Renters’ Rights Bill: Propertymark raises concerns over fixed-term tenancies

The government must appreciate the potential impact of ending assured shorthold tenancies under the Renters’ Rights Bill for periodic tenancies, Propertymark says.

It warns that not only will the students’ let market be affected, but a fixed-term tenancy provides tenants with security of tenure and landlords with guaranteed rent payments.

This type of tenancy is often preferred by tenants such as nurses working on fixed contracts, international students and families seeking stability due to children’s schooling.

However, if fixed-term tenancies were eliminated, all tenancies would effectively become short-term lets.

This, combined with limited housing supply, could lead to a significant increase in rents for individuals, couples and families seeking long-term homes.

‘Recognise the unintended consequences’

The organisation’s head of policy and campaigns, Timothy Douglas, said: “Property agents recognise that the UK government wants to increase protections and security for tenants, but they must recognise the unintended consequences of the proposals in the Renters’ Rights Bill and not reduce choice and flexibility for tenants.

“To support renters, we want to see fixed-term tenancies retained as an option and request that an impact assessment is done on the government’s plans to remove fixed term tenancies and shared publicly with the sector.”

He added: “The government must enact the registration of short-term rental property requirements as passed in the Levelling-up and Regeneration Act 2023 alongside these reforms to level the playing field for landlords and the long-term rental market.

Impact on the student sector

Propertymark says that the proposed Ground 4A as currently drafted refers to houses in Multiple Occupation which, by definition, is three or more sharers.

The current draft of the Bill limits rent instalments to one month’s rent, which could create challenges for students who rely on termly Student Maintenance Loans.

Mr Douglas says: “To support students, the government must extend Ground 4A to one or more student sharers, move Student Maintenance Loans to monthly instalments and/or, allow rents in advance for student renters and others to keep flexibility and access to housing.”

Landlords would also face increased uncertainty without the security of a fixed rental term beyond the two-month notice period.

This could incentivise them to shift towards the unregulated short-term rental market, which offers higher rental yields.

Share This Article