With the Second Reading of the Renters’ Rights Bill in the House of Lords set to take place tomorrow (4th February), Propertymark urged Peers to push back against overly restrictive regulations that could reduce the supply of rental homes and drive up rent prices.
In the House of Commons, amendments were tabled by the Government – including a limit on how much rent a landlord can request in advance – with Housing Minister Matthew Pennycook MP maintaining that the Bill provides more protections for landlords and their properties.
Following Propertymark’s engagement with MPs, issues were raised at Third Reading in the Commons, but questions regarding the Bill remain unanswered, particularly around the regulation of short-term lets.
Another area still in question is how student landlords with properties that are not houses in multiple occupation (HMOs) can offer tenancies with security given altered eviction grounds.
Concerns also remained for Propertymark about the capacity and resources of local councils to enforce the new regime in addition to clarity on when the legislation will be implemented.
Propertymark warned that without a clear roadmap of when the changes will come into force there is still huge uncertainty for lettings agents, landlords and tenants.
The industry body has campaigned for fair reform to ensure the voices of property agents are heard throughout the legislative process.
More than 200 emails and letters have been sent to Peers from Propertymark members across the country using Propertymark’s Toolkit to express their views and experiences as well as why changes to the Bill are needed.
The Toolkit, which includes a list of contacts and a letter template to help agents contact members of the House of Lords, can be found by logging into the Propertymark member area of its website.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Propertymark recognises the Government’s intention is to protect renters and provide them with greater security.
“However, there is a real concern from letting agents that overly restrictive regulations will reduce the supply of rental homes, drive up rent prices and make it even more difficult for people to find affordable housing.
“We are therefore calling on Peers to make the Renters’ Rights Bill fit for purpose.”
He added: “A clear timetable for implementation must be set out by the Government including a commitment to enact the registration of short-term rental property requirements as passed in the Levelling-up and Regeneration Act alongside these reforms to level the playing field for landlords and the long-term rental market.
“There is a desperate need for the Government to confirm to the sector about what court reform looks like and take action.
“Additionally, the Government must revise the provisions on restricting rent in advance to better protect vulnerable tenants and allow agents and landlords to process applications and be able to set up tenancies securely.”
Douglas said: “Concerns also remain about the viability of pet insurance products and a better solution would be to extend the deposit cap requirements.
“Standards and enforcement are key to these reforms and with new requirements for landlords to have redress, the introduction of a code of practice across existing and new schemes would ensure complaints are adjudicated in the same way and quality of service is more consistent across the sector.”
