deputy Prime Minister Angela Rayner (main picture) was accused of using “bullying tactics” to drive the legislation forward.
In a statement responding to the debate, Nathan Emerson, Chief Executive of Propertymark, said: “While we accept the need for reform, we have grave concerns with specific areas of the proposed legislation and the impact this will have across the sector.”
The Renters’ Rights Bill, backed by Labour, proposes sweeping reforms to tenant protections, landlord obligations and the overall structure of the private rented sector.
However, Propertymark and other industry bodies argue the current proposals risk triggering a major exodus of landlords from the market, compounding an already acute housing shortage.
FALLING BUY-TO-LET INVESTMENT
“Property professionals from up and down the country continue to be left wondering how this legislation will help meet the much-needed demand for homes for people to rent, as overall buy-to-let investment has fallen to levels not seen since 2007,” Emerson added.
“In the first quarter of this year, investors purchased just 10% of homes sold across Great Britain.”
Private landlord confidence has been on the decline amid tightening regulations, rising interest rates and an uncertain legislative environment.
According to recent sector surveys some 88% of landlords say they have no confidence in the current state of the private rental market, primarily due to the impact of the proposed Bill. More than one in three landlords are reportedly planning to exit the sector this year.
REGULATORY PRESSURE
The warning from Propertymark highlights a growing rift between government ambitions to strengthen tenant protections and the ability of the private rental market to absorb further regulatory pressure without contraction.
Emerson said: “We continue to make the case for evidence-based policies that support a flexible and fair private rented sector for all and urge the UK Government to recognise the unintended consequences of the Bill, rather than trying to rush this legislation into action.”
The Renters’ Rights Bill is expected to return to Parliament for further debate in the coming weeks.
