Propertymark has argued that the Renters’ Rights Bill could have severe unintended consequences when it comes to further reducing the supply of property in the private rented sector.

Timothy Douglas, the professional body’s Head of Policy and Campaigns, provided evidence to the Public Bill Committee that was scrutinising the legislation on Tuesday 22 October.

Douglas highlighted other issues with the Bill, such as how it fails to meet the ‘huge demand’ for properties, and that investor confidence was being disincentivised, and that it was time to ‘shine a light’ on this issue. He referred to Propertymark’s latest Housing Insight Report, which shows that there are 10 new applicants registered for each available property.

He also warned how the Bill adds an ‘additional layer’ of regulation via the Landlord Ombudsman, and that more clarity is needed in the letting agent space.

Douglas also advised against a ‘one size fits all’ approach towards energy efficiency, which would nullify older properties.

He said there should be long-term tenancy options, and that fixed-term tenancies should be retained where they are mutually beneficial.

The proposed legislation intends to stop the perceived ‘bidding wars’ by landlords and agents and contains provisions to end Section 21 ‘no fault’ evictions with a new set of possession grounds.

Within the proposals, pets will be allowed to be kept by tenants, although landlords will be protected from any damage caused via a stipulation of tenants taking out pet suitable insurance policies.

Additionally, a Decent Homes Standard and Awaab’s Law will both apply to the private rental sector.

A new ombudsman service for private rented sector landlords will be created, and crucial information for landlords, tenants, and councils will be retained on a digital private rented sector database.

Finally, local authorities’ enforcement powers will be expanded through enhanced Rent Repayment Orders, and tenants receiving benefits or with children cannot be discriminated against.

Propertymark has warned that the UK Government’s proposals must better consider costs and taxes affecting private landlords to help ensure they remain in the rental market and can meet what is an ever-growing demand for rental properties.

It has also advised the UK Government to implement the registration of short-term rental property requirements as passed in the Levelling Up and Regeneration Act 2023 to equal the playing field for landlords.

Propertymark has recommended that fixed-term tenancies be retained so that landlords have assurance regarding their overheads within a fixed period, and tenants have security of tenure for the agreed period.

The removal of fixed term tenure has serious potential for unintended consequences within the student lettings market as students only look to rent properties for a short time during the academic year. Propertymark believes that the UK Government must extend Ground 4A to one or more student sharers, move Student Maintenance Loans to monthly instalments, and or allow rents in advance for student renters and others to retain access to suitable housing.

There is also a concern that the removal of Section 21 will overwhelm the current courts system, so before any reform to law in this area is initiated, there must be a fully tested and working alternative or adequate investment to meet demand.

According to Propertymark, mandatory grounds such as breach of contract, persistent late payments of rent, acquiring a tenancy via false documentation, damage over the amount of the deposit, and a tenant refusing entrance to a property, should be introduced under the UK Government’s plans to end Section 21 and reform Section 8.

Deposits should be more flexible for those renting with pets, and the professional body believes that by introducing minimum standards to work in the property sector, this will help to drive up standards in the private rented sector and guarantee parity with property managers in the social rented sector.

Nathan Emerson, CEO at Propertymark, comments:

“Without recognising the critical role that letting agents play in guaranteeing tenants’ standards improve and helping landlords understand the legal complexities of existing and new legislation, the Renters’ Rights Bill is unlikely to deliver the fairness and stable rents that many tenants deserve.

“There must be focus on encouraging investment to help boost housing supply as we continue to witness demand further increase.

“The Renters’ Rights Bill risks being rushed through Parliament and create serious consequences that will be very difficult to undo.”

Members of Propertymark can gain access to a campaign toolkit to assist them with navigating their way through the Renters’ Rights Bill, which can be accessed here: Renters’ Rights Bill | Propertymark.

To find out more about Propertymark’s exclusive membership benefits, visit: Membership benefits | Propertymark.

Propertymark has also introduced a sought-after series of Renters’ Rights Bill training courses. With limited spaces left available, agents are encouraged to book quickly: Preparing for the Renters’ Rights Bill | Propertymark.

Members pay £99 (+VAT) to attend a course and the charge for non-members is £120 (+VAT). But non-members may be able to acquire a student membership to receive discounts on courses and crucial training.

Contact the Sales Membership Development Team at memberservices@propertymark.co.uk or you can call them on 01926 417 792 to receive a quote when discussing your membership options.

Propertymark has argued that the Renters’ Rights Bill could have severe unintended consequences when it comes to further reducing the supply of property in the private rented sector.

Timothy Douglas, the professional body’s Head of Policy and Campaigns, provided evidence to the Public Bill Committee that was scrutinising the legislation on Tuesday 22 October.

Douglas highlighted other issues with the Bill, such as how it fails to meet the ‘huge demand’ for properties, and that investor confidence was being disincentivised, and that it was time to ‘shine a light’ on this issue. He referred to Propertymark’s latest Housing Insight Report, which shows that there are 10 new applicants registered for each available property.

He also warned how the Bill adds an ‘additional layer’ of regulation via the Landlord Ombudsman, and that more clarity is needed in the letting agent space.

Douglas also advised against a ‘one size fits all’ approach towards energy efficiency, which would nullify older properties.

He said there should be long-term tenancy options, and that fixed-term tenancies should be retained where they are mutually beneficial.

The proposed legislation intends to stop the perceived ‘bidding wars’ by landlords and agents and contains provisions to end Section 21 ‘no fault’ evictions with a new set of possession grounds.

Within the proposals, pets will be allowed to be kept by tenants, although landlords will be protected from any damage caused via a stipulation of tenants taking out pet suitable insurance policies.

Additionally, a Decent Homes Standard and Awaab’s Law will both apply to the private rental sector.

A new ombudsman service for private rented sector landlords will be created, and crucial information for landlords, tenants, and councils will be retained on a digital private rented sector database.

Finally, local authorities’ enforcement powers will be expanded through enhanced Rent Repayment Orders, and tenants receiving benefits or with children cannot be discriminated against.

Propertymark has warned that the UK Government’s proposals must better consider costs and taxes affecting private landlords to help ensure they remain in the rental market and can meet what is an ever-growing demand for rental properties.

It has also advised the UK Government to implement the registration of short-term rental property requirements as passed in the Levelling Up and Regeneration Act 2023 to equal the playing field for landlords.

Propertymark has recommended that fixed-term tenancies be retained so that landlords have assurance regarding their overheads within a fixed period, and tenants have security of tenure for the agreed period.

The removal of fixed term tenure has serious potential for unintended consequences within the student lettings market as students only look to rent properties for a short time during the academic year. Propertymark believes that the UK Government must extend Ground 4A to one or more student sharers, move Student Maintenance Loans to monthly instalments, and or allow rents in advance for student renters and others to retain access to suitable housing.

There is also a concern that the removal of Section 21 will overwhelm the current courts system, so before any reform to law in this area is initiated, there must be a fully tested and working alternative or adequate investment to meet demand.

According to Propertymark, mandatory grounds such as breach of contract, persistent late payments of rent, acquiring a tenancy via false documentation, damage over the amount of the deposit, and a tenant refusing entrance to a property, should be introduced under the UK Government’s plans to end Section 21 and reform Section 8.

Deposits should be more flexible for those renting with pets, and the professional body believes that by introducing minimum standards to work in the property sector, this will help to drive up standards in the private rented sector and guarantee parity with property managers in the social rented sector.

Nathan Emerson, CEO at Propertymark, comments:

“Without recognising the critical role that letting agents play in guaranteeing tenants’ standards improve and helping landlords understand the legal complexities of existing and new legislation, the Renters’ Rights Bill is unlikely to deliver the fairness and stable rents that many tenants deserve.

“There must be focus on encouraging investment to help boost housing supply as we continue to witness demand further increase.

“The Renters’ Rights Bill risks being rushed through Parliament and create serious consequences that will be very difficult to undo.”

Members of Propertymark can gain access to a campaign toolkit to assist them with navigating their way through the Renters’ Rights Bill, which can be accessed here: Renters’ Rights Bill | Propertymark.

To find out more about Propertymark’s exclusive membership benefits, visit: Membership benefits | Propertymark.

Propertymark has also introduced a sought-after series of Renters’ Rights Bill training courses. With limited spaces left available, agents are encouraged to book quickly: Preparing for the Renters’ Rights Bill | Propertymark.

Members pay £99 (+VAT) to attend a course and the charge for non-members is £120 (+VAT). But non-members may be able to acquire a student membership to receive discounts on courses and crucial training.

Contact the Sales Membership Development Team at memberservices@propertymark.co.uk or you can call them on 01926 417 792 to receive a quote when discussing your membership options.