This week, the Renters Rights Bill will get its second reading in the House of Commons as it progresses closer to becoming law.
The upcoming Renters Rights Bill has caused some unrest among industry bodies, who are concerned that it must not disproportionately affect landlords, as a negative knock-on effect could impact both the private rented sector and the tenants the Bill purports to protect.
Featuring changes such as replacing assured shorthold and fixed-term tenancies with rolling contracts, abolishing Section 21 ‘no-fault’ evictions, and the rules around pets, it has been labelled by the Labour government as the “biggest overhaul to the private rented sector for over 30 years”.
The Bill was originally set in motion a few years ago by the Conservative government, before being renamed and slightly amended by new Labour housing secretary Angela Rayner – but the intention of “delivering new and stronger protections for tenants” remains largely the same.
As with any impending changes, the level of uncertainty surrounding the Renters Rights Bill has ruffled some feathers in the industry, with industry body Propertymark recently addressing some of the “myths” that were circulating.
Now, as it is set to have its second reading in Parliament on Wednesday, 9th October, bringing it closer to be actioned as a law, the same industry body has stepped forward to urge MPs “not to overlook the key role landlords and letting agents play”.
Renters Rights Bill is an opportunity
Propertymark believes that the imminent second reading of the Renters Rights Bill should provide a “key opportunity” for MPs to debate the main principles of the bill – and while it supports some welcome reforms in the sector, Propertymark also points out that there is a danger of it exacerbating existing problems too.
This includes the perception that the private rented sector is becoming less attractive to landlords due to some tax changes that have already taken effect, and more landlords could be put off if they feel they won’t be able to repossess their properties lawfully without a lengthy battle once changes take effect.
Although the government has promised to widen the remit of Section 8 evictions, as well as to take action to improve the court process to avoid delays when landlords are trying to lawfully regain their properties, there are still concerns in the sector that need to be addressed.
The industry body notes: “Propertymark is 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.
“It remains imperative there are enough properties for people to live in, especially with an ever-expanding population.”
Most tenants are happy with their landlord
Although “rogue landlords” and unfair evictions are not unheard of in the private rented sector, which is what the Renters Rights Bill hopes to address with its removal of ‘no-fault’ evictions, they are far from common.
As Propertymark points out, according to the English Housing Survey, 63% of private tenants who had moved in the past 12 months said they had decided to end their tenancy because they wished to move, rather than because of eviction or other reasons linked to the landlord.
Furthermore, in terms of the overall state of the sector, 71% of private tenants said they found it “easy to pay their rent”, while 95% said they were not in rental arrears, while around 15% of tenants in social housing were in arrears.
Commenting on the upcoming Renters Rights Bill, 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.
“The Renters Rights 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.”
