What does the Second Reading of the Renters’ Rights Bill mean for Renters?
As the Renters’ Rights Bill continues to make its way through Parliament, Propertymark, the UK’s leading professional body for estate and letting agents, has stressed that while it too believes that reform is needed to enhance the standards provided in the private rented sector, there needs to be a fair and balanced approach between landlord and tenant rights as the new legislation poses critical unintended consequences.
The Bill contains provisions to end Section 21 ‘no fault’ evictions with new and expanded possession grounds and intends to end perceived ‘bidding wars’ on properties via new measures. There will also be new rights for tenants to keep pets while ensuring landlords are protected via pet insurance. A Decent Homes Standard will be introduced, and in addition Awaab’s Law will be introduced to the private rented sector which will help ensure robust protections against issues such as damp and mould.
Crucial information for landlords, tenants, and councils will be retained on a digital private rented sector database, and there will be a new ombudsman service for private rented sector landlords.
Landlords will not be able to discriminate against tenants in receipt of benefits or with children, and local authorities’ enforcement powers will be enhanced via expanded Rent Repayment Orders.
The professional body will continue to argue for a flexible and fairer private rented sector for tenants and landlords via evidence-based insight. There must also be a promise by the UK Government to guarantee that the court system and grounds for possession are fit for purpose, alongside local councils possessing the resources to enforce the provisions of this proposed law.
The professional body also stressed that without court reform, the abolition of Section 21 could lead to the courts being overwhelmed by cases. There needs to be an appropriate mechanism in place for landlords to regain possession of their properties.
Propertymark is keen to retain the prospect of fixed term tenancies to help ensure tenants and landlords have security on how long a tenancy will last.
Another position Propertymark is pushing for is for specific guidance on what is referred to as ‘unreasonable’ should a property not be appropriate for pets and that deposits should be set at a more flexible level to reflect the increased risks of renting with pets.
Finally, they argue that it is vital that property agents are qualified before letting properties so that they can possess the legal knowledge to guide tenants and landlords through any complex changes to legislation that impacts the private rental sector. This will help make the Decent Homes Standard the UK Government intends to introduce a reality.
Nathen Emerson, CEO of Propertymark comments:
“The Renters’ Rights Bill represents a seismic change in legislation for those who choose to rent their homes and the near 2.8m landlords who provide properties within the private rented sector across the UK.
“As with all new laws, they must bring positive change and balanced outcomes for all parties involved. It is also crucial any amended laws are formulated in a way that encourages future investment, especially as we are seeing the overall population continue to grow at a rapid pace which is currently outstripping housing supply.
“In addition, there must be full provision to ensure new laws that affect renting homes are fully measurable in terms of effectiveness, take advantage of digitalisation and ultimately drive meaningful progression by delivering higher standards.”