As the Renters’ Rights Bill approaches its Report Stage on 14 January 2025, property agents and landlords are raising alarms about its potential unintended consequences. A recent survey commissioned by Propertymark, a leading professional body for the housing industry, revealed that 50% of property agents are worried about the bill’s impact, with many fearing an increase in administrative burdens and a strain on the private rental sector.
Timothy Douglas, Head of Policy and Campaigns at Propertymark, who presented evidence to the Public Bill Committee in October 2024, warned: “There could be unintended consequences because of the Renters’ Rights Bill at a time when supply is shrinking in the private rental sector. The proposals fail to address significant demand for properties, undermining investor confidence and threatening the stability of the sector.”
Proposed changes spark debate
The Renters’ Rights Bill seeks to implement sweeping reforms, including:
- Ending Section 21 ‘no fault’ evictions and introducing revised possession grounds under Section 8.
- Prohibiting discrimination against tenants on benefits or those with children.
- Allowing tenants to keep pets, with landlords protected through tenant insurance.
- Requiring compliance with the Decent Homes Standard and enforcing Awaab’s Law, introduced following the tragic death of Awaab Ishak due to mould-related respiratory issues.
- Creating a new digital database for essential information about landlords and tenants.
However, Propertymark has expressed concerns about several measures. For example, abolishing fixed-term tenancies could destabilise the student lettings market, where short-term rental agreements are essential. Douglas noted: “Fixed-term tenancies must be retained to give landlords confidence over overheads and tenants security during a mutually agreed period. Without this, unintended consequences are likely, particularly in the student rental market.”
Propertymark also urged the government to develop a working alternative to Section 21 that has been thoroughly tested. They recommended introducing mandatory grounds for possession under Section 8, such as repeated late rent payments, damage exceeding the deposit amount, and tenants refusing property access.
Balancing tenant rights with landlord needs
Nathan Emerson, CEO of Propertymark, emphasised the importance of finding balance in the legislation. “It is vital that as this legislation passes through Parliament, the UK Government listens to the many concerns agents and landlords still have. There are other pressing issues, such as the shortage of supply and the taxes and regulations weighing heavily on landlords.”
The survey highlighted the following additional concerns among property agents:
- 72% of Propertymark landlord members worry about the end of Section 21.
- 69% are concerned about the removal of fixed-term tenancies.
- 62% expressed concerns over the abolition of rent review clauses.
Douglas also stressed the need for tailored energy efficiency standards, cautioning against a one-size-fits-all approach. He added, “The government must also implement regulations for short-term rental properties to level the playing field for landlords operating in the private rental sector.”
A call for collaboration
As landlords and property agents prepare for the transition, Propertymark is working to provide resources and guidance to help navigate the changes. Emerson concluded: “The government must ensure its priorities align with creating a stable and affordable private rental market that benefits both tenants and landlords.”
The outcome of this legislation will have far-reaching implications for the private rental sector. While tenant protections are vital, policymakers must also safeguard the interests of landlords to maintain housing supply and affordability. Could a more collaborative approach between landlords, agents, and the government pave the way for a fairer and more sustainable rental market? The coming months will be critical in determining the answer.
