Majority of letting agents find the Renters (Reform) Bill unfair

Majority of letting agents find the Renters (Reform) Bill unfair

0:02 AM, 30th January 2024, About 4 months ago

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Letting agents believe the consequences of the Renters (Reform) Bill could significantly harm the private rented sector.  

A Propertymark survey reveals a massive 94% of letting agents believe more landlords will leave the PRS if the bill becomes law.

A further 83% of agents were concerned that the Bill would also result in fewer landlords entering the sector.

Housing crisis for students

According to the Propertymark survey, 73% of letting agents believe the Renters (Reform) Bill is unfair.

Letting agents say the removal of fixed-term tenancies will cause chaos for the PRS, particularly students. A huge 70% of agents agree that student lets should be exempt from the removal of fixed-term tenancies.

Propertymark points out that when Scotland introduced private residential tenancies (PRTs) many student landlords left the sector resulting in a housing crisis for students.

Increase in landlords exiting the sector

Over the past three years, letting agents say they have seen an increase in the number of landlords selling properties or exiting the sector completely.

Almost two-thirds of agents (59%) report they have seen a significant increase in landlords leaving.

According to the Propertymark survey, landlords with smaller portfolios were more likely to leave the PRS (51%) compared to landlords with bigger portfolios (20%)

Retain fixed-term tenancies

Timothy Douglas, head of policy and campaigns at Propertymark said: “The clear view from Propertymark letting agent members highlights the importance of the need for policymakers to retain the option of fixed term tenancy where it is mutually beneficial to both parties.

“Ensure new requirements for landlord redress complement the existing provisions that agents must adhere to, and the legislation is not a missed opportunity to regulate property agents and ensure landlords have confidence through new and strengthened grounds for possession.”

Courts will not resources to deal with evictions

According to the survey 88% of letting agents believe the courts will not have the resources to deal with Section 21 evictions properly.

More than 90% of landlords who responded to the survey said they had experienced delays when taking court action for possession. A further 95% indicated that the period between obtaining an order for possession and enforcement by county court bailiffs took too long

The survey also reveals that 64% of agents agree local authorities will not have the resources they need to enforce the new legislation effectively.

In addition, 43% of agents were concerned that new laws would be difficult for agents, landlords and tenants to understand.

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