New Renters' Rights Bill

New Renters' Rights Bill

As memember of Propertymark, Oaktree (West London) Ltd is supporting any steps Propertymark is taking to amend the new Renters' Right Bill.

Propertymark ensures Minister hears member concerns on Renters' Rights Bill

Officials from the Ministry of Housing, Communities and Local Government (MHCLG) joined Propertymark’s Regional Executives for a forum on 25 September, where member feedback was presented on plans for the Bill.
After the guide to the Bill, released on 26 September, we communicated with Housing Minister Matthew Pennycook, MP, to reiterate the concerns raised by practising letting agents.

Anti-landlord rhetoric is unjustified

A disproportionate focus on the minority of poor practices in the private rented sector (PRS) is leading good landlords to take their properties off the market or leave the sector altogether. Our Housing Insight Report for July shows that there were eight registrations for each available property on average, with new instructions reducing.
Letting agents strongly refute the suggestion that landlord greed is responsible for so-called ‘bidding wars’. The lack of supply of homes to rent leads tenants, who are desperate for somewhere to live, to offer increased rent. The Bill in its current form is highly likely to exacerbate this situation with more landlords withdrawing homes from the PRS, frequently changing them to become short-term lets.

Court capacity remains inadequate

Nothing has yet been done to address long-standing anxieties about the ability of the courts to cope with the increased caseload that will follow the removal of Section 21. The time from claim to hearing continues to rise, with the average wait time for a warrant currently at around 29 weeks, and sometimes as high as 40 weeks in London. Delays in enforcement are also common due to a lack of County Court Bailiffs in many areas.
Plans to digitalise more court procedures relating to housing possession cases must move ahead as quickly as possible, and mandatory notices for eviction should be integrated into the Possession Claim system. To restore the confidence of the housing sector online platforms for filing evidence should be expanded, more hearings should be conducted remotely, and the duration of hearings should be extended.
The UK Government must also prioritise improvements to the condition of the court estate, in particular ensuring reliable wi-fi connections, and provide greater support and information on navigating systems and procedures.

Fixed-terms benefit all parties

We are calling on the Minister to undertake an impact assessment of proposals to remove fixed-term tenancies, as we are not confident that the UK Government fully understands the issues.
A fixed term gives the tenant security of tenure whilst guaranteeing rent payments for the landlord. They are requested by tenants including nurses working in hospitals for set periods and families who want to stay in an area because their children are at a local school. One letting agent in Cornwall says they have seen a noticeable rise in requests for 12-month tenancies and a significant increase in 12-month fixed terms in the last two years.
The complete removal of an initial fixed term will result in every tenancy effectively becoming a short-term let which, with limited supply, will drive up rents for individuals, couples and families looking for a long-term home. In support of renters, Propertymark wants to see fixed-term tenancies retained as an option.

Young and vulnerable renters will be most affected

The loss of the ability to pay rent upfront will create disadvantages for students, older people on fixed incomes, and the self-employed.
For students, property managers typically align rent instalments with the release of termly Maintenance Loans, so students in England are more likely to face cash flow and budgeting pressures if forced to stick to monthly payments.
People who will be impacted by stringent reference checks, such as pensioners, international students without UK guarantors, and self-employed workers, will also be prevented from paying rent upfront and will struggle to secure a rented home.

Tax regime failing to support housing providers

In recent years, landlords have seen higher stamp duty rates on buy-to-let properties, the withdrawal of tax relief on mortgage interest costs, the removal of the 10% Wear and Tear Allowance for fully furnished properties, and Capital Gains Tax maintained at higher rates for residential investment property.
MHCLG must recognise the financial implications of this legislation and wider government decisions and the impact it has on the supply of homes to rent. One member agent operating across the West Midlands has seen a loss of nearly 350 rented homes since the start of 2024.
Propertymark continues to call for a review of all costs and taxes impacting private landlords to ensure existing property owners can continue in the market and new investment is attracted to meet the demand for homes to rent.