"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."
- Timothy Douglas - Propertymark
Peers must take the opportunity to push back against overly restrictive regulations that will reduce the supply of rental homes, drive up rent prices and make it even more difficult for people to find affordable housing, according to professional body, Propertymark.
In the House of Commons, amendments were tabled by the UK Government including a limit on how much rent a landlord can request in advance with Housing Minister Matthew Pennycook MP, maintaining that the Bill provides more protections for landlords and their properties.
Following engagement with MPs from Propertymark, many issues were raised at the Third Reading in the Commons but questions remain unanswered, particularly around the regulation of short-term lets how the UK Government intends to manage increased demand on the courts and what additional resourcing it will put in place to deal with existing backlogs.
Another area is how student landlords with properties that are not Houses in Multiple Occupation can offer tenancies with security given through the altered eviction grounds. The removal of fixed-term tenancies and stricter rent-in-advance requirements will further exacerbate access to private rented property for students.
Concerns also remain about the capacity and resources of local councils to enforce the new regime in addition to clarity on when the legislation will be implemented. Without a clear roadmap of when the changes will come into force, there is still huge uncertainty for letting agents, landlords and tenants.
“Propertymark recognises the UK Government’s intention is to protect renters and provide them with greater security," commented Timothy Douglas, Propertymark's Head of Policy and Campaigns.
However, he added, "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, " he explained.
“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.
Douglas concluded, “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.”
