Uncertainty looms over the Private Rented Sector (PRS) due to the Government’s unclear plans, including the debated Renters (Reform) Bill, according to the Association of Independent Inventory Clerks (AIIC).
Daniel Evans, chair of the AIIC, highlighted the current shortfall in housing. “There were not enough available homes to satisfy hard-pressed tenants and landlords were holding fire on investment because of the lack of clarity over a government vision for the PRS,” he said.
Five months have passed since the introduction of the Bill in Parliament, which was only granted its Second Reading after the Government’s decision to delay the removal of Section 21, known as ‘no-fault’ evictions. This hold was a reaction to feedback from the Commons Select Committee on Housing.
Evans expressed his concerns saying: “While it is encouraging that the government has recognised that the court system needs to be upgraded and the current waiting time for hearings massively reduced, there is no indication of how long this will take or exactly how it will be achieved. But there is still the firm intention that, in the end, Section 21 will be scrapped.”
Reflecting on the sector’s current status, Evans mentioned: “We’ve been told that there are some measures that may or may not be added at a later stage. As the Bill stands currently it’s like a half-baked cake.”
He also touched on the heightened demand for rental properties and said: “Potential first-time buyers are staying in rented accommodation longer because higher interest rates and tougher mortgage rules have made it harder for them to get on the property ladder. As a result, rents are continuing to rise and those landlords that are left are wondering which way to turn. These are investors, businesspeople and they are desperate for clarity.”
Highlighting another aspect, he pointed out: “Of course, this was welcome news for some landlords who have, in the short-term, been saved from forking out for expensive insulating and energy-saving improvements. But many landlords, knowing that the MEES regulations were going to change, have already spent thousands on their properties making the upgrades.”
In conclusion, he quoted Michael Gove, the Housing Secretary, and said: “Michael Gove described the PRS as having a ‘vital’ role to play in housing the nation. This kind of policy confusion creates chaos and helps no one.”
