Research commissioned by Propertymark found that 50% of property agents are concerned about the upcoming Renters’ Rights Bill.
The Bill has reached Report Stage in the House of Commons, which is set for 14th January 2025.
Some property agents expressed worries that the Bill would create additional administrative burdens for letting agents, including ensuring that landlords are informed about changes and the broader impact on the private rental sector.
12% of respondents were also concerned about Stamp Duty changes coming in April 2025, while another 12% were worried about the UK Government’s Energy Performance Certificate (EPC) reforms.
7% expressed concern about landlords exiting the market.
3% of agents were anxious about the 2024 Autumn Budget, leasehold and commonhold reform, decreases in homebuying and selling, decreases in tenants, and interest rate changes.
1% were concerned about the upcoming Spring Budget on 26th March 2025, the Planning and Infrastructure Bill, surges in homebuying and selling, and surges in tenants.
The Renters’ Rights Bill includes measures to end perceived ‘bidding wars’ by landlords and agents, abolishing Section 21 ‘no fault’ evictions, and introducing new possession grounds.
It will also allow tenants to keep pets while ensuring landlords are protected from damage through pet insurance policies for tenants.
Furthermore, fixed-term tenancies will be abolished, and the private rental sector will need to comply with a Decent Homes Standard and Awaab’s Law, which was introduced following the death of Awaab Ishak due to a severe respiratory condition.
There will be a new ombudsman service for private rented sector landlords, and essential information for landlords, tenants, and councils will be stored in a digital private rented sector database.
Additionally, local authorities will have enhanced enforcement powers through Rent Repayment Orders, and discrimination against tenants receiving benefits or with children will be prohibited.
While Propertymark supported raising standards in the housing industry, it stressed the need for industry collaboration to make the Bill effective and fair for all parties.
Timothy Douglas, head of policy and campaigns at Propertymark, presented evidence to the Public Bill Committee on 22nd October 2024, stating that the Renters’ Rights Bill could have unintended consequences amid a diminishing supply in the private rental sector.
He highlighted that the Bill does not address the significant demand for properties, as shown in Propertymark’s Housing Insight Reports, which indicate approximately seven potential tenants per available property, undermining investor confidence.
Douglas warned against adding more regulations and criticised a ‘one size fits all’ approach to energy efficiency while advocating for the retention of fixed-term tenancies.
He stated that the UK Government must assess the costs and taxes affecting private landlords to guarantee their continued participation in the rental market and meet the increasing demand for rental properties.
Propertymark also called for the registration of short-term rentals as required by the Levelling Up and Regeneration Act 2023 to create a more equitable environment for landlords.
They believe that fixed-term tenancies should remain to provide landlords with financial confidence and tenants with security for a mutually agreed duration, especially in the student lettings market, where demand is typically short-term.
The Bill’s plan to remove Section 21 could overwhelm the court system, so Propertymark argued for a tested alternative.
The firm suggested mandatory grounds for possession be introduced, including breach of contract, ongoing late rent payments, and false documentation.
Propertymark claimed that raising minimum standards in the property sector will improve conditions in the private rented sector, ensuring parity with social rented sector property managers.
72% of Propertymark’s landlord members were worried about the end of Section 21, 69% about the end of fixed-term tenancies, and 62% are concerned about the end of rent review clauses.
Nathan Emerson, CEO at Propertymark, said: “It is vital that as this legislation passes through Parliament that the UK Government listens to the many concerns that agents still have about this legislation in the new year.
“There are other issues in the private rental sector that the UK Government must concentrate on, such as a shortage of supply and the taxes and regulations that are weighing heavily on landlords.
“The UK Government must ensure that it gets its priorities right so that both tenants and landlords can benefit from a stable and affordable private rental market.”
