Industry body warns rental reforms could drive up rents and reduce supply

Propertymark letting agents argue “overly restrictive regulations” will hurt supply and drive up rent prices.

Propertymark members are warning members of the House of Lords that the Renters’ Rights Bill could make it difficult for people to find affordable housing and are urging Lords members to make sure the Bill “is fair and balanced for both landlords and tenants.”

More than 250 letters and emails from Propertymark have been sent to Lords members, urging them to extend the deposit cap for renting with pets and address concerns about the abolition of fixed-term tenancies.

Abolition of Section 21 and deposit caps when renting with pets

The industry body says many members have raised issues around the abolition of Section 21 and the lack of court capacity to deal with possessions.

Propertymark members argue the removal of Section 21 will increase costs for landlords to regain possession of their properties.

The industry body also raises the impact of deposit caps when renting with pets.

According to Propertymark, 57% of landlords and agents are unable to recoup the costs of pet damage.

The industry body has urged the extension of the deposit cap to support the UK government’s amendment to tackle the issue of rent in advance, as well as allow more landlords to meet the additional risk and cost of having pets in the property.

Overly restrictive regulations will reduce the supply of rental homes

Timothy Douglas, head of policy and campaigns at Propertymark, says the government needs to provide a clear map of when the Renters’ Rights Bill will become law.

He said: “There also needs to be 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, with new burdens funding then allocated accordingly.

“Propertymark recognises that 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.”

Key concerns raised in the House of Lords

Despite some House of Lords members introducing amendments which could hurt the private rented sector , many members have put forward proposals that address key concerns.

One of the amendments includes fixed-term tenancies to continue if both the landlord and the tenant agree. The Lords have also challenged the repossession ground 4A that allows landlords to recover possession of an HMO that is let to full-time students with an amendment to remove this requirement and ensure the ground is applicable to non-HMO student accommodation.

Other amendments include still allowing smaller landlords with five or less properties to still issue Section 21 notices and requiring tenants to provide an additional pet damage deposit equivalent to three weeks’ rent under Section 13 of the Bill.

Series of sensible proposed amendments

Mr Douglas praises members of the House of Lords for listening to concerns from landlords and letting agents.

He 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.

“As a professional membership body, we exist to represent our members, and it is great to see so many members engage with our campaigning and contact Peers outlining their knowledge and experience from working in the sector. Change is coming but what’s important is that the legislation is evidence based and fit for purpose.

“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.”

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