Ahead of the second reading of the Renters’ Rights Bill, which will be debated by MPs later today, both Propertymark and the National Residential Landlords Association (NRLA) are calling for improvements to be made to the proposed new legislation.
The Bill intends to introduce a range of new requirements with a view to further protecting tenants in private rented homes. But more needs to be done to ensure the changes appeal to both landlords and tenants.
Chris Norris, policy & campaigns director for the NRLA, said: “The changes MPs will debate are the biggest shake up of the rental market for over 30 years. The proposed reforms need to secure the confidence of both tenants and responsible landlords if they are to work.
“Whilst the Bill should ensure that every tenant can live securely in decent housing, it should also avoid throwing the baby out with the bathwater.
“Private tenants are more likely to be happy with the housing services provided to them than all other tenures, with 82 per cent reporting satisfaction with their accommodation. The reality is that the vast majority of tenants already have a good relationship with their landlord. This should be the norm for everyone in the sector.
“Most importantly, with an average of 21 tenants now competing for every available home to rent, the Bill must not worsen an already chronic shortage of homes in the sector. All this would do is weaken tenants’ purchasing power, making it more difficult for them to hold rogue and criminal landlords to account as a result.”
Propertymark supports tenants having rights to challenge rogue landlords, however it also believes that there are areas of this Bill that can be improved.
For example, when you rent a property, it is not compulsory for there to be an inventory or a list of the contents and conditions of the property to be included in the written tenancy agreement you sign with your landlord or agent. This means there is no way of ensuring that a property is in the same condition as when the tenant moved into it, thereby providing no reassurances for both the landlord/agent and tenant. By making this compulsory, both parties are safe throughout an agreed tenancy.
Another provision of the Renters’ Rights Bill is to abolish fixed-term tenancies, which means you can only rent a property for a fixed amount of time as agreed between you and the agent or landlord. Whilst this type of tenancy may not suit all renters, it benefits others, such as students, who normally reside in a property for only one year. Therefore, Propertymark has argued that this type of tenancy should be protected so that those who benefit from fixed-term tenancies can continue to do so.
Also, with so much legislation being enacted by successive governments, letting agents are still not qualified to possess the right knowledge on any existing laws when helping tenants navigate through the legal complexities of renting. That is why Propertymark is arguing that the UK Government must ensure they are appropriately qualified while letting properties.
Finally, with so many taxes being imposed on landlords, as well as rising mortgage costs, some have no other option than to raise rents just to break even on their costs. For example, since 2015, landlords can no longer legally offset the costs of their mortgages against their tax bill. Propertymark would like this changed so that more landlords can be encouraged to invest in the private rental sector, thereby guaranteeing a sufficient level of supply, and bringing down rents in the long-term.
Nathan Emerson, CEO at Propertymark, commented: “Legislation must be balanced when it comes to protecting the rights of both tenants and landlords, something Propertymark has long argued for. However, there must be a workable system implemented that delivers fairness for everyone.
“Tenants should be confident they have a stable and secure home, and landlords must be able to gain possession of their properties from disruptive tenants via adequate means. Propertymark will continue to make its argument to the UK Government as they attempt to legislate their Renters’ Rights Bill.”
Renters’ Rights Bill returns to parliament today – here’s what you need to know
