Propertymark says the Renters Rights Bill could have severe unintended consequences and further slash the supply of homes in the private rented sector.
Timothy Douglas, Propertymark’s Head of Policy and Campaigns, highlighted the potential unintended consequences of the Bill to a parliamentary committee this week.
Douglas told MPs the measure failed to meet the huge demand for properties, how it could create a ‘one size fits all’ approach towards energy efficiency, and how there would be a further exodus of investors without a review of the taxes and costs they must pay.
Propertymark has advised that one of the unintended consequences is that students and other tenants who prefer to stay in a rental property for a specific period via a fixed-term tenancy would not be able to do so as the government wants to abolish that kind of tenancy.
Propertymark is keen to ensure this option remains so that students have certainty when they start the next academic year.
Additionally, the proposed new laws do not prioritise guaranteeing a greater supply of rental homes to help meet ever-growing demand, an aspect that contributes towards escalating rental prices.
Finally, as it stands, you do not need a qualification to become a letting agent in all parts of the UK (except Scotland), so without a full qualification to ensure letting agents are appropriately qualified within the new proposed legislation, a risk remains to consumers regarding the understanding needed by agents to meet all legal obligations.
Nathan Emerson, chief executive at Propertymark, says: “It is important new legislation affecting housing keeps pace with real world demand and can bring higher standards to the rental sector. Within this mix, all updates to the law must be workable and bring fairness to all parties.
“To ensure the planned changes bring a positive impact, it remains important to ensure that all concerns are listened to and acknowledged. Ultimately, the more all views are considered the better the final version of the proposed new law will serve everyone.
“It is crucial to talk about any unintended consequences as the Bill progresses through Parliament, as changes further down the line may be far more difficult to negate.”
