Data gathered by Propertymark found that 50% of surveyed property agents are concerned about the Renters’ Rights Bill.
While Propertymark supported many of the protections the Bill offers to renters, it said certain aspects could negatively impact the rental sector.
Propertymark said that a balance is essential between tenants’ and landlords’ rights, as a lack of supply is a pressing issue for the private rental sector (PRS).
The organisation stated that legislative change should not drive landlords out of the market or deter new investors.
The Renters’ Rights Bill recently progressed through two amendment stages in the House of Commons and is set for scrutiny by the House of Lords from 4th February 2025.
The Bill aims to address issues such as ending ‘no fault’ evictions, allowing tenants to have pets, and stopping fixed-term tenancies popular among students.
Other proposed measures include enforcing a Decent Homes Standard, creating a new ombudsman service for landlords, and enhancing local authorities’ enforcement powers.
However, Propertymark said that the Bill lacks provisions to boost the supply of rental properties.
The organisation’s Housing Insight Reports showed an average of seven prospective tenants per available property, indicating supply constraints are driving up rental prices.
Currently, costs and taxes are deterring investors from entering the rental market.
Propertymark noted that landlords have not been able to offset mortgage costs against tax since 2015, and it advocated for this policy to be amended to encourage investment.
To improve the Bill, Propertymark suggested retaining fixed-term tenancy options, implementing court reforms before abolishing Section 21, providing guidance on pet-friendly rentals, and requiring qualifications for letting agents.
Nathan Emerson, CEO at Propertymark, said: “The Renters’ Rights Bill has provisions that would benefit tenants, and it goes some way towards improving living conditions and providing additional protections.
“However, it is important that the private rental market works for all parties involved.
Emerson added: “Without a sufficient supply of homes, rents will continue to climb and without wide-ranging support, investment in the private rented sector moving forward may be hindered.
“The UK Government must ensure that it prioritises increasing the number of private rented homes so that both tenants and landlords can benefit from a stable and affordable private rental market.”
