Aspects Of The Renters Rights Bill Are Wrong
Propertymark says it’s met with government officials and a minister to press its concerns about aspects of the Renters Rights Bill, which goes for its second reading in the Commons next week.
Officials from the Ministry of Housing, Communities and Local Government (MHCLG) joined Propertymark’s Regional Executives for a forum where member feedback was presented on aspects of the Renters Rights Bill.
A statement from the trade body says it communicated with Housing Minister Matthew Pennycook to reiterate the concerns raised by practising letting agents.
The body says it accepts but wants a more balanced approach between the rights of landlords and tenants.
“A disproportionate focus on the minority of poor practices in the private rented sector (PRS) is leading good landlords to take their properties off the market or leave the sector altogether” says Propertymark.
“Letting agents strongly refute the suggestion that landlord greed is responsible for so-called ‘bidding wars’. The lack of supply of homes to rent leads tenants, who are desperate for somewhere to live, to offer increased rent. The Bill in its current form is highly likely to exacerbate this situation with more landlords withdrawing homes from the PRS, frequently changing them to become short-term lets.”
Propertymark also fears that nothing has yet been done to address long-standing anxieties about the ability of the courts to cope with the increased caseload that will follow the removal of Section 21.
The body says: “The time from claim to hearing continues to rise, with the average wait time for a warrant currently at around 29 weeks, and sometimes as high as 40 weeks in London. Delays in enforcement are also common due to a lack of County Court Bailiffs in many areas.
“Plans to digitalise more court procedures relating to housing possession cases must move ahead as quickly as possible, and mandatory notices for eviction should be integrated into the Possession Claim system. To restore the confidence of the housing sector online platforms for filing evidence should be expanded, more hearings should be conducted remotely, and the duration of hearings should be extended.
“The UK Government must also prioritise improvements to the condition of the court estate, in particular ensuring reliable wi-fi connections, and provide greater support and information on navigating systems and procedures.”
Propertymark is also calling on the Minister to undertake an impact assessment of proposals to remove fixed-term tenancies, as it is not confident that the Government fully understands the issues.
“A fixed term gives the tenant security of tenure whilst guaranteeing rent payments for the landlord. They are requested by tenants including nurses working in hospitals for set periods and families who want to stay in an area because their children are at a local school. One letting agent in Cornwall says they have seen a noticeable rise in requests for 12-month tenancies and a significant increase in 12-month fixed terms in the last two years.
“The complete removal of an initial fixed term will result in every tenancy effectively becoming a short-term let which, with limited supply, will drive up rents for individuals, couples and families looking for a long-term home. In support of renters, Propertymark wants to see fixed-term tenancies retained as an option” concludes the agents’ body.
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