Letting agents express concerns over the Renters’ Rights Bill

Anxiety over the Renters’ Rights Bill is mounting among property agents as it reaches its Report Stage in the House of Commons this week, Propertymark says.

The professional body found that 50% of agents are concerned about the bill’s potential impact, including increased administrative burdens and broader consequences for the private rented sector.

Beyond the Bill, 12% of agents expressed concerns about upcoming Stamp Duty changes, while 12% are worried about the government’s Energy Performance certificate reforms.

Landlord exits from the market also emerged as a significant concern for 7% of respondents.

‘Concerns that agents still have’

Propertymark’s chief executive, Nathan Emerson, said: “It is vital that as this legislation passes through Parliament that the UK government listens to the many concerns that agents still have about this legislation.

“There are other issues in the private rental sector that the government must concentrate on, such as a shortage of supply and the taxes and regulations that are weighing heavily on landlords.”

He adds: “The government must ensure that it gets its priorities right so that both tenants and landlords can benefit from a stable and affordable private rental market.”

Abolishing fixed-term tenancies

The Renters’ Rights Bill aims to address issues like Section 21 ‘no-fault’ evictions, allowing tenants to keep pets and abolishing fixed-term tenancies.

It also introduces a Decent Homes Standard, a new ombudsman service and a digital private rented sector database.

Timothy Douglas, the head of policy and campaigns at Propertymark, says he has pointed to the potential unintended consequences of the Bill in a submission to the Public Bill Committee.

He highlighted concerns about shrinking supply in the PRS, a huge demand-supply imbalance and the erosion of investor confidence.

Mr Douglas also cautioned against excessive regulation and a ‘one-size-fits-all’ approach to energy efficiency, advocating for the retention of fixed-term tenancies.

Taxes impacting private landlords

Propertymark believes the government must address the costs and taxes impacting private landlords to ensure their continued participation in the rental market.

The body also supports the registration of short-term rentals, as outlined in the Levelling Up and Regeneration Act 2023.

On fixed-term tenancies, Propertymark argues that they provide both landlords and tenants with necessary certainty, particularly within the student lettings market.

The removal of Section 21, Propertymark warns, requires a robust and thoroughly tested alternative to avoid overwhelming the courts system.