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Data commissioned by Propertymark has found that 50% agents are concerned about the forthcoming Renters’ Rights Bill that has now reached Report Stage in the House of Commons.
The Report Stage will take place tomorrow.
Some agents added that they worry once the Renters’ Rights Bill becomes law that it will add more administrative burdens to letting agents, which includes ensuring landlords are aware of these upcoming changes, and the wider impact it will have on the private rental sector in general.
Of the responses, 12% were also concerned about stamp duty changes taking place from April 2025, 12% were worried about the UK Government’s Energy Performance Certificate reforms, and 7% about landlords exiting the market.
Some 3% of agents surveyed were anxious about the each of the following separate categories: the 2024 Autumn Budget; leasehold and commonhold reform; decreases in homebuying and selling; decreases in tenants; and interest rate changes.
Finally, 1% of agents were concerned about each of the remaining separate topics: the upcoming Spring Budget on 26 March 2025; the Planning and Infrastructure Bill; surges in homebuying and selling; and surges in tenants.
Details in the Renters’ Rights Bill include ending perceived ‘bidding wars’ by landlords and agents and consists of measures to stop Section 21 ‘no fault’ evictions with a fresh set of possession grounds.
Tenants will be allowed to retain pets, but landlords will be guarded from any damage inflicted by animals via pet suitable insurance policies for tenants.
Furthermore, fixed-term tenancies will be abolished.
Also, the private rental sector will have to abide by a Decent Homes Standard and Awaab’s Law, which was brought about because of the death of Awaab Ishak because of a severe respiratory condition.
There will be a fresh ombudsman service for private rented sector landlords, and essential information for landlords, tenants, and councils will be kept on a digital private rented sector database.
Finally, an enlargement on local authorities’ enforcement powers will happen via enhanced Rent Repayment Orders, and no discrimination against tenants receiving benefits or with children will be allowed.
Propertymark advocates for raised standards across the housing industry, however, in order for the Bill to be effective, there needs to be industry collaboration, and a fairness for all parties. Timothy Douglas, Head of Policy and Campaigns at Propertymark, presented evidence to the Public Bill Committee that scrutinised the legislation on 22 October 2024, where he stated that there could be unintended consequences because of the Renters’ Rights Bill at a time when supply is shrinking in the private rental sector.
He addressed other concerns about the Bill, like how it fails to meet the significant demand for properties, which is continually evidenced in Propertymark’s Housing Insight Reports, more recently finding that there are around seven people on a letting agents’ books per available property, and that investor confidence is being undermined.
Douglas also warned against more regulation being added because of the Bill, as well as a ‘one size fits all’ approach to energy efficiency and said that fixed-term tenancies should be retained.
The UK government’s proposals must examine the costs and taxes impacting private landlords to guarantee they stay in the rental market and can meet increasing demand for rental properties, according to Propertymark.
The professional body believes the UK government must also implement the registration of short-term rental property requirements as passed in the Levelling Up and Regeneration Act 2023 to equal the playing field for landlords.
Fixed-term tenancies must be kept so that landlords can have confidence about their overheads within a fixed period, and so that tenants can have security for a mutually agreed period, Propertymark said. This is because the removal of fixed term tenure has huge potential for unintended consequences within the student lettings market as students only look to rent properties for a short time during the academic year.
Ground 4A, which allows landlords to regain possession of their properties within a certain timeframe to prepare them for the next academic year, must be extended to one or more student sharers by the UK government, and they must introduce monthly instalments of Student Maintenance Loans and approve of rents in advance for student renters and others to keep access to appropriate housing.
The removal of Section 21 will overwhelm the current courts system, Propertymark argues, so it must be replaced with a working alternative that has been tested beforehand.
Mandatory grounds such as breach of contract, ongoing late payments of rent, gaining a tenancy via false documentation, damage over the amount of the deposit, and a tenant stopping entrance to a property, should be introduced under the UK Government’s plans to end Section 21 and reform Section 8, the professional body stressed.
By introducing minimum standards to work in the property sector, this will improve standards in the private rented sector and ensure parity with property managers in the social rented sector, Propertymark claims.
Some 72% of Propertymark’s landlord members are worried about the end of Section 21, 69% are concerned about the end of fixed term tenancies, and 62% are concerned about the end of rent review clauses.
Nathan Emerson, CEO at Propertymark and Timothy Douglas, head of policy and campaigns at Propertymark, jointly said in a statement: “It is vital that as this legislation passes through Parliament that the UK government listens to the many concerns that agents still have about this legislation in the new year.
“There are other issues in the private rental sector that the UK government must concentrate on, such as a shortage of supply and the taxes and regulations that are weighing heavily on landlords. The UK government must ensure that it gets its priorities right so that both tenants and landlords can benefit from a stable and affordable private rental market.”
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