Ahead of the second reading of the Renters’ Rights Bill on Wednesday 9th October, Propertymark urged MPs not to overlook the key role landlords and letting agents play.
Propertymark suggested strengthening the Bill so it retains choice, flexibility and keeps costs down for tenants and landlords alike.
The Renters’ Rights Bill was introduced to Parliament on 11th September, and will ban Section 21 evictions and introduce a new tenancy regime, as well as new requirements for property standards and potential rent increases.
The second reading stage of the legislative process in Parliament is an opportunity for MPs to debate the main principles of the Bill.
According to the UK Government, “Renters have been let down for too long” and the reforms will “give greater security for 11 million renters.”
However, according to the English Housing Survey, 71% of private renters said they found it easy to pay their rent, and 95% were not in rental arrears.
Within the social rented sector, the figures showed 73% said they found it easy to pay their rent and 85% were not in rental arrears.
Furthermore, most private renters (63%, or 424,000 households) who had moved in the past 12 months cited they had decided to end their tenancy because they wished to move.
Propertymark said it would be supportive of measures to improve standards and protections for tenants, but is concerned that removing Section 21 without adequately resourcing the court system will take away many of the protections that have allowed the private rented sector to grow since the late 1980s and dissuade landlords from reinvesting or deterring new entrants into the market.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Currently, amongst letting agents there is a concern about the use of anti-landlord rhetoric and how this is leading landlords to take their properties off the market or leave the sector altogether.
“Our Housing Insight Report shows that there are on average eight registrations for each available property, with new instructions also reducing.
“Letting agents strongly refute the suggestion that landlord greed is responsible for so called ‘bidding wars’.
“The lack of supply of homes to rent often leads tenants, who are desperate for somewhere to live, to offer increased rent.”
He concluded: “The Bill in its current form is highly likely to exacerbate this situation with more landlords withdrawing their homes from the private rented sector, frequently moving them to short term lets.
“The impact this could have on tenants it is trying to protect can’t be underestimated.”
