The second reading of the Renters Rights’ Bill will take place in the House of Lords – and Propertymark has appealed to Peers to push back on multiple aspects of the bill.
Propertymark, an organisation representing estate agents, raised concerns about regulation of short-term lets, how the government plans to cope with increased court demand, as well as a roadmap of when the changes will come into force.
There’s plenty of focus on student landlords, as Propertymark said one area of concern is how student landlords with properties that are not Houses in Multiple Occupation can offer tenancies with security given through the altered eviction grounds.
Currently, under Ground 4A, student Houses of Multiple Occupation will receive a special dispensation, allowing landlords to reclaim properties to prepare for the next cohort of students. However this protection does not extend to one- and two-bedroom properties, which are in the vast majority of circumstances not registered HMO.
The removal of fixed term tenancies and stricter rent in advance requirements will further exacerbate access to private rented property for students, the group warned.
Concerns also remain about the capacity and resources of local councils to enforce the new regime.
Timothy Douglas, head of policy and campaigns, said: “Propertymark recognises the UK government’s intention is to protect renters and provide them with greater security.
“However, there is a real concern from letting agents that overly restrictive regulations will reduce the supply of rental homes, drive up rent prices and make it even more difficult for people to find affordable housing. We are therefore calling on Peers to make the Renters’ Rights Bill fit for purpose.
“A clear timetable for implementation must be set out by the UK government including a commitment to enact the registration of short-term rental property requirements as passed in the Levelling-up and Regeneration Act alongside these reforms to level the playing field for landlords and the long-term rental market.
“There is a desperate need for the UK government to confirm to the sector about what court reform looks like and take action.
“Additionally, the UK government must revise the provisions on restricting rent in advance to better protect vulnerable tenants and allow agents and landlords to process applications and be able to set up tenancies securely.
“Concerns also remain about the viability of pet insurance products and a better solution would be to extend the deposit cap requirements.
“Standards and enforcement are key to these reforms and with new requirements for landlords to have redress, the introduction of a code of practice across existing and new schemes would ensure complaints are adjudicated in the same way and quality of service is more consistent across the sector.”