Plans to reform the private rented sector will be unworkable unless ministers provide clear answers to basic questions.
That is the warning from organisations representing individual landlords, build-to-rent providers and letting agents as the House of Lords prepares to consider the Renters’ Rights Bill again from 1st July.
The Government pledged last year to scrap Section 21 repossessions and to make other changes to the rental market this summer. With the House of Lords preparing to consider the Renters’ Rights Bill again from 1 July, this timetable will now be missed, but a lack of clear answers to basic questions is causing concern among landlords, according to The British Property Federation, the National Residential Landlords Association and The Lettings Industry Council.
In a letter to the Minister in the Lords, Baroness Taylor of Stevenage, the organisations point to a number of outstanding concerns which the Government has failed to address during the Bill’s passage through Parliament.
Despite pledging last year to ensure the courts were “ready” for the impact of the reforms, the government has not explained what this means in practice. In particular, it has not set out what this means for how long the courts will take to consider and process legitimate possession claims. This is a significant source of concern for landlords given the already considerable delays in the system.
The organisations also warn that plans which will make it easier for tenants to challenge above market rent increases at a Tribunal are unworkable. This is because there is currently no reliable single source of data to determine what market rents are in any given area – making it impossible to assess whether a rent increase is above it or not.
In addition, the government has not explained how proposals to make it more difficult for landlords to repossess a property where rent arears are due to delayed benefit payments will work. Private landlords are not allowed to be notified when a tenant is claiming benefits in the first place. This means they will not know if rent arrears are due to benefit payment delays unless and until a possession case goes to court.
The letter raises further concerns that the government has failed to provide the sector with clarity about when it expects changes to rental tenancies to take effect once the Bill receives Royal Assent. This is imperative if there is to be a smooth transition to the new systems and processes.
Ben Beadle, Chief Executive of the National Residential Landlords Association, Melanie Leech, Chief Executive of the British Property Federation and Theresa Wallace, Chair of The Lettings Industry Council, said: “We remain extremely disappointed by the lack of substantive responses to the concerns we have consistently raised with ministers.
“We want the Bill to work in practice and enjoy the confidence of good landlords. However, unless clear answers to the issues we have raised are forthcoming from the government, those very landlords have every reason to be concerned.”
