Renters’ reform risks shrinking the PRS even further, says Propertymark

Renters’ reform risks shrinking the PRS even further, says Propertymark

8:10 AM, 31st August 2022, About a month ago 4

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Propertymark has revealed that it has warned the Levelling Up, Housing and Communities Committee that England’s private rental sector (PRS) will shrink further if current plans for reform are carried out.

The organisation has submitted written evidence to the committee because it has opened an inquiry into the UK Government’s plans to reform the PRS.

The committee’s questions focus on the likely impact that the proposals set out in the ‘A Fairer Private Rented Sector’ White Paper and other recent announcements from the government.

The inquiry wants to know whether the proposals strike the right balance between landlords’ and tenants’ interests – and whether they will result in a ‘fairer’ private rented sector and if supply will be affected.

‘Landlords often form their view of the housing market’

Timothy Douglas, the head of policy and campaigns at Propertymark, said: “Letting agents and landlords often form their view of the housing market and the longevity of the sector based on sentiment and certainty.

“There are elements of the proposed reform that if progressed will create further risk and our member agents say they have seen enough to convince some of their landlords to sell up or indicate an intention to.

“Our research shows many properties sold off by landlords are not returning to the rental market.”

He added: “If landlords reject the changes and no longer want to make their properties available for rent, there is a danger the private rented sector will become smaller and even more expensive.

“The knock-on effect will see local authorities under unmanageable pressure to help many households secure a suitable alternative against a backdrop of significant under-supply of affordable homes to rent.”

Propertymark’s submission to the committee

The key points in Propertymark’s submission to the Levelling Up, Housing and Communities Committee include:

·         Impact on supply

Fewer homes may be available to renters if reform of the private rented sector does not equally consider the rights and needs of letting agents and their landlords with those of tenants.

Propertymark says its member agents are already reporting their landlords selling up or considering doing so since the proposals within the White Paper were published in June.

·         Removal of fixed-term tenancies

Concern exists around the lack of long-term security for property owners who make them available for rent because of plans to move away from fixed-term tenancies.

Furthermore, the government’s proposals to move to periodic tenancies will not work in the student market and will likely reduce the supply of student homes in the general PRS.

·         Revised grounds

Propertymark welcomes the government’s commitment not to introduce rent controls but questions the robustness of revised grounds for possession.

It says without Section 21 there needs to be an equal balance between tenant protections and the ability of the landlords and Propertymark’s member agents to take possession of their properties in reasonable circumstances.

More consideration needs to be given to how workable grounds relating to anti-social behaviour will be. Landlords currently rely on serving a Section 21 in these situations as the other existing grounds require a tenant to be convicted, which is not always likely.

·         Court processes

Propertymark also calls for changes to the court process to speed up possessions, and for a full pilot of the removal of Section 21, mediation, and the new court process to measure the impact before they are rolled out across the country.



Comments

John MacAlevey

10:33 AM, 31st August 2022, About a month ago

My email to Truss/Sunak & Jones..the housing minister supposedly.

`I bought my business (lettings & property management) October 1988 & have traded successfully ever since.
I give you my honest opinion that if HMG doesn’t change its stance on attacking the PRS & its hardworking & decent landlords, the PRS will cease to exist within 12/18 months.
This year I`ve lost seven long term landlords with moderate portfolios selling up as the PRS is uneconomic & blighted with bureaucracy.
I suspect that this maybe what HMG want as there is big corporation creep into the sector.
The current housing situation is desperate & has been for many years. I now get five or six calls per week from health professionals about to arrive in Leeds to take up important posts, but they simply cannot find property to rent.
My company hasn’t had anything to offer for 9 months, this is unheard of in previous years. The signs are staring you in the face.`

They`re not interested in housing.

Ros poldermans

11:30 AM, 31st August 2022, About a month ago

Reply to the comment left by John MacAlevey at 31/08/2022 - 10:33
I am a landlord of 8 properties I don't have any protection of bad tenants
The government isn't helping

LordOf TheManor

13:42 PM, 31st August 2022, About a month ago

This government has a quaint view that housing stock is housing stock, irrespective of ownership.

Their attitute is: so what if private landlords go bust having to pay 10 months+ mortgage whilst trying to evict a tenant? The government doesn't care.

The house is still there, it's just owned by someone else.

Binks

12:53 PM, 1st September 2022, About a month ago

ASTs of minimum 6-month duration are actually required by mortgage companies, building insurers and rental insurance companies.
With regard to removal of fixed term tenancies even for an initial period - there’s also a real danger this will get misused in central town locations or anywhere where short contract work is abundant. Why pay 50% more for a short let when one can move into a long term one, give notice straight away claiming changed circumstances and stay somewhere for a month while the landlord is stuck with costs of new tenant search.

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