The UK private rental sector (PRS) is bracing for a potential housing crisis as landlords express serious concerns over the recently announced Renters’ Reform Bill.
The bill, which aims to deliver a fairer and safer private rented sector for tenants and landlords, has sparked significant debate and raised fears about the future of the rental market.
The long-awaited Renters’ Reform Bill, which fulfills the Government’s commitment to eliminate Section 21 no-fault evictions, has finally been published after numerous delays. However, it has not been without controversy.
“The Renters’ Reform Bill has been dubbed a war on landlords. It’s a huge shake-up to the Private Rental Sector, and it’s clear that there are both positive and negative implications. On one hand, it could potentially reduce the number of evictions and help ensure that tenants have the security they need. On the other hand, it could lead to significant financial losses for landlords, with the main grievance being the abolishment of Section 21. These changes could dissuade potential investors from entering the private rental market,” explains Stephen Clark from property bridging finance broker Finbri.
A survey conducted by Finbri, involving over 1,000 UK landlords, revealed widespread concerns about the bill. Landlords expressed worries about the illegality of refusing to rent properties to tenants receiving benefits, the limitations on Section 21 evictions, the introduction of a private rented ombudsman, the mandatory property registration on the new portal, and the requirement to consider pet requests from tenants.
“Landlords across the UK are reacting with dismay to the Bill, expressing the feeling that the legislation, combined with tax changes and EPC requirements, is designed to bring about their demise. Despite the removal of Section 21, the Bill claims to ‘protect’ the two million landlords in the PRS, yet quite how this will manifest itself has yet to be revealed,” states Clark.
While the bill aims to enhance tenants’ rights by ending no-fault evictions and providing longer notice periods for rent increases, landlords feel the legislation is tipped heavily in favor of tenants. The ongoing power struggle between landlords and tenants appears to be shifting in favor of the latter with the proposed reforms.
“The Renters’ Reform Bill signifies a significant shift in favor of tenants. It is aimed at improving their rights, but it has left many landlords concerned about their livelihoods. The legislation, combined with the current economic uncertainties, could discourage potential investors from entering the private rental market,” warns Clark.
As the Renters’ Reform Bill moves forward, the private rental sector faces an uncertain future, with landlords and tenants at odds over the proposed changes and the potential consequences for the housing market.
