Over the last decade, the English private rented sector has been subject to several legislative changes, including the introduction of a 3% stamp duty supplement on second homes and buy-to-let properties, the introduction of minimum energy efficiency standards and a ban on tenant fees amongst other changes.
Many of these issues have impacted the viability of prospective or current landlords continuing in their investments, and with the prospect of further updates in law via the Renters’ Rights Bill, the consensus across the sector is that this trend is set to continue. Therefore, it’s believed there will be further deterioration in the number of available rental properties in the system which has the potential to raise rents even more.
Whilst Propertymark agrees that reform is needed to irradicate any rogue landlords from the market, it has also made clear that by not taking a balanced approach and by over-regulating an already pressured market, renters will likely face even fewer housing options and ultimately end up paying more rent in the future.
Propertymark members continue to highlight the ever-widening disparity in the number of homes available to rent when compared to growing demand. Propertymark’s Housing Insight Report found that an average of ten new registered applicants were on agents’ books competing for each available property.
Introductions as part of the new Renters’ Rights Bill include ending ‘no fault’ evictions, making it simpler for children and pets to reside in privately rented properties, ensuring the private rental sector is protected by a Decent Homes Standard, extending Awaab’s Law to the private rental market and ending fixed term tenancies.
Not only does the industry body highlight the issue of continued undersupply and the effect this has on rising rents, but various other unintended consequences too. These include the ramifications of ending fixed-term tenancies – especially for students, courts not having the correct infrastructure in place to deal the anticipated influx that will be seen once Section 21 is abolished. There is also concern regarding the lack of clarity on the UK Government’s plan and timeline to digitalise the court system and the effects this could also have.
Propertymark is keen to see standards universally enhanced across the board within the housing sector and continues to call on the UK Government to introduce statutory rules to ensure letting agents are suitably qualified which will ensure parity with the social rented sector, help drive up overall standards and deliver a fairer and more robust marketplace for tenants and landlords.
Nathan Emerson, CEO at Propertymark, said: “Legislation must be balanced when it comes to protecting the rights of both tenants and landlords, something Propertymark has long argued for. However, there must be a workable system implemented that delivers fairness for everyone. Tenants should be confident they have a stable and secure home, and landlords must be able to gain possession of their properties from disruptive tenants via adequate means.
“If this legislation is not carefully implemented it has the potential to cause long-term issues that might be extremely difficult to undo. Propertymark will continue to make its argument to the UK government for fairness within any new legislation, as the Renters’ Rights Bill moves closer to becoming law.”
