Over 250 letters and emails have been sent to Peers from Propertymark members with a series of so-called ‘sensible amendments’ to the Renters Rights Bill.
This is ahead of the Bill going into the Lords’ Committee Stage in the coming week.
Propertymark has been lobbying throughout the passage of the Bill as well as meeting ministers, MPs, UK government officials and more recently briefing members of the House of Lords.
Key issues and concerns raised by Propertymark include the removal of fixed-term tenancies, court capacity, restrictions on taking rent in advance, regulation of short term lets and extending the deposit cap for renting with pets. There also needs to be a clear roadmap of when the changes will be implemented as well as a full assessment conducted of the resources councils need to regulate the private rented sector effectively, with new burdens funding then allocated accordingly.
A statement from the trade body says it recognises that the UK government’s intention is to protect renters and provide them with greater security.
However, there is a real concern from letting agents that overly restrictive regulations will reduce the supply of rental homes, drive up rent prices and make it even more difficult for people to find affordable housing.
Importantly, amendments have been tabled by members of the House of Lords that if accepted would allow fixed-term tenancies to continue if both the landlord and the tenant agree as well as for student tenancies. The Lords have also challenged the repossession ground 4A that allows landlords to recover possession of an HMO that is let to full-time students with an amendment to remove this requirement and ensure the ground is applicable to non-HMO student accommodation.
Propertymark has continued to express concerns about the proposed removal of Section 21. This includes increased costs for landlords to regain possession of their properties and the lack of court capacity and capability to handle the anticipated spike in future cases, especially as the time taken from claim to hearing continues to rise as it currently stands.
Amendments have also been tabled that would allow small landlords, who are less likely to have the capacity to fund legal proceedings, to continue to be able to issue Section 21 notices. Furthermore, the amendments also state that there should be a requirement for the Minister to explain what steps have been taken to ensure the courts have enough resources to deal with a likely increase in contested hearings as a result of Renters’ Rights Bill.
The impact of deposit caps when renting with pets has also continued to be raised by Propertymark, as it stated that 57% of surveyed landlords and agents are unable to recoup the costs of pet damage. The industry body has urged the extension of the deposit cap to support the UK government’s amendment to tackle the issue of rent in advance as well as allow more landlords to meet the additional risk and cost of having pets in the property. A House of Lords amendment now says that Section 13 of the Bill should require tenants to make an additional pet damage deposit equivalent to the value of three weeks’ rent.
Timothy Douglas, head of policy and campaigns at Propertymark, says: “Whilst it is in the UK government’s hands to amend the Renters’ Rights Bill, it is positive to see that members of the House of Lords are listening to the concerns of letting agents and the wider sector.
“As a professional membership body, we exist to represent our members, and it is great to see so many members engage with our campaigning and contact Peers outlining their knowledge and experience from working in the sector. Change is coming but what’s important is that the legislation is evidence based and fit for purpose.
“It’s good to see that a series of sensible proposed amendments have been brought forward and it’s now vital that the UK Government listen and take action to ensure the Bill strikes a fair balance between not only tenants’ rights but agents and landlords too.”
