The Renters’ Rights Bill legislation that prohibits ‘bidding wars’ could have an adverse effect on the market, Goodlord chief executive William Reeve has warned.
Reeve said an unintended consequence would be for landlords to ‘overprice’ their properties due to the expectation that they will be negotiated down.
He added there was a similar scheme in New Zealand that was ultimately scrapped due to this effect.
Reeve was speaking at a gathering of industry leaders hosted by lettings platform Goodlord, which featured NRLA chief executive Ben Beadle, Propertymark chief executive Nathan Emerson, the British Property Federation’s director of policy Ian Fletcher, and Lord Best, a crossbench peer focused on housing.
A range of attendees raised concerns about the courts, owing to the upcoming Section 21 ban. Fletcher commented that the issue will “come back to bite”.
Beadle from the NRLA raised concerns about how the end of payments up-front could have unintended consequences for renters on the margins, removing a lifeline for those who don’t meet referencing thresholds on paper but need to rent in the private sector.
Lord Best indicated that there was appetite in the House of Lords to address key concerns through amendments, such as the issues around fixed-term tenancies and the student lets market.
He reassured that there won’t be a landlord exodus, though he believes the market is moving in a director of landlords with larger portfolios.
Attendees praised the upgrades being made to the Decent Homes Standard, the additional flexibility being afforded to tenants, and expressed hope that a well-run Ombudsman will push unscrupulous landlords out of the market.
Goodlord CEO Reeve also emphasized that a more detailed property register, incorporating elements like the Unique Property Reference Number (UPRN), would streamline compliance and improve transparency. He noted that such a system would benefit both landlords and tenants by facilitating the tracking of key safety and legal information.