Key issues and concerns raised by Propertymark include:
- the removal of fixed-term tenancies
- court capacity
- restrictions on taking rent in advance
- regulation of short term lets
- extending the deposit cap for renting with pets.
It has also asked for a ‘clear roadmap of when the changes will be implemented as well as a full assessment conducted of the resources councils need to regulate the private rented sector effectively.
Unintended consequences
Propertymark said that it recognises that the UK Government’s intention is to protect renters and provide them with greater security.
However, it noted a 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’.
What’s next?
Amendments to the Bill have been tabled by members of the House of Lords that, if accepted, would allow fixed-term tenancies to continue if both the landlord and the tenant agree as well as for student tenancies.
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The Lords have also challenged other parts of the Bill with amendments, including allowing small landlords, who are less likely to have the capacity to fund legal proceedings, to continue to be able to issue Section 21 notices.
Another amendment says that Section 13 of the Bill should require tenants to make an additional pet damage deposit equivalent to the value of 3 weeks’ rent.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Whilst it is in the UK Government’s hands to amend the Renters’ Rights Bill, it is positive to see that members of the House of Lords are listening to the concerns of letting agents and the wider sector.
“It’s good to see that a series of sensible proposed amendments have been brought forward and it’s now vital that the UK Government listen and take action to ensure the Bill strikes a fair balance between not only tenants’ rights but agents and landlords too.”
