The Renters’ Rights Bill must provide a greater degree of balance between tenants, landlords and agents, Propertymark has warned.
The Bill recently progressed to its second reading in the House of Commons.
The professional body welcomed the Government’s commitment not to implement rent controls, but argued that many outstanding questions must be answered about how the legislation will meet the demand for homes to rent.
The Bill must also address how local councils will be adequately resourced to enforce both current rules and the new measures contained within the Bill.
Propertymark urged the Government to reflect on the needs of students, extend the student ground to more sharers and to introduce measures to register all short-term lets to enhance the wider private rented sector and ensure there are enough suitable properties available for rent in the longer-term.
The professional body remained committed to further engagement with the Government and will provide further evidence from its members at committee stage.
During the second reading debate, MPs highlighted Propertymark’s concerns that the Government has not conducted an impact assessment on many of the changes.
Aspects such as the proposed removal of fixed term tenancies, for example, could bring complications and potential additional costs for both tenants and landlords.
While debating the Renters’ Rights Bill in Parliament on Wednesday, Housing Secretary Angela Rayner stated her plan is about creating “decent, safe, and affordable homes,” but Shadow Housing Secretary Kemi Badenoch warned the legislation could pit landlords and tenants against each other.
The legislation consists of provisions to stop Section 21 ‘no fault’ evictions with new and expanded possession grounds, and aims to end ‘bidding wars’ by landlords and agents via new provisions.
Tenants will be able to keep pets while ensuring landlords are safeguarded via pet insurance, and a Decent Homes Standard and Awaab’s Law will both be introduced to the private rental sector.
Vital information for landlords, tenants, and councils will be stored on a digital private rented sector database, and a new ombudsman service for private rented sector landlords will be established.
In addition, tenants in receipt of benefits or with children cannot be discriminated against, and local authorities’ enforcement powers will be enhanced via expanded Rent Repayment Orders.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Key concerns remain about how this legislation will support landlords and agents to meet the huge demand for rented property.
“To give more confidence to landlords, the UK Government must outline in detail how they intend to adequately reform the court system and resource local authorities to deal with the changes.
“Rules to regulated short term lets, a review of taxes and costs impacting private landlords and maintaining Local Housing Allowance rates can also support both landlords and tenants and ensure there is enough property for people to rent.
“The introduction of a Private Rented Sector Database provides the opportunity to reduce duplication and support local authorities but only if there is a commitment to phase out licensing schemes and to give more choice to renters fixed term tenancies must be retained as an option and the student ground must be extended to one or more sharers.”
