"Without a sufficient supply of homes, rents will continue to climb and without wide-ranging support, investment in the private rented sector moving forward may be hindered"
- Nathan Emerson - Propertymark
Overall, Propertymark believes change is needed in the sector and supports many of the greater protections that the Renters’ Rights Bill will provide renters with. However, there are specific areas of the proposed legislation that the industry body believes will have wider implications across the sector.
The professional body believes that the Renters’ Rights Bill will be counterproductive if a fair balance is not struck between tenants’ and landlords’ rights. With supply being a crucial issue for the private rental sector, it is essential that legislative change does not drive more landlords to leave the market or deter new entrants from providing much-needed investment and homes to rent.
The Bill went through two amendment stages in the House of Commons called the Report Stage and the Third Reading on 14 January 2025, and will now be scrutinised by the House of Lords on 4 February.
What measures does the Renters’ Rights Bill contain?
Introduced by the UK Government following Labour’s general election win in July 2024, the Renters’ Rights Bill aims to stop perceived ‘bidding wars’ between landlords, end ‘no fault’ evictions by scrapping a controversial measure known as Section 21, let tenants keep pets, and end fixed-term tenancies that are popular among students who tend to rent a property during an academic year.
Other measures include ensuring the private rental sector abides by a Decent Homes Standard and Awaab’s Law, which was brought about due to the death of Awaab Ishak because of a severe respiratory condition.
A fresh ombudsman service for private rented sector landlords will also be created, and crucial information for landlords, tenants, and councils will be retained on a digital private rented sector database.
Finally, an expansion of local authorities’ enforcement powers will happen via enhanced Rent Repayment Orders, making it illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let their property.
The changes needed to make the Bill effective
There are no provisions to boost the supply of new rental properties in the Renters’ Rights Bill. A lack of available rental stock has contributed to driving up rental prices for many, as tenants often find themselves competing to rent the same property. This was illustrated in a recent report by Propertymark which found that there is an average of seven people on a letting agent’s books per available property and that investor confidence is being undermined.
Currently, there are costs and taxes which impact investors and potentially deter them from injecting money into the private rental sector. This in turn hinders long-term supply levels and drives up rental costs. Propertymark has consistently argued that these costs and taxes need revisiting.
Landlords have not been allowed to legally offset the costs of their mortgages against their tax bill since 2015, which is why Propertymark would like this policy amended. This is so that more landlords can be encouraged to invest in the private rental sector, thereby assisting with providing a sufficient level of supply and bringing down rents in the long term.
To improve the UK Government’s proposals and make the private rental sector fairer for all, Propertymark also believes that further reform is needed in the following areas:
Retaining fixed-term options
A tenant should be able to agree to a fixed-term tenancy when it is mutually beneficial for both parties. A fixed term gives landlords and tenants a guarantee as to the length of time the tenancy will last. The tenant has security of tenure for the full tenancy period and the landlord knows that rent payments will be made for the whole fixed-term period.
This is particularly important for student lettings. Timothy Douglas, Head of Policy and Campaigns at Propertymark, warned that the Bill could have unintended consequences for the student market if fixed-term options are scrapped during the Public Bill Committee stage in the House of Commons.
Court reform before Section 21 is abolished
The UK Government acknowledge that court reform is essential. However, proposed reforms will not be implemented before Section 21 is abolished. This will likely mean that courts already having difficulty dealing with the volume of cases cannot function. The UK Government must also provide more details and clarity on how their plan to digitise the court system and improve access to justice.
Allowing more pet-friendly properties
There needs to be detailed guidance on what is meant by ‘unreasonable’ should the property not be suitable for pets. This is particularly important in rural areas where pets near livestock are unsuitable. The UK Government must also enable the level at which deposits are set to be more flexible to reflect the greater risk of renting with pets.
Qualification and regulation of property agents
Introducing minimum standards to work in the sector and statutory rules to ensure letting agents are suitably qualified will ensure parity with the social rented sector, drive up standards and help deliver a fairer private rented sector for tenants and landlords. Letting agents are not required to possess a qualification or demonstrate a working knowledge on any current laws when helping tenants understand the legalities of renting.
“The Renters’ Rights Bill has provisions that would benefit tenants, and it goes some way towards improving living conditions and providing additional protections," explained Nathan Emerson, CEO at Propertymark.
However, he added, "It is important that the private rental market works for all parties involved.
“Without a sufficient supply of homes, rents will continue to climb and without wide-ranging support, investment in the private rented sector moving forward may be hindered. The UK Government must ensure that it prioritises increasing the number of private rented homes so that both tenants and landlords can benefit from a stable and affordable private rental market.”
