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Category: government and politics
The national body for estate agents, Propertymark, has issued warnings to the Labour government about the current state of the Renters’ Rights Bill (RRB). They have called for care to be taken in evening the playing field for both landlords and tenants.
Nathan Emerson, CEO of Propertymark, said in a statement:
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.
Following the latest parliamentary debate over the Second Reading of the RRB, Propertymark have been just one of many organisations expressing concerns about the bill.
Others have zeroed in on the issue of the RRB’s implementation, and the role property agents will play in maintaining the sector, while the charges are occurring. These matters were not given as much focus in the Commons debate.
Isobel Thomson, chief executive of Safeagent, also commented:
The second Reading of the Renters’ Rights Bill saw the Government restate the content of the Bill but with no further detail on how it would be delivered or the impact it might have on the market.
We welcome the acknowledgement from both sides of the House that enforcement is a key part of the delivery of safe and secure housing. However, we need it to be effective now and that is not happening, so how can we trust that the delivery of this Bill will change anything?
As always, professional agents will perform their vital role in supporting the sector and ensuring their tenants and landlords understand their responsibilities so that tenancies are safe and secure.
Déjà vu
During the recent RRB debate, Shadow Secretary of State for Housing Kemi Badenoch used the exact phrase “unintended consequences” when referring to the RRB during the Second Reading of the bill.
In that instance, she warned Deputy Prime Minister Angela Rayner directly that she could face the brunt of the blame if the bill fails.
The Conservatives’ predecessor bill, the Renters (Reform) Bill, included many similar policies. However, it was in an incomplete state by the time that the Conservatives were ousted from government earlier this year, meaning it could not be brought into law.
Badenoch freely admitted during the recent debate that the Renters (Reform) Bill was unworkable and warned that the Renters’ Rights Bill may make many of the same mistakes. She went so far as to say that it would “break the rental market.”
Among some landlords and other Private Rented Sector (PRS) figures, there is a general sentiment surrounding the RRB that, as much as the government claim otherwise, the new reforms could be hostile and damaging towards landlords’ livelihoods.
Section 21 ban still on the agenda
Arguably most worrying for PRS landlords is the abolition of Section 21. Throughout the Second Reading, Rayner reaffirmed the government’s commitment to banning no-fault evictions, which was met with widespread support from other Labour MPs – and scepticism from Conservatives; Badenoch chief among them.
The fear for some economists is that removing landlords’ autonomy over their own properties may stop them from continuing to invest in the PRS.
As the RRB is quite far from being finalised, time will tell how Labour’s position on Section 21 and other issues may shift, following further feedback from the House of Commons and later the House of Lords.
