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Propertymark calls for full assessment of tenancy changes under Renters’ Rights Bill

Propertymark has urged the government to thoroughly assess the impact of removing fixed-term tenancies and restricting advance rent payments under the proposed Renters’ Rights Bill. The organisation warns that such changes could significantly disrupt both the general rental market and the student housing sector.

The Renters’ Rights Bill aims to improve tenant protections, but Propertymark is concerned that the proposed removal of fixed-term tenancies, which offer security for both tenants and landlords, could lead to higher rents and fewer long-term housing options.

Impact on long-term tenancies
Fixed-term tenancies provide tenants with stability and give landlords assurance of rent for a set period. According to Propertymark, this type of tenancy is often requested by individuals such as nurses on temporary contracts, families wanting to stay in one area for school purposes, and overseas workers. Without fixed terms, all tenancies could effectively become short-term lets, which might drive rents higher as landlords turn to short-term markets that offer unregulated, higher returns.

Timothy Douglas, Head of Policy and Campaigns at Propertymark, explains: “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.”

Concerns over the student rental market
The proposed changes are expected to have a significant effect on the student rental market. Currently, many students pay rent termly, using funds from their Student Maintenance Loans. The restriction of rent payments to one month in advance could remove the option for students to pay termly, disrupting their ability to budget. This, along with the removal of fixed-term tenancies, could affect landlords’ willingness to rent to students.

Douglas adds: “To support students, the UK 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.”

Call for an impact assessment
Propertymark has called on the government to conduct and publicly share a full impact assessment of the proposed changes. They also stress the importance of enforcing the registration of short-term rental properties, as outlined in the Levelling-up and Regeneration Act 2023, to prevent landlords from abandoning the long-term rental market for the more lucrative short-let market.

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

 

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