Propertymark has expressed concerns that the Renters’ Rights Bill could reduce the supply of properties in the private rented sector (PRS).
Timothy Douglas, the head of policy and campaigns at Propertymark, provided evidence to the Public Bill Committee on Tuesday, 22nd October.
Douglas noted that the Bill failed to meet the “huge demand” for properties and disincentivises investor confidence.
Douglas also highlighted that the Bill introduces an “additional layer” of regulation through the Landlord Ombudsman and stated that clarity is needed for letting agents.
He advised against a one-size-fits-all approach to energy efficiency, which could negatively impact older properties.
He also emphasised the need for long-term tenancy options and the retention of fixed-term tenancies where they are mutually beneficial.
The proposed legislation aims to stop perceived bidding wars between landlords and agents and includes plans to end Section 21 ‘no fault’ evictions while allowing tenants to keep pets, provided they have pet insurance to cover potential damages.
Additionally, standards like the Decent Homes Standard and Awaab’s Law will apply to the PRS, and a new ombudsman service for private landlords will be established.
Information for landlords, tenants, and councils will be kept in a digital database, while local authorities will gain expanded enforcement powers.
Propertymark warned that the Government must consider costs and taxes affecting private landlords to ensure they remain in the rental market.
The organisation also advised implementing registration requirements for short-term rental properties to level the playing field for landlords.
Propertymark recommended that fixed-term tenancies be maintained to provide landlords with assurance over their overheads and tenants with security during the tenancy.
Douglas raised the concern that removing fixed-term tenancies could have unintended consequences in the student lettings market, where students typically rent for short periods.
He suggested extending Ground 4A to student sharers and enabling monthly instalments for Student Maintenance Loans.
Douglas expressed concern that the removal of Section 21 could overwhelm the court system, advocating for tested alternatives or adequate investment before any legal reforms.
He called for mandatory grounds for ending tenancies, such as breach of contract and persistent late payments, under the plans to amend Section 21 and reform Section 8.
Douglas stated that deposits should be more flexible for tenants with pets and that introducing minimum standards in the property sector would raise standards across the private rented sector.
Nathan Emerson, CEO at Propertymark, commented: “Without recognising the critical role that letting agents play in guaranteeing tenants’ standards improve and helping landlords understand the legal complexities of existing and new legislation, the Renters’ Rights Bill is unlikely to deliver the fairness and stable rents that many tenants deserve.
“There must be focus on encouraging investment to help boost housing supply as we continue to witness demand further increase.
“The Renters’ Rights Bill risks being rushed through Parliament and create serious consequences that will be very difficult to undo.”
