MPs urged to bring confidence to landlords with Renters (Reform) Bill’s second reading

The slow progress of the Renters (Reform) Bill has created confusion and made landlords worry about the prospects of the private rented sector (PRS) but MPs can bring some confidence, one organisation hopes.

The Bill was first unveiled in the Conservative’s 2019 election manifesto and a second reading of the Bill will be on Monday (23rd October).

News that Prime Minister Rishi Sunak has pushed for the Bill to be read surprised many since it wasn’t on Parliament’s timetable at all until this week.

Now, landlords will have wait to hear what is said on Monday and then the King’s Speech on 7 November will reveal whether the Renter’s (Reform) Bill has made it onto the Government’s legislation schedule.

The Bill must instil confidence in landlords

The National Residential Landlords Association (NRLA) says that the Bill must instil confidence in landlords who are worried about their futures.

The organisation’s chief executive, Ben Beadle, said: “The uncertainty over whether the Bill will proceed or not has made it difficult for landlords and renters to plan for the future.

“As they consider the Bill, MPs and Peers will need to make sure it secures the confidence of responsible landlords every bit as much as tenants.

“Should the Bill fail to secure the confidence of landlords, the shortage of homes will only worsen, ultimately hurting renters.”

‘Problems with the courts are addressed’

He added: “It is crucial that problems with the courts are addressed alongside the Bill progressing through Parliament.

“As the cross-party Housing Select Committee has warned, an unreformed court system risks undermining the Government’s planned changes to the sector.

“Ministers have pledged to guarantee improvements to the court system, and we will continue to work with them to ensure this happens.”

Concerns among letting agents and landlords

And last month’s State of the Industry report from Goodlord and Vouch has also highlighted concerns among letting agents and landlords.

It revealed that are feeling pessimistic about the introduction of the new rules:

• 25% are feeling ‘very’ pessimistic
• 29% are feeling ‘somewhat pessimistic’ (54% in total).
• Just 14% of landlords are feeling optimistic.

However, letting agents are more mixed:

• 43% feel either somewhat or very pessimistic about the Bill.
• 29% of agents are feeling optimistic about the changes.

Abolition of Section 21 ‘no-fault’ evictions

When asked about the scrapping of Section 21 in 2022, 71% of landlords believed the abolition of Section 21 ‘no-fault’ evictions would have a negative impact.

That year, that has dropped to 62%.

At the same time, the number of landlords feeling neutral about the change has risen from 12% to 29%.

In contrast, letting agents appear to have lost optimism over the course of the year since 27% of agents in 2022 believed the abolition of Section 21 would have a positive impact.

That figure has now dropped to just 11%.

‘Concern about this Bill amongst industry stakeholders’

Oli Sherlock, a director at Goodlord, said: “There remains a lot of concern about this Bill amongst industry stakeholders, but four years of uncertainty around whether it would ever come into law hasn’t helped tenants, landlords or letting agents.

“If we do indeed see a second reading on Monday, it seems more likely than ever that the Renters (Reform) Bill will finally come into force.

“However, it will be interesting to see the level of challenge from MPs given recent reports.”

He added: “Landlords and agents who haven’t yet prepared for the changes must follow progress closely and act quickly, so they aren’t on the wrong side of the new regulations when they arrive.

“Likewise, the Government should continue to explore ways to support all sides of the rental market, which is currently struggling against a rising tide of pressures.”

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