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 this 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 plans for the 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.
Shelter demands changes to make Renters Rights Bill tougher
Shelter has outlined a series of changes it wants MPs to make to the Renters Rights Bill when it gets its Second Reading in he Commons, possibly as early as this week.
It broadly welcomes the measures, regarding it as a distinct improvement – for tenants, anyway – over the Conservatives’ Renters Reform Bill.
“[The Bill] can open a new chapter, bring fairness to renting and lay the foundations for private renters to put down roots in their communities” says the campaigning charity in a statement.
However, it outlines four areas where the Bill requires what it calls “improvement”.
These are:
- The introduction of a two-year protected period at the start of tenancies during which what Shelter calls “no fault” evictions are prohibited. It says this would provide renters with longer-term stability and security in their homes, as is the case in countries like Germany and France;
- It wants yearly rent increases limited by the lowest of inflation (measured by the Consumer Price Index) or wage growth (measured as the median wage growth over three years). Shelter says many countries like Germany have similar restrictions as standard;
- Rent-in-advance requests should be limited to a maximum of one month, which would “remove a significant barrier to housing for low-income households and people in receipt of housing benefit”; and
- The Bill should “restrict the scenarios in which a landlord can legitimately request a guarantor” to only those in which a prospective tenant cannot prove that they can afford the rent.
It is possible that the Bill’s Second Reading in the Commons could happen within the next 10 days – evidence of the speed which Labour wants to attach to this flagship measure.
Overall, Shelter welcomes most other provisions, saying “we strongly welcome the measures introduced to give renters greater security, including the immediate abolition of Section 21 ‘no-fault’ evictions, the extension of notice periods to four months, and the introduction of a 12-month no-reletting period.
We are encouraged to see a commitment to tackling discrimination in the private rented sector, through plans that seek to prevent landlords from refusing to let to renters who claim housing benefit or have children without a valid reason. Additionally, if done right, the introduction of a landlord register will provide transparency and accountability in the sector, better enabling enforcement of existing and new standards, which is a positive step forward.”