Private rented sector reform will be unworkable unless the Government provides clarity.

That’s the warning from The Lettings Industry Council ahead of the Lords debating the Renters Rights Bill on July 1.

TLIC chair Theresa Wallace, in a letter to the Minister in the Lords, Baroness Taylor of Stevenage, points to 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.

Wallace says: “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.”

Wallace wrote the latter in tandem with The British Property Federation and the National Residential Landlords Association.

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